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Lease Termination Fees and other costs

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Comments

  • sebring95sebring95 Posts: 3,241
    Can you please explain what you mean by "inequity gets applied to the new one"?

    If your 328 is worth $20,000 on trade and the current lease buyout is $25,000, you'll have to cover that $5,000 somewhere. Cash or rolled into new lease/purchase. Made up numbers of course. Whether or not BMW finance will negotiate the current buyout would be the big question! I'm betting the current non-negotiated buyout is far higher than the trade-in value.
  • ken1496ken1496 Posts: 11
    Due to a unpatchable flat tire, one of my Passat 4 motion tires is different from other three. VW credit told me that I have to have all four to match. Anybody know if VW Credit will charge the cost to replace (1) tire or all (4) tires? If I were to do the work before the lease is up, I need to replace all (4) tires. Or is it possible to find a matching tire? New? Used? Any suggestions appreciated.
  • volvomaxvolvomax Posts: 5,274
    They should just charge you for 1 tire.
    Unless the other 3 fall below the minimum acceptable tread depth(commonly 4/32nds)
  • volvomaxvolvomax Posts: 5,274
    As sebring said, there is a payoff on your car.
    Typically all remaining lease payments PLUS the residual value minus a little bit of interest.
    Just like a new loan you owe more than the physical value of the car.
  • jennifrjennifr Posts: 2
    Thank you so much!! I knew someone here would know how to answer this. I can't promise this is my last question, but thank you!!
  • qbrozenqbrozen Posts: 22,830
    ??
    Didn't the valet company's insurance pay for the damage?

    The car is worth much less than the payoff, so if you want out early, you can trade it in and pay the remaining lease payments all at once (plus any charges from the bank for excess wear and tear and miles).

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

  • tomy3tomy3 Posts: 42
    The lease on my 2005 330xi is nearing completion. I have about 29K miles on it and the lease terms were 15K/yr. or 45K miles. Needless to say the buyout number is about $3,000 lower than the trade-in value. Is there anyway to take advantage of this if I stay with BMW on another lease deal for a new car. What about other models?
  • sebring95sebring95 Posts: 3,241
    You should be able to trade your vehicle just like it was yours. The dealer will just pay the buyout to BMW finance and you'll get whatever equity difference there is. Check in on the "real world trade-in value" forum and make sure you're accurate in valuing your trade. Some of the book values are a little sketchy. But there's certainly the potential to have some equity if you're low on miles and the cars are in more demand than BMW expected when setting the residual. Seems like small cars are pretty hot right now with gas prices and such.
  • oldfarmer50oldfarmer50 Posts: 10,852
    In the paper today there was a story that shocked me. Seems you can't even get out of a lease by dying.

    It seems that this fellow leased a Caddy in June of 2007 and died in February 2008. His daughter, thinking the lease ended with his death, returned the car to the dealer and was told she was all set. Almost immediately, the family received letters and calls demanding $13,000 for the balance due on the lease. Evidently GMAC Financial Services got pretty abusive and threatened to sue the widow and take assets to pay the claim.

    As Johnny Carson used to say: I did not know that. :cry:

    2015 Mustang GT, 2009 PT Cruiser, 2004 Chevy Van

  • british_roverbritish_rover Posts: 8,458
    I think, and Joel can confirm this, that Ford has a provision in their lease contract to handle the death of an individual during th middle of their lease but GMAC does not.
  • oldfarmer50oldfarmer50 Posts: 10,852
    "...a provision in their lease contract to handle the death..."

    Yes, a contract is a contract and you have to live up to the terms, whatever they are. What I don't understand (and maybe the article left something out) is why did the dealer take the car back? It seems they now have a car worth more than it would have been but the widow is stuck with the full bill.

    There was some mention of the dealer auctioning the car and applying the proceeds to the balance due. Is that how it usually happens?

    If that's the case, and lets say the car brings $12000 against the 13000 owed it would seem more reasonable.

    2015 Mustang GT, 2009 PT Cruiser, 2004 Chevy Van

  • volvomaxvolvomax Posts: 5,274
    Yes, a contract is a contract and you have to live up to the terms, whatever they are. What I don't understand (and maybe the article left something out) is why did the dealer take the car back? It seems they now have a car worth more than it would have been but the widow is stuck with the full bill.

