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Lease Termination Fees and other costs

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  • I just turned in my Saturn VUE 2 months early and actually owed less than the 2 months payments. However, I had a no early termination fee in my agreement.

    My best advice to you: Find your lease agreement and read that section - then you'll know what you are liable for. Good Luck!
  • Hi Gang,
    I just terminated my lease with vw. Along with the $350 disposition fee, there was $500 dollars more for minor scuffs. The other dealership got out the dents (parked in the garage and the kids occasionally would knock into my car from their mother's car). It's not like some one took a sledgehammer to it. also included was $120 for a tire with a little tread ware. What should my next move be? Who do I call to fight these outrageous charges? Doesn't the disposition fee cover the minor nicks and scratches?
    Thanks, David
  • I currently have an 08 accord ex couple with 62500 miles with 6 months left on the lease. I am already 2500 miles over the allotted mileage. What is my best option? turn it in and pay the remaining payments or try to sell it? i already purchased another vehicle and to make the deal work i didn't include the accord. the accord also was keyed from front to back on the passenger side so was wondering what the charges would be for that if i did turn it in.

    another question would be - if i turned it in do i have to pay all the payments at that moment or do they bill you?
  • qbrozenqbrozen Posts: 22,437
    they bill you.

    If you are driving another car right now, it really doesn't matter if you turn it in now or later, you'll still pay the same.

    whether or not you can do better selling it depends on what today's buyout number is.

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

  • sebring95sebring95 Posts: 3,238
    As mentioned above, you need to find out what the buy-out is today. You might be able to sell it to a Carmax or even a private party if you work the deal right. One option if you find a private buyer is to go to a used car lot and ask them to handle the transaction. They'll essentially buy-out the car from the leasing company and then sell it to the private party. I have done this in the past and you can usually find a dealership to do this for $200-$400.
  • The buyout is 15.5k - i was thinking if i can get it sold for at least 13k i can save money with all the fees involved in turning the car in early.
  • sebring95sebring95 Posts: 3,238
    The buyout TODAY is $15.5k? If so I think you're alright. You can probably get $13k at a Carmax. $15k on a private party.
  • qbrozenqbrozen Posts: 22,437
    edited February 2011
    ok... so an '08 EX coupe... auto or stick? 4-cyl or 6? leather or no?

    If 4-cyl, auto, no leather, with the damage, you'd be lucky to get $11k from a dealer (and you won't even get that if the damage is really bad). You MAY be able to get $13k private party ... but I don't think anybody will be banging down your door with that key scratch. I would look into getting that fixed first. After that, you may be able to get $14k.

    Problem is that you don't own it. So its a real pain to sell private party. You don't have a title. You have to get someone to pay you for it without giving them a title. If the buyer is financing, you may be able to arrange all the paperwork, etc, through their bank. That's what I did the one time I sold a car I still owed money on.

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

  • lch77lch77 Posts: 53
    The lease on my 2008 Mazda CX-9 GT end in 3 weeks. There is no turn-in fee. A sub-contractor inspected the car today. Mazda allows a lot of damage as normal wear & tear (they even send you a card to measure dings and other damage and allow one 4" ding per panel, etc.) but I have just one reportable scratch valued at $92 to fix but that is waived. I went over the mileage on previous leases so I increased the allowance on this car, but overestimated a bunch. I'm allowed 45,000 miles but just turned 36,000 a few days ago. I put new tires on 6 months ago and they all read 8 or 9 when only 2/32" is an acceptable tread depth. So, they will be getting a pretty nice car. I'd buy it for the ±$21,000 buy-out cost but it's bigger than we need now and gets lousy gas mileage (around 16 on average).

    Also, there is a hole in one of the taillight lenses. That did not get waived. The inspector's report puts the replacement cost at $597. I am hoping to "trade" the under mileage that I'm guessing is worth anywhere between $1350 and $2250 for the taillight lens. The inspector said that all she can do is report the car's condition, she can't waive damage. She told me to try to bargain with the dealer. I believe if the dealer thinks he can resell the car quickly, he might be willing to give me a break. However, if he's going to just let the car go to auction, there is no reason for him to do anything but collect the $597 "retail" repair price.

