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Lease Termination Fees and other costs

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  • rbirns1rbirns1 Posts: 258
    So the amount given at the inspection will be the amount charged? Audi won't hit me with any surprises?
  • azngrl18azngrl18 Posts: 1
    So as you can see I still have time to decide what I want to do with my car, but I'm about to take this job that will require a lot more driving. My question is that if I decide that I'm going to buy out the car anyway, does it really matter on how much overage I'll have in the milage?
  • qbrozenqbrozen Posts: 22,457
    My question is that if I decide that I'm going to buy out the car anyway, does it really matter on how much overage I'll have in the milage?

    Nope.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • volvomaxvolvomax Posts: 5,274
    No, but things change. You may decide you don't want or need the car at the end of the lease. You will certainly overpay for the car if it has high miles and that would affect your ability to trade it in down the road.
  • rj123456rj123456 Posts: 137
    I have one month left on the 2006 Lincoln Zephyr. Residual is $16,240 and my mileage today is 30,200. Allowed mileage is 33,000 so I should should be well within the limit as I generally drive 1000 or less miles in a month.

    The car was rear-ended by a truck and the trunk lid was replaced, side panels refinished etc. for about $8K (paid by other driver's insurance).

    I just had my inspection and the guy has found several scratches, bumps, gouges, dings on the front bumper, hood/cowl, left front door, left rear door etc. I can't really see them and the body shop that did the repairs just did a detail on the car for me.

    The inspector (from Data Scan) said they would have a report and estimate available online this evening.

    This is my first lease ever, what are the next steps?

    I'm also wondering whether I should buy the car out, or what the options are. I like the idea of leasing but want to keep the payment under $300/month. (The Zephyr was $292, which included CA tax, with $0 down). However, leases currently look terrible, low residuals and not so great money factors.
  • volvomaxvolvomax Posts: 5,274
    You will get a report detailing whether or not those scratches will be considered excessive an what the charge will be. You will then be able to decide whether you can get them repaired for less before you turn the car in.

    Wholesale on your car is in the $15-16k range so your buyout price is on the mark.
    With tax and fees you should end up in the mid $300's for 60 months.

    Not surprised you can't find a new lease that is comparable. A $30,000+ never leases for under $300/mo unless there is a TON of incentive somewhere.
    Leasing is just getting back to being realistic is all.
  • I've got a 2008 GMC Acadia whose lease expires in November 2010. 36,000 mile lease and as of mid September I'm already up to around 27,000 so it's a good bet that we're going to go over the allotted miles.

    The charge for going over is 0.20/mile. I don't necessarily mind paying that, but I'm a little more concerned about what'll happen when I return the car. The warranty on the car is good thru 36,000 miles so I'd be in a situation where I'd be returning the car and it'll be out of warranty. Having never leased a car before, I have no idea what to expect when I turn the car in, but I'm concerned that if the car's out of warranty the dealer could hit me for charges to fix things that aren't broken but are items that are normally covered by warranty. For example, we've had an ongoing problem with the thermometer on the car - it'll be 75 degrees out but will read 111 until I start driving way, slowly going down. If I return the car and it's out of warranty and the thermometer issue arises again, wouldn't they charge me?

    The other option is to let the car sit for a few months or turn it in early, but then I'd be double paying since I would still need a vehicle and would either have to rent one or buy another vehicle early.

    Obviously, paying the mileage overage is a lot cheaper than paying for two cars for say three months, but the potential warranty problem concerns me. Suggestions? Thanks!!!!
  • volvomaxvolvomax Posts: 5,274
    First of all, the dealer won't charge you for anything as they don't own the car. The bank does.
    Second, if something is clearly broken when you return the car you will be billed.
    However, I doubt that anyone will even notice the thermometer. Mostly, they are looking for obvious things, check engine light, broken cup holder, etc.
  • So I leased a new car.. but I still have my old lease.. I did a 3 year/45,000 mile lease on a MINI Cooper S 2007. It ends in February 2010. When I leased my new car they ended up cutting me a check for the remaining payments on my MINI Lease through the end of the contract.. So I could technically turn it back in now.

    I'm trying to see if I can actually profit off of it though since the residual they state on the lease contract (What I would have to finance if I wanted to outright buy it) is $18,200. I priced out my MINI though through KBB and Edmunds and it says I could probably sell it or even trade it in for more then that..

    I'm only at 37,500 miles on my Lease too with 4 months to go so I have a lot of breathing room on my miles..

