Lease Termination Fees and other costs

solaraman2003

Can I still have the opportunity to BUY the leased vehicle AFTER the leasing company does their inspection ?

I'm already expecting an excees mileage charge of about $4,500 1 year from now at lease end.. I'm probably going to want a new vehicle. I know I will probably be able to get more if I buy it and then resell it, but there are 2 negatives to that approach: 1) The headache of selling the vehicle, 2) the tax consequences (you PAY sales tax to purchase the vehicle, but you won't get it back when you then sell it to someone else.

So I'd hate to be on the fence about buying it outright, turn the car in, and then find out afterwards that I'm going to be hit with, let's say, another $3,000 of excess wear/tear. If I had known that, then that would've pushed me over the edge to BUY the car. WILL I STILL HAVE THAT OPTION AFTER THE INSPECTION?

I'm probably being paranoid, since I really do take good care of the car, probably much better than most people.

solaraman2003

The dealer has offered me an option to trade in my leased 2003 Solara SLE-V6 for either an '05 or '06 Solara. (I would like to BUY my next car)

He asked me to find out the buyout price from Chase and let him know. He said that the dealership would take the vehicle from me as a trade-in.

This all seems kinda complicated. I checked the buyout price from Chase as being $18k. The Edmunds trade-in value was something like $15k. So where is that $3k going to come from?

What are the steps to negotiating this "deal"? I want to BUY my next car, so do I simply start off with negotiating the purchase price (and options) for the new vehicle and work backwards from there?

Thank you.

solaraman2003

According to my Chase lease, I am allowed up to $1,500 on "excess wear and tear". It's not clear to me exactly what they mean by that.

The only wear/tear I find on my car is that I have a few very small dings on one side, and then some small (appx. 7" in diameter) metal warp (?) on one door from contact with another vehicle. I'm not sure I would call it a full-fledged "dent" exactly, but it is noticeable from within 5 feet, but not when you stand further away.

Will something like this warping/dent on the door fall into that $1,500 "excess wear and tear" and perhaps I would not be liable/charged for it?

solaraman2003

When I leased my 2003 Toyota Solara they convinced me to buy a similar policy for $450. I had 30 days to cancel it, however, and read every word of their documents several times over.

I also then (tried) to read (and comprehend) every word of my Chase lease agreement. As you would imagine, this was quite a chore.

I found to my surprise that my Chase lease automatically provided for $1,500 of "excess wear and tear". I also found that according to the terms of the Autoguard (?) an item would NOT be covered if it would have otherwise been covered under YOUR automobile insurance policy. In other words, if you have an accident which causes $5,000 worth of body damage to the car AND it is covered by your auto policy (which it WILL be because under a lease agreement you are required to have such covereage anyway, and who wouldn't on a new car), then they WILL NOT cover that under their agreement.

I was originally thinking that if per chance I did have some body damage that I decided NOT to report to my insurance company (for fear of rising rates), that this Autoguard (?) policy would cover it....NOT SO.

On the basis of those two aforementioned findings (lease covering the first $1,500, policy not covering much), I decided to cancel the policy.

LET ME TELL YOU....I spent a LOT of time getting my refund !
The FIRST thing I did was follow their instructions which said something like "...notify the carrier in writing within 30 days...". I sent a registered/return receipt, etc. letter to them. So there could be no question that I did this within the 30 day period.

After about a month, and being handed off from person to perons (perhaps as many as 8 different people), the Toyota dealer said to me "Good news...I received your refund of $180 and will mail it out to you today". The policy COST me $450 and was only supposed to be subject to a $30 cancellation fee! WHAT A SCAM!
I raised hell and eventually got the $420 back.

solaraman2003

When I took the Chase lease on my 2003 Toyota Solara I knew enough to get GAP insurance, from everything I've read about it.

