Lease Termination Fees and other costs

CarMan@Edmunds · September 2004

Hi dburke. The Ford Expedition certainly is a large truck. Unfortunately, it is often quite expensive for consumers to get out of their leases well before their scheduled termination date. While it is true that you should be able to purchase your leased vehicle from the bank that you are leasing it through at this time, it will probably cost much more to do so than your truck is currently worth on the open market. As a result, if you were to trade your truck in, you would either have to come up with the money to cover the negative equity that you have your Expedition out of your own pocket, or try to roll it into your next loan or lease. Since most banks will only loan up to a certain percentage of a vehicle's MSRP, if you want to roll most of your negative equity into another loan (which is never a good idea) then you will have to purchase a new vehicle that has very high cash incentives on it.

The next time that you speak with the bank that you are leasing your Expedition through, make sure that you will not still have to pay your remaining lease payments on it if you were to buy it at this time. Many banks require consumers to make all of their remaining lease payments when they try to purchase their leased car or truck early.

As far as the timing of getting out of your current lease goes, the fact that manufacturers are providing a high level of incentives on their products right now is not a good excuse to run out and break your lease right away. Incentives aren't going anywhere. In fact, manufacturers' incentive spending has steadily increased over the past several years. While it is impossible to predict what automakers will do with their future incentives programs with 100% accuracy, I would be shocked if they cut their spending. Sure the support on 2005 models will initially be lower than it is on the 2004 models now as dealers try to blow them off of their lots, but the incentives on 2005 models won't stay low for very long, especially those models that have not had any major changes on '05. Your least expensive option would be to continue driving your leased Expedition for as long as you can stand to.

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pjo1966 · October 2004

I'm 12 months into a 60 month lease on a 2003 Infiniti FX35. For a variety of reasons, I wish to leave the lease. I had contacted Infiniti a month ago and they said they could only give me an early termination quote after the 12th payment had posted, but that it would be anywhere from $100 to $4000. Since my payments are $586 I figured I could more than make up the fee over the next 4 years by getting a lower lease amount on my next vehicle. When the 12th payment posted yesterday I called back to get the quote. I was informed that since I lived in California they could not give an early termination quote. The best they could do was put the car up for auction. I would be responsible for the difference between the final auction price and the payoff. I could get it appraised before to get an idea of what I would be looking at. Either way there would be no guarantee I would get the appraised amount and I could be looking at a deficit larger than $4000. I had considered swapalease.com, but Infiniti is one of the lenders that does not allow you to do a complete lease assumption. Even with swapalease's "Peace of Mind" program I will still be listed as a cosigner on the lease for the next four years. This is a frightening prospect. The option I'm currently exploring is Car Max. The payoff is $35,757. According to KBB the trade-in value is $32,250. According to Edmunds, it is $30,413. Even if I get the Edmunds value, if the lease on my new vehicle is less than $475/mo I will make my money back. Add to that the fact that I am getting 13.5 MPG and my next car will definitely get better mileage than that, I will be saving money in the long run. The only other option is to sell the car outright. This is a hassle I really don't want to deal with.

So my question is, am I on the right track in thinking about Car Max as my best solution, or am I overreacting to the limitations I face with swapalease.com? Any input would be most welcome.

kyfdx · October 2004

Carmax is a good solution.. but, wherever you buy or lease your next car, can take that one in trade.. It will work the same way.. they will call IFS for a payoff, and you will have to come up with the difference between the payoff and what they offer you... Try Carmax first.. to get a baseline number.. Then go try to lease the car you want.. They will be motivated to give you the highest trade number they can.. to get you to lease a new car..

And.. stay away from any lease over 39 months.

regards,
kyfdx

pjo1966 · October 2004

Thanks, kyfdx ...

I learned my lesson on this deal. As my friend said, I drove by the dealer and saw that bright shiny red FX and had to have it. No more impulse buys for me. I've been reading on Edmunds about negotiating via phone/fax/e-mail and that is definitely the way to go.

As for your advice, that is most likely the way I will go. I would also like to hear more about swapalease.com. That would be the least amount of money out of pocket but it will be a gamble... I'm just not sure how much of a gamble it will be.

pjo1966 · October 2004

... a piece of advice I'd like to throw out is not to roll negative equity into a new lease. With a lease you are already in a negative equity situation for the term of the lease. Adding more will only set you back even further if you try to get out of the new lease early. When I got my FX I had 6 months left on my BMW Z3 lease. Infiniti cut me a check for the last 6 months and rolled that amount into my new lease. The BMW sat as a lawn ornament for 6 months when a friend paid it off and took it away.