    What do you think I should do ? Is it possible to sell to someone like a Carmax my lease for more then the buyout?

    Thx
  • The first thing I'd do would be to find out if you can pay for the rest of the lease right now and then pay the residual amount to buy the car. Under all circumstances before you sell the car you actually have to own it, only then could you sell the car.

    Your Mini will continue to depreciate as time marches on, so if you're going to do this deal, you need to do it immediately. Before you take on the risk of buying a car, i.e., paying the residual cost, I'd go to Carmax and see what they'd give you for your car. That'd be your worst case scenario from a pricing perspective. Then I'd check eBay and Autotrader to see how much you think your car could sell for. At the end of the day, the key is how much risk you're willing to take on - are you willing to risk that your car might not sell above the residual price?

    Under no circumstances should you rely on KBB or any other valuation site to determine if you should do this arbitrage. Ultimately, the car is worth what someone else will pay for it so you need the Carmax (or even auction) data point. Some dealers looking for good used cars will also give you an offer, I actually sold one of my cars, a BMW, straight to a Lexus dealer.
  • volvomaxvolvomax Posts: 5,274
    Don't forget that you will probably have to pay sales tax on the buyout amount if you sell the car privately.

    If you sell it to a dealer, there is no tax.
    At best, you will probably break even at a dealer, dunno if it's worth it.
  • law228law228 Posts: 1
    Hi. My lease is up in November. I have a scratch on my car that is about a foot long. Looks like someone keyed my car or something. Should I get that repaired before I turn it in or will the dealer consider it to be normal wear on my car?
  • volvomaxvolvomax Posts: 5,274
    What the dealer thinks is immaterial. The Lease company will certainly hit you for excess wear and tear.
  • I am in my 30 th month ($353 a month) of a 66 month lease for a Honda PilotEX 2007 2WD, residual value $10,176,Kelley blue blue value is 21,500, the lease is with Huntington,payoff $20,000.The Honda is in very good condition with only 12,500, I paid for $15,000 miles a year.
    This is my first time leasing,I want out.I know I am going upside down. Butcan I go to dealer and they pay off the Honda, BUY a used car and put the remainer that I owe on that loan.(Will banks due that?) And hopefully get a loan between $250/$300.
    The Honda is great, just to big, the payment to high. And I don`t like the feeling of driving something that is not mine.
    Doesn`t it make sense to get rid of it while it looks great and has low mileage?
    Any advice will be appreciated. Thank You!
  • sebring95sebring95 Posts: 3,238
    Best bet is to try and find someone to assume the lease. leasetrader.com or swapalease.com is the most popular sites to market the lease. If someone will assume, that will be a far better deal for you. Otherwise, you need to figure out what the real-world trade in value is before going that route. Most banks won't finance 100% or higher on a used car these days so it might be hard to do what you want to do and actually save money. Always expensive to get out of one vehicle and into another.
  • qbrozenqbrozen Posts: 22,457
    Honda Finance does not allow lease assumptions.

    BUT... just reread the post and see if might be with a bank.(??)
    In which case, the poster will need to check with that bank to see if they allow assumptions and/or if there are any fees/penalties involved.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • qbrozenqbrozen Posts: 22,457
    Are you saying you've had it for 30 months and it only has 12,500 miles total??

    First step for you is to head over to the Real-World Trade-In Values thread and find out what the vehicle is worth as a trade-in. That will let you know how far upside down you really are.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • Yes, I have had it for 30 months,or 2 1/2 years, and have less than 13,000 miles on it. I dont drive that much, 14 miles to work and back, one short trip and Wal-Mart is less than a mile.
    Thanks for the help, I will check out the real world trade in value.
  • qbrozenqbrozen Posts: 22,457
    Yikes. Well, as you now know, leasing is NOT for you. You are paying for miles you aren't using.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • I negotiated the price of a 2010 honda civic lx within a couple hundred dollars of Edmunds' TMV when shopping for a lease recently. when the paperwork came, i noticed a $595 acquisition fee tacked on. the dealer explained that this was a honda charge - not a dealer charge, and the payments calculated from the original negotiated price wouldn't change (because this acquisition fee had already been factored in, and wasn't something the dealer could change). So I have 2 questions here:
    1. If I'm using Edmunds' TMV as a guideline when leasing a car, how should i deal with this fee?

