Lease Termination Fees and other costs

volvomax

Do they do it the same in Canada as the US??

FAIK, yes.

volvomax

It's not the appraised value,its whatever the auction value is.
Whatever the car actually sells for at auction.
You owe the difference.

cllaw

Hi all

I'm currently leasing a 2006 VW Passat and my lease is coming to end in a few months. One of the tire was flatted and it is not repair-able so I need to get a new one. I'm wondering if I should get the exact same tire or I can get something that is less expensive? It is my understanding that VW only require you return the same tire when you are leasing a AWD but mine is just a FWD so I'm not sure if that rule still apply.

it will be great if anyone can give me some idea on this

Thanks again

Alex

fordfool

> Ok so I have a question now, I want to return a lease early about 3 1/2 years early. We inherited a vehical... so what to do?

You inherited a leased vehicle, right? The vehicle actually belongs to the lessor. Simply return the vehicle. It's neither your problem nor your debt.

gabby10

you should call vw credit they can answer that for sure , i think they tell you that it should be same because to have a mix of tread design is unsafe , especially on wet roads could cause the car to react different ,

kita592

Actually no, I inheritaed another vehical (one with no payments or money owing on it), I have the leased one & don't need it anymore, I have a vehical that's paid for now and don't want to lease the otherone. I can SAVE alot of money without paying the lease any more.

kita592

The dealership said I would have to bring it in and they would appraise it & whatever the difference was that's what I would pay... that's why I asked. Is he blowing smoke up my skirt?

greanpea68

The dealership said I would have to bring it in and they would appraise it & whatever the difference was that's what I would pay... that's why I asked. Is he blowing smoke up my skirt?

No smoke. You have a payoff on the vehicle. What ever the difference is after they appraise it is what you owe.

volvomax

assuming that they are buyers for the car, that is correct.
You would owe the difference between what they awould pay for it,and what the lease company wants.

volvomax

You cannot have different tires on the same axle.
So, you will have to replace that tire with the same type.

jarthan

A bit of good news. The termination fee was $300, plus they added sales tax of $21. After my first call, they eliminated the sales tax. After my second call, they reduced the payment to $240. I elected to give them their $240 since the term fee was shown on my disclosure statement. I missed that when I signed; won't make that mistake again.

cllaw

Given that my car come with exact full size spare tire. I put that on for now. The really question is about the spare in the trunk... Should I get the same tire like the other 4 or I can just get another one with exact same spec.. but in other brand and cheaper price

Thanks all

volvomax

I don't believe the spare has to be the same brand.
But, I'm not 100% sure either.

cllaw

That is the exact same wheel and tire, not one of those donut tire in the trunk. I actually didn't realize that it is the exact same tire until I open it up....

Thanks all for your advise

AL

dsoret

Hello, I may have asked about this before, but my husband leased an escalade through GMAC and he has passed away recently. It is in his name only. It is a 3 year lease. Am I stuck with this lease? I have called both the dealer and GMAC and they told me I would have an $18k early termination fee. Is there anything I can do to get out of this without the penalty? Thank you.

joel0622

My guess would be it would depend on how his personal matters were handled. If it has not become an asset of the estate then I would GUESS that you could take it to the nearest GMC Dealer and hand them the keys. if it is in his name only who are they going pursue for the money.

If it is part of the estate then it will become a liability of the estate.

Please don't take my assumption as the gospel. If you have a lawyer please ask them. They get paid to give good advice. I take guesses for free.

dsoret

Thank you, I will check and see. I appreciate your help.

dindallas1

My Acura MDX lease is up next month and my neighbor wants to purchase the vehicle. What are my options? Wells Fargo holds the paperwork on the lease and said only I could pay off the note. I want to transfer title at lease end to my neighbor and only have to pay sales tax once. If I purchase and re-sell, it appears the state wins with two sales tax payments. Thoughts?

volvomax

It depends on what state you are in.
Does your state tax private party transactions?
You will pay tax when you buy out the lease.
However, most states don't tax private transactions.

dindallas1

Sorry - I should have included that information - Texas - which seems to do things a little different at times...

british_rover

orry - I should have included that information - Texas - which seems to do things a little different at times...

