Lease Termination Fees and other costs

irvl · March 2009

This may have been covered in another post - but here it is anyway.
I have a 4 year lease in Quebec that's up in a couple of days with Cite Nissan in Montreal and I was planning on exercising the buyback. The dealer wants to charge me an additional $399 for "admin fees". Except for a charge of $100, there is not mention anywhere in my lease contract of this amount.
Is this standard, worth fighting, etc.
Thnx.
Irvl

caseysdubs1 · March 2009

My brother in law lost his job and can't pay his lease. He is going to go back to school so a high paying job is not in the near future. He obviously does not want to ruin his credit history but can't pay his $335 a month lease anymore. He has 10 months remaining. The vehicle appraised over $3k under the FMV.
Does he have any options besides trying to get someone to lease or buy it? Does anyone think Ford Motor Credit would work with him or accept like a $1K (or less) payment and let him out?
Lots of questions for him but he does not have internet at home anymore.

greeneyespsu · March 2009

Can he collect unemployment for a while and try to get someone to take over the lease (try swapalease.com)? I'm sure there are plenty of people out there looking for a cheap short term lease, though I guess maybe $335 may not be cheap where you live. If it's hard to get someone to take over the lease he could offer an incentive (a few hundred $$ upfront or maybe a certain amount towards their payments each month) to get someone to take the lease over.. better to lose a few hundred than a few thousand by sticking with the lease. I absolutely highly doubt that there's any way to negotiate a lower monthly payment -- you might be able to negotiate a lower buyout, but that's about it, and even that may be difficult, plus that wouldn't help his situation unless he's trying to sell it straight out to someone.

His best bet is to have someone take over the lease (post on craigslist too) or get some sort of night/weekend job, like bartending or serving, to pay the lease. He'll need a car anyway, right? $335 isn't much for a car payment (especially considering if he had BOUGHT the car the payment would likely be twice that amount and for 2 years longer) and keeping a car and paying it is likely a much better option than ruining his credit over.

volvomax · March 2009

Getting someone to take over the lease is the best bet. Ford Credit won't help you. They simply aren't set up to do that. If your brother in law can't make his payments,they will simply reposess the car.
There are a number of sites that can help you with lease assumptions.

caseysdubs1 · March 2009

Thanks.
His plan is to use the bus system to get to and from school which starts in May. If that does not work out well then to get a beater. His wife has a car that's paid off.
I'll suggest CL and swaplease.com as it doesn't look like much else is possible.

Oh and when his unemployment starts it will not equal his salary. It's less.
Oh well, thought I'd ask anyways.
Thanks for the help.

I also have a Ford lease but it's got over a year. Anyone know if you lease a Ford would you be considered a returning leasee to lease a Mazda? I like the new 6. Shot in the dark probably.

jessiekha · March 2009

I was just wondering if anyone knew anything about terminating a lease with Chrysler Financial early. I've been trying to research the topic and some websites and forums are saying that they'll waive three months payments and the early termination fee and that they no longer offer leases through Chrysler Financial. Well this is my situation. I leased a Chrysler 300 in 2006 for a 39 month lease. It's $450 a month. A lot, I know. I put nothing down and had to get the leather, made it 15,000 miles a year instead of 12,000 and then upgraded grill for the car. I was 18 and didn't know any better. Anyways, since I signed the contract; I took responsibility and have been paying it on time for the past two and a half years. The mileage is fine. I have not gone over. It's at 43,000 miles right now but I will stop driving it as soon as it reaches 44,500 miles because I already have another car that is paid off and can drive till I can turn this one back in. It is a great time to buy a house and since that is a big car payment, that would qualify me for less on a home loan. I am planning on buying a house around August. If it is in fact true that there is no early termination fee and they will waive three months payments. Then I will be set. I called Chrysler financial and they are telling me that there still is a early termination fee and the current payoff quote and that is all the information they can give me. They said I can wait until August when they contact me and make me an offer to either end the lease and turn it in or buy it. I just want to find out about the early termination fee and the three months waived. Just so I can be prepared by August. So I know how much money I will need and if indeed I can turn it in early with no early termination fee and the last three months waived. Or if I choose to turn it in early and they will not waive the last three months and the early termination fee. Then I guess I will just have to pay it to get out of the lease. Also, if I do choose to end my lease three months early. Does anyone know if that will be bad for my credit? I mean, I will be paying them the whole amount I owe them. Whatever that amount is. If anyone has any information that could help me out. That would be great. Thanks!

qbrozen · March 2009

They will not waive 3 months if you turn it in. They only do that if you are leasing/buying another Chrysler.

