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Early termination of Honda lease

cric12345cric12345 Posts: 3
edited March 2016 in Honda
Hi,

I'm 2 months into my lease of a Honda Accord 2016. There is a good chance that in the fall I will be moving to a city where I won't need a car. How much will I have to pay to get out of the lease?

The contract is somewhat vague -- it says

any monthly payments already due and unpaid and "any other amounts owed arising from my failure to keep promises under this Lease"

Does the last part mean I will have to pay all the remaining payments to get out of the lease?

Comments

  • kyfdxkyfdx Posts: 119,894
    cric12345 said:

    Hi,

    I'm 2 months into my lease of a Honda Accord 2016. There is a good chance that in the fall I will be moving to a city where I won't need a car. How much will I have to pay to get out of the lease?

    The contract is somewhat vague -- it says

    any monthly payments already due and unpaid and "any other amounts owed arising from my failure to keep promises under this Lease"

    Does the last part mean I will have to pay all the remaining payments to get out of the lease?

    It means that they will put a wholesale value on your car, and you'll owe the difference between that amount and the payoff of the lease. That could be a very high number, and isn't limited to the amount of the remaining payments.

    Fall is a long way off. Too early to worry about it now. Just keep in mind that the cheapest option may be to keep the car and keep making payments.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Thanks for the reply! If I do need to have to explore the early termination option in the future, should I talk with Honda financial services directly or talk to a dealer?
  • kyfdxkyfdx Posts: 119,894
    cric12345 said:

    Thanks for the reply! If I do need to have to explore the early termination option in the future, should I talk with Honda financial services directly or talk to a dealer?

    You can initiate discussions with either. Sometimes, the cheapest way out of a lease is to sell the car to a licensed dealer. Any dealer can get a payoff from Honda Finance, and see if they can make you whole. Doesn't have to be a Honda dealer.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • isellhondasisellhondas Issaquah WashingtonPosts: 20,225
    kyfdx gave you good advice. As he said, you will be responsible for whatever the payoff is. At this early stage, I'm guessing you will be writing a fairly large check UNLESS you put a large down payment which is something people who lease generally don't do and for good reason.

    I would just relax for the time being as things could change before fall arrives.
  • Well, if it is a check that mostly takes into account the depreciation in car value, I would be ok with that. But I'm guessing from what I've been reading here and elsewhere that it is likely to be quite a bit more than that...
  • MichaellMichaell ColoradoPosts: 110,272
    cric12345 said:

    Well, if it is a check that mostly takes into account the depreciation in car value, I would be ok with that. But I'm guessing from what I've been reading here and elsewhere that it is likely to be quite a bit more than that...

    I would suggest you call Honda for a payoff value, then figure out what your car is worth in trade. The difference is what you owe.

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    MODERATOR

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