Thats why it is a whole other country... :P

tandmcox88

in September of 2005 I leased a Pontiac G6 for 48 months, 5 months and 500 miles on the car and the anitlock brake system cought on fire, Dealer ship had the car for 29 days, then on the way home brak light came on again, back to the dealer ship fixed it right then and there they had to add more brake fluid. The car is a total lemon has been back several times for vibrations in the front end. I am getting ready to take it back again dh states bearings are going bad. How do I make the dealership buy the car back so I can start fresh in a car I can trust with my family in it. Lease is half way through and I am about 5500 miles under. Thanks :confuse:

steine13

(i) the dealership has little to do with this; you are leasing, that is renting, and you are renting from GMAC, not from the dealership.

(ii) Legally, the only help you would get is from the "Lemon Law", but I don't think that you will get any help from that on a car now more than three years old. I don't know if it even covers leased cars... In any event, your dealer knows all about the L.L. -- I don't think it's an accident he had your car for 29 days and not 30 or 31. I think thirty days is the limit that automatically triggers LL.

(iii) you are responsible to keep the car in good shape, that is, to fix anything that goes wrong, and turn the car in at the end. Trusting the car with your family is the least of your problems; as I see it you are out of warranty and most or all future failures will have to come out of your pocket.

I might have advised you to end the lease early and take the hit, but now you're past the warranty and anything wrong is on you, unless you can successfully argue it has to do with previous failures. Here's hoping you have an extended warranty -- if not, make it a point to never lease past the warranty period and mileage. I know that's not very helpful right now.

As far as being over miles; put money aside to cover the 15 cents/mile or whatever the cost is. If it's 10 cents/mile, which is not unheard of, smile! That's what it costs to drive pretty much any car, so just put the money in a separate account -- or a jar, in view of the < 2 years you have left... Interest won't make much difference.

My big fear would be big repairs on a car that I don't own... so the important question is, is the car in OK shape now, and when does or did your warranty expire.

Good luck,
-Mathias

volvomax

As Steine said, you may not have a case for Lemon law.
The only thing that Lemon Law would address is the ABS system. If that was fixed, even if it took 29 days, then you don't have a case. Even if something else breaks later.
Lemon Law is for 1 issue that simply cannot be solved, not for multiple defects or breakdowns that are repaired.
Also, it isn't the best of ideas to lease a car for longer than the warranty period anyway.

jmf913

I am an active duty JAG officer and have a question regarding a soldier that was stationed in Wisconsin. While he was there he leased a vehicle from a dodge dealership. After two years he received orders that transferred him to NC. He received a letter from the dealership saying that they "were not licensed" to do business in NC, and the terms of the contract required him to ask permission to take the vehicle out of state. He has been given 2 choices: One, buy the vehicle or two, return and pay termination fees. The dealership said that they only allow the leased cars to be moved to the surrounding states due to insurance reasons. The Servicemembers Civil Relief Act does not apply. Is anyone familiar with this practice? My thought is to see if they will allow him to sign a waiver on their insurance requirement.

greanpea68

The Massachussetts Lemon Law:

If in the first year of ownership the same thing breaks three times... you can file for a lemon :lemon:

If in the first year of ownership the vehilce will been the shop for over 15 business days and can't be fixed... than you can file for the lemon law... :lemon:

GP

greanpea68

It sounds like a buy here pay here. If it is a Lease from Dodge or Chrysler financila services the dealership would have nothing to say about were the person moves too. I would check his credit bruea and see if it is even on there. If it is a buy here pay here it probably won't be listed. The dealership has nothing to do with the bank besides setting the loan or lease up.

jmf913

Thanks. The dealership is called CU Fleet, which seems to be owned and operated by a Credit Union.

greanpea68

Thanks. The dealership is called CU Fleet, which seems to be owned and operated by a Credit Union.

Alright so it is not Chrysler Financial but that doesn't make any sense that a conssumer has to live in a certain area for the term of their lease. For crying out loud he would have had to put on the credit app. That he was in the service. :mad:

volvomax

AZ is a little different.
The claim must be initiated in the first 2yrs/24,000 miles of ownership.
Car must be down 30 days for the same repair.

greanpea68

Good to know.

cllaw

Hi all

Got a question here and I will appreciated if you can give me some advise on.

I'm toward the end of my lease on my 2006 Volkswagen Passat and I had to say it is a good car expect for the high maintenance cost. So I decided not to keep it. The problem I have now is that the front wheels have some pretty big dents that require a refinish and the refinish cost is about the same as if I get a after market/ refinished rim s(same exact spec and style) over the internet. Which way should go? I'm just worry that VW will charge me if they know I put on different rims

Thanks in advance for all your help!