    2. is this a common, accepted dealer practice for leasing, and/or was I wronged?
    :confuse:
  • The Acquisition fee is charged by Honda, the leasing company. To my knowledge, all leasing companys charge an acquisition fee.

    The dealer has no choice but to include it in the lease, either paid up front, or rolled into the lease. Edmunds obviously doesn't include it in their TMV, as only leasing customers pay it. So no, you have not been wronged, and yes, everyone pays it.
  • Thanks so much. I was really hoping you'd say that - I like my dealer a lot and was bummed at the thought of them not being straight with me on this. My inclination was to say, no - I want the price we agreed upon to include the acquisition fee, but your response and the other info i found seems to indicate that that fee is unavoidable, and just part of the cost of leasing.

    thanks again!
  • tifightertifighter WAPosts: 1,942
    A 66 month lease. Learn something new everyday...

    15.5 XC70 T6 / 16 Soul EV / 17 Toyota 86

  • I am going to lease a mercedes and they are offering something when I sign that is a wear-and-tear plan. It is about $900 and offers up to $5000 worth of coverage (up to $1000/incident) when I turn in the car. So if it there is tire wear or it needs new tires then that is covered up to $1000. Or if there is a ding in the side then that is covered up to $1000. That kind of coverage for 5 things.

    Has anyone bought into this and do you think this is worth it. Also, when would I expect to need top put new tires on the car? I am leasing it for 30,000 miles/3 yrs and I can't expect they'll be bald at that point.

    Any help is greatly appreciated. This is for a 2010 C-300.

    Thanks!
    Jill
  • My lease with US Bank is ending soon and I've got two questions I thought someone on these boards could help me with:

    1. I bought the car from a dealer in New Jersey, signed a Lease Contract that had "US Bank" and "New Jersey Lease" printed at the top but the Car Dealer listed as lessor. I live in NYS, the car is registered in NYS and my NY address was listed under "Lessee". For purposes of perhaps having to file an arbitration claim, would this be considered leasing the car "in New Jersey" or "in New York"?

    2. After hearing horror stories about US Bank I called them up to get information about the lease-end inspection and the rep told me (I'm sure I heard her correctly) that in New York (and some other states I don't recall) US Bank "doesn't do lease inspections" and "you won't get an excess wear-and-tear invoice". I SUPPOSE this could be a crafty way to throw me off-guard :) but does anyone have any info to support or contradict this? I KNOW I've read of excess wear horror stories from people in NYS.

    Thanks in advance.
  • I live in Missouri. I leased a vehicle and my lease term was up in August 2009. I purchased the vehicle. Am I suppose to pay personal property tax on the vehicle for 2009? I need help.
  • Not sure about Missouri state law, but i had to pay sales tax only when i purchased my previously leased Honda Pilot in Louisiana. No other taxes were due once I made the purchase. Maybe ask your dealer or a car title company, or a tax advisor/accountant in your town to see if you'd owe anything else.
  • Kirstie_HKirstie_H Posts: 11,042
    I'm in Missouri too. For tax purposes, you don't own the vehicle until January 1, 2010. Sometime around March, you'll get a declaration statement in the mail, listing the vehicles that you owned as of January 1. You're supposed to review it, make any corrections, and then mail it back.

    Taxes are assessed on personal property owned as of January 1 of the tax year. Since you didn't own it until August, your taxes for 2009 should be covered in your lease payment. You should have received a property tax statement (payments must be postmarked by today!!) - if you have any question, you should be able to call the revenue office and double-check.

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  • dgingodgingo Posts: 21
    I'm turning in my bmw 328i this summer, which will be close to the 36,000 miles I leased. Are there any "secrets" or must-know info. I need. Looking for any leverage I can create before I start this process. I have $1000 sec. dep., and am thinking of moving to an X3. Any advice on this process would be appreciated!

    Thx...
  • chills1chills1 Posts: 8
    edited February 2010
    heres my story i leased a honda civic a couple of days ago for 34 months, the insurance was through the roof due my age and because i had to get full coverage. i thought mybe ill put it under my fathers name and deal with it later. so i take the car home , sign the papers and pay half of my downpayment..... this weekend i tried to put my insurance under my fathers name but couldnt because i signed it and my father didnt cosign it. so now im screwed and cant afford my lease due to my insurance, is my lease in effect eventhough i didnt finish paying my downpayment, could i cancel the lease? what can i do? i only used the car for like 2 days! any way i can get out of it?
    thanks
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