Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Any info/advice would be great!
If you've made your lease payments in advance (not sure why you did that), then you've given the bank a gift.
I'm fairly certain you are stuck with that vehicle until the lease end. You might check with the bank to see what the current payoff is.. Unfortunately, you might find that it is higher than residual, even though you've made all the payments. It is possible that they are holding your early payments in an escrow account and crediting them each month.
Good luck.. I'll be interested to see what the bank says.
regards,
kyfdx
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You were exactly right. I just got off the phone with the bank and they said exactly as you said . . . although they didn't hint at negotiating later - but that seems like an obvious no brainer.
The payoff is actually about 1000 less than the residual at this point . . . not sure why that is either.
-Dan
The problem with flipping your leased car, is that you usually have to pay sales tax before selling it to the next guy... Of course, you can always trade it in..
Good luck...
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Here is where my questions arise. I understand that if it was a total loss, I'd be ok and go get a new one and start all over paying all the lease fees all over out of pocket. However, I refuse to drive the car after such a major wreck since it will not have the same structural integrity anymore. Moreover, I will keep paying for a new car although it has lost significant value at this point. The payoff amount is a little over $18,000 and the dealership said if I were to trade it in for a new one after the repair, they will only give me $14,000 to $15,000 since it will have a carfax on it. Unfortunatelymy state, nor the state of the accident, nor the at-fault insured's state allows for Diminished Value claims. I am afraid I stand to lose 4-5 grand because of this kid's stupidity and am looking for any information that can help me in this case. Insurance is saying the threshold to total it is 12grand, but they seem intent on fixing it and saying I should be happy with that since I will have new parts. I honestly don't care for the new parts since I was happy with the 1yr old car as it was before the idiot caused this mess. Any help will be greatly appreciated.
Thanks in advance!
Regarding "the kid," your insurance company (or you) should consider going after him to make you whole.
tidester, host
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Thanks!
1) If they total your car, then between the insurance and the GAP insurance, the leasing company that owns the car will be made whole. Your lease will end. This situation is a good lesson on paying as little out of pocket as possible, at the inception of a lease.
2) If they don't total the car, and you refuse to drive it, that will be a decision that will cost you money. Obviously, the leasing company and the insurance company do not share your opinion on the structural integrity of a repaired car. Your only choices at that point will be to trade the car in (and..as you surmise, take a very big hit), or to park it and continue making the lease payments (also, fairly expensive).
3) It is doubtful that you'll have a diminished value claim, as the car isn't yours.
I hope that your car is totaled. I'm sure that will be best for all involved. Most people consider this situation one of the advantages of leasing. Once your lease is up, then you walk away from the car, and have no worries about the diminished value. If you insist on not driving the repaired car, it will be that decision that triggers your financial loss.
Good luck, and let us know how it goes.
regards,
kyfdx
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1) Park the car, keep paying for the lease, and return the car after the lease is ended.
2)Return the car to the dealer after it has been repaired and tell them you want to end the lease. They will tell you how much you have to pay to end the lease.
I suggest option 2).
good luck.
You'd be surprised how empathetic body shop guys can be... They deal with stressed-out people every day.. And, while you would think they would be motivated to get the repair job, they are usually in tune with the customer's needs. (Unless, of course, you need the car repaired in a hurry).
I know.. all this sounds dubious, but its worked for me a couple of times.. and.. you have nothing to lose.
Of course, if you aren't even at the 50% level of damage, this won't do you much good.
regards,
kyfdx
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Find out where the Mercedes Benz, BMW, and Ferrari Dealers in your town bring them to be repaired. This shop will likely help bump up the quote for 2 reasons...
1) They don't want to work on your Nissan, when they can get significantly higher paying jobs from the MB, BMW and Ferrari folks, so they'll price you out pretty high.
2) Even if they do accept the work, the price of their labor and parts and paint will likely be higher.
I've seen it done successfully in cases similar to yours, besides you want the BEST repair out there.
-mike
-mike
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Good luck
Was your car new when you leased it? If so, it would seem that you only had a few more months left on the lease so I am puzzled by the $10,723 figure. Typically, you're responsible for all the payments you would have made had you gone through the entire lease.
