Lease Termination Fees and other costs

gbosley · June 2008

i take it this is your first lease , should be a inspection that happen 30 days or so out by lease company they may ask you to stop by honda dealer or come to your work , you should had filed a hit and run report when damage was done at disney and had that fix i doub it very much they let that slide .
from what i have been told if you have damage it cost less if you do it then letting them take van at end and doing it
if you wanted to buy they probably talk to them if they let you buy it at lower price
just be sure no matter where you get ok to drop that van you get a sign off from dealer with odometer reading and that you turn it in , the tags if you bought them you should turn them in , in maryland can't cancel insurance till tags are turn in , so check with your mva , only reason i am telling you this is , i know several that had large fines against them they left tag on at dealer and dealer may or may not turn tag in , it your problem not dealer at that point , and i always take picture of all sides day i turn in good luck

dwynne · June 2008

I don't think the market conditions have anything to do with it, you have to turn it in good shape except for normal wear and tear. AHFC leases also have the $500 per item, $1,500 per vehicle forgiveness you mentioned so that does cover a lot of "boo-boos". The tires need 4/32" or tread or more with uniform wear. Being under miles does not matter and does not get you any "credit" with AHFC, just the condition of the vehicle matters. Make sure you have your owner's manual in the Honda and your service receipts, the inspector needs to check the former and may want to look at the latter if they think the car has not been maintained.

Within about 45 days or your lease ending you should get a letter from AHFC with a number to call to get a pre-lease-end inspection done. Call and set it up and they should have someone come out to your home or work and inspect the Ody. The inspector will go over the report with you and get you to sign in and leave you 2 copies - one to keep and one to turn in with the van. You will next get a preliminary statement from AHFC noting the things in the report and how much you will be charged for them if they are not fixed. If all is considered normal wear and tear, then this will show $0.00 and if you turn it in and nothing has changed you should not be charged. If there are items on the report that they plan to charge you for then you can either have those fixed yourself (save the receipts and note the repairs on both copies of the report) or just let AHFC bill you for them after you turn the van in.

Normally you should return your Honda to the dealer that leased it to you, if they are close by. If you leased from a dealer in a distant city then you can return it back there or at a local dealership. If you are planning on returning to a distant city - not local or the leasing dealer - then you had better clear that with the AHFC end of lease folks or they could decide to charge you a transport fee to haul it back to where they expected it to be returned. You will need to call the dealership where you plan on turning in the Honda well in advance of the day you want to turn it in to see if they have a problem with that. Normally you would talk to the used car manager, but they could have someone else designated to handle AHFC turn ins. If they say they can handle it for you, then you are good to go but be sure to call them back a day or so before you are going to turn it in to alert them to the fact that you will be dropping it off and make sure someone will be on hand that day and time to accept it and go over it with you. Be sure you have all the keys and key fobs and the owner's manual for the drop off. Don't forget the valet key (ask me how I know). Be sure all your personal stuff is out (duh) and don't forget to pull your tags off (for most states the tag goes with you, in some states it goes with the car).

Have them go over the car with you to note any repairs you did or anything that has changed since the inspection was done. Get a copy of the ODO statement and keep your copy of the report. Call the AHFC turn in folks right away, preferably from the dealer's lot to let them know that you have turned your Honda in and to whom. Then wait for the bill or not

. Wait a few days to call your insurance agent to cancel the insurance on the turn in "just in case".

Dennis

bigbutr · June 2008

I knew I wouldn't get any credit for being under mileage. I think that would only help if I was trading it in, and even then it's not much of a benefit based on the trade-in figures I've run on it.
I figured I would be better off turning the van back in to the dealership we leased it from. I don't think I'll have too much of a problem since I just leased an 08 Accord from them. I know they'll press to get us into another one, but my wife's not budging on the Lexus. I was just a little concerned that they might try to nickel and dime us to kind of 'force the issue', but if it's someone not from the dealership doing the van check, I feel a little better.
I don't think the valet key has ever left the glove compartment the entire time we've had it and I'm the only one who has looked through the owner's manuals, which are also still in the glovebox. I actually dusted them off when I removed the glovebox to replace the cabin air filter (learned my $95 dealer replacement lesson there).
I appreciate the feedback. It's still a couple of months away, but it pays to be prepared. I guess now we'll just rent the convertible to drive to the Lexus dealership. A lot cheaper than flying.

