6 month lease extension?
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Overlanding
Joined: Nov 2020
Posts: 15
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6 month lease extension?
2020 Disco with 36K miles. Lease ends in Feb, buyout value $36K (which Chase said is non-negotiable). Warranty good to November.
What are the pros/cons of doing the 6 month lease extension at the current lease monthly payment?
At the end of the 6 months, the buyout would be around $31,500 and would have around 43,000 miles.
What are the pros/cons of doing the 6 month lease extension at the current lease monthly payment?
At the end of the 6 months, the buyout would be around $31,500 and would have around 43,000 miles.
Recovery Vehicle
Joined: Oct 2018
Posts: 942
Likes: 309
From: Colorado
So if you were planning to buy it out, then you save $4500 over the next 6 months towards the buyout (that's $750/month).
So deduct $750 from your montly lease payment and that's what it's costing you to drive it for the next 6 months.
Sounds like a pretty good deal to me.
If you were not planning to buy it out, then how much more would the lease payment be to change to another leased vehicle?
That's what you are saving by extending your lease.
So deduct $750 from your montly lease payment and that's what it's costing you to drive it for the next 6 months.
Sounds like a pretty good deal to me.
If you were not planning to buy it out, then how much more would the lease payment be to change to another leased vehicle?
That's what you are saving by extending your lease.
Thread Starter
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Overlanding
Joined: Nov 2020
Posts: 15
Likes: 2
So if you were planning to buy it out, then you save $4500 over the next 6 months towards the buyout (that's $750/month).
So deduct $750 from your montly lease payment and that's what it's costing you to drive it for the next 6 months.
Sounds like a pretty good deal to me.
If you were not planning to buy it out, then how much more would the lease payment be to change to another leased vehicle?
That's what you are saving by extending your lease.
So deduct $750 from your montly lease payment and that's what it's costing you to drive it for the next 6 months.
Sounds like a pretty good deal to me.
If you were not planning to buy it out, then how much more would the lease payment be to change to another leased vehicle?
That's what you are saving by extending your lease.
My lease payment currently (well, I made the last one in Jan) was $790.
Let's say for the 6 mo extension, it goes to $750 (I'm not sure if it goes down or stays the same)
If those 6 months are equal to approx $4500 off the buyout, how am I saving $750? Aren't I just delaying the big purchase of the buyout?
Recovery Vehicle
Joined: Oct 2018
Posts: 942
Likes: 309
From: Colorado
Seems like there are 4 possible outcomes:
1. You turn in the vehicle and don't buy it out. In this case you have no out of pocket cost, and no vehicle going forward.
2. You turn in the vehicle now and buy it back for $36K. In this case you are out of pocket $36K and have a vehicle with no montly payment going forward.
3. You extend the lease and don't buy it out after 6 months. In this case you are out of pocket $750 per month for next 6 months and have no vehicle after 6 months.
4. You extend the lease and buy it back for $31.5K. In this case you are out of pocket $31.5 K plus $750 per month for next 6 months for total of $36K and have a vehicle with no montly payment going forward after 6 months.
To me, option 1 and 3 are the same out of pocket unless you can replace the vehicle for less than $750 per month.
and option 2 and 4 are the same unless you can pay more or less than $750 per month to extend the lease.
I can't suggest what is best, doesn't seem to matter. Just depends upon whether you want to keep it or replace it.
1. You turn in the vehicle and don't buy it out. In this case you have no out of pocket cost, and no vehicle going forward.
2. You turn in the vehicle now and buy it back for $36K. In this case you are out of pocket $36K and have a vehicle with no montly payment going forward.
3. You extend the lease and don't buy it out after 6 months. In this case you are out of pocket $750 per month for next 6 months and have no vehicle after 6 months.
4. You extend the lease and buy it back for $31.5K. In this case you are out of pocket $31.5 K plus $750 per month for next 6 months for total of $36K and have a vehicle with no montly payment going forward after 6 months.
To me, option 1 and 3 are the same out of pocket unless you can replace the vehicle for less than $750 per month.
and option 2 and 4 are the same unless you can pay more or less than $750 per month to extend the lease.
I can't suggest what is best, doesn't seem to matter. Just depends upon whether you want to keep it or replace it.
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