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Lease Termination Fees and other costs

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  • blueiedgodblueiedgod Posts: 2,797
    Hi all, I am but 17 years old, and I have an interesting situtation to discuss. My Mom is leasing an 04 Durango for 48 months, she got it in May, so it has been with us about 5 months. My Dad just financed an 04 Silverado not 3 weeks ago. Well, the only reason my mom got an SUV over say a car was because she needed six seats if we all wanted to go somewhere at once. Well the Silverado seats six, and my mom is kinda pissed that she has a gas hog, and feels like she is stuck in the lease that has quite a while to go. I told her that there has to be a way to get out of it. And there has to be! But my question is, is it going to be rather expensive to get out of it? I'm not asking for exact numbers, just any basic info would help me out.

    Not to be rude, but there is a lack of communication between your Dad and your Mom. Had Dad informed Mom that he was interested in a 4WD SUV, Mom would have suggested that he takes her truck and he buys something small for her. Simple as that!
  • blueiedgodblueiedgod Posts: 2,797
    I got a car back in 2000 from Mitsubishi which I thought that I was purchasing. I was told one price over the phone and another price once I reached the dealership. I had sat in the dealer's office about I know 5 hours or more. Then when the papers were drawn up I found out the real monthly payment. At that point I informed the dealer that is not what I was told that my monthly payments would be with a trade-in. On my trade in I still owe about 2000 dollar which they said they would pay off. I informed the dealer that I changed my mind about purchasing the car. I went to my old car to find out that it would not no longer crank. At this point I was in a bind and really upset/frustrate. I need a car to get back and forth to work and I also have kids . I went back into the dealership and they briefly went over the paper work with me not informing me that my car would be a lease. Just about a year ago I called to find out my pay out on my car and learned that I owe 4500 dollar but have a balloon payment of 9000 dollars. I asked what was a balloon payment and she began to explain. Well to my understanding you pay a low monthly rate and have a big end payment . Well my payment per month was not close to low. I went back to the place and the gentlemen no longer works there in fact none of the people work there. One gentlemen that I remember from when I purchase my car is still there and I told him what happen. He said that the dealership was selling over 30 cars a month. There a lot of people out there that think they own they car but do not because they was not informed that they were leasing. Now I have had the car for almost 5 years and do not owe it . I have to turn the car in or pay the balloon payment. Not only that I have gone way way over the mileage. Yes I did sign the contract , but was not informed of it being a lease. Is there any thing I could do or any suggestion. Please any suggestions would be greatly appreciated.

    Are you sure it was not one of those 0/0/0 promotions? Those can get ugly at trade in as well. Baloon payments are not leases. They are structured like a lease, but you are the owner of the vehicle, while the bank holds the lien against it. I am pretty sure the contract stated the monthly payments as well as last payment, and mileage allowance. Yes, they COULD HAVE been nicer and told you that it was a baloon, but you stuck them with a dead car. So, you were not nice either. Live and learn. Or Do unto others as you want done unto you.

    I was told one price over the phone and another price once I reached the dealership.

    This was your first sign to run away from this dealer.
  • Hi cv22. American Honda Finance Corp. usually has a fairly attractive lease program on the Accord so this is probably the bank that your lease is through. As the other community members have already helpfully stated, AHFC does not allow its lessees to transfer their leases to another individual. As a result, if you really want to get out of your lease at this time, you will have to purchase your car from the bank that you are leasing it through and either sell it to a dealer or try to sell it on your own. As you suspect, you probably owe more money on your leased vehicle than it is currently worth on the open market. This means that it may cost you several thousand dollars to get out of your lease at this time. If I was in your situation, I would continue to lease this car until I was closer to its scheduled end.

    Car_man
    Host
    Smart Shopper Forum
  • Hi-

    I have 24 months left on a 48 mon lease on a 2003 Outback Ltd. sedan. What is the best way to get out of this lease. Would a dealer be willing to trade in one lease for another on another car?
  • sandylsandyl Posts: 42
    before I turn in my camry I would like to get it inspected. I have bumper scratches and want to know if they need to be fixed. in talking to OMNI/SET today they

    said that the dealer sends the car away and then

    they access it. SHould I insist that I have someone inspect the car locally? at the dealership? I did not get another toyota, so how cooperative will they be. the way toyota

    in the southeast does business is just crazy!

