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The $350 charge comes after you turn it in. They mail you a bill. So you don't need to have the money at the time you turn the car in.
Depending on your credit, it's not generally too hard to purchase a car for no money down. Just make sure you can afford the new car and don't go nuts. Or of course, if you like leasing, you can do that again. I didn't like leasing.
True, but it is a higher monthly payment (of course) AND you'd be well advised to get gap insurance.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
I need a fast answer. I want to terminate my '04 Mazda6 lease about 6 months early so I can get in on an '06 Mustang which I can get a great deal on. My lease balance is $12,900 and the Blue Book value is $13,900 for a "Good" condition (which is definitely is at only 13,900 miles after 29 months of ownership) trade-in value.
Mazda says I can give it back if I pay the negative difference between the appraisal value and the balance, which as you can see there most likely is a positive diff in this case, and a $200 early termination fee. Anyone know anything about this?
The Ford dealer also says they can take the Mazda for what it's worth, cut a check to Mazda Credit, I pay the $200 fee to Mazda and drive home in my new Mustang GT.
Is this a bunch of baloney or am I on to something here?
Every car dealer pays off your current loan (or lease) when they take a car in trade... they have to, or they can't get clear title to re-sell the car. But, that doesn't mean they are giving you what you owe on it. Make sure they aren't shifting some of that cost onto a new loan..
And, if your car is really worth $13,900, then why aren't you getting some money back? Just a rhetorical question... most cars don't bring the book price..
regards,
kyfdx
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I don't think they give you the difference when you turn a lease in do they? I often wondered that myself.
I know the Blue Book is just an estimate but I've had good luck with it in the past. My trades have been very close to the KBB value I pulled online. Probably because I keep them clean and they have low mileage.
Make sure that the Ford dealer is actually giving you $12,900 for the Mazda, and not just adding negative equity to your new Mustang loan..
They actually gave me two different options and neither of them included negative equity.
Its simple either way. Ask the Ford dealer what they are buying your Mazda for and ask the Mazda dealer what they would buy it for.
Forget about all the other details. They will just confuse you.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Thanks for clearing that up!
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
No fees, no inspection, no nothing to get out of the lease in that situation. They'll send a check to Mazda and it's all done in case anyone is wondering how that works. It's essentially a normal trade-in as long as your leased vehicle is valued at more than the buyout balance.
Exactly ... well, almost. It still would have been a trade-in even if the buyout was more than the value, but the negative equity would have been rolled into the new car.
Anyway, congrats on the purchase. Enjoy.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Right, it does work both ways and is important to note on this forum. Thanks for elaborating.
Anyway, congrats on the purchase. Enjoy.
Oh man am I ever enjoying it! Thanks.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
If the car is worth more than the buyout, why should they make it cheaper??? They'd love to take it back.
If the car is worth a lot less, which happens frequently, they MAY negotiate the value. In that case, it is best if they do not know about the overmileage, because they'll know that at turn-in, they will receive payment for it.
Finally, the mileage charge is of course not negotiable. But the buyout price may be. This has been discussed many times, and the only consensus is this:
Some companies will negotiate, some won't.
Domestics are more likely to do so.
Honda/Acura are the least likely to negotiate.
You have to talk to someone with the proper horsepower, a regional manager typically.
You have to call with six or eight weeks to go on the lease, so the leasing company's employee will have a good handle on waht he will receive at auction. He might rather take $1,000 extra from his existing customer
Don't even mention the mileage. Don't let them know if you're massively over. Don't pretend it's only got 9k miles on it... in that case, they'd rather take it back...
Good luck,
-Mathias
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Thanks ahead of time.
k
Why do you no longer want it?
Are you SURE this is a lease?? I find it so hard to believe that you are paying over $60k on an ML350. What was the original MSRP?? These things start at $40k.
What's the residual? money factor? how many miles per year are you allowed? did you roll ALOT of negative equity into it?
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
k
Thanks
Just FYI, I looked at the auction numbers generated for 2006 ML350's ... it seems that with 15k miles or so, you're looking at anywhere from $35 to $37 wholesale value. Not a one of them has cracked $40k, even the super-low-milers.
In that sense, if you are on the hook for $60 and have paid $20, plus you owe them the interest -- high, naturally, given your credit -- then I don't see how you can get out.
Call them for the payoff -- "them" is not the dealer, but the lending institution. You owe THAT amount of money. Then figure that after you pay it off, you can sell the car to a dealer for $37, if you're lucky. The difference is what you have to come up with to get back to "zero" and get a reasonable loan for a reasonable car.
If that number is less than $10k, I'd be surprised, given what you've told us.
Keep driving the Benz and make sure nothing breaks out of warranty. Good luck,
-Mathias
k
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
I just lease my G35 Coupe car for 1 month, it's a 12 mth lease and now I just found out I got layoff. I need to terminate the car lease cuz I need to leave the country for good, can I just pay off the whole lease of $5680 and I'm off the hook?
