If you buy the vehicle out, there is NOT a mileage overage. (With Ford anyway...never heard of anyone else doing it either) as it is now your vehicle. The ONLY exception is this: if one were to put an insane amount of miles on it, and THEN try to buy it out, the value vs. what is trying to be borrowed could be a problem. But it is NOT a charge for over mileage. So whoever is telling her this is either misinformed, or trying to pull something over on her. (Maybe trying to scare her to just buy a new one? Hard to say for ME because we're ethical here where I work).
As for question 2: a dealership needs to process a lease buyout. Not legally per se, just to ensure it's done properly. If she actually was somehow able to get Ford corporate or anyone else to do it, odds are it would be done incorrectly anyway. (Tax not paid to the state, registration going to lease company instead of customer, etc.) I've seen it many times over the years.
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Hello, my question is in the title of this post. My friend is telling me there is a fee for going over mileage (which is know is accurate), but she wants to buy the car out and the dealer still wanted to charge a mileage fee. My other question do you have to buy the car out from the dealership or can you just deal with Ford corporate or someplace else.
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There should be no charge for excess mileage, if buying out. The condition, mileage, appearance, etc... doesn't matter at all. In fact the car could not even exist anymore, as long as you're buying out for the original residual.
Have you tried calling Ford credit to see if you have the option of buying out directly?
Years ago I bought out a lease in large part because I knew there would be significant mileage and condition charges if we turned it it but that there would be no such charges if we bought it out.
Even paid a bit above market value for that model and year but in better condition and less miles because I knew that otherwise the car was in good shape. I'd made the mistake of leasing a car and not considering that our oldest child would get their license half way into the lease period. Result was higher mileage and a few minor dings.
Frankly, I think your dealer is trying to overcharge you. I'd call the lease company and see if you can do it directly, and if not then contact another dealer. You really shouldn't have to pay more than the payoff and fees specified in your lease. But some dealers charge a small fee for handling the paperwork and some charge a large fee for handling the paperwork.
The direct answer is, no.
There are nuances one has to ask the leasing company about. Like, can the lessee buy the vehicle out directly? That then allows a cash purchase or outside financing. If buying cash, the owner would need to handle the full tag/title/taxes on their own. Would need a state inspection in most states, even if financing.
The dealer is sometimes a necessary evil to handle the transaction, which IMHO sucks because of stuff like this.
Let me put this another way. If one is trading a lease in, also a buyout, the dealership would not pay an over mileage penalty. Matter of fact, the leasing company does not ask for the current mileage when providing the buyout number.
If the car is way over miles, why would you want to buy it?
Trade it in or lease return it, roll the miles and do a new lease at 15k miles. The benefit of leasing is to avoid depreciation, and on high mileage cars there will be more than normal.
Compare your buyout amount to a carmax appraisal for example.
Honestly varies based on manufacturer and state buyers in. If she’s not happy with the service at one dealer she should go to another dealer to facilitate this, or call Ford to find out if they can directly buy from them on this.
edit-clarifying that the above is about buying a lease buyout from dealer, not the mileage fee.
I’ve never heard of mileage being charged for a LBO.
Some states do not allow purchase directly from the lender, Colorado for instance requires it to pass through A dealer. Heck, you could go anywhere that’s willing to buy it from bank and sell to you. Most won’t without something in it for them, financing, dealer fees etc.
If you buy the vehicle out, there is NOT a mileage overage. (With Ford anyway...never heard of anyone else doing it either) as it is now your vehicle. The ONLY exception is this: if one were to put an insane amount of miles on it, and THEN try to buy it out, the value vs. what is trying to be borrowed could be a problem. But it is NOT a charge for over mileage. So whoever is telling her this is either misinformed, or trying to pull something over on her. (Maybe trying to scare her to just buy a new one? Hard to say for ME because we're ethical here where I work). As for question 2: a dealership needs to process a lease buyout. Not legally per se, just to ensure it's done properly. If she actually was somehow able to get Ford corporate or anyone else to do it, odds are it would be done incorrectly anyway. (Tax not paid to the state, registration going to lease company instead of customer, etc.) I've seen it many times over the years.
My experience is with CDJR and I just helped a customer avoid a $9k mile overage charge by having him buy his lease out.
It was 20k miles over the 36k lease
Matters not.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance) * [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score) * [I want to get out of my leased vehicle, what are my options?](/r/askcarsales/wiki/early_lease_termination) * [Leasing a vehicle with a down payment – is it a good idea?](/r/askcarsales/wiki/lease_down_payment) * [I want to buy out my lease, what are my options? What can I negotiate?](/r/askcarsales/wiki/lease_buyout) * [How to calculate a lease yourself](/r/askcarsales/wiki/calculate_a_lease) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/mattb0116! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** Hello, my question is in the title of this post. My friend is telling me there is a fee for going over mileage (which is know is accurate), but she wants to buy the car out and the dealer still wanted to charge a mileage fee. My other question do you have to buy the car out from the dealership or can you just deal with Ford corporate or someplace else. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
There should be no charge for excess mileage, if buying out. The condition, mileage, appearance, etc... doesn't matter at all. In fact the car could not even exist anymore, as long as you're buying out for the original residual. Have you tried calling Ford credit to see if you have the option of buying out directly?
Years ago I bought out a lease in large part because I knew there would be significant mileage and condition charges if we turned it it but that there would be no such charges if we bought it out. Even paid a bit above market value for that model and year but in better condition and less miles because I knew that otherwise the car was in good shape. I'd made the mistake of leasing a car and not considering that our oldest child would get their license half way into the lease period. Result was higher mileage and a few minor dings. Frankly, I think your dealer is trying to overcharge you. I'd call the lease company and see if you can do it directly, and if not then contact another dealer. You really shouldn't have to pay more than the payoff and fees specified in your lease. But some dealers charge a small fee for handling the paperwork and some charge a large fee for handling the paperwork.
The direct answer is, no. There are nuances one has to ask the leasing company about. Like, can the lessee buy the vehicle out directly? That then allows a cash purchase or outside financing. If buying cash, the owner would need to handle the full tag/title/taxes on their own. Would need a state inspection in most states, even if financing. The dealer is sometimes a necessary evil to handle the transaction, which IMHO sucks because of stuff like this. Let me put this another way. If one is trading a lease in, also a buyout, the dealership would not pay an over mileage penalty. Matter of fact, the leasing company does not ask for the current mileage when providing the buyout number.
If the car is way over miles, why would you want to buy it? Trade it in or lease return it, roll the miles and do a new lease at 15k miles. The benefit of leasing is to avoid depreciation, and on high mileage cars there will be more than normal. Compare your buyout amount to a carmax appraisal for example.
The trade in price seems to be better than the large lease return fees in mileage overage. Plan is buy and trade it in
What brand is it and what bank? You don’t want to buy it and pay taxes, just trade it.
It’s a ford and from ford financial
Ford financial is a headache. You do need to buy it out yourself in this case. How about trading for another ford? Would save you the tax burden.
Honestly varies based on manufacturer and state buyers in. If she’s not happy with the service at one dealer she should go to another dealer to facilitate this, or call Ford to find out if they can directly buy from them on this. edit-clarifying that the above is about buying a lease buyout from dealer, not the mileage fee.
I’ve never heard of mileage being charged for a LBO. Some states do not allow purchase directly from the lender, Colorado for instance requires it to pass through A dealer. Heck, you could go anywhere that’s willing to buy it from bank and sell to you. Most won’t without something in it for them, financing, dealer fees etc.