dwynne · June 2008

The pre inspection is done by a 3rd party company Honda hires to do those things. Their job is to be fair but report the true condition of the vehicle. That way you opt to fix the issues or know how much they will cost, if anything. No surprises equals happier lease customers. Some folks just turn their cars in and then get a bill from the lease bank for hundreds or thousands they have to pay. This way it is all up front and you can fix the items yourself, or opt to sell the van to a dealer ("a trade") rather than have to pay for repairs if they really add up.

If the leasing dealer is close, then it would be best to just return it there and that is routine and should be no hassle. You don't have to deal with any car salesfolks about anything. Just call the dealer to see who handles the AHFC lease turn ins and talk with them directly.

You could ASK the AHFC turn in folks when the time comes if you could turn it in at another, more remote dealer - it couldn't hurt. Just ask them to fax you something that says it is OK and don't just do it on a verbal OK.

Just watch for the end of lease letter and get the inspection as soon as you can so you can start exploring your options or saving your pennies - or stop worrying about it

.

Dennis

buckyou · June 2008

My wife and I leased a 2006 Passat two years ago - we weren't huge fans of the leasing idea, but the payments were pretty cheap and ee were planning to purchase the car at the end of the lease anyway. We have since decided that we want a slightly bigger car, a crossover. We are now 8 months away from the end of the lease, and we've already gone over the alotted miles. We would like to get out of the lease and finance a crossover, but we have found out that VW prorates the miles that we would have to pay for. i.e. we would not simply pay for the miles that are on the car now, they would calculate how many miles we would have when the lease is up and charge us for that.

My question is, is there a way around this? The plan we had was to roll the rest of the eight payments into the financing of our new car, thinking that this would at least save us the miles overage payment. Now that we know we're going to be paying for the miles regardless of when we turn it in, we kind of feel our only option is to take the car through the lease, pay the overages then, and move on to financing.

Any advice as to how we can avoid the above scenario?

dwynne · June 2008

Any advice as to how we can avoid the above scenario?

Better planning? Nothing wrong with leasing, but you can't be one who changes your mind before the lease is up and you have to get the proper number of miles for your driving habits.

You have a few options, none of them are any good.

1) Get the current lease buy out price from the lease bank (not including tax) and sell the car to a car dealer like CarMax, DriversWay, or the dealer who will be selling you your new car. If you are lucky you can get enough to cover the buy out price, if not you will have to pay this out of pocket or roll it into your new deal (a very bad idea). You will not have to pay for the extra miles if you do this.

2) Keep driving the car until the lease is up. Start saving now for the over miles charges you will owe at the end of lease. Turn the car in and pay for the extra miles, you drove them so you owe. Then you start fresh on your new deal.

3) Buy the car at the end of the lease or now and keep it. You don't have to pay for the over miles this way. If the buy out price is a decent one, then you get a good deal. If the buy out price is a bad deal, then you are stuck owing more on the used car than it is worth.

4) Turn the car in now and pay for the unpaid principle (8 months worth) and the over miles. This does probably does not save you much money and you are basically paying for NOT driving the car.

I would shop your car around to dealers and see what it might bring, then run the numbers each way and see how it looks. I would think just driving until the lease is up would cost you the least amount of money and would result in NOT badly messing up your next deal. Getting a dealer to buy it would be my next choice, if you either have the money to make up the difference between what they will give and what you owe or it is not much. I would try my best not to add any extra money to the next deal. If you do and you change your mind again, even if you finance rather than lease, then you will find you are way upside down and can't get out of that car either. If your new car is totaled or stolen you mind find the insurance payoff will not cover the amount owed and you will be stuck paying the difference.