Also, I'm sure you'll find some clause in the lease contract that specifies you will make all payments on time and you would be considered to be in default otherwise. I.e., Nissan (Infiniti?) did not break the lease.
tidester, host
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Declaring bankruptcy may not be as simple an option for you as it might previously have been.
Please tell me the dates are confused and the car was repo'd in January of 2007... are you saying this thing has been dragging out for 15 months?
Any idea if Nissan negotiates?
I doubt it, but you could try... the thing is, once they picked up the car, you were out of options. $10 is a lot of money, but considering an M45 is a, what, $60k car, give or take, that sounds fairly charitable. It's almost certainly legitimate.
I actually didn't break the lease-they did.
You broke the contract when you stopped making payments. I'm thinking if you'd'a bought a Camry you'd still own it, unforeseen circumstances or no.
Any suggestions on how to proceed?
You need to sort through a lot of things. If BK is an option, you'll need a lawyer, and it's gonna be painful.... the old wipe-the-slate-clean type of BK is probably not available to you if you had the whats-it to lease a big-bucks Infiniti. You need professional advice, not from some internet message board. We could tell you what the car brought at auction, but not if it was over a year ago.
So long as BK is in the picture, I wouldn't pay anybody anything until it's clear what has to be paid and what may go away.
Good luck,
-Mathias
So my question is, I do owe 2534.54 fees and some storage. Car was taken 1/17/06 and sold at auction on 2/15/06 (don't know if there is anyway I can find out what the selling price was)so storage fee is less than one month. Not sure about auction, but I would think that the starting price would be set to cover any additional monies due on the lease (aside from what I owe) so Nissan would not be at a loss. Difference between invoice rec and what I know I owe is 8188.92. Is there room for negotiations in that 8188.92?
Do you have any suggestions how I should handle this? The car is only one of a few bad debts (approx 50K total) we have and have had some luck negotiating with other collection agencies to accept 50% or less of the amount due. That's why I thought that if when speaking to the collections agency if I stated that we were considering declaring bankruptcy they may be more inclined to negotiate.
Thanks for any advice and suggestions you can give me. We have all learned our lesson and hopefully will never travel this embarrassing road again.
That means you had 15 payments remaining and, had you terminated the lease early, you would have been responsible for 15 times $504 = $7,560 plus fees. With the figures you provided, the penalty adds up to $28,501.77 - $7,560 = $20,941.77. Something's definitely wrong here!
I would contact the leasing company directly and ask them to give you a detailed explanation of how they arrived at their figures. And you really do need to find your copy of the contract!
tidester, host
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'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
DEFAULT: If the finance company retakes the vehicle, you must repay at once (a) the difference, if any, between the Unpaid Adjusted Cap Cost and the value which could be realized by the wholesale sale of the vehicle. (b) any other amounts then due under the lease (except charges for excess wear and mileage).
The value which could be relized at the wholesale sale of the vehicle will be: (a) the net amount received by the Finance Company upon sale of the vehicle at wholesale or other commercially reasonable manner, or (b) as determined by a proffesional appraisal obtained by You at Your expense within 10 days from default, from an independent third party agreeable to the finance company. You must also pay all expenses including, reasonable attorney fees, payable by finance company to obtain, hold, and sell the vehicle, collect amounts due, and enforce holders rights under this lease.
So in a nut shell what it is saying is that you broke the lease early so if you want out you pay the difference between what the vehicle brought at auction and what is owed to clear the lease completely. The whole remaining payments thing went out the window when you defaulted on the agreement. So ya, I can see these charges being spot on.
however, this car's buyout was $30k. There is no way this car (M45) only fetched $20k at auction.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
She should call the bank, and get the payoff for the lease (be sure to ask if it includes sales tax). It is likely to still be $30k-$31K plus tax.. That will be $600-$650 per month for 5 more years, but if she is blowing out her mileage, it will be worth it.... plus, she will own the truck.
