Lease Mileage Overage on 2013 Volt

mainleemainlee Member Posts: 2
edited December 2015 in Chevrolet
My lease recently ended with an overage of about 60,000 (36/10). Having to pay $.20 cents per mile for the accumulated overage, I have accumulated a substantial payoff, $12,000 in milage alone. I didn’t mind running the milage up because I liked the Volt and was planning on purchasing it anyway. The problem is, the leasing company will not finance the balance because the car is not worth what I agreed to pay for it. In fact, looking at used 2013 Volts, i can buy three for what I owe on this one. I am new at this leasing thing, has anyone had a similar experience and if so how was it resolved? I might have made different decisions regarding my lease if I would have been told that I wouldn’t be able purchase at the end of lease because of value/depreciation.

Comments

  • kyfdxkyfdx Moderator Posts: 257,156
    mainlee said:

    My lease recently ended with an overage of about 60,000 (36/10). Having to pay $.20 cents per mile for the accumulated overage, I have accumulated a substantial payoff, $12,000 in milage alone. I didn’t mind running the milage up because I liked the Volt and was planning on purchasing it anyway. The problem is, the leasing company will not finance the balance because the car is not worth what I agreed to pay for it. In fact, looking at used 2013 Volts, i can buy three for what I owe on this one. I am new at this leasing thing, has anyone had a similar experience and if so how was it resolved? I might have made different decisions regarding my lease if I would have been told that I wouldn’t be able purchase at the end of lease because of value/depreciation.

    Well, the purchase option is still valid, they just won't finance you. I think you'll have to come up with cash elsewhere to buy the car, or pay the $12K. It might be better to pay the $12K and cut your losses, rather than overpay by 3X for your current vehicle.

    And, there is no guarantee of financing at lease end, in any lease. We've seen plenty of examples of lessees being turned down for financing for many reasons, including the bank not being interested in financing used cars or the buyer's credit not qualifying for the loan. It's not surprising that this bank doesn't want to write a loan with large negative equity on a used car with nearly 100K miles.

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  • mainleemainlee Member Posts: 2
    You are right about cutting my losses. It was naive of me to think that the leasing company would automatically continue with the financing once all payments were made on the lease. Now I know…
  • kyfdxkyfdx Moderator Posts: 257,156
    mainlee said:

    You are right about cutting my losses. It was naive of me to think that the leasing company would automatically continue with the financing once all payments were made on the lease. Now I know…

    Yours is a pretty special case. Not many people go over by that amount. Not sure I would have thought about it, beforehand, either.

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