     

    Thanks!

    sandy (owner of a new lease of an Altima)
  • rroyce10rroyce10 Posts: 9,359
    ... World Omni.? .. no problem, just get it cleaned up a little, maybe a little buff and wax will make it go away ... call them for an appointment, get it signed off, get all the copies ..... Nissan does business the same way as Toyota, just different names and different dates ....................... :)

     

                                        Terry.
  • We have 20 months left on a 60 month lease. We were inexperienced when it came to leasing did not research. Will never lease again. We may be moving to the UK job related. Wondering the best steps of getting out of lease. What are our best options. When contacting the bank which holds our lease what questions should we ask. We still really don't know alot about leasing other than we should have never done it and many people lease and most are not happy afterwards. I have gotten alot from this forum. Any thoughts will be helpful.

    Thanks To All
  • Also, I remeber us getting the damage insurance on the car when we leased it. Will this not take care of any minor damages to the car?
  • grovercgroverc Posts: 34
    How often do leasing companies negotiate on the residual at the end of a lease? I recently leased a GTO for two years. The residual at the end of the two years is $20,755. Since these cars have been discounted so heavily, I am betting that the car will be worth more like $17,000. Any opinions? Does GMAC ever reduce the residual to get leasees to buy the car?

     

    Thanks!
  • rroyce10rroyce10 Posts: 9,359
    ...... You mean the lease pay-off, right.? ...

     

                  Usually GMAC will negotiate the payoff of the vehicle .... the best time for this is in the final 5/6 weeks of the lease termination .. deal directly with GMAC - not the dealer, the dealer doesn't own or have the title - actually the last time the dealer had anything to do with the vehicle is when you signed the lease papers, after that, it's between you and GMAC ..... you need to be speaking with a regional/district manager, not the bubble head that answers the phone, they may be nice but they have no horsepower for a decision ............ :)

     

                                    Terry.
  • steine13steine13 Posts: 2,426
    Sounds like a good plan... the GTO is pretty pathetic; 5 days before the end of the year, GMAC sent me a letter saying my GM Card earnings will be bumped to $5,000 (five thousand dollars) from $493.27 IF I buy a 2004 GTO, SSR, or some high-end Caddy (I forget) before today.

     

    I did the math and could have had the car for a $10,000 discount... $5,000 GM Card + $5,000 rebate + "finance with GMAC" rebate... subtract $10 from the invoice price, and you're pretty much at your residual.

     

    Yeah, they'll negotiate alright... I've never leased, but I'd do as Terry suggested.

     

    I thought about leasing it, just for the heck of it, but the car doesn't do much for me, and between the insurance+tax+fees, it would have still cost some money... the "depreciation" would have been pretty much zero over 24 month.

     

    -Mathias
  • Hello all. I am currently 12 months into a 48-month lease for a Scion xA. I want to trade it in for another car. I was wondering what are some of the cautions that I should be aware of? Or if this is even possible? I'm very inexperienced with this. Any help would be greatly appreciated.

     

    P.S. I plan on trading it in for a 350Z, if that makes a difference.
  • rroyce10rroyce10 Posts: 9,359
    ...... It depends on your pay-off, and then the miles, and then the condition of the vehicle .. and that would be the 36 remaining payments, plus the residual - minus the interest ...

     

              48 month lease ..? .. The best thing you could do is call the lease company and get an exact figure .. right now these things are worth around the $10ish figure on a trade - long lease terms like 39/42/48 months, are usually the kiss of death ...

     

                                    Terry.
  • Greetings authorize. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least a significant portion of their remaining lease payments. As you can see, this can get very expensive.

      

    You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". The previous poster, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle.

     

    Car_man

    Host

    Smart Shopper Forum
  • Hi,

     

    I am new to this forum and was hoping to get some help or at least some direction. I have a 2002 bmw 330ci, that i've leased. I have a 36 month lease of which I have 30 more to go. I've had a recent life change and need a bigger vehicle. Looking at a chevy tahoe. I thought of calling my bmw salesman and discussing it with him and wondering if there a way to terminate early on the lease? Do you haqve any suggestions? you seem very knowledgeable.
  • kyfdxkyfdx Posts: 31,090
    Your BMW salesman really has nothing to do with your lease.. The bank that you send your lease payment to, owns your car..

     

    Your car has a payoff amount, just like an auto loan.. Call the bank and find out what it is... The difference between that figure and what you can sell your car for, is what it will take you to get out of your lease.

