Lease Termination Fees and other costs
I have a lease that I need to end early....it was a 42 month lease for a Nissan Pathfinder that is over mileage ($1320 according to the Nissan dealer)has a cracked windshield and bald front tires. I need to end the lease early as I am starting a new sales job and the mileage that I will put on a car will be extensive. I am nearly locked in on purchasing a Nissan Altima, however I feel the dealers fees are unreasonable for my early termination. They are saying $1972 for the remaining payments on my lease PLUS an early lease termination fee ($350 included in the above figure) AND mileage overage. Isn't there a way I should be able to negotiate these fees down or off entirely since I am purchasing another Nissan? I've heard that people have done this. Please advise! I think I'm getting taken advantage of!
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You did read the contract you signed, right?
By far, your least expensive option would be to keep your Pathfinder and if you are way over your mileage allowance, just purchase it at the end of your term and continue to drive it.
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-My assumption is that since I Leased from NMAC, I can return at a different dealer?
-What kind of 'fees' can I expect to be charged? In looking at my contract, I will be responsible for the $150 buy-out-fee and the end-of-lease buy-out price of 16,563.80. Taxes and title fees on top of this- will I have to relicense with the state (Colorado)?
Aside from those questions I need to find out what kind of 'phases' I will go through in buying the lease out? e.g., Buying a new car generally involves three phases: actual car price negotiations; trade-in credit; last, finance dept. I would be shocked if it was just, "'Here, take money.' 'Here, take keys.'" I am already expecting the pitches for the extended warranty (Don't want) and in-house financing (Getting outside financing from CU). What am I missing or should be aware of either money or other?
Thanks for the help:)
The regional Kelly Blue Book is about $1500 above residual and locally about $2-3,000 above residual.
I'm shocked- Take Money- Take Keys- Good to go:)
Terry.
I bought a car two months before my last lease was up. I tried to make the last payment and give it back. They did not want it until the lease was up. I was right at my mileage limit, so I had to park the stupid thing and pay insurance for two months. It made no sense to me. They said if I brought it in early, they would take it to auction and I would have to pay the difference between that and residual, which probably would have been thousands (I guess I did OK leasing their in the big picture - they took a big hit on the bad residual). But their policies at the end are ridiculous.
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Upon inspection, they noted minor damage on our car and the fact that it had been wrecked and fixed. The wreck was not our fault and was paid for by the other insurance company, and the inspector claimed it was not fixed right. I thought I was going to be in for a fight, but then they just waived all the damage that the inspector identified.
Typically leases will extend beyond expiration on a month to month basis on the same basic terms, but you would have to look at your contract to see the exact language. Sales tax varies by state to state. I believe in Georgia (my state), I would have had to bay taxes to buy the car, but there are no taxes on private party sales. I am not sure how your state operates. Sorry I can't help more, but issues such as your original lease contract and the laws of the state you are in will control your specific circumstances. I used to do OK leasing, but in the last few years I have been doing to much driving, so I am back to buying.
I've got a 2003 Nissan Xterra with 19 months left on the lease. I'm moving back to NYC from Cali. and don't really need the vehicle. I've looked into the lease trading sites and was wondering if anyone has had any experience - good or bad, with them? I know that I'm still on the lease even if I transfer. All of the lease trading services offer an "insurance plan". What I'd like to know is: are these plans really reliable? does anyone have a success story?? ANY info would be helpful!!
Thank you.
In addition, my son was in a minor accident. In 2002, a few days before his 18th birthday, the car was hit on the left back side by an uninsured and unlicensed motorist. Three estimates indicated an average cost of over $3,000 to repair the damage. Unfortunately due to our bad judgment, my husband and I were the only insured drivers and my two teen-aged sons were excluded due to high insurance rates. Can you give us advice in dealing with these problems since the lease will be due in September?
bad news: you have to have the body damage properly repaired, at your expense.
good news: it's a lease, so as long as it's repaired right, you walk away from it. even with the best possible repair, the car has taken a hit in value with the body work, but that is the leasing company's problem.
this is the only advantage of leasing that i am aware of...
so you're altogether not in bad shape... have the repair done right, spend the $3k, and figure you saved a similar amount by not paying insurance for your son.
-Mathias
But the car has only 31k as of today, and i don't think i can put on another 14k miles in 5 months.
I will probably lease another Toyota after this one.