    Since the car belongs to GMAC, it doesn't matter what the dealer does.
    Car goes to GMAC, and the collections dept gets warmed up.
    If the widows name was on the lease as well, that she is 100% liable for the contract.

    There was some mention of the dealer auctioning the car and applying the proceeds to the balance due. Is that how it usually happens?


    Again, the dealer does NOTHING.
    Finance co auctions the car.
  • otto8otto8 Posts: 116
    A older fella with a new leased Mercury I know passed away and the
    leasing company demanded either make the payments or pay off in
    full and return car.......................No idea if it was Fomo credit or
    another leasing bank/outfit.

    Why do regular people lease? Are they that stupid?
  • qbrozenqbrozen Posts: 22,830
    Why do regular people lease? Are they that stupid?

    HUH??
    Just what is a regular person?

    '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
    Why do regular people lease? Are they that stupid?

    People lease for a variety of reasons.
    Mostly, they don't want to keep a car for a long period of time and they want to drive more car that they could w/ a traditional loan.
    In your friends case, had he bought the car via an auto loan, he(or his estate) would have been in the same boat. Unless he purchased credit life ins w/ the loan, which people are advised against buying.
  • jwlerchjwlerch Posts: 1
    I'm buying out my 2005 Saab lease because it is over mileage. My contract says that I need to pay $13.5k plus "official fees." Come to find out that "official fees" are $695. This is on top of paying for a required safety check at my local Saab shop (the dealer told me they knocked off $300 for doing that) and $200 for license/registration transfer.

    This seems really high, but I'm not in much of a negotiating position because I'm way over in miles. How much are these typically? Am I getting screwed here?

    Thanks!
    John
  • jaxs1jaxs1 Posts: 2,697
    I have heard of some that forbid it and some that will work with you. Which auto manufacturers are friendliest towards transferring lease contracts?

    Since 24 months leases usually have high payments, to lease a nice car for 24 months or less with a low payment and little or nothing down, I can see two options.

    1. Leasing a new car for 3 years (or even 4) with the plan to have it assumed after 2 years. (If you get a bargain capitalized price leading to low payments and have an attractive amount of mileage allowance remaining for the next person, I would think it shouldn't be difficult to find a taker.)
    2. Taking over someone else's leased car that has about 2 years left, low payments and more than enough of the mileage allowance remaining.

    Any thoughts on this?
  • otto8otto8 Posts: 116
    Any fool that CAN'T write it off !!!!!!!!!!!!!!!
    Like a salesman that uses their car for business etc..............
    But for the average Joe?

    Soooo many horror stories of folks gettin' the screws put too them for over
    mileage charges, damage etc..............
    The BEST ones are the ignorant ones that want to trade out of their
    sludgemobile for a different one 14 months into their 60 month contract!
    Or the folks who want their trade in value so that they may "trade in" a
    car they DON'T own............Again with the old "I am 8 months in on a
    60 month contract and I can't afford it"

    The old quote "A fool and their money are soon parted" is so true!
  • sebring95sebring95 Posts: 3,241
    I’ve done a couple assumptions, the two most recent were 12 months into 24 month contracts and they had only put about 5-6k miles on the vehicles. In both cases the leasees were under duress and had to get out of the lease immediately and paid me to assume their leases. So my recommendation is option 2. While you may be able to find someone to assume the lease, don’t count on it. If you look at any of the lease assumption websites, it appears the BAD and OK deals sit for considerable amounts of time. The only ones getting gobbled up are the desperate folks willing to pay the sharks (guilty as charged) to bail them out.
  • jaxs1jaxs1 Posts: 2,697
    Yes, I saw some people on those sites trying to get out of some leases of cars they heavily overpaid for and/or are going way over their mileage allowance. I really don't see how they will find anyone to take those over.

    However I saw a few that looked good, What do you think of this?
    http://www.swapalease.com/VehicleSearch/VehicleDtlL.asp?VehicleID=393667

    I think I'd rather have the car the first 2 years so I would have it while it's brand new, but I guess it will be more worry-free to be the one taking over the lease on a used car just like it's much easier to find a seller of a private party used car than it is to find a qualified buyer.

    However, I think if I got a great lease deal on a desirable new car with low payments and kept the mileage under control, it would be an attractive lease assumption for some else and I would probably not have much trouble getting out of it after 2 years.
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