Should I "lease" out my car?

[shelfy]

my college buddy called me today with a business proposition. he's buying a 2007 bmw 335xi here in colorado, but taking delivery of the car in munich, germany. he'll drive it around europe for a week and a half and then they'll deliver it to the dealer in boulder from where he bought it. he curently has a 2005 jeep liberty crd and a 2006 mazda 3. originally, he was going to just trade-in the jeep and sell the mazda when the bmw got here. if he keeps the mazda, his idaho registration will have expired by early september when the bmw will be here, so he has decided to trade it in as well. since i have three cars, he asked if he could "lease" one from me for three months or so since he has to close the deal with the dealership by may 29th. i totally trust him, so i just need to work out the details. he asked which car he could rent, so the choice was easy. greenie was immediately off the table and i thought about lending him blackie, but it would be more likely to break down during the three months and who'd be responsible for repairing it? so it looks like i'll be leasing my friend the sonata. the question is how much should i charge him per month?

[Crazy_pilot]

I dunno...150? With a "You break it you buy it" agreement.

[Stevebsy]

I'd say monthly payment plus a little extra to make it worth your while.

Make sure your (or his) insurance covers this though, as if it gets piled up you don't want to be holding the bag.

[shelfy]

Originally Posted by Crazy_pilot

I dunno...150? With a "You break it you buy it" agreement.

i was thinking $250-300 range. his other alternative is to rent a car for three months or drive his father's 1989 ford escort pony beater.

[shelfy]

Originally Posted by Stevebsy

I'd say monthly payment plus a little extra to make it worth your while.

Make sure your (or his) insurance covers this though, as if it gets piled up you don't want to be holding the bag.

i plan on calling my insurance agent first thing monday morning to see how would all work.

[shelfy]

Originally Posted by Stevebsy

I'd say monthly payment plus a little extra to make it worth your while.

coming back to this thread, i am interpreting your post differently. i own the car free and clear so i think i should go with my monthly payment of zero plus a lot extra to make it worth my while.

[shelfy]

turns out we made the deal last sunday. he's gonna pay me $300 / month and since there's not a lien on the car, i was able to temporarily cancel my insurance and my buddy insured it on his own policy. since i'm the owner, i was added as an "additional interest" on his policy. this means, they will notify me if any claims are filed or he attempts to cancel the insurance.

also , he was surprised at the car's "pep". gotta love the 3.3L.

[ensteele]

I hope you get it back the way he received it.

[shelfy]

Originally Posted by ensteele

I hope you get it back the way he received it.

well i finally got the car back today and i have to say it won't end our friendship, but i'll most likely never do this again.

[shelfy]

i thought the whole ordeal would last three months, but ended up taking just over four. when he took delivery of his original bmw in munich, it had slight hail damage but the bmw rep said they'd build him another if the car wasn't up to his expectations, but it'd take another couple of weeks.

[shelfy]

finally, the original car arrived in boulder, but not all of the hail damage had been fixed so he refused delivery.

[shelfy]

the rebuild car arrived in long beach on august 27th, but didn't clear customs until earlier this week and the car didn't arrive in boulder until yesterday.

[shelfy]

as for my car, there is paint flaking off the bumper and a chip in the windshield. in four months, he drove it 4200 miles and i'm sure the car depreciated more than the $1200 he paid me in rent. it is a hyundai after all!

[shelfy]

the biggest thing is the check engine light has been on since late august.

[shelfy]

the car runs fine and has got phenomenal gas mileage, but the car has developed noticeable gas fumes (hence the CEL).