YMMV, but what I took away from that experience is "don't do it"

kyfdx · October 2004

Nothing wrong with swapalease. Especially, if you are the one taking over the lease..

If you are having yours taken over, you have to make sure that your bank releases you from all liability... if not, I wouldn't do it.

Also, the chances of someone wanting to take over your lease with almost 48 months left is virtually nil. They can most likely lease a new one for that amount and for less time.

I agree with pjo1966.. Don't roll over any negative equity.. Pull it from savings and start fresh.

regards,
kyfdx

mfullmer · October 2004

Ok, I have to add/ask this.

First: You are not going to "make your money back" by getting a lease with a lower monthly payment. Once the money is gone, it NEVER comes back. Yes, you will have less of an expense going forward, but it never comes back.

Second: It seems like you have a history of loosing money on leases. Although I didn't loose any money because I waited until I could get what the payoff was, I also didn't like the lock-in schedule of leases. So now I purchase my vehicles.

Why are you considering leasing again? If you take the $4,000 and the $2,000 that you are going to be loosing from your last two leases that's a nice down payment on a vehicle.

Why not just purchase your next vehicle then you can sell it any time you want on your own terms?

pjo1966 · October 2004

First: How am I not going to make my money back? If I take the money from my savings and then put the difference between the two leases back into savings every month I will recoup my losses. I may be out a little interest, but if my next lease is low enough I will make that up again as well. The money is not gone forever. I am borrowing it from myself.

Second: I did not lose any money on my BMW lease. I will not lose any money on this lease in the long run as I stated above. I made a mistake with this lease. I learn from my mistakes.

Why am I considering leasing again? I can get more car for the money. I like a new car every couple of years. I drive less than 12,000 miles a year. I tend to buy things that appreciate in value and lease those that depreciate in value. I am self-employed and can get a nice tax break for leasing.

kyfdx · October 2004

I have to agree, partially.... you got into a bad lease.. and even though you may take a $4000 hit now, if you can save $200/mo. by leasing something cheaper, then you will "save" money.

Leasing can be a good deal... but the deal has to be right, and you have to be able to meet the contract terms.. Keep your leases to 39 months or less, and it will limit your exposure..

Learning from your mistakes is good.. Some people never do...

Good luck!
kyfdx

mfullmer · October 2004

Are you serious?

Where are you going to get that "difference" between the two lease amount payments to put back into your savings each month? That is going to come from money you earned, which you would have anyway.

pjo1966 · October 2004

It's simple math. My new lease will be $200 less than the old one. When I make that car payment the extra $200 goes back into the savings account I borrowed the difference from. In 4 years I will have that money back in the account and I will be driving a car that I don't loathe made by a quality manufacturer. Financially I break even and emotionally I come out ahead.

mfullmer · October 2004

You are correct. But you are not "getting that money back" as posted earlier.

Do what you need to do to get back on your feet. I suggest foregoing leasing.

sensor · October 2004

I am in the 25th month of a 48-month lease on a 2002 Volvo S40 through Volvo Finance. For a variety of reasons (it's a P.O.S. and I want an SUV), I would like to get out of the lease.

Vehicle facts:

Adjusted capitalized cost - $20,756.00

Residual value per lease - $8,126.40

Present Blue Book value - ~$12,200

Dollar value of remaining payments - $8,307.37

I have spent two days puzzling over the language in the lease agreement to try to figure out what my early termination penalties could be. It defines my "Early Termination Liability" as:

the sum of (1) all amounts due and unpaid under the lease, plus (2) (legal yadda yadda which translates to sale costs of $700) plus (3) the amount by which the Adjusted Lease Balance exceeds the wholesale value for an average condition vehicle as quoted in the then-current edition of NADA's AuctionNet... blah.

There is then a complicated definition of "Adjusted Lease Balance" which is "the Adjusted Capitalized Cost less the depreciation portion of all Base Monthly Payments due up to that time. The depreciation portions of all Base Monthly Payments are figured by applying a constant rate to a declining earning balance. The constant rate is that rate which causes the Adjusted Capitalized Cost to be reduced to the Residual Value over the Term after crediting the depreciation portions of all the Base Monthly Payments at any time. The earning balance at any given time is (a) the Adjusted Capitalized Cost less (b) one Base Monthly Payment less (c) the depreciation portions of the previously due Base Monthly Payments."

and then, the lease tells me that I agree that "I can calculate the Adjusted Lease Balance for any month with a financial calculator programmed to make actuarial balance calculations by using the Adjusted Capitalized Cost, the Residual Value, the lease term, and the Base Monthly Payment and following the directions for finding the outstanding balance."