Dennis

qbrozen · June 2008

but we have found out that VW prorates the miles that we would have to pay for. i.e. we would not simply pay for the miles that are on the car now, they would calculate how many miles we would have when the lease is up and charge us for that.

WHAT?!
I find this really hard to swallow. Who told you this? This sounds illegal to me. How can they make such a calculation? You could park the damned thing, go out of the country, or whatever, and it would gain no miles. Or, even something simpler, you could get a job closer to home. So how they can justify such a scam is a question I would love them to answer if I were you.

michaellno · June 2008

Actually, we had a similar situation happen to us with Ford Motor Credit.

We had leased a 2002 Explorer in May of 2002 - 36 month lease, 45K miles.

About 6 months before the lease ended, we got a notice of a 'pull ahead' program from FMC - they would pay the last x months of the lease if we bought or leased another Ford product.

We traded in the Explorer for a Focus (bought, not leased). When the dealer figured the "end of lease" charges, they pro-rated the miles we've driven over the amount of time we had the vehicle.

dwynne · June 2008

That is why you have to read the contract

.

On every one I have ever done there is no such thing as a "Good deal" when you terminate the lease early. While the contract requires them to accept the car back at lease end and only charge you for excessive wear and tear and over miles, there may not be many rights for the lessee on early termination.

Honda has probably the friendliest end of lease with $500 / $1,500 forgiveness, but if you early terminate then you owe any unpaid payments plus the unpaid principle of the cap cost. In addition you may have to pay the difference between the adjusted lease balance (residual plus unpaid principle) and the "realized value" of the vehicle. This value can be agree on by both parties (fat chance of that) or by an independent 3rd party appraiser at your expense or by Honda just auctioning off the vehicle and whatever that brings less any fees (like auction commission and transport fees). The odds are good with Honda that what they do will be fair, but as you can see you could get stuck for a lot more than just unpaid principle balance on the car. If you don't honor the contract until the end then "all bests are off" and it defaults to whatever early term procedures are on the back of the contract - and those normally are not as nice as keeping it until the end. In the case of Honda, if you had worn tires and / or some dents and dings they would probably be forgiven at lease end. If you early terminate then all that stuff drops the value of the car and they offer no forgiveness, so you may end up paying for those things that would cost you nothing at lease end.

So you can't just dump the car back on the lease bank and walk away. I can see where some contracts could call for the pro rated mile adjustment as a penalty for turning in the car early with over or near over miles.

Dennis

qbrozen · June 2008

well, that's interesting. I happen to have a Honda I will be terminating early. Or at least thought I would.

If they want to shoot themselves in the foot, fine by me. The car is only worth its final residual value now. If I turn it in and pay all remaining payments, they'll actually come out OK on the car. If they force me to keep it till lease end, I turn it in and walk away and they have a car worth far less than its residual. It benefits them to let me out early.

dwynne · June 2008

It is all spelled out on the back of the contract, so there should be no surprises. Perhaps you can agree on a value of have an inspection done, since I would not want to take my chances at an auction (depending on the model).

I always tell folks that leasing is not for folks that change their minds.

Dennis

qbrozen · June 2008

we'll see.
I was going to see if the dealer wanted to buy it. It would save me maybe $700 or so compared to paying all the remaining payments.
If I have to keep it till lease end, no big deal, either.

Nope, leasing is not good for fickle folks. Nor for those who don't have a steady situation (meaning the number of miles they drive).

I just turned in a leased Chrysler a couple of weeks ago. We were about 3 months from lease end, but they said no penalties, extra charges, nothing. Just turn it in and pay the final payments and lease turn-in fee (which we would pay no matter when we turned it in).

dwynne · June 2008

Twice I have been able to "Trade in" an under lease car and get at least enough to payoff the lease in full so I could just get into something new without any early lease termination penalties. I have also sold cars to other folks (though a dealer) before my lease was up and make some money off of them. The key is having something dealers or buyers want and have the buyout less than or equal to the value of the car. Have done everything from coming out even to making a couple of thousand.

