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Lease Termination Fees and other costs

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Comments

  • dwynnedwynne Posts: 4,018
    It is always cheaper to fix stuff yourself rather than paying the dealer via lease end fees. I would get whatever fixed you know needs doing prior to inspection - like the key. I have not heard or a requirement to have issues fixed by a dealer only, I can't see how they could make you do that.

    Also consider selling your car to a dealer like Carmax or via the autotrader "trade in market place". Also, any BMW dealer or other dealer may like to buy it for their lot. As long as it is not a "turn in" then you don't have to worry about the inspection. The missing key should be replaced soon as every dealer will knock off for that. Compare the current buy out price (without tax) vs the offers you get for your 3. Anything over the buy out goes into your pocket, accept under and it comes out of your pocket. Even then you might be better of to sell at a loss than to pay high lease end fees, if you owe them.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,898
    I've returned two vehicles to BMWFS, and never had an issue... I've always found them to be very lenient...

    Moderator - Prices Paid, Lease Questions, SUVs

  • gastrowgastrow Posts: 1
    My lease on my BMW is up next month and I called the dealer to see about buying the car. They told me I had to speak to BMW finance since "they own the car and we have nothing to do with you buying the car" . Is that correct?? And can you negotiate the residual?
  • lch77lch77 Posts: 53
    It varies between manufacturers.
    I had a Mazda with equity but couldn't sell it to any dealer. The rules came from Ford who owns all or part of Mazda. I understand that Audi also restricts selling of its leased cars.
    However, I just turned in a Subaru and instead of paying a $350 turn in fee plus the cost of a few repairs that were in excess of their allowance, I found a dealer who paid me $650.
    So, first the manufacturer must allow a dealer sale (you can always buy it yourself and then sell it but then you have to pay the sales tax) and the car needs to retail for well over the buyout price.
  • dwynnedwynne Posts: 4,018
    The dealer is correct. If you want to buy at something other than the current buyout price you have to talk to the lease bank. To buy or sell at the buyout price you can use any licensed dealer.

    The way it used to work with BMW - if you turned your car in then BMW would offer it to that dealer before rolling it through the auction. BMW lesees would use this to buy their cars CPO off lease. Turn it in, have it certified, buy it back (paying buyout price, CPO fee, and dealer markup). Normally you would work with the dealership's used car manager on such a deal. Shop around BMW dealers since the amount of markup could vary.

    Other lease banks require the car be auctioned so the turn in dealer doesn't get first dibs on the cars.

    Most lease banks carry residual insurance to cover their turn ins, so there is no incentive to negotiate a lower price with you.
  • Hi, I will be returning my 2010 Rogue AWD this week to the dealership. I'd like to know how much it will cost me to return the car. I know there will be a disposition fee of $400 (I think?) + any charges for excessive wear and use.

    I think my Rogue is relatively in a good condition. The mileage is under 20k and there hasn't been any accidents or repairs. There are some minor scratches on the side, on the bumpers and on the side mirrors. Tires are in a very good condition.

    I was thinking of giving it a good wash and taking it to a shop to recondition it before heading to the dealership for the inspection.

    Any advices for me? And please share your experiences with me regarding this.

    Also, during the last 3 years of lease, I only had 3 oil changes and nothing else. Would that be a problem?

    Thanks!
  • I have leased a car for the first time. Because I could not afford the payments on new.
    The first 100 miles, the ride was very rough. Took it back and they took air out of the tires. But it was still rough ride. I was told it was the tires. So I had to pay a tire dealer, Bridgestone were put on, Still rough but not as bad. It was suggested I put on Michelin, The Michelin felt like there was more rubber on the road. But the ride was still very rough. had the original tires put back Hankook. After going to several dealers. I am told the car was made to ride that way. Hyundai Customer Service said the car is made to ride stiff. I know cars , I restore antiques. Something is wrong with the suspension. Hyundai will do nothing. I am stuck with it until the end of the lease.
    Very uncomfortable car to drive. It now has 6,000 miles.
  • i had a friend that had a issue with his car not a Hyundai
    but if it is the type of tire that are self sealant to help prevent flat tire
    they give you harder ride , he went through several types and finally got Michelin man , when you did test drive did you notice that type of ride
    good luck
  • also i have heard that the tires that are able to run FLAT will give you harder or stiffer ride ,
  • lepialepia Posts: 39
    Hello all,

    I have a 2012 lease. The lease is 15 months old. I only have 9200 miles and the car has no scratches.