Happy New Year All

Alex

joel0622

Alex, I don't know about VW but on Ford leases i sell a product called Wear Care, if VW offers it I don't know what they would call it.

WearCare is Ford Motor Credit Company&#146;s excess wear and use waiver product designed to
complement Red Carpet Leases. It changes the Lessee&#146;s excess wear and use responsibility under the
lease agreement by decreasing the lessee&#146;s liability at termination. Fully supported by Ford Motor Credit
Company, WearCare is competitively priced and helps to address customers&#146; concerns with lease-end
charges. For an additional one-time fee, Red Carpet Lease customers can reduce or eliminate their
liability for lease-end charges that result from stone chips, parking lot dents, carpet stains and more.
With WearCare, you can offer Red Carpet Lease customers a waiver of excess wear and use liability up
to a maximum amount of $2,500. Since WearCare is not an insurance policy, there is no customer or
dealership deductible. WearCare does not waive excess mileage charges
WearCare, subject to certain exclusions, waives the following Red Carpet Lease chargeable damage:
&#149; Broken or missing parts &#149; Dents/scratches
&#149; Permanent stains in fabric &#149; Bumper damage
&#149; Cracked or broken glass &#149; Paint damage
&#149; Dented body panels &#149; Broken lights/trim/molding

Up until about 6 months ago it also covered damage to wheels and tires, including excess tire wear. But they changed it because like all good things people were abusing it.

I put it on every lease because like I said it waives the security deposit so if you can either pay for a security deposit up front or get the wear care included in the payment.

Good luck, if you do end up having to pay I would recomend shopping for factory wheels and compare what you can get them for compared to what they will charge you.

kyfdx

You have dents in your wheels? :confuse:

If you mean scratches and gouges, a lot of captive finance companies consider cosmetic wheel damage to be normal wear and tear. (amazingly enough!)

So, get your pre-turn in inspection.. and, make sure that you are being charged for it, before replacing them...

If it turns out that you have to replace them, look for OEM used wheels on Ebay, or contact a local import salvage yard.

regards,
kyfdx
visiting host

spikeb

Alex:
You may want to check your lease document to be certain they don't have a "OEM only" parts clause. Further, check to see if they have a clause that limits the amount of aftermarket stuff you can add. This can really "bite you" when they do the "walk around".

1. check the contract surrender conditions normal wear and tear is very subjective it has a lot to do with "if they want the car". If they don't then those dents are really going to be a problem!!! Not really but they will say they are.

2. What you did not say is if you want to buy the car. Do you know what it's FMV is now? You might want to find out. Remember the dealer/lessor really doesn't want it back.

Good Luck
Spike Bailey

tazgirl3

Went to my dealer yesterday and this was my experience and would really appreciate any feedback or suggestions as to which way I should go.

Hello from Chicago! I currently have a lease on an 05 Maxima SE fully loaded with everything except Nav System.
Looked at leasing an 07 Murano AWD SL fully loaded with Nav System. Dealer gave me these figures and I need to know if its good deal or not. I dont think it is.

Dealer said they would take my Maxima as a trade in and I would not have to go though lease turn in process which I found strange. Everyone keeps telling me to keep the two transactions separate. They want to give me 17,000 for trade which I find very low.
Murano lease pricing 12,000 miles per year for three years Also, they want me to put down $1,000 plus make the first payment which would be 594.20.

MSRP: 37, 020.00
Invoice: 34,014.46
VEH Price: 35,514.46
Sales Tax 1,446.50
DMV Misc Fee: $150.00
Acq Fee: 595.00
Prior Loan: 3,096.00
Gross Cap Cost: 40,0816.96
Cash Red: 237.80
Net Cap Cost: 40,579.16
Trade ACV: 17,000
Trade Allow: 17,000
Trade Payoff: 20, 096.00
Resid: 48%
Resid: 17,769.60
Money Factor: .00016
Buy Factor: .00016
Doc Fee: 150.00
Title Fee: 65.00
Reg Fee: 78.00
Misc Fee: 25.00

Thanks for any input.

dtownfb

I don't know much about leasing but that does not look right to me. Are you turning your 2005 Maxima in early? If so, how many months do you have left? What is the residual value on the 2005 Maxima?

tidester

Money Factor: .00016

I can't say whether that's a good deal or not but the interest rate sure is! That money factor works out to 0.384% apr which would be VERY good but I suspect you put an extra zero in there. But even 3.84% would be fairly decent.

tidester, host
SUVs and Smart Shopper

qbrozen

well, dtown asked the big question that needs to be answered. What are you maxima payments and how many months do you have left on that lease?

