{"version":"1.0.0","episode":{"title":"LEASE-END LIES: How to Get the Equity Out of Your Leased Car","url":"http://getcarcurious.com/episodes/lease-end-lies-how-to-get-the-equity-out-of-your-leased-car","audioUrl":"https://www.buzzsprout.com/2400168/episodes/18703596-lease-end-lies-how-to-get-the-equity-out-of-your-leased-car.mp3","description":"SummaryIn this episode of The Straight Shift, The Car Chick® discusses the intricacies of car leasing, particularly focusing on what to do at the end of a lease. She shares a real-life example of helping a client navigate lease end options, emphasizing the importance of understanding positive equity and the often-misleading information from leasing companies. The conversation covers the impact of market dynamics on leasing, the importance of transparency when dealing with dealerships, and practical steps for maximizing equity at lease end. The episode aims to empower listeners with knowledge to make informed decisions about their leased vehicles.TakeawaysLeasing companies do not disclose positive equity options.Market value can exceed the residual value, creating equity.Pandemic changes have altered how leases are handled.Transparency with dealers can lead to better offers.Documenting your car's condition is crucial for negotiations.Researching market value helps in understanding equity.Bidding wars among dealers can maximize your return.Resources CarBuyingCourse.comTheCarChick.comYou can view a full list of resources and episode transcripts here. Connect with LeeAnn:  Website Instagram Facebook YouTube  Work with LeeAnn:  Course: The No BS Guide to Buying a Car Car Buying Service  Copyright ©2024 Women’s Automotive Solutions Inc., dba The Car Chick. All rights reserved."},"annotations":[{"startTime":43.4,"endTime":50.5,"type":"term","title":"lease allowance","url":"/glossary/lease-allowance","quote":"...they were 10,000 miles over their lease allowance, and that's at 25 cents a mile.","canonicalId":"term:lease-allowance","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Lease allowance refers to the maximum number of miles a lessee is permitted to drive a leased vehicle without incurring additional charges. Exceeding this limit typically results in penalties, calculated per mile over the allowance.","simplifiedExplanation":"Lease allowance is the number of miles you can drive a leased car without having to pay extra fees. If you drive more than that, you'll have to pay for each extra mile at a set rate."}},{"startTime":50.5,"endTime":59.6,"type":"term","title":"mileage penalties","url":"/glossary/mileage-penalties","quote":"...that's roughly $2,500 in mileage penalties, staring them right in the face.","canonicalId":"term:mileage-penalties","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Mileage penalties are fees charged to a lessee for exceeding the agreed-upon mileage limit in a vehicle lease. These penalties can add up quickly and significantly increase the overall cost of leasing a vehicle.","simplifiedExplanation":"Mileage penalties are extra charges you have to pay if you drive more miles than what your lease allows. This can make leasing a car more expensive if you're not careful about how much you drive."}},{"startTime":72.5,"endTime":77.4,"type":"term","title":"Honda Financial","url":"/glossary/honda-financial","quote":"...according to the lease and letter from Honda Financial, they had three options...","canonicalId":"term:honda-financial","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Honda Financial is the financial services division of Honda, providing leasing and financing options for customers looking to purchase or lease Honda vehicles. They often outline the terms and conditions of leases and loans.","simplifiedExplanation":"Honda Financial is the part of Honda that helps people pay for their cars, either by leasing or getting loans. They set the rules for how much you can drive and what happens if you go over."}},{"startTime":102.7,"endTime":108.8,"type":"term","title":"positive equity","url":"/glossary/positive-equity","quote":"...your car might actually be worth more than the buyout amount. You might have positive equity, negative equity, because that's not what the leasing company wants to do...","canonicalId":"term:positive-equity","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Positive equity refers to the situation where the current market value of a vehicle is greater than the amount owed on it, such as the buyout price of a lease. This means the owner can potentially profit from selling the car instead of returning it to the leasing company.","simplifiedExplanation":"Positive equity means your car is worth more than what you owe on it. If you sell it, you can make money instead of losing it when you return it to the leasing company."