H3 Leasing question

[Crashtest]

Let's say you have an H3 leased for 4 years or so. Can you decide to buy if you want to? How exactly are the payments calculated if you decide to buy? Are all lease payments you made counted towards it?

Could you also trade it in towards a newer model, or H2 to buy? How would that work?

[JAYB1RD]

At the end of any lease you have the option to buy the vehicle for a price agreed upon when you sign the lease in the beginning. My 27 month 10,000miles a year lease has me paying for 70% of the vehicle when the lease is over, if I so choose (which I think I will!). So yes, each payment you make on the lease can go towards the purchase of said vehicle, much like a rent to own deal. You can't trade it in for something else because it is not your vehicle.

[Hummer Guy]

actually, you can trade it in at any time in your lease. BUT...call the leasing bank and get your payoff for purchase. Say its 27,000. Have the car apraised. if it appraises for $25,000, it will essentially cost you 2 grand to end your lease early, and that ammount can be rolled into your new financing on the new car. In the rare case, it will appraise for more than you owe, but don't count on it...also, you will not get tax credits on a lease trade-in like you would if you owned it...

[nychot]

are you just referring to gmac leases, or any car lease? as far as i know you can be penalized up the wazoo for ending a lease early. and its my understanding that companies like infinity financial services, from whom i have a leased car, won't permit such trades.

Originally Posted by Hummer Guy

actually, you can trade it in at any time in your lease. BUT...call the leasing bank and get your payoff for purchase. Say its 27,000. Have the car apraised. if it appraises for $25,000, it will essentially cost you 2 grand to end your lease early, and that ammount can be rolled into your new financing on the new car. In the rare case, it will appraise for more than you owe, but don't count on it...also, you will not get tax credits on a lease trade-in like you would if you owned it...

[Crashtest]

If you choose to buy, does the amount of miles you put on the car still matter? For example, if it's a 15k mile a year limit, and if you've put 20k a year? Do they charge extra?

[HumbleAg]

Originally Posted by Crashtest

If you choose to buy, does the amount of miles you put on the car still matter? For example, if it's a 15k mile a year limit, and if you've put 20k a year? Do they charge extra?

Nope, if you buy it, mileage doesn't matter. In fact, if mileage is high, you might be able to negotiate a better payoff, as it makes the car worth less money at auction. Every time I've returned a leased car, they've contacted me several times asking what it would take for me to purchase it, usually with offers several thousand less than the payoff amount on the lease agreement.

[Hummer Guy]

Originally Posted by nychot

are you just referring to gmac leases, or any car lease? as far as i know you can be penalized up the wazoo for ending a lease early. and its my understanding that companies like infinity financial services, from whom i have a leased car, won't permit such trades.

The bank who takes on the lease owns it...in most cases they'd rather you pay for the whole thing right then -- then they don't ever have to worry about selling it later or you making the rest of your payments. Like i said, you may be upside-down in your equity (most likely) so its not really penalties, its just the value that comes out-of-pocket..

I've also never heard of a restructuring a lease from one car to another...the only time you get that is when there is a special 'pull-ahead' program where GMAC or whoever may entice you for paying some of your final payments in order to get you into a new lease..

[Crashtest]

Any ideas as to how much I'd have to pay in order to own it? Are all lease payments added up, and I pay the difference between what is left?