Ride the lease out or buy in-between

[Telliott0033]

After toying around with different scenarios and losing my sanity I need some outside advice. I currently drive a Dodge Ram 1500 lease for 36,000 miles with lease end in October. I just crossed 33,000 miles today. Trying to be conservative as possible but I know by the time October rolls around I’ll be pushing 40,000+ miles.
So my dilemma: I’m a late reservation holder. Reserved 2/9 but my dealer had allocations still by some luck of the draw (still think they have some actually last time I talked to the sales manager) and placed an in store order 2/19. So obviously I know I’ll still likely be a MY22. I’m “hoping” to maybe take delivery in say Idk around December just for an example. If Dodge lets me go month to month and extend the lease to December, let’s just say I’m at 43,000 miles. At 0.25 milage penalty ill be looking at $1750 in milage penalties plus whatever they decide to try and ding me for (already know I’ll be charged for new tires) since I’m not going with another dodge/jeep.

Would you ride out the lease as long as possible, or, would you think it would be worth taking advantage of say getting into a used jeep for like 18-20k and trade in when the bronco arrives. That way can build up at least a little bit of equity in something over the next year while waiting for the Bronco. Assuming the jeep doesn’t depreciate that fast.

I figured build up some equity into something for the next year while I wait and a lower payment so I can put even more aside for down payment. Was going to buy a junker but having a hard time finding something that’s not going to cost me an arm and leg to constantly repair over the next year.

Sorry for the long post but I GREATLY appreciate y’all’s feedback.

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[BEM-S4]

I wouldn't do either of those things honestly. Short term car game is a lose-lose situation. If you're not too particular about what you need, turn your car in and get something on SwapLease for 6 mos. If Bronco still not here, do another one. That, in my experience, is the most cost-effective way to get a car for a short period.

 

[Telliott0033]

I wouldn't do either of those things honestly. Short term car game is a lose-lose situation. If you're not too particular about what you need, turn your car in and get something on SwapLease for 6 mos. If Bronco still not here, do another one. That, in my experience, is the most cost-effective way to get a car for a short period.

Never heard of swaplease that’s a good idea actually I’ll have to look into that. That’s what’s been giving me a headache I know no matter which way was going to be lose lose haha

 

[BEM-S4]

Sometimes if you are staying within the same brand / same dealer and there's a month or two gap from your old lease to new order arriving they'll help you out and give you a demo or loaner, but that's not a medium term solution like you need.

 

[Thed]

If you really need a car, and nothing more, then a used Toyota Corolla is in your future. Bare minimum running costs, dependable, and you'll barely be out any money because Toyota resale values are ridiculous.

You'll hate it, but if done right it can be a very affordable option. Hell, you might decide to keep it as a cheap rainy-day car.

 

[Jarvis]

Another option to consider is seeing what Carmax will give you at the end of your lease. Depending on your residual value number and with how hot the used truck market is right now, you may walk away with Carmax writing you a check to take your Ram.

 

[Philvis77]

Unless you can get a steal via private sale, I'd just get a low cost reliable solution like Thed said above. Your margin of loss on reselling a $3000 vehicle will be much smaller than a high dollar, newer vehicle. Equity and cars are two terms that never go together.

 

[jaruss01]

A 2/9 reservation, like as in a few weeks ago?? Who knows when you get that Bronco. May not be until 2023. I would give back your lease in October and get into a new 24 month lease and have the dealer buy you out of that next lease when the Bronco shows up....or...extend your current lease 6 mos, wait until you have more guidance on when your bronco will be built, then use swap-a-lease to find the right term to bridge the rest of the gap.

FYI, some dealers offer 12 mo extensions. In any regard they are typically M-T-M, and they give you the same monthly mileage allocation. Although technically you are overpaying some, because your car is in a flatter depreciation curve compared to the initial lease term.

 

[Mickey21]

Honestly, you could almost Uber anywhere you need to go for a month and possibly come in less than a single month car payment in many cases. Or just rent one for a couple of months. As mentioned, work with your dealer to work something out, they may have something for you.