When I got home that day with my new car, I read through my lease thoroughly (which I really SHOULD'VE done before signing it and to my surprise I discovered that according to Chase's terms I would not need to have GAP insurance, as long as my auto insurance had a certan deductible (I don't recall the amount). All I had to do was change my deductible amount a bit, at NOT much of an added cost/premium anyway, and I would not be liable for a penny should the vehicle be stolen or totalled.

jnm1

We have been on a lease with our 05 Tundra that will be a year on Oct 31st this year and we have already put 3000 over the miles...is there a way to change the lease terms to allow for more miles...say instead of 12000 to 15000 or more? I am new at this whole leasing thing and could really use any advise I can get on whether to keep it tell the miles are low enough to tade it in or get out of the lease what would you recomend...
Hopefully this makes sense thanks for your help!! Jen

scott33

I was told by one dealer that dealers don't pay tax for the buy-out pay off's directly to them. I was told this by a dealer in NY.. I ended up not buying the car since they wouldn't come down off the price a bit.

Is this true? He took 1,300 off in the trade in due to the tax.. I went to another dealrer and there telling me they have to pay tax. When I called Chase finance I asked specifically "what does the dealer pay" and they gave me the none tax amount. I will have to call them on monday to confirm..

Any thoughs or experiences...

kyfdx

Dealers don't pay sales tax, when they take your car in trade from the leasing bank... If you buy it, you have to pay the buyout price plus tax.. The dealer just pays the buyout price.. It is a wholesale transaction, and not taxable to the dealer.

regards,
kyfdx

ebaby

What should I expect to put out financially when I return the car? There are some minor scratches and very little dings on the bumpers and fenders. The driver's side mirror is broken and needs to be replaced. I would like to either lease another VW or just walk away. I know I need to replace the mirror, but what about the other minor stuff? By the way, I'm way under in mileage. Do I have to re-qualify for a new lease? Or will my approval for the current lease automatically pre-qualify me? I'm a first time lease customer and just want to get all my ducks in a row way in advance.

bmcfarlane

I called GMAC this last Friday to get a payoff amount on my Smartlease. With this information in hand I went to a dealer this last weekend and purchased a new car, using my leased car as a trade-in. I then got a call on Monday telling me my payoff was almost $3,000 higher. I was then told the amount I was given over the phone was if "I" purchased the car...but since I traded in, that was no longer the right figure. I called GMAC and asked (1) why I wasn't told there were two differing payoff amounts and (2) why none of this is in my lease agreement. They had no response to either question, just kept stating that I needed to pay the additional $3,000. Why would it matter if I buy the car from them and then sell it to a dealer, or just sell it to a dealer in one transaction? If anyone has has experience with GMAC early lease termination and this specific type situation, please let me know as I am determining whether a class action lawsuit is appropriate for other consumers.

audia8q

You have to remember something.....You don't own the car the leasing company (GMAC) does. This gives them the ability to do whatever they want with their car. If you had financed the car instead of leasing then the payoff is the same to everyone since it's your vehicle. With a lease you are essentially paying to use their car, under their terms.

Some mfg leasing companies require the selling dealer to price the payoff to anyone but the lessee. For example...Let's say I lease a Jetta to somebody. They want to trade it in at another dealer prior to lease termination. That dealer must go thru the selling dealer to get the payoff. The selling dealer can mark up the payoff if they want. Most leases allow the selling dealer to have first shot at the car if the lessee does not want it.

joe_car

Gents,

I just bought a new car and made an early return of my 4 yr. lease: VW-Jetta. I made the last 4 payments (out of 48) to get out of the lease. Today I learned that the lease company wants $800 for excessive tear & wear (minor body scratches). The car is 32000 miles out of possible 48000 (12000/yr lease).

What would be your suggestions for me to negotiate a $0 payment for wear & tear (basically negotiating tools to avoid paying anything else). I played the "under-mileage card by phone and the representative did not seem to care.

