steve392

Do dealers ever wipe away over mileage fee's when returning a lease? Im way over my mileage due to my divorce and driving further to work and picking up my kid from school and having to shuttle him back and forth to his mothers. I was hoping to get into a left over 2017 f150 but my mileage is high and the local dealer won't budge one bit the fee. Is there anything that one can do or am i pretty much s.o.l?

chimmike

nope, they probably don't budge, you signed on the dotted line and knew the over mileage fees back then. Maybe you'll find a good dealer elsewhere who would?

Ricktwuhk

Nope.

atwowheelguy

Bankruptcy.

https://www.bondnbotes.com/2016/05/0...in-bankruptcy/

oldguy1946

When I leased back in the 80s you could buy it for the residual amount in your contract and not have to pay the mileage overage fee. You could advertise it for sale for the residual amount and sell it with the transaction being performed at the dealership. This in effect is the same as turning it in with no mileage overages as far as they are concerned because they don't take a loss from the higher mileage.

Brand

The over mileage fees are completely avoidable just by staying within the allotment of miles that you agreed to when you signed the contract.

acdii

You should be able to buy it out still, but to avoid them, Don't Lease!

BlacKnBack

You have two choices.....

You can either buy it out or you can trade it in at another dealership.

I lease, but I always plan on buying the truck out. It's not a bad deal if you negotiate a low payment at lease conception.


I'm sure the OP appreciates your hindsight. Very helpful post.

5.0GN tow

If you trade before lease end worst case will be payout of lease payments usually.

Wiggum

You have to realize how a lease works to understand your options.

1. by signing the lease, you agreed to pay over-mileage fees, so there's nothing there to do about it unless the dealer decides to be "nice" to you.

2. The crux of a lease is, they evaluate what the value of the vehicle will be when you turn it back in at the end of the lease. This value is the combination of time you have it + miles you put on it. That's why over-mileage fees are applied ... they de-value the vehicle more than what was anticipated at the time of signing the lease.

3. The amount you pay for your lease is the difference between the negotiated "sale" price and what the anticipated value of the vehicle will be when you turn it in at the end of the lease. This value of the vehicle when you turn it in is what they call the "residual value".

Now ... here's where IF you have a good dealer, you may have some room to negotiate with them. Let's say the residual on your vehicle is $25K when you turn it in at the end of the lease. Let's also say that if you turned it in with the exact max mileage on your lease, it was worth $33K if you valued it the same way other similar vehicles are priced for sale as "used" vehicles. If you just turn it in with no over-mileage, the dealer will be able to sell it for roughly $33K, not the $25K residual. When you factor that it does cost the dealer something to take the truck back, prepare it for re-sale, and put it on the lot ... it may still be about a $6K pick-up for the dealer if they sell it for $33K.

Now, consider that your over-mileage reduced it from a "used car price" of $33K to maybe $30K ... the dealer would still make money on the re-sale of the truck since the difference between your residual and the actual re-sale value is $5K.

So, if you have a "nice" dealer that you buy your vehicles from, and they want to keep your business, then they may very well negotiate with you.

Your best bet, however, was mentioned above already. If you buy the vehicle at the end of the lease, all you pay is the residual. Sine the vehicle may be worth $33K, but has a residual of only $35K, YOU have the chance to pick up almost $8K when you re-sell the truck. AND ... if you do an "in and out" with the truck when you bring it in, and buy (or lease) a new truck at the same time, you can avoid the taxes on the sale of the truck.

You need to do a little more research on all your options and see how the numbers work out for you, THEN you can make an informed decision. Also, talk to the dealer who you leased from and find out if they are willing to discuss a discount on the over-mileage. You may find out right away that they never do that, period. That makes it easier for you to consider your options, since that option is out the window from the get-go.