Early termination of Honda lease

cric12345cric12345 Member 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 Moderator Posts: 187,599
    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.

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  • cric12345cric12345 Member Posts: 3
    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 Moderator Posts: 187,599
    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.

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  • isellhondasisellhondas Issaquah WashingtonMember Posts: 20,350
    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.
  • cric12345cric12345 Member Posts: 3
    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 ColoradoModerator Posts: 182,992
    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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