[static416]

I'm coming up on the end of my lease in June, with the last payment coming out in May.

My question is what are the costs if I buy the car, and what are the costs if I return it?

The buyout cost is $12500, apparently there is GST and PST (I'm in Canada) on top of that, as well as some 'Administration Fee'. Does anyone know how much this administration fee is? Are there any other fees?

If I return the car with 25,000kms over, will I have to pay any sort of additional fees on top of the mileage charges? Excessive wear and tear or anything?

Thanks
Eric

 

[danielj]

Do you have your lease contract? All the details and fees (with perhaps the exception of GST) should be included.

You shouldn't be hit with any excess wear charges unless the vehicle has incurred excess wear. Even then, the burdon is on the dealer to prove these wear items are excessive.

Are you planning on purchasing the car or returning it?

 

[static416]

[quote author=danielj link=topic=137320.msg2960387#msg2960387 date=1235577060]
Do you have your lease contract? All the details and fees (with perhaps the exception of GST) should be included.

You shouldn't be hit with any excess wear charges unless the vehicle has incurred excess wear. Even then, the burdon is on the dealer to prove these wear items are excessive.

Are you planning on purchasing the car or returning it?
[/quote]
Well the car is in great shape, and the tires are brand new, so I don't feel that there has been excessive wear. I've just heard that the dealerships often try to ding you with that.

I'd like to purchase it, but the issue is that I may not have the cash required by the time my lease is up. So rather than buying it, I'll be forced to pay the mileage charges and then lease a new one. Which will be far more expensive in the long run, but may be all that I can afford at the moment. Though I may be able to get a car loan, I'm not sure.

 

[danielj]

I'm not sure how it is in Canada, but in the US, leases are becoming more and more difficult to obtain. You may be better off buying it out.

With the mileage charge, you'll have to either pay if off, roll it into the new lease or if you purchase it, do not have to pay the charges (at least that is how it was when I sold cars).