Better to do it now, than wait until she is 30K over on her mileage.. assuming she can afford the payment.
regards,
kyfdx
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'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
The reason the payoff on leases seems higher, is that you aren't paying as much each month. The goal of a lease is to not build equity, which is opposite of most car loans (60 months and below).
If this lessee is going to rack up excess mileage charges at $0.20/mile, then she needs to do something.. Buying a vehicle that she likes is a better deal than trying to dump the lease.
At least... if she makes payments on a loan, she will be right-side up at some point in the future.
regards,
kyfdx
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Yep, right about the time she makes her last payment.
You just need to decide when it is you want to pay for your buying mistake. If it is in your budget now to take on that type of payment then go ahead and pull the trigger
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The truck was leased for 5 years, however the buyer has realized she's way,way, way over her mileage and its only been 1yr
Way, way, way over to me means like she has put 50K on it in a year and already exceeded her 50K allowed for the term of the lease. So if she financed today what sounds like a butt load of money on this ride she will have over 250K miles on it at the loan term. Not a large market for 250K mile vehicles.
Sounds to me like some one was shopping for a payment and nothing else.
I just assumed it meant she realized she would be way over at the end of the lease.. Like, 90K instead of 50K..
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i guess we need to know how toyota works.
my sister certainly never got a break getting out of her honda leases early. and i know i didn't on my mazda lease.
guess i'm leasing a bimmer next time.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
My concern is this: the Mazda dealer where I leased the car is saying that they have to charge me registration fees (expires in June), plus another doc fee, in addition to the payoff amount. Plus, they say that they will be taking an odometer reading AND checking for damage beyond normal wear and tear, just like I were turning in the car and walking away. I don't understand why they're doing this, since I'm going to be buying the car anyway. I have never leased before, so this is all new to me.
I live in California, if that matters. Has anyone who has ever leased a Mazda been through this before? Is this make-specific, or do other manufacturers and/or dealers do this, too? Please help and advise, if you can! Thanks! :confuse:
Have you called the bank to ask them about purchasing at lease end? I'd leave the dealer out of it, if I could.
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That said, I believe you will owe a number of fees, since the car is going to change ownership as you buy it out. You will have to go to the DMV to get a new title and maybe a new registration and plates. You will also owe sales tax on the buyout price.
I do not think that any Mazda dealer enters into the picture. As far as the requirement of checking the car out and reading the odometer, the person who told you this may simply be confused. Not a lot of people buy out their leases.
Your Protege is worth more than the buyout because gas has risen a lot since '03; that's why you're buying it.
Please let us know how things turn out.
-Mathias
1) Do I need to have someone come out and appraise my vehicle? Or is this done at the dealership when I turn it in?
2) Should I return the vehicle to the dealership I leased it from, or somewhere else?
3) Is there any less vague definition of "normal wear and tear"? I have a very small dent near the rear window of my Jeep that has a few small scratches near it. Some of the interior (plastic) is scratched up a bit as well from moving luggage and so on in and out. Is this considered normal? Or is this excessive? The car will have about 12,000 miles under my limit, which I know doesn't matter, but still.
4) When I replaced the tires, I opted for decent tires that didn't cost $150 apiece like the standard Wrangler tires the Liberties come with. In my agreement there is a clause about "tires of lesser quality than the original". By "lesser quality", does this mean "lesser value"?
5) I don't plan on buying another Jeep/Chrysler. How much does this screw me?
Thanks so much.
How painful is it to change into a bigger car at this point? We lease it for three years and are only about half way through. It is leased through Volvo, does it help if we roll into a new Volvo. Do they help out?
Help.....
no, it doesn't help to roll into a new volvo.
no, they don't help out.
how old are the 2 kids? is the new baby here now or still on the way? if still on the way, when?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
$5500 down
$590 month/63 months/15k miles annually.
I did some quick math. That actually equals to FINANCING the car, NOT LEASING.
By the way, this "company" I called was "theleaseoutlet" (theleaseoutlet.com)
You're not financing it, you're leasing it.
So after you paid for the whole thing, you give it to them!
I think it's brilliant. Wish I'd thought of it!
Thanks for the laugh,
-Mathias
Just my .02.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S