Lease Termination Fees and other costs

greanpea68

Thanks for any input.

I sell Nissans in MA. ... The numbers you have presented on the lease payment seem accurate. My question is why are you not turning your lease in? Are you over on milage? How many payments do you have left? I may be asking these quetions too late but I have to believe the Nissan dealer figured this out also.

The thing I mam wondering most about is you have $3000 negative equity in your trade. I can only assume that you were over your milage and had too many months left on your lease.

If were over your milage (15 cents per mile) and your months remaining on your lease added together were more than $3000 than I think you made the right choice.

But if you were under your alloted miles and had 3 months left at let's say $500/mo that would equal $1500 ( which would be less than the $3000 you were using)than I would say that would be a bad deal. But I can't believe someone in sales would make that mistake. So I would assume your lease was way over on miles and you had to many months left or there was some damage to the car?

I would need to know those numbers first. Either way you will enjoy the Murano very much and it will be a far better vehicle for you in Chicago especialy in the winter

GP

greanpea68

There is a $1500 customer cash on the Murano (check Edmunds).

You don't get $1500 when you lease, you get a special money factor.

GP

greanpea68

Replying to: joel0622 (Jan 15, 2008 6:00 am)
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.

Because they want to buy your trade or you are dealing with inexperienced people...

gP

greanpea68

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!

You answered questions i had asked to your previous post. Tell them you will pay the $1800 out of pocket and turn your lease in early. Call the 800 number!! You are responsible for the remaining months.

That will save you atleast $90 a month in a payment... Than tell them you will do it for $500 under invoice which will equal $2000 more in savings and that will save you another $60 per month. You were at $590 a month... Now you will be paying $450 a month with only a thousand down and that would be right. Good luck and I hope i didn't speak to soon.

GP

volvomax

You are paying $800/mo for a Jeep Commander?????
Ugh.

Well, if you took delivery, there is no return,sorry.

You could trade the truck in somewhere,but chances are,you are buried in it.

dtownfb

When I first wrote that post, I assumed that was the case but deleted it out since I dare not ASSUME on an open forum like this. Plus i was hoping tazgirl would say that she received the special rate as part of some program.

dtownfb

And it is a lease..... The only possible recourse and this is very slim is if his state has a 3 day cooling off period. Not many do but for this case, it is worth looking into.

joel0622

No insurance apply to that car yet

If that means you have not put insurance on the car yet that is a big mistake on your part. If some one was to hit you on your way home tonight and total it you would be screwed blue and tattooed

From what you have wrote (though I do not understand the part about down payment not due till Feb 08) you leased a car. Its yours, unless you are in CA or the dealer has his own policy you have no 3 day colling off.

simpleeforever

i'm from the san diego, ca area. i haven't had the chance to call them if they do have such a 3 days cooling off. the total miles for the car so far 150 on it. thanks guys!

joel0622

haven't had the chance to call them

Well you must not be that worried about it seeing it is now the afternoon of your third day.

Don't you all have a Car Buyers Bill Of Rights out there that says you have 3 days to return a car.

simpleeforever

So there's a good news right? I was looking here a min ago (http://www.dmv.ca.gov/pubs/brochures/fast_facts/ffvr35.htm), now how to proceed this?? Even though i signs them lease agreement, am I doing ok??...to return without any costs i mean.

volvomax

The cooling off period and return policy only apply to used cars, according to that site.

joel0622

The car is yours. That applies to used cars only

Used car buyers may purchase a two-day sales contract cancellation option.
There is no "cooling off" period unless you obtain a contract cancellation option. Consumers who purchase a used car for less than $40,000 must be given an opportunity to purchase a two-day Contract Cancellation Option Agreement.

Important: The contract cancellation option does not apply to used cars priced at $40,000 or more, new cars, private party sales, motorcycles, off-road vehicles, recreational vehicles, or vehicles sold for business or commercial use.

simpleeforever

goodness. sound like i'm stucked till the end? ...only unless they are being nice to me and willing to accept to take the car back.

volvomax

goodness. sound like i'm stucked till the end? ...only unless they are being nice to me and willing to accept to take the car back.