When I ended mine, I did not have any early termination fee. Just had to pay remaining payments plus the turn-in fee.

Your problem, of course, is that you have 9 months left and only 2k miles to go. Not a good situation.

zeeman1229 · April 2009

:confuse: I leasing a 2007 mazda 3 and my lease is ending a two months. I called mazda credit and asked if I could keep my car at the end of lease and finance it. They informed me that my lease contract had no such option. I have to go back to dealer for that. Does that make any sense??????? Has anyone ever heard of this?????I certainly never have. Please inform me on what to do cuz I know if I go to dealer, they are gonna scam me somehow on top of all the mileage fees, tires, and other things.

volvomax · April 2009

Mazda Credit is not set up to deal directly w/ consumers.
You do have to go to your dealer to buy out the lease.

beau516 · May 2009

Hi everyone....

I could really use some guidance here. I have a 2007 Lexus RX350 whose lease will expire next month. I was just involved in a fairly significant car accident last month, and although my car was fixed, it did sustain rear-end frame damage.

I have very low miles, and there is absolutely nothing else wrong with the car. Does anyone have ANY idea how much Lexus is going to hit me for "excess wear and tear" due to the frame damage?

I am really stressing out about this.

I appreciate any feedback.

Thanks

tidester · May 2009

Was the frame damage repaired properly? Contact your insurance company and have them certify that the repairs were done right just in case the lessor asks.

tidester, host
SUVs and Smart Shopper

beau516 · May 2009

Yes, the frame repair was done by a lexus-authorized body shop. I have all the body shop's paperwork..and they guarantee their work for as long as I own the car...(which needless to say won't be very long). I will contact my insurance company for their report as well.

So, do you think I won't get dinged too badly?

kyfdx · May 2009

You won't get dinged, at all..

Lease companies don't get to collect on "diminished value", because one of their vehicles has been in an accident. As long as it was properly repaired, then you turn in the keys and go your merry way.

One of the advantages of leasing..

beau516 · May 2009

THANK YOU!!!

You have taken a HUGE burden off of me.

I did also call Lexus (anonymously) and asked them the same question, and they basically confirmed what you said.

Thanks so much.

psumommyof2 · May 2009

I continue to research and hold off on taking any action. I'm now down to 5 payments remaining (soon to be 4, since May's payment is in process!). Im still not happy about being over mileage, but it was a good lesson learned about leasing. While the lease was effective when it first started with a change in jobs, I started driving more and putting more mileage on the Odyssey.

I think with being so close to the end, Im getting antsy to get into something new, but also trying to test my patience so I dont roll payments into my next purchase.

qbrozen · May 2009

That's how it happens. A change in lifestyle. I did the same thing with my first lease.

There is always a way to justify switching NOW. For instance, how much are the miles costing you right now? Say, for instance, you have a $400 payment plus $200 in excess miles each month. That's like having a $600 payment. In which case, depending on what you are looking to get into, rolling the remaining $1600 might not seem like such a bad idea. If you wait, you are still paying $1600 PLUS another $800 in miles.

Of course, there are huge holes in this argument. It just depends on how much you want to convince yourself.

JayManCpa · May 2009

2007 Dodge Charger R/T 469/month

I could use some advice. I'm currently 6,000 miles over my lease and have five months left.Obviously I would like to turn the car in early but no dealer will 'eat any of my payments. Is it worth it to just pay the overage at the end of the lease or try to turn the car in early? I think I will owe about 2400 in overage. I was thinking about waiting until I had two payments left and just roll the final 1,000 of payments into my new lease. I would save about 400 but would still have the extra 1,000 on my new lease.

The is my 1st lease and I made the mistake of not getting enough miles... I also have a minor dent and my drivers side key entry is damaged from someone trying to break into the car. Should I try to get this fixed thru insurance(500 deductible) and will they really hammer me when I turn this bad boy in?

volvomax · May 2009

Rolling $1000 into a new lease to save $400 doesn't sound like good math to me.

You will be charged for any damage to the car,so you might want to get that fixed prior to turn in.

