How to Get Out a Bad Car lease?

chrizocresencia

My leased car is a 2018 Toyota Rav4 LE silver color from Toyota Financial Services. A brand new car since December of 2018. I have a three-year lease on it, with 12,000 miles limit annually. I am paying $453.17 monthly plus the State of Mass annual tax fees. I have until February or March 2022 till my lease agreement ends. My car is over 16,600 miles now. I want to get out this bad lease quickly. I cannot afford to pay $453 monthly. It's the worst financial decision I had made in my life. What is my best option? Please anyone help me please. Thank you.

Michaell

chrizocresencia said:

My leased car is a 2018 Toyota Rav4 LE silver color from Toyota Financial Services. A brand new car since December of 2018. I have a three-year lease on it, with 12,000 miles limit annually. I am paying $453.17 monthly plus the State of Mass annual tax fees. I have until February or March 2022 till my lease agreement ends. My car is over 16,600 miles now. I want to get out this bad lease quickly. I cannot afford to pay $453 monthly. It's the worst financial decision I had made in my life. What is my best option? Please anyone help me please. Thank you.

None of your choices are good.

Your lease has a payoff value, and your car has a trade value. I'll guess the payoff is much larger than the trade value, which is money you'd have to come up with to get out early.

There are site like swapalease where you can find someone to assume your lease. I don't know a lot about how they work, but often the person trying to get out of the lease will pay an incentive to the new lessor to sweeten the deal. Again, this is cash out of your pocket.

You can go back to your original dealer and see if you can start a new lease on something's less expensive. However, that negative equity you have would need to be rolled over into the new lease, making the new payment that much higher.

There is no magic potion to make this go away; you signed a contract, and you're expected to abide by those terms.

chrizocresencia

Hello Michaell thank you for the response, I want to understand the first and third options you provided. So can you please elaborate those two options. I tried the second option swapalease - no one seem to be interested. So it is best to write a check and buy the car lease from Toyota Financial based on the payoff value? I don't remember the payoff value on my contract. Assuming that I like this car. I want to avoid paying more than it is really worth in the market value at this point. Is this my best route to go? Or should I just keep paying monthly till I reach almost near the end of my lease term and then try buy the lease car at that point based on the payoff value at the point to avoid paying the over mileage, the depreciation, the wear and tear fees. That's is the way to go?

Michaell

chrizocresencia said:

Hello Michaell thank you for the response, I want to understand the first and third options you provided. So can you please elaborate those two options. I tried the second option swapalease - no one seem to be interested. So it is best to write a check and buy the car lease from Toyota Financial based on the payoff value? I don't remember the payoff value on my contract. Assuming that I like this car. I want to avoid paying more than it is really worth in the market value at this point. Is this my best route to go? Or should I just keep paying monthly till I reach almost near the end of my lease term and then try buy the lease car at that point based on the payoff value at the point to avoid paying the over mileage, the depreciation, the wear and tear fees. That's is the way to go?

If you like the car, you can convert the lease to a conventional loan, though I don't know if that will ease the pain on the payment. If you have the cash to buy it out completely, that is an option.

You can call TFS and talk to them about your options.

Generally, the best bet is to ride the lease out to completion, then start over.