# Buying new to get out of lease?



## BostonBeans (Jul 30, 2017)

Hey everyone, 

I am contemplating buy a new car that will obviously be used for Uber, and before you jump and say it's a bad idea - I know. The problem is my other option is worse so I'm looking for the lesser of two evils. 

Currently I'm using my leased vehicle as I was good on miles and in my last year of the lease. The problem obviously is that I will cruise over the mileage limit in a month or two if I keep driving a lot (which I plan to). I'm looking for a solution before I hit that point of no return, so I tossed around the idea of just buying a new car because one place is going to work with me on getting out of the lease (I don't exactly have confidence they'll be able to, but let's pretend they do)

Option 1 - Get out of the lease entirely and get a brand new Corolla SE for $17k (well below MSRP). Again, this would only be contingent on them somehow buying out my lease as well

Option 2 - Buy my current car now ('16 Jetta S) that has 22k miles on it for $15k~ ($13.5k residual value plus remaining payments) 

Option 3 - Keep driving while putting money aside in bank and buy my car when the lease is up. Basically similar to option 2 except I stretch the remaining payments out a year. The car would be $13.5k but at that point have upwards of 40-50k miles. 

Thinking outside those options, another would be to go on Carmax or whatever and look for a decent used car. That would be...

Option 4 - Buy out my lease early (or let it sit in my driveway for a year and only use the car for special occasions because it's still a nice car - downside is paying insurance on it). Then just grabbing a car from Carmax specifically for Uber. 

If option 4 is the best way to go, what value should I look for? I'd probably go no higher than $11k, but ideally it would be under 10k. For that price, what should I expect for miles? 10-30k? 

I was supposed to head into the dealership today to talk about the Corolla but I am beginning to wonder if I should hurry and get a new car via option 4 and let my Jetta ride out for a year. This way I can have my nice personal car since I'm paying for it anyway, and have the Uber ride as my second. In a year, turn in my leased car and just stick with the one car which should have a nice chunk paid into it by then (if I pay $400-500/month toward it, it should be half paid by the time my lease runs out). 

Sorry for the long post but I want to make the right decision. If Option 4 is the right decision, feel free to steer me in the direction of a great make/model used car that I should search for to use for Uber. 

Thanks


----------



## Toyota Guy (May 18, 2016)

Option 1: Invoice on the Corolla SE is about $19,000. Unless there's a big rebate and you pay cash, you won't get it for $17K. And they sure won't include negative equity from your current lease.

Option 2: If you are going to keep the Jetta, *DO NOT BUY IT UNTIL THE LEASE IS OVER. *If the car gets totaled, it belongs to somebody else and you get to start new.

Option 3: OK

Option 4: Use up everything you have on your current lease. Drive it. Don't let it sit and get something else.

If a dealer tells you that they can get you out of the lease, it's true. However, if the Jetta isn't worth the payoff, you'll be paying for it in the new car.


----------



## Blue Poodle (May 16, 2017)

I bled my lease mileage dry and used a beater car to make sure I balanced the mileage right.

Don't buy your own car. It's been used for uber. It's worth less than anyone knows. Just use up all miles on it and smirk when you return it.


----------



## BostonBeans (Jul 30, 2017)

Toyota Guy said:


> Option 1: Invoice on the Corolla SE is about $19,000. Unless there's a big rebate and you pay cash, you won't get it for $17K. And they sure won't include negative equity from your current lease.
> 
> Option 2: If you are going to keep the Jetta, *DO NOT BUY IT UNTIL THE LEASE IS OVER. *If the car gets totaled, it belongs to somebody else and you get to start new.
> 
> ...


I only have 8k miles left on my lease so I'd plan on using it up over the next year doing my daily errands and personal trips. I definitely wouldn't turn it in with that many miles remaining. I paid for them, may as well use lol.

I love the feedback though. As far as option 1, they quoted 17.5k and that is also right around truecar price. That said, I had my car appraised by another Toyota dealership to go the trade-in route and they quoted 12k. That makes me think there is no way these people are going to find another 3k somewhere to prevent me from being underwater. I'm like 90% certain they're going to get me in only to tell me I have to add some of the price to the new car so I'm starting to lean against that option.