I appreciate any advise

rroyce10

........ Anytime you turn a lease in -- it could be right time, it could 20 months early or 58 minutes late, "always always" get a condition report signed sealed "and" handed to you ....

Remember, you only rent this vehicle .. so you're are responsible for any damages or excessive wear .. under-mileage won't save the $$ that the lease company will spend (or lose) at the auction .......



Terry.

stkntraffic

I leased a car through Southtrust bank. The lease was up about 5 months ago and I turned it in, not over the mileage, no excess wear and tear.

Since then Southtrust has been bought by Wachovia (not that that's relevant to the question). The question is, Wachovia/Southtrust is trying to collect a $300 disposition fee from me. However, on my credit report, it says the lease account is "closed, paid in full".

It seems like this is just a junk fee. They got their car back in the agreed upon condition, they made their money off me for 3 years - so why am I obligated to pay them another $300? What happens if I just blow them off?

audia8q

Look on your lease contract....if it says you have a Dispo fee, then I suggest either pay it or try to haggle the amount but don't blow it off. If it says nothing about a fee then you owe nothing. Remember, these kinds of things don't go away. You may go a year and hear nothing...then all of the sudden they nail you on your credit report and it holds up a future credit decision while you spend the next 6 months getting it straightened out. Is $300 bucks worth all that hassle?

stkntraffic

I guess the deeper question I'm trying to get at (maybe beyond the scope of this forum) is: if an account on my credit report is marked "closed, paid in full", do I really need to pay anything further?

rroyce10

....... The account "may" end up showing paid - or not ... but as a rule, it will also show-up as a $300 loan/lease deficiency - *not paid* .................. not good.

Southtrust has always had fee .. why not just pay it..?



Terry.

stkntraffic

You're right, I should just pay it... except it's really a junk fee - and SouthTrust irritated me so bad during the lease with a billing error that it took them over a year to fix. I figure I spent $300 in my time screwing around with those guys, so we can just call it even and get on with our lives.

Seriously, do you think I can negotiate with them to knock it down (or take it off completely)? I have a spotless credit record, and to be honest, I usually pay cash nowadays anyway. But still, I'd rather keep my credit record intact if possible.

javner

Really?

Last month when I leased an 05 Accord, the dealer took my 01 VW Golf as a trade that was 5 months from the end of the lease. When they got my pay off amount as a dealer from Bank One (I was next to the salesman when he called) the number he was given included sales tax. At least I assume it did. It is my understanding to buy out on a lease early it is the residual, the remaining payments minus rent charge and sales tax on the residual plus Bank One had a fee to buy the car. They rolled the $1k difference into my new deal.

I wonder if I call Bank One now a month after the deal was done if they can give me a breakdown on the buy out figure. If the dealer doesn't pay sales tax, but it was included on the numbers in the contract will Bank One send me a check for the amount the dealer sent them? I would think if the dealer found out after I signed the papers that the payoff was to high and they didn't pay that much, they have to refund me the difference rather than just keeping it don't they?

I hate that feeling of getting messed around with after the fact.

Live and learn!

rroyce10

.. **except it's really a junk fee** ............ is it on your contract..? .. 80% of the lease companies have a disposition fee ....

... **and Southtrust irritated me so bad during the lease with a billing error that it took them over a year to fix. I figure I spent $300 in my time screwing around with those guys, so we can just call it even and get on with our lives**

............ So it's a "irritation" issue....? .. call them and see what they will do - if nothing, then pay it so it doesn't become a "irritation" issue with them and they drop it on your credit report and you get "irritated" for the next 5/6 years ........



Terry.

stkntraffic

I know, I know, you guys are right... I'm not normally like this - hence my hitherto spotless credit record.

It's funny, because when I read the forums I always get annoyed by people who whine and moan after the fact because they didn't read the fine print. Thanks for setting me straight.