     

    It looks like you leased a used car.. I hope it is at least a CPO car.. If you have only made six lease payments, you are going to take a bath trying to get out of it..

     

    Your other option is to try a service like swapalease.com... You may be able to get someone to assume your lease, if you payment is favorable..

     

    Is the lease through BMWFS? And what is your monthly payment?

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Hi Kyfdx,

     

    It is a cpo. It is throgh bmwfs. my monthly is $325, with a $6,000 downpayment.

     

    -question for you. Is swaplease a viable method?
  • kyfdxkyfdx Posts: 31,090
    Well... you sure wouldn't have any problem getting someone to take over your lease at that payment... But, I doubt you will recoup much of your down payment....

     

    Think really hard about whether you actually "have" to have a bigger car.. Leasing contracts are very expensive to get out of... $6K down plus six payments of $325 so far... If all you could manage was to get someone to take over the lease, you'd be out $1325/mo for the six months you've driven...

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Thank you for such a prompt reply. I appreciate your insight into this. Truth be told...I used to lease a chevy avalanche. at the end of my lease

    I wanted a nicer vehicle. I liked the 330. how it drove and felt. over this period of time. I came to realize that I was impetuous in this lease. I was more comfortable in the avalanche. I am 6 foot 8. I have been debating a way out of this vehicle and lease a truck again. So you've given me some food for thought.

     

    Would you know if swaplease has good results?

     

    thank you again.
  • kyfdxkyfdx Posts: 31,090
    Swapalease is the largest of the lease take-over companies... If your lease is a good deal, then it will go pretty fast.. At best, you might get someone to take over your lease, and maybe give you $1500 upfront.. Just a guess on my part, though...

     

    Check out their website... you can pull up your model car, and see what the competition is..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Thank you.

     

    I appreciate all of your help.

     

    Good night.
  • rroyce10rroyce10 Posts: 9,359
    .. ** with a $6,000 downpayment ** ..

     

                   Yikes.! ... $6,000.?

     

              Leases can be tricky little devils .. putting large amounts of money down only achieve one thing: lowering the payments - nothing else, the money evaporates after that ..

     

                  Unless you can get back $3,5/$4,000 on the lease, you might be better off just driving the vehicle until the end .. you paid your money and "bought" your payments down, you might as well enjoy the ride ..

     

                                      Terry.
  • If I go the swapleas eroute does it reflect badly on the credit report? Also...am I liable for the lease once it is finalized through swaplease?

     

    Thank you.

    BD
  • ej1111ej1111 Posts: 43
    i have a lease with chrysler financial which has about 15 months left. based on kbb values it seems i can sell for about what my payoff amount is. lucky, as i put no money down and it works out that way! i cant seem to find any information on how to terminate with chrysler or if there are any addiional fees. does anyone know?

     

    thanks!

     

    -h
  • kyfdxkyfdx Posts: 31,090
    BMWFS releases you from all liability, once the transfer is made.. Not all leasing companies do this.. If they didn't, I wouldn't do it.. Terry had some good advice.. The best way is to keep it and keep paying for it..

     

    It should not affect your credit report..

     

    regards,

    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Thanks to you and Terry. I think I'll follow that advice. It's sound.

     

      

    BD
  • Kirstie_HKirstie_H Posts: 10,913
    Make sure you're clear about what "payoff" means, and that you're not confusing "payoff" with residual value. They are two different numbers. Often, to get out of your lease early, you will need to pay the residual value PLUS all remaining lease payments.

    MODERATOR
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  • ej1111ej1111 Posts: 43
    no, i called chrysler and got the buyout, which is the residual + payments. Im wondering if anyone has experience with chrysler buynig out of the lease early and if there are any fees that anyone knows of. Plus what the best way to do it is.

     

    Appreciate it!
  • I am turning in a lease and have no records of Oil Change, I performed the Oil changes my self and threw away all the Receipts in a during a move. The vechele is in excellent condition and looks very good. I am within 30 miles of limit. What kind of fee can they apply at the end of lease?
  • kyfdxkyfdx Posts: 31,090
    In general, they don't check for scheduled maintenance.. If it runs well when you start it up, and the oil and filter don't look like they came new with the car, you are in good shape..

    MODERATOR
    Prices Paid, Lease Questions, SUVs

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