JayManCpa · May 2009

Do they send me a bill after they inspect the car or I have to pay it as soon as I turn the car in? Maybe I should just get an estimate and see if it is worth having it paid thru my insurance.

I know 400 to save 1,000 does not make sense. But the 1,000 is spread out over 39 mos. If the new lease payments fit into my budget it might make sense.

dtownfb · May 2009

Bite the bullet and continue with the lease until the end. Try to minimize driving the the best you can. Turning in a lease early will be expensive and will compound the situation by making your next lease even more expensive. Definitely get your car fixed before turning it in.

Before you lease another vehicle, ask yourself should you be leasing a vehicle? The low payment may be nice but the situation you are in now tells me that maybe buying is the better option for you.

volvomax · May 2009

they will send you a bill after you turn the car in.
Getting an estimate is a very good idea.

tmjohnson39 · June 2009

Help!!! We are at the end of a 5 year lease on a Chrysler Pacifica(would never do it again). The leasing company's inspector gave the car raving reviews and recommended no penalty charges for wear and tear. Now with 2 weeks before turn in we received a letter advising that we should buy the car to avoid a charge we will be responsible for regarding alleged "frame damage". The car was in an accident where the rear quarter panel was replaced. The repairing dealer stated that there was "no frame damage". Leasing company is claiming quarter panel replacement, which is immaculate, from factory and unable to detect by looking at it, substantially diminishes the cars value and we will be responsible for the difference between market value and what they sell it for. What can we do?
Lease states "I also recognize that if the vehicle has suffered frame damage or substantial other damage, even though the damage may have been repaired, the value of the vehicle will be substantially less than the value of an identical vehicle which has not had frame damage or suffered other damage." Any assistance would be greatly appreciated. Thank you!

gbosley · June 2009

wonder if you called your consumer affairs office at state attorney general office and ask if you got a clear from inspection can they do that , or should you take it to a state motor vehicle inspection have car inspected again and have pictures with time stamp on pictures if that could help you
good luck ,

volvomax · June 2009

Who is the leasing co??
I have never seen a contract that can penalize you for having an accident.
If it IS in the contract, you might be SOL.
Probably gonna have to get a lawyer.

tmjohnson39 · June 2009

Thank you! Leasing company is CULA. They fed us a line at the time of signing and have not lived up to the promises they made. Now this!!

tmjohnson39 · June 2009

Thank you for taking the time to write. I like the idea of taking it for a state motor vehicle inspection. Take care!

volvomax · June 2009

Never lease from a Credit Union!
Lease from a national bank or captive finance co.

sbuhler · June 2009

Have a few questions for the experts on here:
We leased a 2007 Nissan Armada SE in Jan 2007 through NMAC with a maturity date of 4/5/10. We are located in Louisiana. The current payoff is right under $21,000. We pay the tax monthly. We are on target with miles at about 29,000. We are considering waiting to lease end and turning it in, but know we will need to put some new tires on it and maybe a few other things prior to inspection. The truck is in great condition.

However, we are also considering selling it prior to the maturity date if I can find a buyer. Here goes the questions ...
(1) If a dealer does a courtesy trade for us and the person buying will pay the payoff amount, will the vehicle first have to go in our name (since the current owner is NMAC) and we will have to pay TTL? If we need to pay TTL, I assume we will get the tax credit toward the new car purchase like any other trade.
Anything else I need to know about going this route? Any other recommendations if we sell it prior to the lease maturity?

volvomax · June 2009

Unless the lender has a specific rule regarding this, the car can be sold directly to your buyer. Buyer will have to pay the TTL fees.

elliemaej · June 2009

I originally posted this in the Ford Edge forum but found this forum and have reposted this here.

I received an postcard from Ford stating that I can return my lease early (2 months).
When I went to the dealer today to discuss my options, he stated that mileage would be prorated. For some reason,I was under the impression that they didnt do that. Can anyone confirm this to be true?
My only reason for returning the car early was to avoid the over mileage fees.
I will wait until the end of my lease and pay it then.

volvomax · June 2009

Hadn't heard that. Most lease co's only care what the total mileage is when you return the car. Not how many miles a month you are actually driving. If they get the car back early with less than the allowed miles,it shouldn't make any difference to them.

tony5oh · July 2009

Soon returning a 2006 Vue leased through GMAC. It's over miles so we already know we will be billed for that, but what about excess wear and tear? What's generally cheaper: getting the EWT bill from GMAC or attempting to identify EWT yourself and repairing at a non-dealer body shop? Or is it just a crap shoot?