Yep, pretty much.
Why do you want out?

simpleeforever

First, the insurance won't covered my ride (too expensive for coverage), second- bank won't approved to do buy-out from lease (too high loan requests), and third-i'm buying a Ferrari ???--willing to re-negotiated to lower my monthly payment & move away from lease to toward buying the car. hope to won the lottery one of this day.

joel0622

hope to won the lottery one of this day.

Ya I would say that is probably the only chance you have.

simpleeforever

so there is a chance. i feel better. wish me best of luck guys. im heading to the dealer and see what can be done. will keep you guys updates.

sandyrosen

My question is in regards to finance fees and purchasing fees on a leased car.. Are acquisition fees and plates fees and other fees the same at all dealers? This is completely separate from the purchase price and monthly payment. What should all the fees be?

joel0622

It will depend on the state you live in and the county within that state.

mandi78

As a Nissan dealer this is right up your alley. I am currently in the 42nd month of a 48 month GMAC Smart lease on a 04 Trailblazer. We have a little bit less than $2000 left on the lease agreement with a $15000 buyout option. My husband and I are looking to buy or lease a new Altima in CT, within the next month or so.

What is our best course of action regarding the Trialblazer?

greanpea68

What is our best course of action regarding the Trialblazer?

I am always ready to make a sale but unles you are over your milage or have bad damage to your car you are always better off waiting till your lease is up. I don't believe you have any equity in your current vehicle but I/someone would need to appraise it. If you can wait till the summer you will be better off. $600 is easy to deal with instead of $2000

GP

khefron

I have an Acura MDX '06 lease which terminates 11/1/08. Its under the allotted mileage by about 10k miles and in very good condition. The payoff according the AHFC site is $29.7k and the TMV appraisal on Edmunds is $32.4 for a private party sale and $30.3k on a trade-in. Is it a good idea to buy it and sell it on my own rather than terminate early (am relocating overseas) or am I missing something?

tks,

volvomax

Depending on what model you have, average trade is $25,-28,000
So, you probably don't have much, if any equity.
Does the $29,700 pay off include sales tax?

qbrozen

Aside from vmax's point that the model will change the value, you also need to consider what you owe. If you terminated early, how much would you have to pay? You compare this to the difference between buyout and what you could get private party. Of course, the BIG problem is that you need to find a buyer who can afford a $30k private party vehicle. And what happens if you buy it and can't find a buyer in time? That should be a major concern.

Your other option is to find out what a dealer might buy it for right now. For instance, you go to the Acura dealer and find out they will give you $26k cash right now. That leaves you paying $3700 out of pocket to cover the difference. That is probably better than the cost of terminating early. AND, if this is a good scenario, you could buy it and try selling it private party for a month (if you have that much time). If no buyers materialize, then you sell it to the dealer and cut your losses.

joel0622

Now this is real world stuff right here. The consumer went from thinking he had $3700 equity to being $3700 in the bucket quicker then a cat can lick its rear.

steamo

I have a 39 month lease on a 2007 Pathfinder through Nissan Finance. About 27 months remain and I'd like to early terminate or turn the lease over to someone else. The Nissan dealer pointed out on the lease document that the lease was not transferrable. The payments are $385/month. Lease permits 12,000 miles/year. Car has 13,000 miles. What's my cheapest way out or can I somehow still transfer the lease to someone else?

sebring95

You would be further ahead to contact Nissan finance and not a dealer. Record everything you discuss (names, times, etc.) and find out IF you can transfer and if so what the procedure is. I've seen plenty of Nissan leases looking for new homes so it would seem they usually will transfer. It's not the most attractive lease to assume in my book, but it's not a horrible deal either. You might have to throw some cash in the deal to get someone to assume it, but that's probably a much cheaper option than anything else at the moment.

kyfdx

I concur with sebring95's advice..

Also, you might look for similar vehicles on Swapalease.com. See if the Nissans on there are owned by Nissan Finance..

