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Comments
If you sell it to a dealer, there is no tax.
At best, you will probably break even at a dealer, dunno if it's worth it.
This is my first time leasing,I want out.I know I am going upside down. Butcan I go to dealer and they pay off the Honda, BUY a used car and put the remainer that I owe on that loan.(Will banks due that?) And hopefully get a loan between $250/$300.
The Honda is great, just to big, the payment to high. And I don`t like the feeling of driving something that is not mine.
Doesn`t it make sense to get rid of it while it looks great and has low mileage?
Any advice will be appreciated. Thank You!
BUT... just reread the post and see if might be with a bank.(??)
In which case, the poster will need to check with that bank to see if they allow assumptions and/or if there are any fees/penalties involved.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
First step for you is to head over to the Real-World Trade-In Values thread and find out what the vehicle is worth as a trade-in. That will let you know how far upside down you really are.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Thanks for the help, I will check out the real world trade in value.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
1. If I'm using Edmunds' TMV as a guideline when leasing a car, how should i deal with this fee?
2. is this a common, accepted dealer practice for leasing, and/or was I wronged?
:confuse:
The dealer has no choice but to include it in the lease, either paid up front, or rolled into the lease. Edmunds obviously doesn't include it in their TMV, as only leasing customers pay it. So no, you have not been wronged, and yes, everyone pays it.
thanks again!
23 Civic Type-R / 22 MDX Type-S / 21 Tesla Y LR / 03 Montero Ltd
Has anyone bought into this and do you think this is worth it. Also, when would I expect to need top put new tires on the car? I am leasing it for 30,000 miles/3 yrs and I can't expect they'll be bald at that point.
Any help is greatly appreciated. This is for a 2010 C-300.
Thanks!
Jill
1. I bought the car from a dealer in New Jersey, signed a Lease Contract that had "US Bank" and "New Jersey Lease" printed at the top but the Car Dealer listed as lessor. I live in NYS, the car is registered in NYS and my NY address was listed under "Lessee". For purposes of perhaps having to file an arbitration claim, would this be considered leasing the car "in New Jersey" or "in New York"?
2. After hearing horror stories about US Bank I called them up to get information about the lease-end inspection and the rep told me (I'm sure I heard her correctly) that in New York (and some other states I don't recall) US Bank "doesn't do lease inspections" and "you won't get an excess wear-and-tear invoice". I SUPPOSE this could be a crafty way to throw me off-guard but does anyone have any info to support or contradict this? I KNOW I've read of excess wear horror stories from people in NYS.
Thanks in advance.
Taxes are assessed on personal property owned as of January 1 of the tax year. Since you didn't own it until August, your taxes for 2009 should be covered in your lease payment. You should have received a property tax statement (payments must be postmarked by today!!) - if you have any question, you should be able to call the revenue office and double-check.
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Thx...
thanks
tidester, host
SUVs and Smart Shopper
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Why don't you just call the dealership and ask them nicely to rewrite it? It can't hurt. That is, unless what you really want is to get out of the contract altogether and the insurance thing is just an excuse... (?)
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
thanks
tidester, host
SUVs and Smart Shopper
UNLESS, they are unable to get you approved. That is a whole different story!
Do they now NEED you to resign with a cosigner? If so, then yes, you can give the car back and walk away.
Spot delivery is completely normal in the car biz. It is not necessarily a lie or a cheat. It is what the system allows. Sometimes, after the fact, a dealer finds they can't get the deal approved and they have to either rewrite it or unwind the deal.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
tidester, host
SUVs and Smart Shopper
Ummm... hmmm... I don't know what paperwork you would need, honestly.
Sorry to hear it didn't work out, though. Hopefully you can find something else you like for less.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Seems to be the safe way to go.
Well.... no credit IS low credit, right?
ZERO is pretty darned low.
Ah well. Yeah, they should have been upfront with you. No excuse for that.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
My 36 months/36k-mile lease on Audi A4 (in NJ) will end next month, The car has exactly 35k miles on it & I am supposed to do a scheduled-35k-service that will cost me $350. Is there any penalty if I just skip the service and return the car next month ?
Thanks in advance for your suggestions.
- Sanjay
Of course I have a last reserve stop paying for it and they will take it back, that will screw my credit score, but house is more valuable then some car.
Did the dealer quote the 19,500 payoff amount? If so, I would be very careful. Is the 19,500 the actual trade-in value or is it the amount owed under your current lease? You need to differentiate between the two and determine the following if you haven't already done so...