}},{"startTime":102.7,"endTime":108.8,"type":"term","title":"negative equity","url":"/glossary/negative-equity","quote":"...you might have positive equity, negative equity, because that's not what the leasing company wants to do...","canonicalId":"term:negative-equity","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Negative equity occurs when the amount owed on a vehicle exceeds its current market value. This situation can lead to financial loss if the vehicle is sold or traded in, as the owner would still owe money after the sale.","simplifiedExplanation":"Negative equity means you owe more on your car than it’s worth. If you sell it, you might still have to pay money to cover the difference."}},{"startTime":116.3,"endTime":126.2,"type":"term","title":"lease buyout","url":"/glossary/lease-buyout","quote":"...The buyout was just over $26,000. I shopped it around and got them $30,000 for this car...","canonicalId":"term:lease-buyout","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A lease buyout is the process of purchasing a vehicle at the end of a lease term, typically for a predetermined price specified in the lease agreement. This allows the lessee to keep the vehicle instead of returning it to the leasing company.","simplifiedExplanation":"A lease buyout is when you buy the car you’ve been leasing instead of giving it back. You pay a set price to own it at the end of your lease."}},{"startTime":194.2,"endTime":200.1,"type":"term","title":"residual value","url":"/glossary/residual-values","quote":"...Every lease has what's called a residual value, which is usually approximately the same as your buyout amount. This is contracted at the beginning of the lease...","canonicalId":"term:residual-values","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Residual value is the estimated worth of a leased vehicle at the end of the lease term. It determines how much you would need to pay to buy the car outright after the lease ends and is set by the leasing company at the start of the lease.","simplifiedExplanation":"Residual value is how much a car is expected to be worth when your lease ends. It helps you know how much you would need to pay if you want to buy the car after leasing it."}},{"startTime":301.9,"endTime":307.0,"type":"term","title":"Carfax","url":"/glossary/carfax","quote":"...that's still on the car facts, and it affects the market value of the car...","canonicalId":"term:carfax","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Carfax is a service that provides vehicle history reports, which include information about accidents, repairs, and previous ownership. This information can significantly affect a car's market value.","simplifiedExplanation":"Carfax is a company that gives you a report on a car's history, like if it was in an accident or had repairs. This can change how much the car is worth."}},{"startTime":372.2,"endTime":378.3,"type":"car","title":"Honda","image":"https://upload.wikimedia.org/wikipedia/commons/d/d2/Honda%2C_Paris_Motor_Show_2018%2C_Paris_%281Y7A1799%29.jpg","quote":"My clients, they didn't want another Honda, we got them a new Subaru...","canonicalId":"car:honda","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Honda is a well-known Japanese automotive manufacturer recognized for producing reliable and fuel-efficient vehicles. Models like the Civic and Accord are particularly popular.","simplifiedExplanation":"Honda is a car brand that makes many popular vehicles, known for being dependable and good on gas.","imageAttribution":"Matti Blume (CC BY-SA 4.0)"}},{"startTime":389.62,"endTime":395.9,"type":"term","title":"dealer payoff","url":"/glossary/dealer-payoff","quote":"day dealer payoff might be slightly different than the actual buyout number for you as a customer, but they used to be really close. And then you just handle it as a normal trade in...","canonicalId":"term:dealer-payoff","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Dealer payoff refers to the amount a dealership must pay to settle a customer's existing loan or lease on a vehicle when they trade it in. This amount can vary slightly from the actual buyout number that the customer sees, depending on the specific terms of the lease or loan agreement.","simplifiedExplanation":"Dealer payoff is the amount a car dealership pays to clear the loan or lease on your old car when you trade it in. It might be a little different from what you see as the buyout price."