Huh??

I am fairly financially sophisticated, but this makes no sense to me at all.

Can someone please help me make sense of this?

kyfdx · October 2004

Look on your last monthly lease statement.. call the 800# and ask them for a payoff amount on your car (sometimes, this is automated).. Then find out what you can get for it by trading it in... The difference is what you will have to come up with to get out of the lease.

regards,
kyfdx

(all that other crap is in case you default on the lease, or leave the car on their doorstep)

sensor · October 2004

Thanks, kyfdx.

While I haven't called the bank yet, the numbers I have run indicate this:

The payoff under the lease is $8,307.37 (23 payments x $361.19 per payment)

The Edmunds TMV of the vehicle is $14,249 (fortunately, I have low mileage, and there is low depreciation on this model)

So, does this mean that I am actually ahead of the game by almost $6,000 -- because the trade-in value of the car is far ahead of the payoff amount?

In this case, then, shouldn't I just be able to negotiate a deal with around $6,000 net trade-in value (i.e., FMV of vehicle less the $8,307.37 the dealer will have to pay to Volvo to kill the lease)?

Or am I missing something obvious?

Thanks for the help...

CarMan@Edmunds · October 2004

Unfortunately, you are missing something, sensor. Many banks require consumers to pay their remaining payments in order to get out of their leases early, but this is not the only expense involved in breaking your lease. You also will be required to purchase your leased vehicle from the bank that you are leasing it through. To find out exactly how much money it will cost you to do so at this time, you need to give them a call. So, the total cost of getting out of this lease this early will be the $8,307.37 in remaining payments + the purchase price that your bank quotes you - its actual value which Edmunds estimates to be around $14,249. So you definitely are not $6,000 ahead of the game.

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mfullmer · October 2004

You're missing something obvious alright, one BIG variable and that is the Payoff is the remainder of the payments PLUS the residual value. If I remember right those numbers should come to over $16,000.00.

sensor · October 2004

Thanks for the help, everyone. I appreciate it.

Good thing I asked before shopping the car around.

This is the last time I sign up for a four-year lease.

mfullmer · October 2004

Glad we could help. I agree about four-year leases (and three-year leases for that matter). These days life is uncertain and people and jobs so transient I think it's crazy to get locked into a car/mileage/payment for over 2 years.

princeabubu · October 2004

Hi all, I am but 17 years old, and I have an interesting situtation to discuss. My Mom is leasing an 04 Durango for 48 months, she got it in May, so it has been with us about 5 months. My Dad just financed an 04 Silverado not 3 weeks ago. Well, the only reason my mom got an SUV over say a car was because she needed six seats if we all wanted to go somewhere at once. Well the Silverado seats six, and my mom is kinda pissed that she has a gas hog, and feels like she is stuck in the lease that has quite a while to go. I told her that there has to be a way to get out of it. And there has to be! But my question is, is it going to be rather expensive to get out of it? I'm not asking for exact numbers, just any basic info would help me out.

Thanks.

CarMan@Edmunds · October 2004

Hi princeabubu. You were right in that there is a way for your mother to get out of her leased Durango several years prior to the scheduled end of its contract, however it will likely be prohibitively expensive for her to do so. In order for her to get out of this deal at this time, she will have to purchase the truck from the bank that she is leasing it through. It will probably cost significantly more money to do so than the truck is currently worth on the open market. Furthermore, the bank that she is leasing through, most likely Chrysler Financial, will probably require her to make all of, or at least a significant portion of, her remaining lease payments on this truck in addition to paying its purchase price. As you can imagine, all of this will probably add up to quite a bit of money.

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alb · October 2004

If I chose to buy my vehicle at the end of a lease do I still have to pay for any wear and tear or for going over the mileage?

Just curious how this process works at the end..

kyfdx · October 2004

No.. you just have to pay the residual plus any disposition fees that are in your contract.

regards,
kyfdx

pktrckt · October 2004

Hi Carman or any others that can help, I am turning in my 2002 WRX in a couple weeks and the car has a few body issues. To what level should I get these things repaired?

Door Dings: 5 total on the car; 3 on one door 2 other random small ones. One has paint from the offending door. Should I get these repaired if they are average(nickel or less) sized?