Just call and ask.
If they don't like that plan, then find out what the full payoff is and then find out what a wholesaler will give you for the car and see if that would work for you. You never know, it might be less than the $5600 in payments (although I kinda doubt that).
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
That being said - if you really want to get out of the lease - you have to buy your way out. That means taking the vehicle to a dealer (go to an Infiniti dealer) and having them give you a price for the vehicle. You will have to come up with the difference between the amount they offer you and the payoff to the leasing company.
Another option is - you could try a website like www.swapalease.com where someone else may want to assume your remaining 11 payments - and since you're willing to pay the leasing company - maybe you could offer an incentive to someone to assume your lease.
Good luck.
I leased a Lexus RX300 from Chase, and the lease terminated on August 24th of this year. I dutifully returned the car to my Lexus dealer on August 22nd. As per the terms of my lease, I am to be charged 15 cents per mile for going over the preset mileage, which in my case was 60,000 miles. I turned the car in with 71,495 miles - 11,495 miles over - which comes to the sum of $1,724.25. Also, my lease had a clause about another $300 "lease termination fee." So, altogether, I owe Chase $2,024.25. I was told the car would be picked up from the dealer by Chase and within a few weeks, I'd get my final bill from Chase.
To date, I've received nothing from Chase. We're coming up on 3 months. Now, I've been calling them on a regular basis to try to close out my account. Turns out the car sat on the dealer's lot for almost 2 months before Chase came to get it. Fine, whatever. But for some reason, it's just taking FOREVER for them to close the account and issue the final bill. After many calls, I did manage to reach an extremely helpful person in the "End of Term" office. As of today, she told me that my final bill would be....$504.00, which consists of the cost of some body work that was apparently done to the car (it did have some minor dings, and a very small chip in the windshield). I asked her twice, "Are there any other charges I will need to pay to Chase?" meaning, the overage/lease termination charges. She said no, just the $504.00. She said that the final paperwork will hopefully be done by this Friday, and that she'd fax me the final bill along with an official letter stating the account was closed.
Is this possible?????????? I will shamefully admit that I haven't looked at my lease agreement in the past four years - it's filed away at home in our filing cabinet - but you can bet I'll dig it out tonight and re-read it, fine print and all. I just cannot believe this is correct. I'm afraid that somehow, somewhere, Chase will still think I owe them the $2,024 (don't I?) but not tell me, and will mess up my credit report.
Sorry for such a LONG post, but I want to see if something remotely like this has happened to anyone else. :confuse:
PS - just coming back to add that maybe there are two separate Chase offices that will bill me? One for the overage, one for the body work? To be honest, I have over $3,000 set aside to pay Chase, but I'd sure LOVE to just pay that $504!! I was too chicken to ask the lady from the "End of Lease" office if I'd be getting another bill from some other Chase entity, but now I feel guilty.
I wouldn't worry about your credit. If they get everything straight, they will certainly bill you for it. If they don't, be glad you only have to pay $504.
They probably have it wrong, but I surely wouldn't lose sleep over not getting billed for extra end-of-lease charges.
Just my $0.02
kyfdx
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So my point is, everything is negotiable. I wouldn't pay the $504 and then get stuck later on for the mileage. Demand a bill from them that has all of the charges, and then negotiate from there.
Sorry to hear about your job. I was wondering if you were interested in transfering over your lease. I am currenlty in the market for a short term lease.
Let me know.
KG6C
Have you heard of others who have been slammed with EWT charges from US Bank? I'm looking at leasing an Acura MDX. The mthly payment would be $29 less per month if I use US Bank vs. Honda Finance ($570 vs. $599). Honda has $1500 damage waiver, US Bank does not. Dealer warned me that banks are more stringent upon return. I am the one who asked for a lower money factor, based upon another dealer.
I can't tell if they want me to use Honda Finance, so they make more, or if US Bank truly is a bad way to go.
Thx.
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Libby
tidester, host
are waay out of line for somebody looking for trade
in value in the real world.................
Sure a dealer will most likely SELL it to you for $25k !
But as a trade in???????? Maybe $20k tops.........
You should post over in the Real World Trade Values
thread and ask or shop the car around at a nearby dealer.
If you decide to term early then it is no different then trading a car in. The dealer finds out what the pay off on your lease is appraises the car and if you have any negative equity then it is payed by you with money down/rebates or rolled into the new loan.
Occasionaly they can look at the lease and if you are close to terming, lets say within 3-6 months. For example lets say the pay off is $20K and it is worth $15K, thats $5K negative you are responsible for. In that same scenario lets say your payment is $400 a month and you have 5 left. 5 X 400= $2000. The dealer rolls the $2000 and sends your last 5 payments to Ford, in effect paying out the lease. I don't reccomend this because all's you are doing is making all the payments but not getting the usage. I don't reccomend coming out of a lease early at all. It is rare that you come out financially ahead in any scenario. Leases are designed to go term. There are alway the exceptions though.