Are you looking to get into another car? If so, you can always trade your car in.. Though, you'll take the hit on the value difference between the trade and your lease payoff amount.

regards,
kyfdx

miamimike1

26K miles - warranty expires in may - payoff is about 12,700 and a car in "good" condition avg private sale is 14,600 - my car is GOOD+ - honda accord lx 2005 - any caveats or advice? I'll get it detailed and waxed of course. posting it on cars.com with a free carfax report.

any similarly good leases out there now? i want a SAFE 4dr sedan but basic transpo - this honda was 201/mon with like 1200 down back then. Anything approaching/exceeding that now?

sebring95

Not sure how the tax works in your state, but most require you pay sales tax when you buy-out a lease. One way around this is to use a dealer to handle your private party sale. I have a small used car dealer I'm friendly with and for $200 he buys the lease out (tax free as a dealer) and then sells it to my buyer for our agreed upon price. Many times flipping the lease won't work if you have to pay the sales tax as it eats up your profit.

miamimike1

ah OOOPS! yeah i guess 6% of (money down + total of payments + payoff) would be about 1300 -

THATS the kind of info i need! thanks - i'll figure that in and see if someone wants to pay even $2300 over my buyout amount.

jecal

The lease on my 06 Tribeca is up in May and I have resigned myself to the acceptance that we now need a mini-van! I LOVE my Subaru, but I will have to revisit it in 3 years for various reasons.

My question is that the Dodge Dealer (have not talked $s yet) mentioned that they can buy my lease out to get me into one in Mid-March (child #2 is due in late March). What are the issues I should look for when we talk #s? I am WAY (12M)under my mileage and will have 2 or 3 payments remaining.

I have no problem waiting until May, but obviously would prefer to have it taken care of before having to negotiate with a toddler and a newborn in tow.

TIA!

sebring95

It's pretty simple really....there's always a buy-out amount on your lease. You can call Sube or whomever is the leaseholder and findout what that amount is. The Dodge dealer (or any dealer) will then have to pay Sube the buyout on the vehicle. What they're willing to give YOU will depend on if you're upside down or have positive equity. It's really not much different than a loan payoff, except the lease-buyout is usually the preset residual amount plus all your remaining payments. So it can be very expensive early on, but this late in the game you won't be tacking on a ton of payments so it might not be that expensive. The catch is, you're essentially paying for two vehicles because you can keep the Tribeca and make those last three payments and you won't be far off on the current value.

dtownfb

Exactly what I was thinking!

Since making the payments is not the issue and they are giving you the run around, just wait. Personally, since the production of the Pacifica is ending soon, it's not like it is a "must have car". Continue the lease and see what happens.

pacifica07

Hi all,

I had leased a 2007 Pacifica back in Dec 06, I'm 15 months into the lease and was able to come up with the $$$ to pay off my lease and buy the vehicle. I contacted Chrysler Financial and they stated that I had to contact the dealer where I got the car from. I did and they sayd that I had to go to Chrysler Financial to do this. After the run around and spending 3 hors on the phone between talking to India and US reps. I got a word that Chrysler Financial can't do it since they are an indirect lender, and based on Florida law they can't sell me the vehicle (but if I'm about 3 months from maturity they can, I'm confused). So they referred me back to the dealer. They (the dealer) wanted to charge me a bunch of fees, since they said ".. we do not own the car, Chrysler does, therefore we will have to buy it from Chrysler in order to sell it to you ..." and here comes the fees, inspection fees (when I already have the veichle), tags fees (when I'm already using my own tag) and taxes (when the taxes are already in the payoff quote), when it is clearly in the contract that these fees will be waived if I purchase the vehicle.. I need help on getting this resolved. Has anyone out there had the same situation in the past?, and if so how you resolved it?.

Thanks.

greanpea68

My question is that the Dodge Dealer (have not talked $s yet) mentioned that they can buy my lease out to get me into one in Mid-March (child #2 is due in late March). What are the issues I should look for when we talk #s? I am WAY (12M)under my mileage and will have 2 or 3 payments remaining.