Shattered Fog Lamp: A wood chunk came up a couple years ago and shattered it. We have just have been living with it since. It also took a very small chunk out of the bumper skin, only visible by looking at the broken lamp. Should I replace it so it doesn't draw attention to the missing chunk? Is it cheaper to replace the bulb or pay the damage fee?

Rear bumper has minor paint scrape not fully through the paint and I will be getting the car buffed out to clean that up.

Any other recommendations?

pjo1966 · October 2004

I'm probably selling my 2003 FX35 to Carmax. I was in a minor fender bender a few weeks ago. There is minimal damage to the front and back bumpers. The insurance company for the bozo who hit me is sending me a check for $1600 for the repairs. The damage is barely visible. Should I just sell the car as is and use the $$ to go towards the difference between what I get for the car & what I owe or should I just get the repair done?

mfullmer · October 2004

If you are selling your car to Carmax I would definitely NOT fix the car before taking it to them. Carmax does really well at giving a fair price to vehicles that have had no body damage but are drastic in their price reductions when they suspect any body damage has been repaired.

Case in point: In 2001 I took my '98 Chevy Blazer in and when they found out (using the paint spectrometer thing) that one side had been repainted after being keyed when it was just 2 months old they took the price they would have given to me and deducted nearly $4k from it. (They would have taken it to the auction). A couple of months later I took my '98 Buick Century in that had never had any damage except had a small stone dent in the hood. They looked at the dent and deducted $25 from the price they were going to give me, which about 1/2 between high and low KBB.

CarMan@Edmunds · October 2004

Hi pktrckt. I don't know exactly what the excess wear and tear policy is like for the bank that you are currently leasing your Subaru through. However, many banks will inspect vehicles for consumers a couple of weeks before they turn them in. If you can get the bank that you are leasing your car through to do so, you may be able to find out exactly which items it will charge you for and have them repaired before you officially turn it in.

It is difficult for me to say whether you will get assessed for the dings and scratches that your wagon has without seeing them, but if I was in your situation, I would get the broken fog lamp repaired and clean up your vehicle prior to having it inspected.

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kbrown · October 2004

Has anyone had any bad experiences returning leased vehicles back to Nissan? I have read a few horror stories and I want to know if this is the norm as I have a 02 Pathfinder due to be returned soon?

pjo1966 · October 2004

what kind of horror stories?

kbrown · October 2004

Mainly bogus wear and tear charges months after the car was returned...

kyfdx · October 2004

You have to get the pre-turn-in inspection.. The last thing you want to do is just turn it in at the dealer.

I haven't leased through NMAC, but I've never had an extra charge that wasn't noted on that inspection.. I've leased through private banks and AHFC quite a few times, and the inspectors have always been very fair..

One time, I was over mileage, and they took the odometer reading from the inspection, which was three weeks before I turned it in.. Saving me about $150.

If you just drop it off, anything can end up on that final paperwork, then you have no proof.

regards,
kyfdx

rroyce10 · October 2004

*..... using the paint spectrometer thing...*

It's called an Elco ..

Terry.

mfullmer · October 2004

ACTUALLY, the tool used to test the refinishing quality (or presence) of vehicles is a Paint Spectrometer. Much like the technology that is used at Home Depot to match paint colors.

The brand of the refinishing gauge used most often in the US is indeed the Elcometer (311), but that is just a brand and I didn't feel the need to express my knowledge of the manufacturer of the tool at the expense of someone reading it and thinking "What's an Elcometer?" (Or "Elco")

Most people who are secure with their knowledge of a subject don't feel the need to express that knowledge, or the [perceived] lack of knowledge in others, at every given moment.

rroyce10 · October 2004

....... I guess I forgot you "were" in the car biz .. cuz' you certainly don't talk/print/act or even post like any car guy I've ever met, and I've met alot ....... enjoy your Hyundai ...

Terry.

mfullmer · October 2004

Well, it's sad that you think everyone who has had experience in the business must be "Qualified" by you. It's also unfortunate that you think "talking" in ways that make you seem smarter than everyone, at the expense of letting the layman understand, is the only way you can prove your knowledge.

I try to speak so that the average person knows what I'm saying and can understand. I come here to get knowledge and to give what knowledge I have. I don't post here in order to "prove" my experience, especially to someone like you. Why you think that someone who had parents who owned dealerships and worked as the Office/Business Manager for several of those should "talk" like a salesman, is beyond me. I'm straight-forward and I try to not confuse people. I guess that is what is confusing you.

