Early Lease Termination

WAB

i have a 2012 Honda Crosstour EXL 4 cylinder. We make our final lease payment in July I have reached the 36,000 mile limit and I am looking at paying .20 for each mile after. I would like to get out now and lease another vehicle. Wouldnt my payoff just be 3 months of lease payments? Can't this amount be added to the next lease which I plan to do. I don't want another Honda so have been looking at Hyundai Santa Fe's. I guess my question is, do i keep this until the end of July and pay the penalty or try to get out earlier? Thanks.

kyfdx

WAB said:

i have a 2012 Honda Crosstour EXL 4 cylinder. We make our final lease payment in July I have reached the 36,000 mile limit and I am looking at paying .20 for each mile after. I would like to get out now and lease another vehicle. Wouldnt my payoff just be 3 months of lease payments? Can't this amount be added to the next lease which I plan to do. I don't want another Honda so have been looking at Hyundai Santa Fe's. I guess my question is, do i keep this until the end of July and pay the penalty or try to get out earlier? Thanks.

When you do an early termination, the contract terms are different. You could be on the hook for a lot more than just the last three payments. You'd be better off just sitting on the car for three months, and then you have no risk.

Alternatively, you could ask the Hyundai dealer if they would take the Honda in trade. It's possible that the 3rd party dealer payoff is less than it's actual value (not likely, but possible).

Michaell

WAB said:

i have a 2012 Honda Crosstour EXL 4 cylinder. We make our final lease payment in July I have reached the 36,000 mile limit and I am looking at paying .20 for each mile after. I would like to get out now and lease another vehicle. Wouldnt my payoff just be 3 months of lease payments? Can't this amount be added to the next lease which I plan to do. I don't want another Honda so have been looking at Hyundai Santa Fe's. I guess my question is, do i keep this until the end of July and pay the penalty or try to get out earlier? Thanks.

You should head over to the "Real World Trade in Values" discussion to see what your Honda is worth. The payoff value at this point is probably the residual value stated in the lease plus the sum of the payments that need to be made - but I would suggest you call Honda Finance (or whoever the bank is for the lease) to get an exact payoff amount.

Given that it's a Honda, you might find that you have some equity in your car, which puts you in a good position should you decide to trade it in early. At the very least, you shouldn't have too much negative equity to roll into the next transaction.

Good luck, and keep us posted as to how things turn out.