(1) The trade-in value
(2) The early temination liability charge. Your lease agreement describes how this is computed. It also describes how the adjusted lease balance is computed. Basically, your total early termination liability is the present value of the remaining payments discounted at the implicit lease rate plus an early termination fee. You may want to request an early termination letter from the fund provider reflecting your early term liability charges. Nevertheless, all calculations should be verified as fund providers do make mistakes.
The difference, (1) - (2,) represents the amount of positive or negative equity given that (1) exceeds (2) or (2) exceeds (1), respectively.
The calculations can easily be done on a calculator with financial functions or an EXCEL spreadsheet. I don't know which state you're located, but the full 19,500 trade-in value would be deducted from the sell price to determine the tax basis of your new leased or purchased vehicle. You may end up with $0 tax liability if you're leasing. If any positive equity exists, you could take it in cash or use it to reduce the gross cap cost or selling price of your new lew lease or purchase.
Hope this helps.
John
if i would call nissan financial bank to do a buy out in
a 2007 murano With 18000 miles would they give
me a good deal!!?? Kbb private party value is
$23,460?? Right now i owe $17353. Based of the figures it
appears that a wise choice would be to buy it. But i am thinking to call the bank and negotiate the $17353. I still have 5 months to turn im the lease but would like to take any suggestions earlier to give
me enough time to make my decision.
Thanks everyone. This is a great forum!!
Look at kbb or edmunds trade in value, not private party, to get a better idea of what it is worth. They may offer it to the turn in dealer or may just roll it through the auction where it will likely bring LESS than trade in by $1k or more.
Thanks,
beefmaster
Leases are amortized in much the same way as installment loans. Most lease contracts contain an early termination clause that specifies how the lease balance is computed using the actuarial or constant yield method. This is really the same method used for installment loans. Each payment consists of two components: (1) interest (lease charge) and (2) priniciple (depreciation). The current month's priniciple (depreciation) is allocated toward reducing the previous month's outstanding loan (lease) balance. The interest (lease charge) for the current period is determined by multiplying the monthly interest rate (implicit in the lease- see discussion below) by the previous month's outstanding loan (lease) balance. This routine continues each month so that at the end of the lease, the outstanding lease balance equals the residual value. So, we begin amortizing the lease with the adjusted cap cost and end with residual value.
I always encourage those with leases or installment loans to create an amortization schedule using an EXCEL spreadsheet. If you wish to payoff a loan early or, terminate a lease early, you can easily and immediately determine your lease balance plus any applicable early termination charges. If you decide to purchase your leased vehicle, the buyout will be the lease balance plus any applicable purchase option fee/misc fees + title/reg fees + plus taxes.
For most leases, the early buyout is calculated as follows...
1st. Calculate the lease balance by finding the present value of the residual plus the present value of the remaining payments discounted at the interest rate implicit in the lease. Lease agreements refer to this rate as the actuarial or constant yield rate (discussed below).
2nd. Determine if your lease agreement stipulates an early termination fee or a purchase option fee in the event you wish to exercise your option to purchase.
Adding these plus any miscellaneous fees plus tax determines the buyout price. What people need to do is read the early termination clause in their lease agreement to see exactly how the lease balance is determined. I always create a lease amortization schedule in excel so that I always know my lease balance and buyout at any given point in time. This keeps the fund provider or dealer honest and, believe me, there were dealers that inflated lease balances in the past paving the way for a minefield of moral hazards. This was fairly prevalent in the 80's/early 90's when fund providers refused to give customers their lease balances deferring, instead, to dealerships. Well, golly gee whiz, what the hell do you think was going to happen?
Note on computing the actuarial or constant yield rate...
This can be done using a financial calculator such as the HP12C or TI83/84 graphics calculator. Or, it can be calculated using the financial RATE function in EXCEL with the following syntax...
Annual Constant Yield Rate = 12 x RATE(nper,pmt,pv,fv,type,guess)
nper = total number of payments (i.e., Term)
*pmt = monthly base payment (this is not payment PLUS tax)
pv = adjusted cap cost (enter as a negative value)
fv = residual value
**guess = 24 x money factor
*pmt = F x (C + R) + (C - R) / N
F = money factor
C = adjusted cap
R = residual value
N = term
**The program uses an iterative routine known as the Newton-Raphson Method of Successive Approximations (approximates roots of real-valued functions) to compute the implicit interest rate and so it must be initialized with a guess. The optimal guess is simply the money factor multiplied by 24 (not 2400).
Hope this was more helpful than confusing.
John
John