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Lease Termination Fees and other costs

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Comments

  • steine13steine13 Posts: 2,409
    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.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    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?
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    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.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    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
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    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
  • 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.

    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.

  • 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?
  • 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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