International students: what to do with leased vehicle?

[flyhi]

So, I am *hoping* to get into an international school and being the obsessive type, am already freaking out about how to get out of the lease on my SUV.

I am a professional and had not yet decided to apply to vet school earlier this year. But, I DID decide to treat myself to a 2008 HUGE Toyota Sequoia 4x4 SUV....yes, a bit excessive for just me and my two 5 pound pooches. However, I absolutely love this truck and do not want to give it up. If I get into the school I want, taking it there is just not an option. For one, I will now be a student and simply cannot afford it, two - it does not make sense to have where i hope to be going and three - shipping is insanely expensive. I will either have to part ways with it, or buy it and store it until I graduate. At least i'd have a pretty hot ride as a new broke graduate

Soooo, my question for anyone who has had this unfortunate experience - what are the options? I financed through Toyota, have 7k miles on it and 3 years left on my lease. I don't think that I need to state the obvious, but i will....it is over a 7k pound vehicle, a V8, 5.7L engine that averages about 13.8 miles to the gallon in town and is probably worth waaaaay less than what i paid for it (not including depreciation)

My friends and loved ones are somehow finding this all extremely humorous at my expense, but none are willing to take the Monster off of my hands. I will listen to any and all suggestions. And will send pictures to anyone interested . It truly is a gorgeous vehicle (for those of you that like BIG)

Thanks for ANY help.

Signed,

Torn in Las Vegas

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[GellaBella]

I guess I'm a little confused by your post...are you looking to sell your vehicle? Or just give it to someone to 'hold on to' until you get back. Also, have you paid for it completely? Because your title says its leased but then you're talking about still having it in 4+ years when you get back from school. Personally, if it was me, I would probably get rid of it..sell it, either to a stranger (but you'll take a huge hit with the depreciation) or trade it in for a smaller car that someone might not mind having in their drive way (or at the very least will be easier to find a storage space for). Storing a car sucks. My fiance has a camaro that he stores and it costs us $200/month. If you are willing to pay that for how ever many years, thats an option. But I'm not so sure its a good one. I know you love your car, but (in my opinion) gas is only going to go up again and 13.8 mi /g is just not gonna cut it, and you said yourself its a bit excessive for your needs. Nobody has a driveway you can just sit it in? Have you asked friends and family? If I really didn't want to get rid of my car thats the route I would go. That or the storage. Good luck!

 

[Ben and Me]

My aunt has "taken over" leases before from people who no longer wanted their leased car or were moving out of the country, etc. Maybe put an ad on CraigsList or in the newspaper to see if you could find someone to take over the lease?

 

[flyhi]

Yes, I have thought about someone taking over the lease if it was dollar for dollar. It's just with the lease less than a year old now and gas prices skyrocketing after I bought it, someone could probably go buy a new one today for much less.

GellaBella - yes, it's a little confusing. The only way to get it off my hands is to sell it or have someone take over the lease payments. Otherwise, I have to buy it or keep paying the lease while in school. If I pay the lease, then by the time I get out of school, it will be over and I will have to turn it in. That, is obviously a total waste since I will not be able to use it Or, I could buy it, but still have to store it at a family members house. Not a purchase I want to make just before vet school, but that way, the vehicle would be paid off, mine and still new-to-me. I think I am going to have difficulty finding someone to buy it or take over the payments without getting murdered financially I work out of my house, so the gas mileage thing is not a factor for me really, but certainly may be for a new owner.

I DO love my truck, but I could rent a place while in vet school for the amount of my lease. Again, this decision was contemplated before applying to vet school and before my industry took a huge hit due to the credit crisis. Timing.

I guess I was hoping for someone to say, "yes, I have been in this situation and I negotiated a much better price/rate with the leasing company/manufacturer" or, "there is a great lease exchange company that I used", etc. etc. Or, "there is an escape clause in most leases if you move out of the country." I know, I'm looking for a miracle here. But, stranger things have happened.

thanks for the responses.

 

[lazyjayn]

flyhi-

There probably is a payoff clause in your lease agreement, much like in a cellphone contract or house/appt lease. It'll probably be a good chunk of change, though. Just to warn you. You should look over the contract, and talk to the leasing agent to see if they have something like that- they should be able to help more than we can.

Otherwise, yeah, craigslist is your friend.

