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Comments
Even if you offer to cover the leasing co's transfer fee (not sure what that is for AHFC) and some upfront cash incentive to the buyer, it may be cheaper and easier than shopping around for a dealer to trader your car in.
You can advertise your 'deal' on CL for free or at swapalease, leasetrade and leasetrader.com for a small fee
Simple answer: AHFC does not allow lease transfers.
Dennis
Today, I called GMAC and inquired about what options (if any) do I have to soften the mileage blow at the end of my lease. They said I have 23 payments left at $470/month and I would probably owe $7k at lease end for the over mileage. They offered me an offer to terminate the lease today for $5,100! In fact, if I waited a few more months and timed my termination just before the 32,000 mileage mark, the termination fee would be even less and would NOT incur any over-mileage fees.
Help me with the simple math: 23 remaining payments = $10,810 PLUS another $7,000 in anticipated over mileage charges versus paying $5,100 today and I am walking away from the lease.
Why would GMAC give up a contractual lease obligation of $10k, plus another $7k to equal $17k AND be burdened with unloading a monster gas guzzler with high mileage versus letting me walk today for $5,100?
What gives? Sounds like a good deal for me...
$470/mo. sounds cheap for a Suburban... What are you going to replace it with?
And, though not part of your money calculation, I still have to ask.. Why get a 10,500 mile/yr lease, when you drive 18K mi./yr.?
regards,
kyfdx
visiting host
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So, your only expense should be the $395 disposition fee.
We are well under our mileage (36500 of 46400 allowed) but I don't want to trade it in because the residual is higher than what I think we would get. I'm just a little leery of the "we'll make your final three payments" spiel because I can just see getting a notice from Honda asking where our payments are after doing the deal.
FWIW, we're looking at a myriad of vehicles: Lexus RX350, Toyota Highlander, Volvo XC90, Acura MDX, Mazda CX-9, VW Tiguan and Buick Enclave. At least, that's the list we've narrowed down to after starting with about 18-20 and eliminating from there.
You should negotiate the price of your new vehicle first, then worry about payments or lease details. THEN see if you can get the same payment / price and get a dealer to pay your current lease off for you. Odds are good they will not. You can also take your current ride to places like Driver's Way and CarMax to see how much they will pay you for it. Don't tell them how much you owe, the buyout, or how many payment you have left - just get a quote from them and then you compare that to the current buy out price. If they would give you enough to pay off the Ody, just sell it to them and go get something new (if that is what you want).
If the Ody is not worth the buy out price now, it will not be worth more at the end of lease - so there is no reason to get out of it early (no profit in it). Why not just turn it in at lease end and then get something new? AHFC has one of the best, if not the best, turn in policies in the biz - no fee and $500 per item and $1,500 total in forgiveness for dents, tears, tires, etc - it really is painless.
Dennis
Thanks!
If you can, I would suggest you be patient and wait until your lease is up.
Any suggestions..solutions to help would be highly highly appreciated. :confuse:
Usually you can find someone to assume the lease if you sweeten the deal with cash. So instead of coughing up $5,000 if that's the short-fall of selling it outright, maybe someone will take $2,000 and assume the lease. Just depends on the situation. Let us know what you find out.
Personally, I would find out what you are in for the A4 to the leasing company and sell it on your own. make up the difference if the sale comes up short.
Here is some info about my lease
Audi A4 2.0T FWD Sedan 2008
Quartz Silver exterior
Black leather interior
Current mileage: 12,405
Lease miles: 15,000/yr
Downpayment: $5500
36 Term lease 10/10/2007 ~ 10/10/2010
Monthly Payments: $395.62
I also was convinced to purchase the service contract for $590 which is included in the monthly payments.
Payoff info:
Residual Value: $18,924.00
Scheduled payments not yet due: $9,136.75
Rebate Unearned rent charge: -$2,231.35 ( I have no idea what this is)
Total Amount: $ 25,859.55
My car was leased from Rusnak Audi in Pasadena, Ca.
I talked to a salesperson from swapalease. They charges are between 500-1200 but he saids is a one time start up fee and that is all. Is it necessary to go through a company like swapalease or leasetrader to transfer my lease? Or can I post my own ads?
Is $25,859.55 a good deal for my car? Would anyone buy it for that amount?
Thank you so much!!
I had no idea Swapalease charged so much for their services to "sellers". I've always been on the other end and I think I paid $50 for a lifetime membership. I'd probably recommend sticking an ad on Craigslist saying "4-sale or assume lease" and see what happens. You do NOT have to use swapalease or leasetrader to transfer a lease. And unless they've changed their services since the last time I assumd someone's lease (a couple years ago) they basically did nothing except put your ad online. They will only release your contact info to registered users, so it's a somewhat captive audience (serious buyers, so that's a plus). However, once I was put in touch with the seller, we had to take care of all the paperwork ourselves. Once you have a potential "assumer", you contact VW finance and they can start the paperwork for you. You basically have to file paperwork stating you agree to transfer the lease. The assumer has to file credit application and assumption documents with VW. Once everything is approved, you can hand over the keys. I think the quickest one I've done took two weeks and that was with Toyota finance.