Kirstie_H · October 2004

Enough. Please exchange e-mail addresses if you wish to continue this line of discussion. Believe me, NO ONE else wants to read it.

kirstie_h
Roving Host & Future Vehicles Host

classy1 · November 2004

I got a car back in 2000 from Mitsubishi which I thought that I was purchasing. I was told one price over the phone and another price once I reached the dealership. I had sat in the dealer's office about I know 5 hours or more. Then when the papers were drawn up I found out the real monthly payment. At that point I informed the dealer that is not what I was told that my monthly payments would be with a trade-in. On my trade in I still owe about 2000 dollar which they said they would pay off. I informed the dealer that I changed my mind about purchasing the car. I went to my old car to find out that it would not no longer crank. At this point I was in a bind and really upset/frustrate. I need a car to get back and forth to work and I also have kids . I went back into the dealership and they briefly went over the paper work with me not informing me that my car would be a lease. Just about a year ago I called to find out my pay out on my car and learned that I owe 4500 dollar but have a balloon payment of 9000 dollars. I asked what was a balloon payment and she began to explain. Well to my understanding you pay a low monthly rate and have a big end payment . Well my payment per month was not close to low. I went back to the place and the gentlemen no longer works there in fact none of the people work there. One gentlemen that I remember from when I purchase my car is still there and I told him what happen. He said that the dealership was selling over 30 cars a month. There a lot of people out there that think they own they car but do not because they was not informed that they were leasing. Now I have had the car for almost 5 years and do not owe it . I have to turn the car in or pay the balloon payment. Not only that I have gone way way over the mileage. Yes I did sign the contract , but was not informed of it being a lease. Is there any thing I could do or any suggestion. Please any suggestions would be greatly appreciated.

cv22 · November 2004

I have approx 29 months left on a 48 month lease for a 2003 Honda Accord(I know now 48mo leases are bad, never again). I'm relocating to NYC and do not need a car. I asked Honda Finance and the purchase amount would be about 18,500. Even if I purchased it and then sold it privately, I would probably be short about 4,500(if I got 14,000 for it - blue book is about 14,500) I can't afford to be out 4,500 at this time. Therefore my question is regarding lease transfer. I wanted to know if I would ultimately be responsible if the party the car was transferred to, did not pay. Also would I have any recourse if that occured. Also are there any other options that I'm not considering to get out of my lease. I called the salesperson I leased the car through, and he just told me to go to a dealership(I'm not in the same area anymore as he) and ask if they would buy the car. This dosen't seem plausable though given the amount owed. Any insight would be greatly appreciated. Thanks.

pjo1966 · November 2004

I went to swapalease.com. Honda Financial Services does not support leases transfers at all.

kyfdx · November 2004

Ditto here.. AHFC will not let you transfer your lease.. Your only choices are to keep paying on it, or trade it in and add the negative equity onto the next car payment..

Your best and cheapest alternative is to keep paying on the lease and honoring the contract that you signed.

blueiedgod · November 2004

Hi all, I am but 17 years old, and I have an interesting situtation to discuss. My Mom is leasing an 04 Durango for 48 months, she got it in May, so it has been with us about 5 months. My Dad just financed an 04 Silverado not 3 weeks ago. Well, the only reason my mom got an SUV over say a car was because she needed six seats if we all wanted to go somewhere at once. Well the Silverado seats six, and my mom is kinda pissed that she has a gas hog, and feels like she is stuck in the lease that has quite a while to go. I told her that there has to be a way to get out of it. And there has to be! But my question is, is it going to be rather expensive to get out of it? I'm not asking for exact numbers, just any basic info would help me out.

Not to be rude, but there is a lack of communication between your Dad and your Mom. Had Dad informed Mom that he was interested in a 4WD SUV, Mom would have suggested that he takes her truck and he buys something small for her. Simple as that!