}},{"startTime":417.7,"endTime":423.8,"type":"term","title":"Carvana","url":"/glossary/carvana","quote":"Companies like Carvana and Vroom and even CarMax were paying ridiculous amounts of money for those used cars.","canonicalId":"term:carvana","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Carvana is an online used car retailer that allows customers to buy, sell, and trade vehicles through a digital platform. They are known for their unique car vending machines and home delivery service, making the car buying process more convenient.","simplifiedExplanation":"Carvana is a website where you can buy or sell used cars online. They even have special machines that look like vending machines where you can pick up your car."}},{"startTime":417.7,"endTime":423.8,"type":"term","title":"Vroom","url":"/glossary/vroom","quote":"Companies like Carvana and Vroom and even CarMax were paying ridiculous amounts of money for those used cars.","canonicalId":"term:vroom","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Vroom is an online platform for buying and selling used cars, offering a seamless digital experience for customers. They provide home delivery and a wide inventory of vehicles, making it convenient for consumers to shop for cars online.","simplifiedExplanation":"Vroom is a website where you can buy and sell used cars online. They deliver the cars to your home, making it easy to shop for a car without going to a dealership."}},{"startTime":423.8,"endTime":431.2,"type":"term","title":"CarMax","url":"/glossary/carmax","quote":"Companies like Carvana and Vroom and even CarMax were paying ridiculous amounts of money for those used cars.","canonicalId":"term:carmax","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"CarMax is a large used car retailer in the United States, known for its no-haggle pricing and wide selection of vehicles. They offer a straightforward buying and selling process, making it easier for consumers to purchase used cars.","simplifiedExplanation":"CarMax is a big store where you can buy used cars without having to negotiate prices. They have a lot of different cars to choose from."}},{"startTime":465.3,"endTime":470.0,"type":"term","title":"certified pre-owned","url":"/glossary/certified-pre-owned","quote":"...they didn't have any new cars to sell and they didn't have any certified pre-owned inventory to sell because these other companies were literally sucking up all the inventory...","canonicalId":"term:certified-pre-owned","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Certified pre-owned (CPO) vehicles are used cars that have been inspected, refurbished, and certified by the manufacturer or dealer. They typically come with a warranty and are considered to be in good condition, providing buyers with more assurance than standard used cars.","simplifiedExplanation":"Certified pre-owned means the car has been checked and approved by the dealer or manufacturer. It usually comes with a warranty, so you know it's in good shape."}},{"startTime":485.4,"endTime":491.0,"type":"term","title":"captive finance companies","url":"/glossary/captive-finance-companies","quote":"...but they had help because what the leasing companies did and remember these are the captive finance companies that are owned by the manufacturer HANA Financial Toyota Financial...","canonicalId":"term:captive-finance-companies","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Captive finance companies are financial institutions owned by an automotive manufacturer that provide financing options to customers and dealers. They help facilitate vehicle purchases and leases, often offering better rates than independent lenders.","simplifiedExplanation":"Captive finance companies are banks owned by car manufacturers. They help people buy or lease cars from their brands, usually with better loan options."}},{"startTime":630.4,"endTime":636.5,"type":"term","title":"hybrid","url":"/glossary/hybrid","quote":"...well cared for vehicles anything with the word hybrid in it tends to be one of them...","canonicalId":"term:hybrid","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A hybrid vehicle uses both a traditional internal combustion engine and an electric motor to improve fuel efficiency and reduce emissions. They are popular for their environmental benefits and cost savings on fuel.","simplifiedExplanation":"A hybrid car is one that uses both gas and electricity to run. This helps it save on fuel and is better for the environment compared to regular cars that only use gas."