If you just want something new and the dealer gets within $xxx of the current buyout, you can do the deal to get out of the current car now and also avoid making more lease payments on it. Just make sure you get a good deal on the new car as well since you are paying the dealer to take your current car off your hands.

Dennis

qbrozen · June 2008

well, I already have my next car and am driving it.

The Honda is just taking up driveway space at the moment.

dcomber · June 2008

Just to update, my account was paid off in full and my Accord lease is closed. Whew, I was a tad worried that it took so long, but just spoke to AHFC and everything is kosher. Just to be sure, I requested a confirmation letter faxed to me.

As an FYI, if you have State Farm (at least in IL) you have 30 day coverage for both cars free of charge.

dwynne · June 2008

Glad it all worked out for you, now relax and enjoy your new car

.

Dennis

dcomber · June 2008

Once again Dennis, thank you so much for your advice and knowledge

mehrishis · June 2008

I recently leased toyota highlander 2008. Now I have to move out of the country for some time for business purposes. Is there a way I can sublease a car? What are other options?
sandeep

sebring95 · June 2008

Your best bet is to try one of the lease assumption sites....swapalease or leasetrader. How quickly you move it (in this poor suv market....) will depend on how much cash you put on the deal and the current terms of your lease. Unless you're not going to be gone for long (less than 12 months perhaps?), it would probably be in your best interest to pay whatever is necessary to move it. Otherwise you'll have to store and make payments on it.

dwynne · June 2008

You could check out sites like www.leasetrader.com and www.swapalease.com and see what your lease bank says about someone taking over your lease. If your lease is through TMC it looks like they let you off the hook if you find someone to take it over. DO NOT let someone take over your lease if the lease bank still holds YOU ultimately responsible.

You should also call your lease bank and explain the situation to them and see if they will give you a quote on an early exit. You can also get the current pay off (without tax) and see how much a dealer will give you for the vehicle. Places like Driversway or CarMax would be good start. Keep in mind SUVs are not selling and have values dropping almost daily (and CarMax just lost a ton of money).

In just about every case you will have to pay someone to take it off your hands - someone assuming the lease, a dealer, or the lease bank. Just try to find the one that costs you the least amount of money.

Dennis

mommy2boyz · June 2008

I am now in a very stressful situation..I was actually gifted a 2008 Acadia although it was a lease situation and the vehicle is in my name- unfortunately prior to this "friend" doing what I thought was an unthinkable extremely generous offer- by paying on the lease , she went into the hospital very ill and a family member excumincated me from any contact with this friend- that was 3 months ago,
I am now trying to make the payments on my own and have had no call from the friend of mine- I want to know what my options are here...I have never leased before and I am panicing trying to make this work....any input...I received the car in March.

dwynne · June 2008

If it was a gift it should have been in the other person's name. Sounds like you signed the lease contract and they agreed to give you the money for the payments and they can't (or won't). If that is the case, then you are stuck - you signed so you are responsible.

You can contact the lease bank and ask them about your early termination options and also get the current lease buyout price. Then take the car to various dealers (Carmax, Driversway, etc) and see how much they will give you for it. Any difference between the buy out price and what the dealer will allow will have to come out of your pocket - but you will get out from under the lease.

You can also list your vehicle on those lease trade / swap sites (as listed above) and try to get someone else to take over the lease. You HAVE to check to see if your lease bank removes you from liability if someone takes over the lease - if not, then don't do it - either pay it or sell it to a dealer or turn it in, whichever costs you the least money.

It is a bad time to be trying to get rid of a guzzling SUV / crossover so you could be out thosands of dollars.