I'll call and make them an offer, and let you all know what happens.

stkntraffic

Well that was pretty painless. Called the bank yesterday and they knocked the $300 fee down to $158. Guess it was worth procrastinating in this case.

kmarucut

Hi,

I hope someone can help me with my dilema. I went to this honda dealership planning to
trade-in my car and buy a new one (Honda Pilot LX 05). Instead, they offered me to lease because they said that my credit in not good enough. They told me that i have the option
to buy it after making good payments (no delinquent) for 7-8 months, this is to fix my credit
rating or reach the fico score they needed for me to buy the car with lower apr. The payments that i will make for 7-8 months will be deducted to the GROSS CAPITALIZED COST of the car according to them, is this true? Lets just say, that the GROSS CAPITALIZED COST of the car is $32,000 and i made a payment of $2,600 for 7 months, then my early buyout or payoff is $29,400 + tax? Is this right or they just lie to me just to sign the lease? Does anyone here had an experience of early buyout from a lease? And how will they come up with the buyout figure?

rroyce10

...... See, not so bad .....

They got a little money, you saved a little money .... all is well in the world .......... now, if I could figure out why my pool pump won't back-flush, it would be a 100 percenter day ........

Terry :P

jetsfan1

Is anyone familiar with the lease swap option? I came across 3 sites today - swaplease.com, leasetrade.com, and leasetrader.com. Is this too good to be true?

I am looking to exit a 2004 X3 lease - the dealer will take the car back but will ding me $6k (difference between 'market' and payoff). Needless to say I would prefer not to swallow this bitter pill. Assigning my lease to someone else sounds like a great option. Does anyone have any experience doing this?

Thanks!

troygirl61

Unlike so many lease holders I will be ending a lease on a volvo x70 AWD at the end of october.

My lease allows for 65,000 miles but I will probably have less that 50,000 on the car when I turn it in. There are a few dings and scratches and it needs two new tires, but I assume the lower mileage more than outweighs the fix ups they will have to do and gives them more value.

Is there any way to negotiate my way out of the excessive wear and tear costs given the below lease mileage? I

If this is not the right place to post this inquiry - let me know how do do it more appropriately.

Appreciate any help you can give.

Thanks!

tcoz

I used swapalease.com a couple of weeks ago to "sell" an X3 lease and it went well. Most of it depends on what the payment is and what terms remain, such as months remaining and miles/month. If your payment is high, you can also add an incentive which effectively reduces the payment. Mine was an 04 X3 3.0 with a monthly payment of $406 and 26 months remaining with just over 1300 miles/month. I listed it on a Thursday night and by Friday morning it was taken with three more people wanting it. If your lease is with BMWFS, they're very easy to work with. They charge a $450 lease assumption fee (usually paid by the buyer) and the process takes 3-4 weeks. I found swapalease to have the best listing fees and they also have a link from leasecompare.com which I liked. All in all, yes these sites do definitely work, but your results will depend on the remaining terms of your lease.

Hope this helps.

spikeya4

Has anyone had any experience with IFS when they go to turn in their lease? I have a 2003 QX4 lease that is up in January, the car had some extra miles (most like 5k over by the end of the lease) and I don't mind paying for those. There are a few small dings and the inside and out are pretty much immaculate, I just put new tires on, etc...does anyone know if they knit pick or if they would let such small damage slide and just ask for the overage in miles?

kwyoon

We had 6 months left on my Odyssey lease and we decided to buy a new car. We live in CA. I found a buyer and I sent payment for the payoff to AHFC since they do not handle 3rd party sales. I received the title with AHFC signed off. The enclosed letter says that I have to submit it to DMV to have AHFC removed from the title and put into my name only, but I am selling it directly to someone. Can I just sign off interest of the vehicle on the second registered owner line on the title and sign it over directly to the new owner?

spikeya4

Just as an FYI...IFS hired a third party to come - the guy was great and all of the knicks and scratched were chalked up to wear and tear. I had one little crack that they picked up on and that was all that is charged for. Very good overall experience!