Do you think if i can get some incentive or a better deal on the next car?
someone suggested to buy it and sell it in the open market. But the residual is $8600 and the TMV from Edmunds.com is around $8200 for trade in. It make no sense to pay the $8600 + 8.25% tax in CA and resell it for $8200.
Any idea?
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I am pretty sure that the leased corolla is worth LESS than the open market. So what i am going to do is to drive the hell out of it and use as much mileage as possible.
My other 2003 4runner's got bad mileage anyway 16-18mpg so i can save some gas $$$
My last leased VW Golf was 8K miles over when i return it. That's why i opt for 15k/yr when i leased the corolla. But somehow, office moved to like 8miles from my home instead of 35miles and that's how i get the extra mileage.
Thanks for your advise.
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Now I want to know, what should I do? I need a car, but don't have any cash in hand, fair credit history, but stable job and last 45 months of Auto payment.
I really appreciate any suggestions and good advice in this regard.
"they cheated me and I signed the lease without understanding it.."
why try to blame others for your own foolish decision? Why would you sign a financial contract without understanding what your singing?? Did they hold a gun to your head and say "sign or else?"
Whatever happend to being accountable for your own actions?
FISH8....some states have personal property tax on cars. Here in CT a $20K car will cost you $400-800 per year depending on your town tax rates.
Also, at least in GA, you pay "property tax" whether you buy OR lease.
If your Real Estate agent said: "buying and leasing is the same", would you still lease the property.? .. come on, lets be honest here, your blaming the dealer for "your" decision ......
Terry.
I have now a Ford Windstar lease which ends in Jan. '05, and I got an offer from Ford to lease a new Freestar, and they will waive up to 10 remaining payments on my current lease, so no early termination fees or whatever - just go to the dealer, and ask them for the special offer (I think the name of the program is 'early bird') and that's it. Drive home with the new car.
So why "guess" that Ford will not let you out of your current lease. Try to ask them, it couldn't hurt :-) Especially now, that due to the higher fuel prices, sales for the Expedition is dropping and Ford is desperate for sales, so you can get a good deal, maybe for even less money than your old Expedition.
I'm not sure about Volkswagen, but if you want to take another VW, sometimes they will allow you to end your lease early. I know some people who got such kind of offers from them. But again, ask them. It doesn't cost you anything, except for some time on the phone (and phone charges if it isn't a 800 number :-)
Good Luck!
If your Real Estate agent said: "buying and leasing is the same", would you still lease the property.? .. come on, lets be honest here, your blaming the dealer for "your" decision ......
Terry.
They were not lying, baloon payments are purchases, not leases. The car is probably registered in Faizur's name.
Shop around and oyu will get a better deal.
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I have a lease on a 2002 Jetta 1.8T with 32,500 miles. My question is whether I should buy the car out or not. The facts:
If I terminate, I will owe $250 term. fee, about $350 for miles (10k/yr.), and , because of the poor rear bumper design on this VW, I am expecting to have to repair all the dings, perhaps $500? So I might be looking at about 1,000-1,200 to give them the car back. OUCH! I could then buy another car. Advantage, I paying down a new car, disadvantage, I will spend maybe 5K more than buying car out.
Or, I can buy the Jetta- The residual with tax/title-1,000 rebate is $14,612, which is I beleive less than blue book.
I like the car, don't love it. Advantage- less money, discdavantage, I'm paying down a car that will be 7 years old by time I finish payments. Your sage counsel would be welcomed.
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Generally speaking, consumers are able to get more for their vehicles by selling them privately than by trading them in. Having said this, the more expensive the vehicle that you are trying to sell is, the more difficult it will be for you to find someone who has the resources to purchase it from you. Unfortunately, you are probably going to lose money trying to get out of your lease almost 30 months prior to its scheduled termination date, but you may be able to minimize your losses if you are able to do a private sale. Your least expensive option would be to continue leasing your Sequoia until you are much closer to its end. I could understand trying to get out of your lease if you could no longer afford to make the payment, you are way over your mileage allowance, or you needed a different size vehicle, but to do so just because you don't trust Toyota does not make a while lot of financial sense.
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Nanci
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I'll bet the house that if you take your residual (per your lease agreement) + 30 months of Payments + Sales tax on the residual you are going to be thousands of dollars higher than what you could get on the open market for it.
Why worry about it or challenge it now when she knew taking it back with the damage would cost her? Did she bother getting the damage estimated before turning it in?
MSRP new (if known)
Residual
Major options
Miles (currently)