I'd get a buy bid from Rusnak and see what it would cost to just get out.
thank you so much for your help. I had thought that i had to go through swapalease. Thank you. I'm not too sure what you mean by that i may need to throw a little cash on the table". If i put an ad for 395/mo lease, then it would be 0 downpayment right? Is that what you mean by throwing some cash into it? I'm sorry, my questions are probably retarded...this is the first car i ever bought or rather leased...had no idea that there was so much more then just buying a car. I should have done this much research before I got my audi. Are there any other sites that you would recommend to put ads or listing on?
So the actual paperwork after someone assumes my lease will take about two weeks? is there anything i can do to speed that up?
thanks.........
How quickly the paperwork can be completed really depends entirely on the leasing company. GM took almost a month before I received everything. Toyota was much quicker...about two weeks. If timing is a problem, you may just have to sell it and pay the difference. I'd say if you're in a hurry, a dealer or carmax may be your only choice to move it quickly.
Worked out well for me. The 2000 not only ate my leftover payments but I was left with around 700 toward the new vibe.
Hopes this helps
'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
When I leased a 2006 Avalon, the rate was very competitive, all the paperwork was by fax and mail, when my company bought it out early the deal was clean with no additonal fees and I saved money on sales taxes. The credit union officer told me that as a non-profit, they were exempt from the state sales tax and I saved the 3% VA sales tax on the purchase/lease.
Here is their post.
'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
tidester, host
SUVs and Smart Shopper
One would think that the fair market value at lease termination would include the vehicle's actual mileage though it's possible the lessor has separated the two. Your contract should spell out the details.
Perhaps someone with experience would care to jump in here?
tidester, host
SUVs and Smart Shopper
Essentially, you are doing THEM a favor.
Option A is you drive 60k miles in 5 years, making all payments over 5 years, and turn the car in. They have a 5-year-old, 60k-mile car.
Option B is you drive 60k miles in 4 years, making all 5 years of payments, and turn the car in. They have a 4-year-old, 60k-mile car.
Which one do you think is worth more? Option B, of course.
'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
Also, one agrees to make ALL of the payments when signing the contract and one agrees to the early termination fees including paying excess miles according to the schedule specified. Reasonable or not, it's what one agreed to. However, it is reasonable, in a legal sense, since no one was coerced into signing a contract.
tidester, host
SUVs and Smart Shopper
You break the contract, you pay the price.. reasonable rarely shows up..
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But I do contend it doesn't make sense from a manufacturer's standpoint. There is no choice of one with fewer miles here. It is the 2 choices I stated above. And we all know a 2004 with 60k miles is worth more than a 2003 with 60k miles. So as long as all the payments are made good on, it makes no sense to charge miles based on what MIGHT happen in the next year. They are making out twice on the deal. They are getting all payments PLUS excess miles that don't exist PLUS they have a car to auction off that is worth more than was projected in the residual.
And, yes, again, so as to not cause confusion, if the contract states all of this will take place, then the person who signed the contract owes all of that. And shame on them for signing it. I wouldn't give anyone my business who structured the contract that way.
'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
Nor would I. I always wonder how many people actually read the contracts they sign and commit to.
tidester, host
SUVs and Smart Shopper
Almost no one.
When I did F&I maybe 1 person a year would read the front and back of the contract.
And every F&I person I've dealt with has agreed with that. They are always shocked I read it (although quickly) and make some sort of comment.
'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
The leasing company really would rather you comply with the terms. I've found most banks to be very fair at lease end, assuming you've held up your end..
If you want out early, there are other ways than just turning the car back in... that usually turns out to be the most expensive way to get out of a lease.
regards,
kyfdx
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(keep in mind, I consider selling it privately or trading it in "buying it" because that is essentially what you are doing)
I had to turn my Accord in early because it was already worth FAR below its residual and still had 9 months to go.
'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 calculation is done with some other formula that allows you to pay less than the remaining payments, then I can understand prorating the mileage.
If you trade it in, you never take title or pay sales tax... I don't consider that the same thing, at all... Plus, depending on the bank, you can just sell it straight out to a car dealer..
Generally, you'll come out ahead that way.... rather than turning the car back in.. As in all things, it depends...
Early termination of a lease can result in many unexpected charges... Some banks are better than others... I've heard Chrysler Finance is one of the worst. Rather than hundreds or thousands in extra charges, I'd let the car sit in my driveway and make the monthly payments..
After all, who doesn't need and extra car? Or, three?
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Don't know what you heard about Chrysler, but we had absolutely no problems with them. Turned in our Pacifica 3-4 months early. Paid what was on the contract (remaining payments and disposal fee) and that was it.
corvette - I think it varies by state, but neither Honda nor Chrysler gave me any interest credit. I had to pay all remaining FULL payments, including tax and interest.
'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
The sentence you've picked, by itself, can be confusing. I did not HAVE to turn it in for the reason stated. But I did WANT to get out of it and turning it in early was the cheaper option.
It was the same with our Pacifica. And, as a matter of fact, we had hit the mileage limit on our Pacifica (45k) 4 months before lease end. We turned it in, sent Chrysler a check for the remaining 4 payments and that was it. No projected excess mileage charges or early termination fees.
'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
'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