Dennis

sebring95 · June 2008

Could you follow-up with some details of the lease....monthly payment, model, lease buy-out, etc. There are methods of having this lease assumed by someone else but the terms have to be favorable. We can try to assess the situation a little if you give us some details. swapalease.com and leasetrader are two services you can use to find someone to assume your lease. I have used swapalease a couple times to assume a vehicle lease. But a lease with bad terms can be very tough to get out of.

robger99 · June 2008

Anyone have any luck getting out of a lease thru leasetraders? Any info/experiences helpful.

robger99 · June 2008

2008 Mazda Miata Touring 24 months remaining 15 k mile year $292.00 month taxes in . Very sharp car-Copper Red with Black top/ground effects package.

dwynne · June 2008

You need to look at two things: your competition on the lease swap / trade sites and your competition at the Mazda dealer.

Go look and see what folks are offering their Miatas for lease take over and how does that compare to your deal (take off the tax, since it varies by state) ?

There is currently $1k in MAC lease money for new Miatas, so chances are good someone could get a similar / better deal on a new car.

When you look at new or take over trades see if you have an "angle" - are you way under miles, did you get a super good deal, did you put a lot down in cash or trade, etc. If you got a so-so deal and you are on target for miles then you don't have much to offer to most folks. If you have a hot deal compared to what the same car would cost other folks - lower payment, way under miles, etc then you may can move the car. If your lease is through Mazda American Credit (MAC) they do NOT release you from liability on the lease even if you transfer it to someone else. So if they turn it in over miles, bald tires, and big dents and scratches then MAC comes after you if they can get the money from them. I would not transfer my lease under those circumstances.

Dennis

robger99 · June 2008

Actually I called MAC and they told me the new person assumes total responsibility for the lease as long as they check out credit wise. I searched leasetraders and the other three listings for 07 or 08 mx5s are all $ 50-75 higher payment for similar car so the deal seems good. I think it boils down to is there someone within a reasonable distance from my location that is in the market for this car and wants to avoid the down payment for a car in brand new condition with good mileage allowance.

dwynne · June 2008

If you check this page it says you would still be liable for the car, so I would get something in writing from MAC before proceeding.

If the other deals were good, they would be gone by now, right

? So you need to decide how motivated your are to get rid of the Miata. Your payment may be OK, but using the MAC lease money and bargaining a good price someone else may could get a similar payment. So you could offer some money to sweeten the deal to help it move.

I used to have a Miata "M" edition many years ago and found it to be a fun car to drive (and to autox), but just not enough power to suit me.

Dennis

julbug · July 2008

Hello. I am approaching 24 months of a 36 month lease, and I currently have 30,000 miles on my Mazda. Being 6,000 miles away from maxing out my mileage puts me in quite the predicament. I am contemplating terminating my lease early, but I hear that the nasty 'early-termination fee' is brutal considering I would still owe the remainder of my monthly payments until the lease is up as well (and never mind the insane fee I would see as a result of going well over my allotted mileage). Therefore, what I would like to know is what I should do. I already know that I would like to purchase another Mazda, but would like a fresh start, so would I be better off purchasing the new Mazda shortly before I am about to go over my mileage on my current vehicle, and let my current vehicle sit, or is there another route that might be better? Quite concerned. I hope someone can shed some light for me...

ral2167 · July 2008

why didnt you go for a 15k lease not a 12k? why'd you put so many miles on the car? weren't you keeping track? what you should do is just buy the car when the lease is up... thus not worry about the miles, or the penalty.

tidester · July 2008

what you should do is just buy the car when the lease is up

You need to consider the lease residual and the actual value of the car before making a decision to buy. It could well turn out that the residual is far higher than the real value.

tidester, host
SUVs and Smart Shopper

kyfdx · July 2008

At the rate you are driving, you will be 9,000 miles over on your lease.. If your penalty is $0.15 per mile, then you'll owe $1350 at the end of the lease in mileage charges..

So, start saving $112.50 per month for the next year... pay your charges and walk away at the end of the lease.. It isn't like the $1350 is for nothing ... you used those miles..

You might also try to cut back on your driving for the next 12 months, if possible.. With the cost of fuel, you'll have a double savings..

Almost any other measure to get out of your lease early will cost much more than $1350...