 

[jaruss01]

....to add to the above, if you do go for a new 24 month lease, make sure you roll EVERYTHING into the monthly including tax, since youll be bought out before the end of the term.

 

[Rick Astley]

As somebody in the same boat with a lease ending before Bronco shows up (September 2021 for me, but i'm at ~15K miles out of 36K, thanks Covid!), i'm also in that camp of debating a lease extension.

I haven't talked to Mazda yet about extension, but there is a lot of wiggle room for vehicles they know won't sell too quickly (aka: any lease-trade-in Mazda), not sure on your truck. Negotiating mileage is always a possibility for you and you can pre-purchase some additional mileage if you extend the lease for a specific period of time (I would suggest 3 or 6 months). That *might* get you under your ending mileage if you keep an eye on the odometer. Another alternative is to simply purchase the vehicle with the money factor baked into the lease (which avoids all mileage overages) then private-party sale the vehicle once Bronco shows up. Your money factor and residual will highly impact weather or not that is a viable strategy.

Ultimately I decided on buying an obscure JDM Kei car to drive for a while until Bronco arrives. I can import the vehicle and have it running for about the same price as i'll sell it for in 6-12 months. Completely impractical and I wouldn't want to own it long term, so it's a perfectly fun and zany short term plan!

Feel free to think outside the box, especially as used vehicle prices are going crazy right now.

 

[imnewtothis]

With a 2/9/21 reservation there is a really good chance you’ll get a MY22....closer to December 2022 and nowhere nearly December 2021.

I have a 8/7/20 reservation and I think I’ll probably get my Bronco Spring of 2022.

Seeing as though your lease ends in October 21...I wouldn’t plan on going month to month or paying any extra mile penalties with the assumption that you’re getting the Bronco in December 2021.

Hopefully by May of this year we’ll all have an estimate of when we’ll receive our Broncos.

That should give you a much better idea of what your “bridge-to-Bronco” plan should be. And well before your October lease-end deadline.

 

[Mattwings]

What's the lease buy-out? Used market is pretty high on Trucks right now, you may be able to buy the truck for under market and avoid some depreciation? I am on an extended F150 lease and the residual is tracking at just about market and I am good on miles, so decided to extend until June and ride my motorcycle until the Bronco comes in (I am a day 1, reservation 1, at my dealer, but who knows when I will actually get mine).

 

[38Special]

A 2/9 reservation, like as in a few weeks ago?? Who knows when you get that Bronco. May not be until 2023. I would give back your lease in October and get into a new 24 month lease and have the dealer buy you out of that next lease when the Bronco shows up....or...extend your current lease 6 mos, wait until you have more guidance on when your bronco will be built, then use swap-a-lease to find the right term to bridge the rest of the gap.

FYI, some dealers offer 12 mo extensions. In any regard they are typically M-T-M, and they give you the same monthly mileage allocation. Although technically you are overpaying some, because your car is in a flatter depreciation curve compared to the initial lease term.

A 2/9 reservation, like as in a few weeks ago?? Who knows when you get that Bronco. May not be until 2023. I would give back your lease in October and get into a new 24 month lease and have the dealer buy you out of that next lease when the Bronco shows up....or...extend your current lease 6 mos, wait until you have more guidance on when your bronco will be built, then use swap-a-lease to find the right term to bridge the rest of the gap.

FYI, some dealers offer 12 mo extensions. In any regard they are typically M-T-M, and they give you the same monthly mileage allocation. Although technically you are overpaying some, because your car is in a flatter depreciation curve compared to the initial lease term.

How many Orders does Ford expect by end of March ? The Mustang debuted in April of 1964 and by the end of the ‘65 model year Ford had produced and delivered 700,000 Mustangs. Aren’t we talking about a whole less number of vehicles than that ? Why are do we have to look so far out ? Has auto industry been so diminished since then?

 

[Telliott0033]

Sorry for the late response guys I got tied up with some family things and havent been back to the forums. But appreciate everyone’s ideas I have some good ideas on what to do now. I’m gonna wait to see what info Ford comes out with over the next couple months on what production is going to look like to better gauge my game plan. Appreciate it!

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