What do you think of a 2016 Corolla for 10-13k? They vary depending on miles but I see one for 13k that has only 15k miles. It's CPO as well. Seems like a decent deal but I also found one closer to 11k that isn't CPO and has closer to 30k.


----------



## Blue Poodle (May 16, 2017)

Also, you can get a non-operational from DMV, just park it, and no need to insure.


----------



## Toyota Guy (May 18, 2016)

That Truecar price is for cash. Y0u're usually better off taking the low interest financing.

Your current car is worth what it's worth. The dealer can't make that $3K disappear up the tailpipe.

A 2016 Corolla CPO with only 15K miles under $13K is a no-brainer. Take it over the other one. My strong suggestion is to buy whatever from a franchised dealer or outfit like Carmax. They have a reputation to uphold that Uncle Bobby's Used Cars doesn't.


----------



## BostonBeans (Jul 30, 2017)

Toyota Guy said:


> That Truecar price is for cash. Y0u're usually better off taking the low interest financing.
> 
> Your current car is worth what it's worth. The dealer can't make that $3K disappear up the tailpipe.
> 
> A 2016 Corolla CPO with only 15K miles under $13K is a no-brainer. Take it over the other one. My strong suggestion is to buy whatever from a franchised dealer or outfit like Carmax. They have a reputation to uphold that Uncle Bobby's Used Cars doesn't.


Definitely buying from a non used-car lot. What are your thoughts on Carmax vs dealerships? The 13k Corolla is at the Toyota dealership I was going to get the new one at. Carmax definitely has the national recognition to worry about, but do local dealerships care as much?

(again, obviously excluding shifty used lots)


----------



## Toyota Guy (May 18, 2016)

The local Toyota dealer has the most to lose by selling you a car with known problems.

The CPO process weeds out many of them. If a Toyota dealer has an issue with a car, he's more likely to sell it at auction where Carmax will buy it.

With Carmax, they will stand behind their product. But they are starting with generally lower quality cars that a franchised dealer didn't want.


----------



## BostonBeans (Jul 30, 2017)

Thanks for the fantastic replies, everyone. Helps out tremendously with this damn issue that's been hovering over me like a black cloud for the past month. Looks like I'm going used car (hopefully CPO) shopping!


----------



## UberAnt39 (Jun 1, 2016)

And don’t forget the usual stuff:
Don’t play four square, whatever the sales guy says he still has to go and get ok off his Manager, which he won’t, then he’ll come back and waste more of your time. 
Whatever deal they “agree to” the F&I guy can rip it all up when u go in to sign, (and he’s the sharpest, highest paid crook at the dealership). 
If you’re in the closing room and they wander out, don’t say anything to a buddy or on ur phone that u don’t want the dealer hearing, they are listening. 
If you’re buying new, you have to use their end of quarter / year pressure to get the best deal.
Use the $500 a dealer pays TrueCar for the referral to go low ball another dealer - cos he doesn’t have to pay the $500.
Again for new, if u can get those “2 at this price” cars for specific VINs you’d be very hard pressed to beat that price by negotiating.


----------



## BostonBeans (Jul 30, 2017)

Thanks for the advice. I don't understand the truecar thing, though.


----------



## Leo1983 (Jul 3, 2017)

BostonBeans said:


> Hey everyone,
> 
> I am contemplating buy a new car that will obviously be used for Uber, and before you jump and say it's a bad idea - I know. The problem is my other option is worse so I'm looking for the lesser of two evils.
> 
> ...


Whatever you end up doing remember you have to pay the car off within two years. So you'll need to pay atleast 600-1000 a month.


----------



## Adieu (Feb 21, 2016)

BostonBeans said:


> Hey everyone,
> 
> I am contemplating buy a new car that will obviously be used for Uber, and before you jump and say it's a bad idea - I know. The problem is my other option is worse so I'm looking for the lesser of two evils.
> 
> ...


Dodge Grand Caravan
+1 year younger than the stricter of U & L's age limits

Probably 2006 for ~$1500



Toyota Guy said:


> Option 1: Invoice on the Corolla SE is about $19,000. Unless there's a big rebate and you pay cash, you won't get it for $17K. And they sure won't include negative equity from your current lease.
> 
> Option 2: If you are going to keep the Jetta, *DO NOT BUY IT UNTIL THE LEASE IS OVER. *If the car gets totaled, it belongs to somebody else and you get to start new.
> 
> ...


