Yes. With the amount of miles OP has gone over, the loss may be the same all around no matter the avenue taken. But hey, it's worth a shot and some phone calls

 

Personal experience with Carmax has led me to believe they no longer give the highest trade in value. Had this happen to me on two separate vehicles I tried to sell to them. Just take the penalty and ask for a discount on the excessive mileage charges.

 

I still don't understand why you go 19,000 miles over understanding the consequences when you have another paid off car sitting in the driveway. And apparently this car is good enough that it is going to be your main car after the lease.

I think it would make the best sense to buy the car at lease end instead of paying $4,000+ in a penalty and leave with nothing. While also selling your older car.

 

I would also just buy at the preset residual, then turn around and sell it for that residual or maybe even more if the car is worth more than the residual.

Research what that car is selling for on the secondary market (in a similar condition and mileage) and if it is worth more than the residual, you may actually make money. Even if it is less, the difference (or loss) of buying and selling might be less than the overage penalty.

 

This is what I don't understand. It's not like it was 100 miles or even 1000 miles. You went over 19k miles? Sorry to say, but that is just plain foolish. Even if you didn't have the other car at the time, you knew what your lease rates were and about overage charges. Going 19k miles over is just ridiculous. You are going to pay one way or another for it.

 

Vanity, Pride, Status comes to mind

 

Look, before you start tossing stones, give the guy a break. OK...yes, it may have been foolish to drive what is essentially double the mileage he signed for....no one is denying that. But, First, he clearly stated that it was due to unforeseen circumstances. Second, we've probably all done dumb things in our lives that we're not proud of and wish we could change. I agree he's probably going to pay at least some penalty for it, one way or the other, but there is nothing wrong with trying to find the least expensive way out of this mess. You would probably ask for ideas, too, if you were in his shoes.

 

Yes to this.

There are only a few real options depending upon your financial situation. First, you MUST find out now what the car is worth on the open market. Go to your dealer and at least a couple of used car dealers and find out what they will give you for the car buying it from you. There is NO future in buying the car yourself and then selling it. You will almost surely not get any more than a dealer will give you for it anyway and you would be paying tax on it which a dealer does not have to do.

Other option is to call Lexus Financial NOW and tell them your situation and that you do not have $4700 to pay them for overage. As someone else suggested, see if they will lower the per mile rate. For them it's better than sending you to collections where they would still get a reduced amount after paying a collection company and getting whatever they can from you. Plus they get future goodwill for helping you out of a jam. Be honest with them and tell them what happened that got you into this bind.

BTW, Rhambler is correct, you also have to look at your residual buyout amount and compare that to what it's worth on the open market. I overlooked that point. But you also have to remember that normally you will also have to pay tax as has also been pointed out.

Good luck.

 

Yeah, people who lease often don't check what the actual market value might be versus the set-in-stone residual. That residual was based on a guess years ago and in SOME cases the market value might actually be more than the residual value. Even for people who drive under the mileage limit, it might be worthwhile to just check and see as you might be able to turn a small profit if you can afford to buy and resell, taking all other things into consideration.

This isn't always the case and sometimes manufacturers will take a residual and artificially balloon it during a sanctioned deal, but even then, you never know until you check. Most manufacturers will either have an in-house residual or use a third-party like ALG in estimating market value years in advance. Remember, this is a guess and they are obliged to it whether it is worth more or less.

 

Sell the car!l and cut your loses

 

With all due respect, I wouldn't even joke abut that. Major insurance fraud is considered a felony in many states, and can carry a stiff prison sentence.

 

I would try to sell out privately for more than it's worth. That is very possible, especially if you detail it up and wow a potential buyer. Or, you can extend the lease, let it sit for that period of time, and try to recoup some of the over-mileage. Either way, you usually always get more for any car when you sell it privately. Try that first before throwing in the towel.
Lastly, do not get another new car just because you are over-mileage and they'll forgive some for another. That is a bad financial decision (just like buying a car based on monthly payments). You are basically deferring the debt you owe today, to another date in time, PLUS more interest. Deal with it now and work yourself out of this problem instead of paying for it longterm.
Good luck.

 

Good ponts, but with a private sale, you will probably need a Notary Public to witness and sign/approve the transfer of the title, verify the sales-price, and other legal paperwork. Also, there's the inevitable question of who is going to drive with who's plates on which car until the buyer gets to the DMV for his or her new set of license-plates. One good thing about dealerships is that they usually have all the necessary personnel and facilities (including both temporary and permanent license-plates, if necessary) to handle all of these formalities with a minimum of trouble or inconvenience. You also will not be exposed to possible thieves or carjackers at a dealership.