Good luck,
kyfdx
visiting host

dtownfb · July 2008

kyfdx has the best solution. $1350 isn't all that bad and you can minimize those cost with smart driving. Anything else will cost you much more then this.

getoutoflease · July 2008

I recently lost my job and will be relocating to another state. I cannot afford the lease payments on my 2007 Maxima. It is a 24 month lease, and I have 10 lease payments left.

I can transfer the lease to someone else, but based on Nissan Motor Acceptance Corp's (NMAC) lease transfer terms, I will still be listed as a guarantor on the lease even though someone else assumes the lease. The transfer would only be a Transfer of Equity Agreement, which means that I am still liable/responsible for the car. This is not an option I want to take.

And re-leasing to lower the monthly payments is not an option for me.

If I call NMAC and tell them my situation, would I be able to negotiate? Since I have 10 lease payments left, totalling $5000, would I be able to negotiate that total down to $4000 and turn the car in early?

What other options are there? Please Advise.

Thank you for your prompt response.

dwynne · July 2008

Check with NMAC and get the current buy out price on the car, not including sales tax. Compare that with what a used vehicle with the same miles and equipment would bring at trade or auction. If the numbers look pretty good, you may be better off to sell the car to a dealer (and maybe make up the difference) than to do the early termination. If you have a big SUV I would say no, but a Maxima should still have pretty decent value - but it all depends on the residual and rate of the lease and how good a job you did on getting a deal when you got it.

Dennis

qbrozen · July 2008

Honda has probably the friendliest end of lease with $500 / $1,500 forgiveness, but if you early terminate then you owe any unpaid payments plus the unpaid principle of the cap cost. In addition you may have to pay the difference between the adjusted lease balance (residual plus unpaid principle) and the "realized value" of the vehicle.

Hey dwynee. Just following up on this convo you and I had not long ago. I called HFNA last week and was informed if I terminate now, I will only owe the remaining payments. Nothing else (barring any wear/tear excess, which I'm having evaluated today).

I wonder if this varies by state. (??) As you can see, this is very different from what you've heard/experienced.

dwynne · July 2008

The remaining payments include principle, interest, and taxes - so that may not be such a good deal for you

. You pay exactly the same now as you would over the next x months but they get the car NOW and not at the end of that time.

HFNA = AHFC? Honda Finance?

I wonder on an early termination if they still give you the $500/1,500 forgiveness they do at lease end?

My 05 S2000 had 3 to 4 32" tread on the back tires (didn't bother me since I never drove it in the rain unless I got caught in it). If had purchased them from TireRack they are $180 or so each plus shipping, mounting, and balance. My pre turn in inspection quoted them at $160 or so each - so cheaper to turn in and pay than fool with the tires. Then, of course, AHFC says I owe $0 since each "thing" wrong with the car was < $500 and the total was under $1,500. So I just turned it in needing the tires and walked away and paid $0. Gotta love it.

Dennis

qbrozen · July 2008

whoops!
I was thinking "honda finance north america." haha.
yes, AHFC.

yes, the remaining payments include all of that, of course. Can't get out of what you owe. But there are no penalties (which is what i thought you previously indicated). What I save on is the insurance. About $600.

I don't know about the forgiveness, but I just had the inspection done and he reported $0 extra charges. Of course, nothing is wrong with the car, so I can't say if they would have given forgiveness.

But, I don't think the inspector knows I'm turning it in early, so I think the leniency would have worked no matter what.

dwynne · July 2008

The inspector is hired by Honda, he or she just notes the damage (if any) and the cost to repair. If they found nothing, then you are good to go. If there had been issues (like my low tread tires) then the inspector turns in the report with the price to repair / replace. Then you get a letter from AHFC advising you of the problems and the cost. If they forgive the items then the cost shown on the letter is $0.

Dennis

porsche9 · August 2008

I have 08 accord lx (1000miles-> not use much) 233/month w/ honda finanace

I cannot afford the lease payments on my car. It is a 36 month lease, and I have 24 lease payments left.