Chances are they will probably cut you a check back for the remaining payments. if you have one or two left. Most dealers can buy vehicles cheaper at auction. Either way you should have no problem getting out of your lease early.

Good luck.

GP

greanpea68

They (the dealer) wanted to charge me a bunch of fees, since they said ".. we do not own the car, Chrysler does, therefore we will have to buy it from Chrysler in order to sell it to you ..." and here comes the fees, inspection fees (when I already have the veichle), tags fees (when I'm already using my own tag) and taxes (when the taxes are already in the payoff quote), when it is clearly in the contract that these fees will be waived if I purchase the vehicle.. I need help on getting this resolved. Has anyone out there had the same situation in the past?, and if so how you resolved it?.

I am not sure why they are charging you a inspection fee if you are buying out your lease. But yes the it is true that the dealer has to buy the vehicle first. Than you will have to wait about 2 - 3 weeks for the title to be transferred. Your vehicle will stay at the dealer during this time. ( maybe that is why they are charging you a inspection fee... basically to store the car there) You will than have to get new plates because the old plates are registered to Chrysler. You will have to pay tax on the vehicle..

I am also talking about this would be done in Massachussetts. It is different in each state on how you pay taxes.

Good Luck

GP

sebring95

Agree with the above. I've done a few lease assumptions and then buyouts (the only way I can make leasing numbers appealing.....) and everybody seems to handle the buyouts differently. I just did my Toyota and they wouldn't sell it straight to me, said I had to use a dealer. I called around to several dealers and one knew exactly what was going on and most others didn't know how to do anything but sell a vehicle off their lot. You need to talk to the finance manager (and maybe the top-dog finance manager) and he should be able to figure it out. The only fees I paid was a $50 title transfer fee and a $100 processing fee. So the dealer made $100-$150 on doing some paperwork. I suspect some would want more $$ or would prefer to avoid the situation all together. In my case, the dealer essentially had to buy the vehicle from Toyota and then sell it to me for the same amount. So you check made out to Chrysler financial wouldn't fly in that case anyway.

FWIW, I would think you could find maybe a small used car dealer who could process this as well. Essentially they'd be buying the car from Chrysler (as if you were trading it in) and then selling it to you. I don't see any reason why that wouldn't work and a smaller dealer might be more helpful and willing to work for $100-$150 just for a paperwork deal. I have done this in the past when I was selling my leased car. We all went to the dealer and he bought out the lease and then sold the car to my buyer. That way I didn't have to pay sales tax on the buyout. I paid him $200 to process the paperwork plus he did the financing for my buyer and made some coin on that as well.

pacifica07

Thanks for the reply, but a couple of things that I'm confused about, 1, the plates are mine (I transferred them from my old car which I sold privately) Even at that time of the lease they still charged me for tags. 2, There is no mention in the contract that the car needs to be inspected if I purchase the car at the end of the lease, (which make no sense since the car is older), but they want to inspect the car when is only 1 yr old, not even the 400+ dollars when returning the car since I'm keeping the car. The car only gets inspected if for some reason I default on the lease or decide to return it back to the dealer at the end of the lease, which neither had occurred.

qbrozen

I can understand your frustration based on your story.

My question is, why buy it out early? They are going to charge you the same as if you wait out the whole lease and purchase it at the end, are they not? So why not just wait it out and buy it at the end?

pacifica07

There's a very good reaon for doing it now and not wait, I just refinanced my home, and one of the terms was to pay off this. If I don't pay it off, then 1, I "loose" that money, since the check is payable to Chrysler Financial, based on the payoff, 2- I end up paying a slightly increased mortgage + the lease payment. That's why I wanted to do it know and not later.

qbrozen

well, that sucks about the check. makes things difficult.

