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Car Lease and collision coverage question

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Car Lease and collision coverage question

Old 09-04-2015, 02:48 PM
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Default Car Lease and collision coverage question

Oldest managed to put 19k miles on the car with 10 months to go on a 2 year 10500 mile/yr lease 21000 miles total.

Option 1 is to put the car in the garage and eliminate collision coverage and carry fire/theft for the duration of the lease.

Anyone know if this is possible with a lease car.

Have done it in the past with cars I own that are not leased when stored for winter months.
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Old 09-04-2015, 02:53 PM
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You'd have to read the lease documents. Probably stipulate that there is a minimum coverage you have to carry.

But you can designate it as an extra vehicle and put only X miles per year (1000 going forward) which should reduce your rates.

What's the value of the car? You may be able to sell it for more than the lease residual at any point in the lease. I helped my parents sell theirs instead of turning it in, they put enough in their pocket that paid for the payments of the entire lease period.
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Old 09-04-2015, 03:03 PM
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Originally Posted by crazybeard View Post
You'd have to read the lease documents. Probably stipulate that there is a minimum coverage you have to carry.

But you can designate it as an extra vehicle and put only X miles per year (1000 going forward) which should reduce your rates.

What's the value of the car? You may be able to sell it for more than the lease residual at any point in the lease. I helped my parents sell theirs instead of turning it in, they put enough in their pocket that paid for the payments of the entire lease period.
Never considered selling it like the option. Will check on the mileage thing and check the docs as well.

Thanks
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Old 09-04-2015, 09:17 PM
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Call the dealer and see if they want it back early. Lots of dealers complaining about used car shortage. They might buy you out early.
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Old 09-04-2015, 09:29 PM
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You also may be able to buy extra miles at a discount(not as favorable as beginning of lease but better than the penalty $/mile).

Do you want to buy the car at lease end and keep it? If so just keep driving it and get a used car loan at the end for payoffs

I had a three year lease on Grand Cherokee I went over by 7k on. When they sent me the mileage bill for $2k I told them most I could come up with right now was $1300 and they took it.
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Old 09-06-2015, 04:48 PM
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Wondering if I call the insurance company drop collision and keep comprehension including theft. How would the lease company know if I keep the vehicle insured. I have done it with loans on sports cars I garaged for the winter up here and have had no issue with the lending institute.
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Old 09-06-2015, 05:38 PM
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The insurance company will notify the dealer because they are an "interested" party.
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Old 09-06-2015, 05:48 PM
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Lease company is listed as interested party and will know if you remove collision coverage. Increase you DED is all you can do.
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Old 09-06-2015, 05:50 PM
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probably cheaper to drive it and pay the extra millige then buy a 2nd car and pay 2 payments while driving the other?... is that your plan? or just give up a car for 10 months?
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Old 09-07-2015, 04:57 AM
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Call and get your payoff information. You don't even have to "buy" the car personally, you can go trade it in at a carmax or other dealer. In fact, the dealer you bought it from can buy it and may be interested, depending on the car and what kind of deal you got when you bought it.

Also do the math on just being over. While the overage may seem severe, if I understand it correctly you are at 19k miles on a 21k lease. So you have 2k to go - let's say you get the driving down to a more reasonable 1k miles a month, that means you'll end the lease 8,000 miles over. At $0.20 a mile (what's your lease rate?) that is "only" $1600 we are talking about. I'd rather pay $1600 than watch a car sit in the garage for half a year.

Also, your lease paperwork is bound to have some coverage requirements detailed in it...

Last edited by Flot; 09-07-2015 at 09:27 AM.
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Old 09-07-2015, 05:05 AM
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When I was a teenager, cars went missing frequently. I would keep it insured!
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Old 09-07-2015, 07:02 AM
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What's the original plan for after the lease? Turn in and walk away? Lease another? Extend the lease? Buy it (financed or not) etc?
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Old 09-07-2015, 07:11 AM
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It's a bad idea to not have full coverage as was leasing a car with less mileage than you would use.
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Old 09-07-2015, 07:43 AM
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Originally Posted by mikefloyd View Post
It's a bad idea to not have full coverage as was leasing a car with less mileage than you would use.
And the winner of the "most helpful comment of the thread" goes to....
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Old 09-07-2015, 07:49 AM
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I had the same issue with a Cobra I leased years ago. Sold it to CarMax and paid the 2K to get out of the lease. Better than making payments on something sitting or paying for millage.


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Old 09-07-2015, 04:30 PM
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Originally Posted by Flot View Post
Call and get your payoff information. You don't even have to "buy" the car personally, you can go trade it in at a carmax or other dealer. In fact, the dealer you bought it from can buy it and may be interested, depending on the car and what kind of deal you got when you bought it.

Also do the math on just being over. While the overage may seem severe, if I understand it correctly you are at 19k miles on a 21k lease. So you have 2k to go - let's say you get the driving down to a more reasonable 1k miles a month, that means you'll end the lease 8,000 miles over. At $0.20 a mile (what's your lease rate?) that is "only" $1600 we are talking about. I'd rather pay $1600 than watch a car sit in the garage for half a year.

Also, your lease paperwork is bound to have some coverage requirements detailed in it...
I was figuring the same thing. @ 0.25/mile 2k with what I figure he would put on it - 8k miles til the lease was up.

More than anything else the insurance for that car and the other cars I have are being penalized since he is listed as a resident here at home. He does not live at home since he is at university for normal school year and works and takes classes in the summer.

Ultimately I would like to garage the car and pay the 68.00/month for theft and fire or approximately 500 for 8 months. Find him his last car I will be buying him - something used $5 - $7k have him get his own insurance and be done with it. Finally getting him off my policy on 3 other cars he never even sees that the insurance company says he is eligible to drive.

All this pending whether or not I can drop collision coverage and park the car

Originally Posted by crazybeard View Post
What's the original plan for after the lease? Turn in and walk away? Lease another? Extend the lease? Buy it (financed or not) etc?
Walk away after lease is turned in.
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Old 09-07-2015, 06:24 PM
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So depending On the value, the residual amount, payments and insurance costs you may be in a better spot to take the hit now and sell it even if you have to pay to get out. Put it all in a spreadsheet and get quotes for your insurance without him as a driver. See where it makes sense $ wise. You can sell it, get someone to assume the lease (providing the company allows it - check out swapalease.com) trade it in or buy it out at any point in the term for most consumer leases.
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