I haven't called yet but is it common for dealers to do a sort of "courtesy" pre-inspection so you might get an idea of what they think will be EWT?

Thanks!

qbrozen · July 2009

Yes. You should be able to get a pre-turn-in inspection, then decide for yourself what you want to do.

Call GMAC to set it up.

radioative2006 · July 2009

I have a 2006 Saab Leased from GMAC for 39 months . my lease will be up in november 2009. I am supposed to clock 39K miles but did only 25.5K until now. Do you guys think I can turn in the car early and get some concessions ? Who should I contact , Dealer or GMAC ?

volvomax · July 2009

no concession for less than the contract miles.
IF you had bought extra miles up front beyond the standard limits and didn't use them then you would be entitled to a refund.

psumommyof2 · July 2009

Hi Folks - Because I'm not a car leasing expert and not so good with numbers and such, I thought I'd post here for some opinions/assistance.

My 2007 Honda Odyssey (base model) lease is coming to an end. My maturity date is 10/21/09. I am trying to decide what my best option will be for when lease is up. I'm not sure if I should buy, hand it back and walk away, or what ever other options might be available.

If I need to share more info, please let me know.

The current payoff amount is $16822. The residual value on the lease agreement is $15481.

I am over mileage, I had a 15000/yr and am presently at 46500. I don't have another car to drive, so the over mileage will continue till I decide what I'm going to do next.

I would like to get my payments back down to something more reasonable, whatever option I choose. These lease payments are killing me, I was so foolish in my younger days..anyways, any help would be greatly appreciated.

tidester · July 2009

If you buy the Odyssey at the end of your lease at the residual value your payments will be about $373 per month (48 month loan, 7.26% apr). I don't know if that helps with the cash flow problem but it might get rid of the overmileage charge.

tidester, host
SUVs and Smart Shopper

grandtotal · July 2009

I suggest you buy it at the end of your lease, assuming that it has been trouble free and that you have maintained it regularly and it has not had a major accident. A 3 year old Odyssey with 51000 miles (at lease end) will still have several good years ahead of it without major repairs, though you're probably going to need new tires soon.

My only reservation is your comment about the lease payments killing you. I doubt that the loan payments will be any less. Perhaps you should look at a smaller, cheaper to run vehicle?

rbirns1 · July 2009

My Audi Q7 lease ends in 2 months. I was recently rear ended by a truck. Very slow speed, small dent near the license plate. Other driver said he would pay for the repair. I got 2 local body shop estimates ($800 and $850) and sent to him. He sent me a check and we're good.

My question: if I turn in the car as is, will Audi gouge me on the repair? Can the pre-inspection tell me how much my cost would be? Is that binding? Bottom line for me, if Audi will charge me the same as my local body shop, I would rather just turn it in and not deal with the hassle of repair.

taun · July 2009

About your Audi lease, the end of lease inspection will tell you how much Audi will charge for the repair. Exactly how much will be determined by the inspector and their estimate of the damage cost.

I have an A4 that had a tiny dent (smaller than a dime) and the inspector wrote the cost to be $55 on my inspection report. That's pretty competitive to what most mobile dent repair outfits charge.

If you do your inspection early you'll get the estimate. From there, see if it would be cheaper to let Audi handle it or to do it on your own.

rbirns1 · July 2009

So the amount given at the inspection will be the amount charged? Audi won't hit me with any surprises?

azngrl18 · July 2009

So as you can see I still have time to decide what I want to do with my car, but I'm about to take this job that will require a lot more driving. My question is that if I decide that I'm going to buy out the car anyway, does it really matter on how much overage I'll have in the milage?

qbrozen · July 2009

My question is that if I decide that I'm going to buy out the car anyway, does it really matter on how much overage I'll have in the milage?

Nope.

volvomax · July 2009

No, but things change. You may decide you don't want or need the car at the end of the lease. You will certainly overpay for the car if it has high miles and that would affect your ability to trade it in down the road.

rj123456 · July 2009

I have one month left on the 2006 Lincoln Zephyr. Residual is $16,240 and my mileage today is 30,200. Allowed mileage is 33,000 so I should should be well within the limit as I generally drive 1000 or less miles in a month.

The car was rear-ended by a truck and the trunk lid was replaced, side panels refinished etc. for about $8K (paid by other driver's insurance).