If I terminate my lease, can you guys tell me roughly about my termination fee?

dwynne · August 2008

I would get the current buyout price from Honda Finance (not including taxes) and see if you if you can get a dealer to buy it out for that price (or more). Accords hold value real well and with almost no miles on it (and I assume otherwise in like new shape) there is a good chance you could sell it to a dealer and come out OK.

Dennis

flagg2 · August 2008

OK, here is my scenario.

I have a 2005 Package #6 Prius on a 48 month lease. The lease is due March 2009. Yes, I know I shouldnt have leased it but at that time gas wasnt quite $2 yet.

The residual value (payoff) is $9750.

I only have 44,000 miles on it and will be way under the mileage restriction of 15K/year.

The Blue Book value on this car is around $21000 if selling to a private party.

Is it possible for me to go ahead and buy it out early from Toyota and then turn around and sell it to a private party?

I am not planning on getting another Toyota so going to the dealership and working out something for a new Toyota is not an option.

sebring95 · August 2008

You'll have to go through a dealer either way. Toyota finance won't sell it directly to you....a dealer has to handle the transaction (you buying it from Toyota finance). I don't think it has to be a Toyota dealer, but just a licensed dealer. This may vary from state to state though, so best bet is to call them and find out.

They can also give you the current buy-out amount...likely your remaining payments + the resisual value. You can then trade it to any dealer for that buy-out amount....it would be handled similar to if you owed money on your trade. I've done two buyouts from Toyota and they're a bit of a pain because you have to use a dealer. Most dealers will charge you a fee for processing the paperwork and some never responded to my inquiries. Good luck, let us know how it turns out.

qbrozen · August 2008

7 months early isn't bad.
Even if your payment is $500/mo, that would make your current buyout around $13k.
I would post your car and all details on the Real-World Trade-in Values board here on Edmunds and find out what it is truly worth (KBB is garbage).

dwynne · August 2008

The lease bank will only sell to you or a licensed car dealer. In most states you will have to pay tax in order to get the car's title so that you can resell it. This will eat into your profits from trying to flip the car. In some states (CA, for example) you can apply for a tax refund or credit if you resell the car within xx days of buying it. Most other states are not that friendly. If you find a dealer willing to handle the paperwork of the buy and sell for you, you can expect them to charge you several hundred for the time and trouble - you would have to weigh this against the sales tax you would have to pay.

You may be able to sell it to a car dealership and pocket some money. Not as much as a retail sale but perhaps less hassle on no sales tax to pay. Most dealers would love to have a low mile Prius they could mark way up and sell to some sucker

. So in any case, get the current lease buy out w/o tax and see where you stand.

Dennis

flagg2 · August 2008

Thanks for the advice everyone. Basically I am just tired of it and I know it is worth a lot more than the residual so I was thinking of upgrading to something else.

I had to roll negative equity into it when I got it in '05 so I am paying $465/month. I have acclimated to that payment so I figured I could get out of this Prius and into something nice for that.

sebring95 · August 2008

I would trade in on a Hummer just to blow someone's mind. :P

dwynne · August 2008

You could get a nice G37 / G37 for that payment. Guzzles the premium at about 18 miles to the gallon around town, but a LOT more fun than the Prius

.

If all else fails, try DriversWay or CarMax if they are in your area. They may be able to beat the buyout price and put some money in your pocket. Note that with any dealer "deal" don't mention how much the buyout is - just tell them you simply want them to make you an offer on the Prius and that is none of their business what the buy out price is. Heck, if you have to just tell them you own it free and clear and get the quote - then "remember" there is a buyout on it.

Dennis

volvomax · August 2008

Your termination fee is that you owe all the money for the lease.
Including the residual.
Depending on what your payoff is, you MAY be able to sell the car to a dealer for enough to pay the whole car off.
Otherwise, you would have to makeup whatever the difference is out of pocket.

1985mb · August 2008

Any experience w/ Volvo Finance lease terminations?

Considering assuming an XC90 lease; trying to gauge how good/bad they are w/ EWT. 4 months remaining, mileage not an issue, so it's just the lease-end fees and charges that are food for thought

Lease Termination Fees and other costs

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