Corolla for $19k is ridonculous.... thats Escalade Hybrid money


----------



## BostonBeans (Jul 30, 2017)

Adieu said:


> Dodge Grand Caravan
> +1 year younger than the stricter of U & L's age limits
> 
> Probably 2006 for ~$1500
> ...


A lot of minivans around here are $5k+ for anything under 100k miles. How long do those cars last?


----------



## Adieu (Feb 21, 2016)

BostonBeans said:


> A lot of minivans around here are $5k+ for anything under 100k miles. How long do those cars last?


<100k mi????

Lol. You must be new. (no shame in it)

Uber is 21st century taxi, just cheaper... The same old "run surplus cars to 400k, buy junkyard parts and used tires" formula applies.

Just with even slimmer margins & cop cars dont really work on UberX because pay is so low and lack of surcharge for a larger fullsize sedan means crown vics and chargers arent too popular.... although gubmint fusions civics etc might work pretty good.

However, because extra seats DO pay, Caravan becomes the dirt cheap option... Expedition if you got more money. Black police Tahoe if you want even more vehicle classes.


----------



## UberAnt39 (Jun 1, 2016)

BostonBeans said:


> Thanks for the advice. I don't understand the truecar thing, though.


When you buy off a dealer and you were referred by TrueCar then the dealer has to pay TC $500 (I think). You can use that dealers quote to go to another dealer and get him to quote lower again because he can sell it to you without paying TC anything.

Foursquare is the game where you tell them what monthly payment you can afford and they play with the price, any trade-in and the interest rate to get to that and have you overpay. Never tell them what monthly payment you can afford/need.


----------



## BostonBeans (Jul 30, 2017)

UberAnt39 said:


> When you buy off a dealer and you were referred by TrueCar then the dealer has to pay TC $500 (I think). You can use that dealers quote to go to another dealer and get him to quote lower again because he can sell it to you without paying TC anything.
> 
> Foursquare is the game where you tell them what monthly payment you can afford and they play with the price, any trade-in and the interest rate to get to that and have you overpay. Never tell them what monthly payment you can afford/need.


Yea I avoid the monthly payment trap they consistently pressure you with. I always tell them I'm more concerned about the overall price.

When buying used, how much should I negotiate? I don't fall in love with any car so the salesman usually knows I will walk if I don't like the price, I just always wonder the best price to ask. For new, I generally go by truecar, but used should I try to get lower than kbb?


----------



## Adieu (Feb 21, 2016)

BostonBeans said:


> Yea I avoid the monthly payment trap they consistently pressure you with. I always tell them I'm more concerned about the overall price.
> 
> When buying used, how much should I negotiate? I don't fall in love with any car so the salesman usually knows I will walk if I don't like the price, I just always wonder the best price to ask. For new, I generally go by truecar, but used should I try to get lower than kbb?


You should never, EVER walk into a car showroom/dealership looking for "something".

New or used, youre coming in to look at a specific car. With a specific price. That you like but still wont take at that current price.


----------



## BostonBeans (Jul 30, 2017)

Adieu said:


> You should never, EVER walk into a car showroom/dealership looking for "something".
> 
> New or used, youre coming in to look at a specific car. With a specific price. That you like but still wont take at that current price.


That's typical what I do. The dealer has been desperately trying to get me in but I've been negotiating a car over phone and email. A specific car I've seen online. When I hit the right price, I'll go in and test drive it. If I don't like, I'll leave and start the process with a different car at maybe a different dealer. Long process but I'm patient.

I've done a ton of research on new car buying, but no clue what price I should seek for used cars


----------



## Adieu (Feb 21, 2016)

BostonBeans said:


> That's typical what I do. The dealer has been desperately trying to get me in but I've been negotiating a car over phone and email. A specific car I've seen online. When I hit the right price, I'll go in and test drive it. If I don't like, I'll leave and start the process with a different car at maybe a different dealer. Long process but I'm patient.
> 
> I've done a ton of research on new car buying, but no clue what price I should seek for used cars


The lowest you can find in the country lol.

PS 100% serious. Last 2 purchases, 2011 BMW 335d (2 years ago, $11,999) & 2009 Ford Expedition (1 year ago, $4,600). Both times, first and only vehicle I looked at.