Also, I am curious about the tax laws in your area. Do you typically get a tax credit for a trade-in? For instance, if I trade a car in here in NJ, I only pay tax on the difference between the new car price and my trade-in. ALSO, as far as leasing goes, do you have to pay tax on the entire car in Chicago? Or only on the depreciation? You listed over $1400 in tax, which would indicate no tax credit on the trade AND that you have to pay tax on the full vehicle price when you lease. That's very bad in both cases.

tazgirl3

to answer your question. yes, I would be turning my Maxima in early I have three payments left which total $1800 and the dealer told me rather than deal with calling the 800 number you call when you turn in a car that they would take my car as trade instead of paying the $1800 for me. Residual value on the 2005 Maxima is $17, 769.00

tazgirl3

I would have to find out what the tax laws are here. Sadly, I do not know. i will find out and come back to you.

tazgirl3

the money factor is correct. .00016. its like free money! I think the dealer thought he could lure me with the outstanding interest rate and then slam me every other way to make up for it. If I bought the Murano rather than lease it the interest rate would be 3.99% for 48 months.

dtownfb

Thanks tazgirl. A couple of things I would have the dealer clarify if this were me. The prior loan line is $3,096 but you only owe $1800. The loan payoff is $20,096 which I assume is the $17,000 trade allowance. Why isn't the trade allowance the same as the residual?

Also you should be able to get a better price on car itself. There is a $1500 customer cash on the Murano (check Edmunds). The dealer could be passing this onto you in the form of the money factor but who knows. Personally I would rather see the price of the Murano at invoice if there is a cash incentive on the vehicle. That's $1500 right there. I don't see where your $1000 and final payment is reflected in the contract. I only see a cash reduction of $237.80. All this could in the numbers you have listed but it is hard to see and I don't trust things I don't understand. To me a car transaction should be fairly simple to understand even a lease. I think trading in a lease that is not paid off on another lease may be what is confusing.

One more question: Is your Maxima over the mileage limit? If it is, then that woudl begin to explain some of the numbers.

joel0622

Sounds to me like you would save around $1300 if you just paid the last 3 payments and termed the lease instead of rolling the $3096 into the new lease.

tazgirl3

yes, that is the route I plan to go on. I dont understand where this $3096 is coming from anyway. If I only have three payments left totalling $1800 why would I have this $3 figure involved. Very strange. Got a boad vibe from this whole deal and I told the dealer no thanks. :mad:

tazgirl3

This lease was very confusing to me so I told that dealer no thanks. he was not giving me any deals and to me it appeared that he was trying to make about $5k or so on this deal. I am not over my miles. I have 34,400 miles and I have a limit of 36,000 I will be close but wont go over. I just think this salesman thought he could scam me! lets face it, thats the way they make their $$ and probably was not expecting me to be an educated consumer!

qbrozen

$600/mo on a maxima!! HOLY COW!!!
you either rolled in a whole lot of negative equity into that lease or you were raked over the coals. You could be driving a bimmer or benz for that kind of money.

I definitely suggest not rolling anything. Finish that lease and start fresh.

tazgirl3

I think both happened to me thats why I am trying to be so careful on this one. Previously I had an 04 Max which I bought then I traded it in for the 05 and leased it so I think what happened is basically I was upside down and they rolled that into the new lease. I am going to finish this lease out and just turn it in. Keep that transaction separate from the other. The dealer kept telling me I will assume your lease and you dont have to worry about calling NMAC or doing anything else so something did not seem right when he kept telling me to do that.

dtownfb

I think you did the right thing walking away. If you don't understand the numbers, don't sign the paperwork. Don't trust anyone. That car (or another just like it) will be there in 3 months when your lease is up.

simpleeforever

Just got my new 08 Jeep Commander Overland 3 days ago (1/20/08) from now doing the 39 months leases for 799 per month. My first month payment + down payment won't due until Feb 10, 2008. No insurance apply to that car yet. Want to get out. How am I going to proceed to this direction, possible return? or are there any other option(s)???