blueiedgod · November 2004

I got a car back in 2000 from Mitsubishi which I thought that I was purchasing. I was told one price over the phone and another price once I reached the dealership. I had sat in the dealer's office about I know 5 hours or more. Then when the papers were drawn up I found out the real monthly payment. At that point I informed the dealer that is not what I was told that my monthly payments would be with a trade-in. On my trade in I still owe about 2000 dollar which they said they would pay off. I informed the dealer that I changed my mind about purchasing the car. I went to my old car to find out that it would not no longer crank. At this point I was in a bind and really upset/frustrate. I need a car to get back and forth to work and I also have kids . I went back into the dealership and they briefly went over the paper work with me not informing me that my car would be a lease. Just about a year ago I called to find out my pay out on my car and learned that I owe 4500 dollar but have a balloon payment of 9000 dollars. I asked what was a balloon payment and she began to explain. Well to my understanding you pay a low monthly rate and have a big end payment . Well my payment per month was not close to low. I went back to the place and the gentlemen no longer works there in fact none of the people work there. One gentlemen that I remember from when I purchase my car is still there and I told him what happen. He said that the dealership was selling over 30 cars a month. There a lot of people out there that think they own they car but do not because they was not informed that they were leasing. Now I have had the car for almost 5 years and do not owe it . I have to turn the car in or pay the balloon payment. Not only that I have gone way way over the mileage. Yes I did sign the contract , but was not informed of it being a lease. Is there any thing I could do or any suggestion. Please any suggestions would be greatly appreciated.

Are you sure it was not one of those 0/0/0 promotions? Those can get ugly at trade in as well. Baloon payments are not leases. They are structured like a lease, but you are the owner of the vehicle, while the bank holds the lien against it. I am pretty sure the contract stated the monthly payments as well as last payment, and mileage allowance. Yes, they COULD HAVE been nicer and told you that it was a baloon, but you stuck them with a dead car. So, you were not nice either. Live and learn. Or Do unto others as you want done unto you.

I was told one price over the phone and another price once I reached the dealership.

This was your first sign to run away from this dealer.

CarMan@Edmunds · November 2004

Hi cv22. American Honda Finance Corp. usually has a fairly attractive lease program on the Accord so this is probably the bank that your lease is through. As the other community members have already helpfully stated, AHFC does not allow its lessees to transfer their leases to another individual. As a result, if you really want to get out of your lease at this time, you will have to purchase your car from the bank that you are leasing it through and either sell it to a dealer or try to sell it on your own. As you suspect, you probably owe more money on your leased vehicle than it is currently worth on the open market. This means that it may cost you several thousand dollars to get out of your lease at this time. If I was in your situation, I would continue to lease this car until I was closer to its scheduled end.

Car_man
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linda8 · December 2004

Hi-

I have 24 months left on a 48 mon lease on a 2003 Outback Ltd. sedan. What is the best way to get out of this lease. Would a dealer be willing to trade in one lease for another on another car?

sandyl · December 2004

before I turn in my camry I would like to get it inspected. I have bumper scratches and want to know if they need to be fixed. in talking to OMNI/SET today they

said that the dealer sends the car away and then

they access it. SHould I insist that I have someone inspect the car locally? at the dealership? I did not get another toyota, so how cooperative will they be. the way toyota

in the southeast does business is just crazy!

Thanks!

sandy (owner of a new lease of an Altima)

rroyce10 · December 2004

... World Omni.? .. no problem, just get it cleaned up a little, maybe a little buff and wax will make it go away ... call them for an appointment, get it signed off, get all the copies ..... Nissan does business the same way as Toyota, just different names and different dates .......................

Terry.

jozette · December 2004

We have 20 months left on a 60 month lease. We were inexperienced when it came to leasing did not research. Will never lease again. We may be moving to the UK job related. Wondering the best steps of getting out of lease. What are our best options. When contacting the bank which holds our lease what questions should we ask. We still really don't know alot about leasing other than we should have never done it and many people lease and most are not happy afterwards. I have gotten alot from this forum. Any thoughts will be helpful.

Thanks To All

jozette · December 2004

Also, I remeber us getting the damage insurance on the car when we leased it. Will this not take care of any minor damages to the car?

groverc · January 2005

How often do leasing companies negotiate on the residual at the end of a lease? I recently leased a GTO for two years. The residual at the end of the two years is $20,755. Since these cars have been discounted so heavily, I am betting that the car will be worth more like $17,000. Any opinions? Does GMAC ever reduce the residual to get leasees to buy the car?

Thanks!

rroyce10 · January 2005

...... You mean the lease pay-off, right.? ...

Usually GMAC will negotiate the payoff of the vehicle .... the best time for this is in the final 5/6 weeks of the lease termination .. deal directly with GMAC - not the dealer, the dealer doesn't own or have the title - actually the last time the dealer had anything to do with the vehicle is when you signed the lease papers, after that, it's between you and GMAC ..... you need to be speaking with a regional/district manager, not the bubble head that answers the phone, they may be nice but they have no horsepower for a decision ............

Terry.

Lease Termination Fees and other costs

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