I just had my inspection and the guy has found several scratches, bumps, gouges, dings on the front bumper, hood/cowl, left front door, left rear door etc. I can't really see them and the body shop that did the repairs just did a detail on the car for me.

The inspector (from Data Scan) said they would have a report and estimate available online this evening.

This is my first lease ever, what are the next steps?

I'm also wondering whether I should buy the car out, or what the options are. I like the idea of leasing but want to keep the payment under $300/month. (The Zephyr was $292, which included CA tax, with $0 down). However, leases currently look terrible, low residuals and not so great money factors.

volvomax · July 2009

You will get a report detailing whether or not those scratches will be considered excessive an what the charge will be. You will then be able to decide whether you can get them repaired for less before you turn the car in.

Wholesale on your car is in the $15-16k range so your buyout price is on the mark.
With tax and fees you should end up in the mid $300's for 60 months.

Not surprised you can't find a new lease that is comparable. A $30,000+ never leases for under $300/mo unless there is a TON of incentive somewhere.
Leasing is just getting back to being realistic is all.

goodmaj1 · September 2009

I've got a 2008 GMC Acadia whose lease expires in November 2010. 36,000 mile lease and as of mid September I'm already up to around 27,000 so it's a good bet that we're going to go over the allotted miles.

The charge for going over is 0.20/mile. I don't necessarily mind paying that, but I'm a little more concerned about what'll happen when I return the car. The warranty on the car is good thru 36,000 miles so I'd be in a situation where I'd be returning the car and it'll be out of warranty. Having never leased a car before, I have no idea what to expect when I turn the car in, but I'm concerned that if the car's out of warranty the dealer could hit me for charges to fix things that aren't broken but are items that are normally covered by warranty. For example, we've had an ongoing problem with the thermometer on the car - it'll be 75 degrees out but will read 111 until I start driving way, slowly going down. If I return the car and it's out of warranty and the thermometer issue arises again, wouldn't they charge me?

The other option is to let the car sit for a few months or turn it in early, but then I'd be double paying since I would still need a vehicle and would either have to rent one or buy another vehicle early.

Obviously, paying the mileage overage is a lot cheaper than paying for two cars for say three months, but the potential warranty problem concerns me. Suggestions? Thanks!!!!

volvomax · September 2009

First of all, the dealer won't charge you for anything as they don't own the car. The bank does.
Second, if something is clearly broken when you return the car you will be billed.
However, I doubt that anyone will even notice the thermometer. Mostly, they are looking for obvious things, check engine light, broken cup holder, etc.

pezradar · September 2009

So I leased a new car.. but I still have my old lease.. I did a 3 year/45,000 mile lease on a MINI Cooper S 2007. It ends in February 2010. When I leased my new car they ended up cutting me a check for the remaining payments on my MINI Lease through the end of the contract.. So I could technically turn it back in now.

I'm trying to see if I can actually profit off of it though since the residual they state on the lease contract (What I would have to finance if I wanted to outright buy it) is $18,200. I priced out my MINI though through KBB and Edmunds and it says I could probably sell it or even trade it in for more then that..

I'm only at 37,500 miles on my Lease too with 4 months to go so I have a lot of breathing room on my miles..

What do you think I should do ? Is it possible to sell to someone like a Carmax my lease for more then the buyout?

Thx

goodmaj1 · October 2009

The first thing I'd do would be to find out if you can pay for the rest of the lease right now and then pay the residual amount to buy the car. Under all circumstances before you sell the car you actually have to own it, only then could you sell the car.

Your Mini will continue to depreciate as time marches on, so if you're going to do this deal, you need to do it immediately. Before you take on the risk of buying a car, i.e., paying the residual cost, I'd go to Carmax and see what they'd give you for your car. That'd be your worst case scenario from a pricing perspective. Then I'd check eBay and Autotrader to see how much you think your car could sell for. At the end of the day, the key is how much risk you're willing to take on - are you willing to risk that your car might not sell above the residual price?

Under no circumstances should you rely on KBB or any other valuation site to determine if you should do this arbitrage. Ultimately, the car is worth what someone else will pay for it so you need the Carmax (or even auction) data point. Some dealers looking for good used cars will also give you an offer, I actually sold one of my cars, a BMW, straight to a Lexus dealer.

Lease Termination Fees and other costs

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