Also it varies from state to state but if you live in a state that only charges taxes on the trade difference you may not be able to get that when trading in a lease because technicaly its not your car to trade. But like I said that varies from state to state
I needed some advice. I am planning on registering two leased card from PA in California, and I spoke with someone at DMW and they informed me that I have to pay a registration fees. I already looked on the dmv site and they have a section for "fee calculations", however, it is not suited for leased cars. Also, I called them up and they informed me that I would have to come in and speak to someone in person. My concern is that in leased cars you do not pay a lump sump in sales tax, and you actually pay a monthly figure in every payment. Could someone who recently moved to California with an out of state leased car please share their experiences.
Thanks
A) $800/month to cover all vehicle expenses (payment, insurance, gas, tolls, maintenance, etc.) OR
So, now I have the daunting task of trying to decide what to do to save me the most money. I will be driving on average 2500 miles per month (putting me at or around 65k at lease maturation). Obviously, I already know I will be losing money out of pocket one way or another. The $800 will cover payment, gas and insurance, but that's it. I would love to transfer the lease, but AHFC will not allow it (unless you know something I don't). So, the options that I see are:
- Trade the vehicle in now, and eat approximately $5-6k (I currently owe around 29700, trade-in value around 25)
- Turn the vehicle back after the lease is up and pay the mileage overage (@ $0.20 per mile, roughly $4.5-6k)
- Try to barter with the dealer to accept the car as a trade (my girlfriend is going to be purchasing a new vehicle soon) and pay less than what I would if I just traded it back to them
- Wait a few months and try to trade it in when I owe less, but I've put more miles on it (assuming I won't get charged for the overage on mileage when I trade it in)
- Sell my soul to the devil and break even
I know it's a difficult question to answer, but it's really put me in a bind. I've crunched the #'s over and over again in a extremely detailed spreadsheet and can't seem to make a decision. It seems from the values I've obtained from Edmunds if I wait several months, the reduction in value will decrease less than the amount owed, thus saving me some $$. Obviously, I want the fully paid for company car, but want to get out of this vehicle with the least amount of "lost flesh". Any suggestions/tips/hints??? Are my assumptions/estimations correct???
THANKS!!!!!
Also, I'm sure there are other options, like selling my car to a private owner, but I have heard horror stories about people paying double sales tax...
As you can see, I'm up a creek without a paddle...and no floaties...
So then today as we sit here worst case scenario you are $5460 out of equity. 13 payments X 420. I don't recall what you are buying but if you really want out of the lease early you can do it no problem. They roll $the remaining payments (less rebate or $ down) into the next car, mail a check for the 13 payments and you turn it in. Now keep in mind what you have just done is make payments on a car you won't be driving. But that is the end result on terming a lease early and paying your way out anyhow.
Sounds like your answer. You will only have to pay about $3500 in mileage at the end. I would go that route.
heck, by that time, the car MIGHT be worth more than the buyout, in which case you can trade it and pay less than $3500. But, worst case, its $3500. Definitely better than $5k+ now.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Otherwise, I agree with qbrozen, and maybe they'd forgive some of that if you replace it with another Honda product.
- the car allowance is pre-tax, meaning realistically I would only be getting 650 of the 800. Also, my estimated monthly expenses are around 900 (assuming the mileage per month and gas). Also, I would have to include maintenance (oil changes, tires, etc.) as part of the 'bottom-line' that I need to look at for the remainder of the lease.
- I actually calculated my mileage overage to be 4350 (29k miles at 0.15)
- the problem with my girlfriend taking over the payments is a complicated one, especially since I would have to pay double insurance (AHFC says that I would still have to have my full coverage since I am the lessee, plus add her to my policy to cover the vehicle if she drives it). So I would still be losing at least $200 per month on that. Not to mention having her drive it under my name is a headache I would rather not have :surprise:
My new company has agreed to give me the allowance for as long as I need (i.e. no set time frame). So, I'm thinking I'll try it out for a few months and if I'm putting on ridiculous miles, then I'll trade it in when my girlfriend gets her car and just eat the difference. Hopefully the dealer will cut me a little bit of a deal..
All I was trying to do was the math over the long run (i.e. if I lose $300 per month now plus mileage at the end versus $5k now), I just don't want to not trade it in soon and lose $3-5k now or wait it out and then I get stuck with 6-7k at the end of the lease...which is my luck. Also to see if you experts knew of any loopholes or tricks that I could use.
Thanks again!!!
I just lease my clk350 Convertible car for 11 month, it's a 39 mth lease and now I just found out I got layoff. I need to terminate the car lease cuz I need to leave the country for good, what are my options