    I would like to take advantage of the sign and drive event vw is offering.

    Is it possible to turn in my lease and get into a new one without any penalties, and making the same monthly payments as my current lease?

    Are there any incentives to VW owners and if yes, do these incentives apply to me?

    Let me know what to expect from the dealer and how to negotiate the deal,

    Thanks,
  • sebring95sebring95 Posts: 3,225
    It's pretty simple math. What's the current buy-out on your lease vs the trade-in value. If those numbers are reasonably close you could probably get a deal going.
  • qbrozenqbrozen Posts: 16,894
    At just 15 mos in, it is VERY doubtful you'd be getting into a new one without penalties. But you'd have to go to the dealer to find out.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • lepialepia Posts: 39
    Thank you Sebring95 for the reply.

    I just came from the dealer and it didnt turn out as I would liked to.

    It appears the current buy-out was 25K and the trade-in value was 19K.

    I had to come up with almost 6K to turn in the lease.

    I will stick with my current lease and hope that in 24 months vw will come out with another sign and drive event.
  • lepialepia Posts: 39
    You were right qbrozen.

    Thank you for the insight.
  • jipsterjipster Posts: 5,345
    Also, during the last 3 years of lease, I only had 3 oil changes and nothing else. Would that be a problem?

    yes.
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,964
    A reporter would like to speak to someone who is going to be in the market for a new car in the next few months because their lease is expiring. If you fit this description, please email your daytime contact info to pr@edmunds.com by Friday, January 25, 2013 at noon PT/3 p.m. ET.
  • ess_essess_ess Posts: 2
    This is my first post here at Edmunds. I hope this thread is still active.

    I am in a similar position. I leased a 2012 Chevy Cruze LS for 39 months. In the residual column, the finance guy struck out the amount given with the added $2500 fee with a pen, and rewrote the amount for $2500 lesser when I pointed it out to him and said that is wrong. I guess I didn't push him to get a new document with the correct amount printed on. Now, I'm in a condition where I'll be leaving the country and I've to do something about my lease. Turning it in is super expensive as I'll owe every payment due until the end which is about 27 months at 250 apiece minus interest charges.

    I called Ally today for a buyout price and was quoted at the residual(8600) + 2500 + all remaining payments(6500) + "property taxes". The buyout price is greater than the value of the car when I signed the lease(17k + taxes in full because I'm in Texas) . :( The car itself is in great condition with under 7000 miles on it after 12 months lease period is up.

    Does anyone have any experience if this 2500 buyout fee goes away for a dealer buyout? How screwed am I?
  • dwynnedwynne Posts: 4,018
    That $2500 buyout fee is a crime, but you did sign the lease so you may be stuck.

    If you buyout or sell the car to a dealer you should not owe all remaining payments plus residual and fee. A lot of the remaining payments is interest which you wouldn't owe if paid in full now. So residual plus fee plus some remaining principle amount. Property tax may apply where you live, but probably not on a dealer purchase.

    Take your car down to CarMax and see what they will give you for it, then have them contact Ally for a buyout price. Anything more than they offer you will have to be paid to CarMax (in cash or certified funds) to get them to take it off your hands.
  • ess_essess_ess Posts: 2
    Thanks dwynne.

    I'm planning on going down to Carmax and checking out what they will offer this weekend. I'm also exploring the option of a lease transfer and want to keep the selling as a last option in case the lease transfer doesn't go through.

    I have another question, does any dealer take a lease buyout because this will be a sale only? Or only Carmax? Can I go to the dealership I leased the car and check if they will buyout my lease? I'm pretty sure that I'll probably not get a great price for it, but can I check?
  • qbrozenqbrozen Posts: 16,894
    You can take it to anyone you want to buy it from you. You will, however, owe any difference between the buyout and what they are willing to pay for the car.

    Lease transfer may be your least expensive option, even if you have to add cash from your pocket to sweeten the deal.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

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