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Early lease termination

ovvnnesovvnnes Los AngelesPosts: 2
edited November 2018 in General
Here's the situation. My 2017 hyundai elantra lease is up August 2019. I currently live in California and plan to move out of state in couple weeks. The lease itself is under our friend's name and I'm just making payments on it. As far as I understand, in order to get out of lease early I'll need to pay the remaining amount on the lease ($186.80/month) + $400 termination fee (according to the contract) + any applicable taxes. Car is in good shape and has almost 25K mileage (10K a year, 30K total). I asked Hyundai Motor Finance to whom I'm making payment to about possibility to transfer the lease under my name, but they don't offer that. So I guess my only option is to terminate the lease early, which will cost me around $2.5K.

What are your thoughts on this? Am I missing something here?

Comments

  • kyfdxkyfdx Posts: 104,494
    ovvnnes said:

    Here's the situation. My 2017 hyundai elantra lease is up August 2019. I currently live in California and plan to move out of state in couple weeks. The lease itself is under our friend's name and I'm just making payments on it. As far as I understand, in order to get out of lease early I'll need to pay the remaining amount on the lease ($186.80/month) + $400 termination fee (according to the contract) + any applicable taxes. Car is in good shape and has almost 25K mileage (10K a year, 30K total). I asked Hyundai Motor Finance to whom I'm making payment to about possibility to transfer the lease under my name, but they don't offer that. So I guess my only option is to terminate the lease early, which will cost me around $2.5K.

    What are your thoughts on this? Am I missing something here?

    I wouldn't bet on the payoff being the remaining payments. Most leases require you to pay the difference between the lease payoff (residual + remaining depreciation) and the actual wholesale value. That could be thousands more.

    I'd call the bank back, and ask them exactly how much it will cost you to turn the vehicle in now.

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

    Edmunds Moderator

  • ovvnnesovvnnes Los AngelesPosts: 2
    Was actually thinking to do so, but I guess I'll need to have my friend call them, since the lease is under her name.

    Also, here's what I got from my online account page, of course it's an estimate, but still...


  • kyfdxkyfdx Posts: 104,494
    ovvnnes said:

    Was actually thinking to do so, but I guess I'll need to have my friend call them, since the lease is under her name.

    Also, here's what I got from my online account page, of course it's an estimate, but still...


    That looks pretty good. I'd want to know for sure. Good luck!

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

    Edmunds Moderator

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