But wait until you're in to ditch it, k?

-j.

 

[Nexx]

A tricky situation no doubt... I had about 6 or 8 months left on my volkswagen when I left for Australia. I called VW (the leasing company) and asked them if I could just turn it in early and they told me they would basically send it to auction and I would be liable for any difference between the sale price and the residual + remaining payments ($10k + ($230 * 6 months))--so that option was a no go.

I also looked into a lease takeover, but everything I found looked very sketchy such that if payments were missed it could affect your credit or if something happened to the car it could be placed on you (such as an at-fault accident from another driver, since you still 'own' the car).

Selling the car outright was another option, but mine was a sedan (passat) and timing was an issue with me needing to use the car to drive across the US to move my belongings to my parents and then I left the country a week after that trip so a sale would have been a logistical nightmare of mailing/faxing stuff back and forth.

I ended up opting to pay out the remainder of the lease and turn the car in at the end. If I had the money (and I wish I did..I would have had I not gone off to school!) I would have bought the car. It would actually make sense for me to have bought the car if I could (while in vet school) since when I move back I will have only a bit of money to buy a new car/rent an apartment/set up wherever I opt to move (well, if I opt...).

Essentially I would work out the finances... is your lease (including residual) a good deal for the car, mine was. Are relatives/friends willing to store the car for you? (keep in mind you would still have to keep full-insurance on it as that is a condition of most leases). Can you afford to buy out the car currently? Will you still be happy with the car 5 years down the road when there are newer/better models out? (My problem... I'm a sucker for new shiny things)

Just look carefully into things and weigh your options. Personally with such a new lease I would probably try to sell the car, and maybe take a loss. But it depends on what the buyout is versus the remaining payments + residual.

kbb.com lists the base model sequoia at just shy of $39k

A quick search of autotrader.com near Las Vegas shows some listed between $32k and $40k

If the market were better for large SUVs I'd also suggest checking out local dealers to see if they might buy the thing from you

It's really going to end up being a cost/benefit thing in the end. Sorry I couldn't be of more help!

 

[flyhi]

First of all Nexx, thank you so much for your insight. Unfortunately, you pretty much solidify my fears

I also looked into a lease takeover, but everything I found looked very sketchy such that if payments were missed it could affect your credit or if something happened to the car it could be placed on you (such as an at-fault accident from another driver, since you still 'own' the car).

This was my major concern too. You would have to know/trust the person. I wasn't sure if there was a lease buyout option that would essentially put the lease in the hands of the 'takeover' person.

I ended up opting to pay out the remainder of the lease and turn the car in at the end.

This would kill me - 3 years left of payments and no nice truck to drive! My payments are pretty insane and with insurance, it would just seem like such a waste to pay all of that and then not have the vehicle!

Essentially I would work out the finances... is your lease (including residual) a good deal for the car, mine was.

Residual WAS good when market was good. I have no idea now, but i know i need to suck it up and check.

Are relatives/friends willing to store the car for you? (keep in mind you would still have to keep full-insurance on it as that is a condition of most leases).

Yes, i can have someone store it. Insurance ain't cheap either!

Can you afford to buy out the car currently? Will you still be happy with the car 5 years down the road when there are newer/better models out? (My problem... I'm a sucker for new shiny things)

Yes, i can, but don't want too . The model is brand new and if i store it it will have very low mileage. I believe i will be happy with it down the road. And you made a good point - not a lot of cash available AFTER vet school. Might be nice to have a new truck!

kbb.com lists the base model sequoia at just shy of $39k

A quick search of autotrader.com near Las Vegas shows some listed between $32k and $40k

Haha...YIKES Mine is fully loaded with all the bells and whistles and the top model. I think i paid 53k for it . I would not be surprised in the least if it is only worth 40k! OUCH.

If the market were better for large SUVs I'd also suggest checking out local dealers to see if they might buy the thing from you

Great idea - i do have a good relationship with the dealer i bought it from. I am also going to talk to the leasing company (Toyota) and see if they are willing to bargain knowing the current market. I think you can have the vehicle appraised by a third party and that would be factored into the current price. This should help.

It's really going to end up being a cost/benefit thing in the end. Sorry I couldn't be of more help!

You've been a great help, i just don't want to face the facts because it makes me want to