    So how would you try to get out of paying for the taillight lens? Would you bring the car to a few Mazda dealers? If so, with whom should I speak? Or do I call local body shops to see how much they would charge?

    From experience, I know the financing company will sometimes lower the buyout price if it's a lot higher than the current auction price, but I haven't heard of them negotiating repair costs. I did read on ridewithg that a person was able t do this but, in his case, the inspector was an employee of the car company and had the authority to do it.

    I also know someone who had dealers offer him $5,000 to turn in his car at their dealership, but I'd think that's extremely rare (it was a Mercedes model that had a resale value of $8,000 or so over the buyout price). Again, the dealer will bargain if he can make a quick buck.
    Any advice will be appreciated.
  • sebring95sebring95 Posts: 3,238
    If you're going to buy a new car, I would try trading it in. You may have some collateral in this one given the miles you've already paid for. That tail light shouldn't be that big of a deal. You can look around at online parts stores for a replacement to get a feel for the actual part cost. Labor for replacement shouldn't be more than $50-$100. You could probably do it yourself if you can handle a screwdriver.
  • qbrozenqbrozen Posts: 22,437
    $21k is actually a REALLY accurate trade-in value right now, so the bank nailed the residual in this case.

    If not buying the car, as suggested above, just replace the lens yourself. Search online and I'm sure you'll find one far cheaper than you are being quoted.

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

  • sebring95sebring95 Posts: 3,238
    Still might get the trade $$ even with the bum light. Maybe a little more for the nice tires. Worth a try...can't negotiate that stuff when you turn it in.

    Since the residual was set based on 45k miles...sounds like the bank got lucky.
  • dwynnedwynne Posts: 4,018
    Take it to carmax or other dealers and see what they will pay you for the car. You can sell it to them, pocket anything over lease buyout and walk away.

    Check http://www.car-part.com/ and ebay for the replacement lens and put that in for yourself - IF you can't sell it for profit to a dealer and need to turn the car in.

    The bank may win this one getting a low mile return with new tires, but it is a gas hog and fuel prices are rising daily o you might be glad to just be rid of it.
  • sprtysprty Posts: 1
    When we leased our car...we were told we could either pay it off and own it, turn it in and get a new one...or continue the payments as usual...then we just received a letter asking us for title info...very confusing....and also that we would have to renegotiate for payments. why are we now getting told another story?...we were told payments could continue as normal until we pay it off??? i am so confused!!!!!
  • ddeliseddelise Posts: 351
    edited March 2011
    So I turned my car into the dealership last Thursday. Per Ally instructions, I filled out the Odometer statement with the Chevy Finance dealer and received a signed copy, called Ally to let them know I made the return, and have been checking the website to view the inspection report. With the website still showing that the report is unavailable, I called Ally this morning to find out they have still not received the paperwork from the dealership. I called the dealership and am now waiting for a call back from the Finance manager with whom I made the return.

    Needless to say I am very frustrated and concerned about what has been happening to my car since I turned it into the dealer. The GMAC/Ally return process is much harder/inconvenient than it needs to be.

    Frustrating!
  • dwynnedwynne Posts: 4,018
    Are youi sure the letter is from your lease bank and not from a scammer?
  • lch77lch77 Posts: 53
    My turn-in's have been mostly uneventful, but like you, there was a delay in receiving the paperwork.

    Read your lease to confirm how long you must continue to pay for insurance on the car. I think my last lease said that if I don't receive the paperwork, I can discontinue the insurance 10 days after turn-in. Make sure that you have a signed receipt showing the date.
  • ddeliseddelise Posts: 351
    Thanks for the info on the insurance. I have still kept it just in case, but will review the contract. I do have the signed paperwork stating it was turned in on March 10.

    It's weird handing over a car and all you get back is a piece of paper, and then I am at the mercy of the dealer performing their responsibilities on a timely basis.
  • dwynnedwynne Posts: 4,018
    Did you have a pre turn in inspection? A lot of banks do them so there are no surprises come turn in day. If they are going to charge you for stuff you know in advance so you can fix it yourself.