----------



## BostonBeans (Jul 30, 2017)

What do you use? Carguru? What is your mileage requirement (if you even care about that)


----------



## Adieu (Feb 21, 2016)

BostonBeans said:


> What do you use? Carguru? What is your mileage requirement (if you even care about that)


Google & craigslist.

Refuse to look at cars BELOW 120k miles since they aint depreciated enough


----------



## BostonBeans (Jul 30, 2017)

Ok, I went to the dealership today to look at that 2016 Corolla for 13k (15k miles) and wasn't too impressed. They had me check out a similarly priced 2012 Camry XLE that was super loaded, had 66k miles. Not a bad car but the gas mileage was far worse because it was a v6 so I scrapped that idea. The mileage was actually less of a concern as was the year. Up in New England, every winter does a number on cars so it's quite likely you'll find a 2016 car with 100k miles in far better shape than a 2012 with 50k miles. Salt and sand do a number on the undercarriage. 

Everything I check out I compare to my current car (fully loaded Jetta sport) so it's hard to want anything else other than an upgrade which is extremely hard to do at any reasonable price range (around 10k). I'd like to go the super used 100k+ mile route but I just can't stand breaking down and that increases the chance. I understand cars under 100k can break down as well, but the chances decrease the less wear. 

I am now just leaning on letting the lease run out and buy the car next year but at that point I'm going to be looking at buying a $13.5k car with roughly 45k miles on it (anticipated mileage). The positives are that I know where all those miles went, the negative is that VW's in general are a bit more expensive to repair as time wears on. Another reason is that if I buy two cars I also have to calculate the second insurance, second excise tax, and more. Also the hassle of cleaning off an additional car in the winter which is huge in my head (we get a LOT of snow). 

Back to my current options now after today's experience...

1) Ride out my lease. Continue paying $130/month and continue putting an extra $300/month away in savings account until lease expires. This will give me some money to play with at the end of my lease (almost $4k). 
1a) Turn in my lease which at .20c/mile could add up to that entire $4k I'd have to play with. This option is pretty much not going to happen unless I quit Uber today and barely use my car for the next year
1b) Buy my car at $13,500 and not worry about lease

2) Buy the second car for real cheap (<$5k) with the sole intention of never turning it in and driving it into the ground. I'd have to get a car with 100k+ miles on it but I may be able to find a steal. Especially if I can have my mechanic inspect it prior to purchasing. I may be able to find a high mileage newer car for around the $5k mark which can be paid off in a year. 

I basically ruled out buying a car over $12k simply because my residual makes it pointless to do that. I may as well just buy my lease. 

Adieu has no issue buying a car with such high mileage, but has anyone else had good experiences buying something like that? (high miles, relatively new, low cost). I don't want to buy a 2014 Camry with 200k miles for $3k only to have it in the shop every other week


----------



## PrestonT (Feb 15, 2017)

Blue Poodle said:


> Also, you can get a non-operational from DMV, just park it, and no need to insure.


Banks require comprehensive insurance as a condition of the loan. If a debtor lets insurance lapse, bank will get insurance that covers only the remaining principle and pass the cost on to the debtor.


----------



## Toyota Guy (May 18, 2016)

I bought a 2010 Toyota Avalon with 88K miles in April from a Hyundai dealer. I.paid $9500, a reasonable price.

Why the Avalon? In my years of sales at a Toyota dealer, I took in 20 vehicles with over 300K on the clock. Half of them were Avalons or Lexus ES models (same car). I fully expect to drive this car for at least three years putting 50-60K/year on it. Gas mileage on the V6 isn't great (22-25 mpg), but maintenace and depreciation are considerably better than most anything else on the road. Most of my driving is suburban, so I can consistenly get the mileage. Total operating costs should fall into the $.25-$.30/mile.

My suggestion to you is that rather than adhere strictly to a vehicle purchase price, make total operating cost your target.

Your VW has relatively high maintenance and repair costs as well as a somewhat spotty reliability rating. You may find that the Camry V6 you looked at will cost less over time than your Jetta.


----------



## surlywynch (Jun 22, 2017)

If you go for the $5K-100k mile minivan route, be prepared to drop a few hundred to change the timing belt. Most recommend changing around 95K miles, and you can almost guarantee the previous owner avoided the expensive maintenance by trading in. AFAIK, there have been none on the market since early in 2000's that were non-interference engines.