However, I failed to point out one other thing. Folks have often had good success negotiating for a lower (sometimes MUCH LOWER) buyout of Chrysler/Dodge vehicles at lease end. They have no reason to negotiate now. So you could potentially be paying thousands more by buying it out now at full pricetag vs waiting and negotiating at lease-end.

dtownfb

I'm not sure how that works out financially better for you esp. with the additional fees by the dealer and you are overpaying for the Pacifica (rarely do you save money buying out a lease). No need to explain, your finances are your business.

The problem is you have to play by the Chrysler dealership rules since they are the only game in town. One thing I would do is try another dealership even if it is a distance away. It could save you some money. Also it will confirm if the first dealer is being completely honest with you. Check some of the Chrysler forums here on Edmunds. You may catch a salesman surfing around who can better explain why the dealership wants to charge you these fees. I still don't understand why you can't simply buy the car from the leasing company. My guess is it has to do with the state you live in.

kveal

I'm currently in an 05 Denali lease that ends 2/09. I'm way over on the mileage (approximately $5600 and counting) and I'm paying $950/month. Currently, the lease buy-out is $39K according to GMAC. Edmunds TMV is about $23K for a trade-in and the dealers are telling me $20K for trade-in. I'm just trying to figure out if I should cut my losses by trading it in now or keep until the lease matures, rack up more miles, and get whacked in 2/09! I would greatly appreciate any advice anyone has to offer. I don't want to act hastily, but I feel that things are only getting worse.

Thanks!

tidester

Do I have this straight? If you buyout now, you pay $39K. Then if you sell it yourself you will take a $39K - $23K = $16K hit. You will then have to add to that the cost of buying or leasing a new vehicle. Adding $16K to the cost of your next vehicle doesn't sound very pleasant.

On the other hand, if you decide to keep the buyout, then you will have to finance the $39K in which case your monthly payments drop to about $800 with financing over 60 months or about $1200 per month over 36 months.

But if you continue through the lease you will spend $11.4K in payments plus mileage which will be close to $7K at your current accrual rate. At worst, you would adding about $7K to the cost of your next car.

Unfortunately, all of those options are costly and only you can decide which is right for you.

tidester, host
SUVs and Smart Shopper

qbrozen

Well, at $950/mo on a lease, you apparently rolled a boatload of negative equity into it to begin with, so rolling into yet another car is NOT the way to go. Finish out the lease, then try to negotiate a lower buyout with GMAC at the end (just don't mention the miles to them when you do!).

Kirstie_H

But remember (as qbrozen hinted), you only pay the over-mileage charges if you do NOT buy the vehicle at the end of the lease. Your best bet is to keep it, finish out the lease, buy it, and hang onto it til the amount you owe is at least equal to the amount it's worth. Plus, you might be able to negotiate a lower purchase price with the finance company near the end of the lease.

The good news here is that when you finance the vehicle purchase at the end of the lease, your monthly payment should go down significantly. Let's say it goes down to $550 (I have no way of knowing actual numbers). If you are used to spending $950/month in car payments, then you can pay extra on the loan (or finance for a shorter term), get it paid down quickly, and trade it in sooner.

qbrozen

05 Range Rover-$1000/month for 60 months

Good God!! Don't make me come over there and smack you!

OK, imagine this, in 2010 you are driving a 5-year-old Rover with 100k miles that you still have $36,000 worth of payments on and the shop hands you a $3k repair bill .... every other month! How does that feel?!

Seems the prudent thing to do is just ride this one out!

YES!! PLEASE do the prudent thing!!

kveal

Thanks to all for the advice! This has been the source of much stress. I was prepared to take the hit and roll the negative into a used vehicle purchase (05 Range Rover-$1000/month for 60 months). I figured that if I'm going to get whacked, I may as well be driving what I want- and that's the vehicle that I want.... At some point, the madness has to end. I'm a small business owner and spend a lot of time on the road. So I don't think leasing is the best option. However, based on my purchase history, I'm usually realizing after about 3 years and a ton of miles that I'm about to take a hit-either on mileage penalty or trade-in allowance (because of the miles).Thanks again for the advice. Seems the prudent thing to do is just ride this one out!