    On turn in day, they (the dealer) usually do NOT re-inspect it, that is done once they get it to the auction or bank representatives. I always worry I will be hit for damage done after I turned it in - beyond my control.
  • ddeliseddelise Posts: 351
    No - GMAC/Ally does the lease turn-in inspection after you turn the car over to the dealer. So that is a huge part of my concern. The car has been sitting on their lot for a week. Who knows what could have happened to it.

    Now I first need to get the dealer to turn in the paperwork. Then I need to wait for the inspection report. And if there are costs for dings/dents/scratches (which there were none of when I turned it in), I am going to have to fight the costs.

    GMAC/Ally uses a horrible process.
  • kyfdxkyfdx Posts: 68,222
    I'd be very wary of signing a lease with Ally..

    Currently, on new leases... there is a $2500 purchase option on top of the residual, if you want to buy out the car..

    Yes... that's exactly what I meant to write.... they want to charge you extra to buy the car at lease end..

    Most leasing banks will beg you to buy the car, rather than turn it back in... Make sense of that one!

    MODERATOR

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  • dwynnedwynne Posts: 4,018
    that hurls, and is not what you want at lease end. Most folks would run to another car brand / lease bank for their next vehicle - which should NOT be what they want you to do either.

    Honda is best I have ever used, with the pre-inspection report and forgiveness for a lot of stuff. They certainly make you want to lease from them again (and we have).
  • ddeliseddelise Posts: 351
    I cannot figure out how this makes sense for them. I would love to see the accounting/business case against that one!
  • ddeliseddelise Posts: 351
    I did get a call from the Finance Manager yesterday. He said he sent the fax on Saturday (2 days after turn-in), and resent yesterday. I need to call again today to verify. Too much work for the consumer.

    And I ended up buying a used 2010 Mazda6s Grand Touring...
  • kyfdxkyfdx Posts: 68,222
    It looks like they just started that about a year ago..... I guess the chickens will come home to roost in a couple years, when those first 36 month leases mature...

    I don't see how that's going to work, either.... but, maybe they have a plan....lol

    MODERATOR

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  • ddeliseddelise Posts: 351
    Perhaps they are trying to drive more sales through the dealers? How about this scenario: Dealer says - "Hey you can buy the car for $16,000 + $2,500 = $18,500 directly from Ally. Or, I can work a deal with Ally and sell the car to you for only $17,500, including a CPO?"

    So, a dubious "win/win" - the dealer gets a sale, and the consumer "saves" $1000!
  • dwynnedwynne Posts: 4,018
    Everyone knows it costs a lot more to attract a customer than it does to retain a good one. Ally missed that lesson and wonders why repeat lease business is so bad...

    Folks who finance or own their cars may or may not decide to trade cars. Folks at the lease end can either turn it in or buy it - and most turn it in. So those are 100% for sure in the market for a car. So let us hack these for sure buyers off at the turn in to be sure they don't lease with us again? Not smart, but it appears the "strategy" is working!
  • kyfdxkyfdx Posts: 68,222
    Maybe they got tired of everyone trying to negotiate their lease buyout amount.... Now, when they call, they'll say, "Sure, if you want, we can knock $2500 off your buyout!". LOL

    MODERATOR

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  • british_roverbritish_rover Posts: 8,458
    Volvo was doing something similar with XC90s for most of last year and the start of this year. They just don't want you to lease the car they want you to buy it.
  • lch77lch77 Posts: 53
    Thanks to all who responded to my post (#1113). As it turns out two dealers offered me $400 over my buy-out price plus the $600 taillight replacement to trade my CX-9 in on the car I was interested in buying from them. A third dealer said that while the car is worth a little more than the buyout, Mazda dings non-Mazda dealers $3,000 to do this. Another dealer agreed and I called Mazda (Ford) credit who confirmed this.

    Basically, I can buy the car for buyout plus Mazda dealer fees or trade it in on a new Mazda or drop it off and pay for the taillight. I can't even buy the car and then sell it to a dealer because I'd have to pay the sales tax or generate a bunch of paperwork making it not worthwhile.

    Bottom line, I cannot take advantage of the $1,000 (new tires and 8,000 miles under allowable) equity unless I trade it in on another Mazda.
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