}},{"startTime":665.64,"endTime":671.98,"type":"car","title":"Honda Crv","url":"/cars/honda/cr-v","image":"https://upload.wikimedia.org/wikipedia/commons/c/c3/2018_Honda_CR-V_%28RW_MY18%29_%2BSport_2WD_wagon_%282018-10-22%29_01.jpg","quote":"...talk about that there what that means is that the Honda CRV  hybrids the gently used ones still totally hot i...","canonicalId":"car:honda:cr-v","priority":0.5,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"The Honda CR-V is a compact crossover SUV known for its reliability, spacious interior, and fuel efficiency. It has been a popular choice among families and individuals seeking a versatile vehicle for daily use and outdoor adventures. The hybrid version has gained attention for its eco-friendly features and cost savings on fuel.","simplifiedExplanation":"The Honda CR-V is a type of car called an SUV, which means it's a bit bigger and can carry more people and stuff. It's known for being dependable and good on gas, making it a favorite for families. The hybrid version is special because it uses both gas and electricity to save even more on fuel.","imageAttribution":"EurovisionNim (CC BY-SA 4.0)"}},{"startTime":683.5,"endTime":690.8,"type":"term","title":"franchise dealer","url":"/glossary/franchise-dealer","quote":"...we could still only sell this Honda to a Honda store a Honda franchise dealer some of the manufacturers like Volkswagen...","canonicalId":"term:franchise-dealer","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A franchise dealer is a car dealership that has the rights to sell vehicles from a specific manufacturer. These dealers must adhere to the manufacturer's guidelines and often have exclusive rights to sell certain models in a particular area.","simplifiedExplanation":"A franchise dealer is a car dealership that is allowed to sell cars from a specific brand, like Honda or Volkswagen. They follow rules set by the car company and can only sell certain cars in their area."}},{"startTime":752.0,"endTime":759.0,"type":"term","title":"maintenance records","url":"/glossary/maintenance-records","quote":"...even sent them copies of the maintenance records so that they know that it was well maintained...","canonicalId":"term:maintenance-records","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Maintenance records are documents that detail the service history of a vehicle, including oil changes, repairs, and inspections. They are important for proving that a car has been well cared for and can affect its resale value.","simplifiedExplanation":"Maintenance records are papers that show what work has been done on a car, like oil changes or repairs. They help buyers know if a car has been taken care of properly."}},{"startTime":783.7,"endTime":791.0,"type":"term","title":"wholesale price","url":"/glossary/wholesale-price","quote":"...granted it is still a wholesale price it's still a trade-in price if you want to get a retail price from your leased car then you do need to buy it out...","canonicalId":"term:wholesale-price","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A wholesale price is the price charged for goods sold in large quantities, typically to retailers or dealers rather than to the end consumer. In the context of cars, it refers to the lower price a dealer pays for a vehicle, as opposed to the retail price that a consumer would pay.","simplifiedExplanation":"Wholesale price is what dealers pay for cars when they buy them in bulk. It's usually lower than what you would pay if you bought the car yourself from a dealership."}},{"startTime":798.0,"endTime":803.7,"type":"term","title":"DMV fees","url":"/glossary/dmv-fees","quote":"...you're going to pay the DMV fees again which is going to cut into your equity and then you hope to turn it around and sell it to a private individual...","canonicalId":"term:dmv-fees","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"DMV fees are charges imposed by the Department of Motor Vehicles for services related to vehicle registration, title transfers, and other administrative tasks. These fees can vary by state and are typically required when buying or selling a vehicle.","simplifiedExplanation":"DMV fees are the costs you have to pay to the government when you register a car or transfer its ownership. These fees can add up when you're buying or selling a vehicle."}},{"startTime":846.5,"endTime":853.0,"type":"term","title":"leased car","url":"/glossary/leased-car","quote":"just take in their leased car because the dealers like to say hey we'll pay off your lease...","canonicalId":"term:leased-car","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A leased car is a vehicle that you do not own but have rented for a specific period, usually with mileage limits. At the end of the lease, you typically return the car to the dealer or have the option to buy it.","simplifiedExplanation":"A leased car is one that you pay to use for a certain time but don't own. When the lease is up, you give it back or can sometimes buy it."}},{"startTime":877.4,"endTime":883.6,"type":"term","title":"market value","url":"/glossary/market-value","quote":"they will recognize that the value of the car the market value of the car if it is truly higher than the buyout...","canonicalId":"term:market-value","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Market value refers to the price that a vehicle would sell for in the current market, based on factors like condition, mileage, and demand. It's important for determining how much you can get for your car when selling or trading it in.","simplifiedExplanation":"Market value is how much a car is worth right now if you wanted to sell it. It depends on things like how well the car is kept and how many people want it."