Should I turn in my lease early or keep it?

  • by tata
  • Jun 21,2018
  • 6 answers

If I satisfy the lease. I will be able to change my insurance policy. My monthly insurance will decrease from $386 to $192 or $386 to $143. Both options are significantly less.
Break down
I would save $1215 in 5 months. (insurance)
Satisfy Lease $3951 before the 9th (price will go down $650 if I satisfy after the 9th)
Pay my overage in mileage $1750
MB has a pull forward where they will pay 3 months and I will owe two months, but I really don't think I want to lease another BENZ.
Or is it better to keep the car parked up and pay the $650 car note per month until Nov 9th and pay the $348 per month until Nov 9th and pay the $75 it would cost to also insure the jeep while the Benz is parked?


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Insurance Answers (6)

David 14 3 weeks ago

You can change your insurance company regardless

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Marie K 3 weeks ago

This is a math question, how much will the mileage overage go down if you park the car until Nov?(or will it just not go up) You have to run all the costs under both scenarios to know which will cost less in the long run.

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Andy L. 3 weeks ago

Leased cars are either for business purposes, or in the special case of people unable to sell a used car and want to have new cars frequently, which is always an expensive proposition.
I do not understand the insurance change. You can change companies, but are required to keep full coverage in either a lease or a car with a loan being paid off.
Your numbers are presented badly. They should be grouped together and added as sets.
If not using the Benz, look at the costs to be paid through lease end total.
Cars are highest cost to own in the first 4 years of ownership.
Regroup the numbers and simplify, leaving out irrelevant information that confuses the question.
Don't look at "savings", look at total cost under each scenario.

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Remy 3 weeks ago

keep it.

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lucy 3 weeks ago

https://www.bankrate.com/loans/auto-loan...
https://www.consumerreports.org/buying-a...
https://www.mileiq.com/blog/buy-lease-bu...
I am guessing you are self employed or own a business, thus need the lease to use as a deduction on the business.
My (late) husband was self employed, but never did he lease a car, but always owned one and was able to deduct mileage, gas, insurance, taxes on the car, but the deduction was based on the year and depreciation.
Not sure if the $1,750 overage in mileage is what you owe (today) or what you calculate what you will owe in November. Now (if) the $1,750 is what you owe today, then your best bet might be to keep the lease till the end, then buy it, since most leases have a calculated value of what it would be worth with (no) overage in mileage, so say the value is $40,000 at least term for 36,000 miles and you have 45,000 miles on it, then you are buying the car with the value of 36,000 miles vs 45,000 and not dinged for the overage of mileage. Here is something else to consider with the higher mileage and that in one article, they could charge you more for wear/tear at the end.
Now if you park it, then you still need to have comprehensive insurance on it, since while parked and (not) driven, still could be stolen, or catch on fire, or if a storm hits in a garage can get damages.
Another problem with leases is that many people do not negotiate the value of the car when they lease them, only the monthly payments. Buying or leasing, you start with the value that it is worth, since any loan or lease payments is determined by the cost of the car when you sign the papers. When you buy or lease then another factor to consider is the interest rate, which can affect the monthly payments and interest you pay. But with many of these lease agreements as you can see from the articles attached is “sketchy” vs a straight loan that says it is 2.4% as an example.
Do you have a CPA that does your taxes, and if so, ask them the difference in leasing vs owning a vehicle.
Also you can post your question under Y/A (personal finance) to see if they can do a better breakdown of the costs to compare.

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Casey Y 3 weeks ago

If you are running numbers like this...you probably shouldn't own a MB...not trying to be rude.
I would get out of the lease as soon as possible...

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