----------



## Adieu (Feb 21, 2016)

BostonBeans said:


> Ok, I went to the dealership today to look at that 2016 Corolla for 13k (15k miles) and wasn't too impressed. They had me check out a similarly priced 2012 Camry XLE that was super loaded, had 66k miles. Not a bad car but the gas mileage was far worse because it was a v6 so I scrapped that idea. The mileage was actually less of a concern as was the year. Up in New England, every winter does a number on cars so it's quite likely you'll find a 2016 car with 100k miles in far better shape than a 2012 with 50k miles. Salt and sand do a number on the undercarriage.
> 
> Everything I check out I compare to my current car (fully loaded Jetta sport) so it's hard to want anything else other than an upgrade which is extremely hard to do at any reasonable price range (around 10k). I'd like to go the super used 100k+ mile route but I just can't stand breaking down and that increases the chance. I understand cars under 100k can break down as well, but the chances decrease the less wear.
> 
> ...


A friend bought a 2010 Kia at auction for $2200 w/ 200k mi....now it has >300k mi. No major repairs.

His other car, a Prius he got for like $3k, he was COMPLAINING it *only* got him another 60k miles before needing some attention


----------



## JohnA411 (Oct 25, 2017)

I have a son who will be 16 soon, and he want his own car. What kinds of insurance policies are there for minors and how is does it work? Thank you.


----------



## LogManNJ (Sep 29, 2017)

Ever think about getting the car through Uber? I think unlimited miles.


----------



## AlexSuv (Oct 27, 2017)

JohnA411 said:


> I have a son who will be 16 soon, and he want his own car. What kinds of insurance policies are there for minors and how is does it work? Thank you.


Hello, here is a great article where you can find information for new drivers.
I will give you full information in a few days


----------



## Alan228 (Nov 9, 2017)

JohnA411 said:


> I have a son who will be 16 soon, and he want his own car. What kinds of insurance policies are there for minors and how is does it work? Thank you.


Hi John, my name is Alan. I live in Reno, Nevada and I am licensed insurance broker. In reality it does not matter where you get your driver's license. However, if you are moving to another state you will need to get auto insurance from state. Your insurance rates will depend on many factors, including the state, city and sometimes a particular zip code. Some car insurance companies provide better coverage and are rated better than others. 
If there are similar coverages, I usually suggest my clients to do their own research online and look for insurance rating sites like 
cheаpautoinsurance.соm
Here, you can see what other people think of particular auto insurance companies.
Good luck!


----------



## hijinxu (Apr 27, 2017)

A little pressed for time so I can't read it all.. 

Is say keep the lease and just beg borrow or steal 4k to buy a minivan and make some real cash.


----------



## steveK2016 (Jul 31, 2016)

Toyota Guy said:


> Option 1: Invoice on the Corolla SE is about $19,000. Unless there's a big rebate and you pay cash, you won't get it for $17K. And they sure won't include negative equity from your current lease.
> 
> Option 2: If you are going to keep the Jetta, *DO NOT BUY IT UNTIL THE LEASE IS OVER. *If the car gets totaled, it belongs to somebody else and you get to start new.
> 
> ...


On point. New cars have less ability to carry negative equity than used cars without incentives.


----------



## Dammit Mazzacane (Dec 31, 2015)

1) Buy a nice used car with your $

2) Use SwapaLease to step out of your lease and hand it to somebody else without having to worry about mileage/etc.



Adieu said:


> You should never, EVER walk into a car showroom/dealership looking for "something".
> 
> New or used, youre coming in to look at a specific car. With a specific price. That you like but still wont take at that current price.


Agreed. Went and looked at a specific vehicle recently at a dealership, did comparable research, eliminated the "indie used-car-lots," brought info on a comparable same-model vehicle at another dealer and announced it to the sales guy to essentially provoke competition, and got the dealer to knock down the asking price by $2,000 to make it a $4,000* bottom line purchase price.
But, I feel we got trapped by the dealer's trick that the price was only valid until we stepped foot off the dealership. We bought the vehicle. Sure as hell hope it doesn't crap out...
* - number is fudged, but $2,000 off is true

CarGurus.com can be your best friend.

Also, this dealership's finance lady was a complete and total C--------


----------