}},{"startTime":974.2,"endTime":980.8,"type":"term","title":"excessive wear and tear","url":"/glossary/excessive-wear-and-tear","quote":"...they can charge you excessive wear and tear that's if the car is more beat up than it should be...","canonicalId":"term:excessive-wear-and-tear","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Excessive wear and tear refers to damage or deterioration of a leased vehicle that exceeds normal use. Leasing companies may charge for repairs or reductions in value due to this excessive wear.","simplifiedExplanation":"Excessive wear and tear means the car is more damaged than it should be after being used. If this happens, you might have to pay extra when you return the car."}},{"startTime":998.4,"endTime":1004.0,"type":"term","title":"Kelly Blue Book","url":"/glossary/kelly-bluebook","quote":"...lots of people will go out to Kelly Blue Book and run it through nothing wrong with doing that...","canonicalId":"term:kelly-bluebook","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Kelly Blue Book is a vehicle valuation and automotive research company that provides information about car prices and values. It is commonly used to estimate the worth of a vehicle in the market.","simplifiedExplanation":"Kelly Blue Book is a website that helps you find out how much a car is worth. It's a popular tool for checking car prices, but they don't actually buy cars themselves."}},{"startTime":1061.8,"endTime":1069.2,"type":"term","title":"used car listing","url":"/glossary/used-car-listing","quote":"take a bunch of pictures detailed pictures like you would see on a used car listing if you were on auto trader or cars dot com...","canonicalId":"term:used-car-listing","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A used car listing is an advertisement for a pre-owned vehicle, typically found on websites like AutoTrader or Cars.com. These listings often include photos, descriptions, and pricing information to attract potential buyers.","simplifiedExplanation":"A used car listing is an online ad that shows a car that's for sale. It usually has pictures and details about the car to help buyers decide if they want it."}},{"startTime":1103.3,"endTime":1109.0,"type":"term","title":"tread depth","url":"/glossary/tread-depth","quote":"...what i have my clients do if they don't have an actual tread depth gauge which the average person doesn't have take a penny look at abe lincoln...","canonicalId":"term:tread-depth","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Tread depth refers to the measurement of the depth of the grooves in a tire's tread. It is crucial for ensuring adequate traction and safety, especially in wet conditions.","simplifiedExplanation":"Tread depth is how deep the grooves are in your tires. Deeper grooves mean better grip on the road, which is important for safe driving, especially when it's wet or slippery."}},{"startTime":1404.0,"endTime":1405.0,"type":"brand","title":"Subaru","url":"/glossary/subaru","quote":"...if you are buying say like in our situation a Subaru but your least car that you want to get rid of is a Honda...","canonicalId":"brand:subaru","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"Subaru is a Japanese automotive manufacturer known for its all-wheel-drive vehicles and rugged designs, often appealing to outdoor enthusiasts.","simplifiedExplanation":"Subaru is a car brand from Japan that makes vehicles known for being good in tough weather and for outdoor activities."}},{"startTime":1411.0,"endTime":1412.0,"type":"concept","title":"trade-in","url":"/glossary/trade-in","quote":"...to still be able to take your least car in on trade but then run it through their other franchise...","canonicalId":"concept:trade-in","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4o-mini","data":{"explanation":"A trade-in is when a customer offers their current vehicle as part of the payment for a new vehicle, which can reduce the overall cost of the new purchase.","simplifiedExplanation":"A trade-in is when you give your old car to a dealership to help pay for a new one, making it cheaper for you to buy the new car."}}],"speakers":[{"id":"s1","name":"LeeAnn Shattuck","role":"host"},{"id":"s2","name":"The Car Chick: Your Car Buying","role":"host"},{"id":"s3","name":"Repair Expert","role":"host"}],"transcripts":[{"url":"http://getcarcurious.com/episodes/lease-end-lies-how-to-get-the-equity-out-of-your-leased-car/transcript.vtt","type":"text/vtt"}]}