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'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
I just came from the dealer and it didnt turn out as I would liked to.
It appears the current buy-out was 25K and the trade-in value was 19K.
I had to come up with almost 6K to turn in the lease.
I will stick with my current lease and hope that in 24 months vw will come out with another sign and drive event.
Thank you for the insight.
yes.
I am in a similar position. I leased a 2012 Chevy Cruze LS for 39 months. In the residual column, the finance guy struck out the amount given with the added $2500 fee with a pen, and rewrote the amount for $2500 lesser when I pointed it out to him and said that is wrong. I guess I didn't push him to get a new document with the correct amount printed on. Now, I'm in a condition where I'll be leaving the country and I've to do something about my lease. Turning it in is super expensive as I'll owe every payment due until the end which is about 27 months at 250 apiece minus interest charges.
I called Ally today for a buyout price and was quoted at the residual(8600) + 2500 + all remaining payments(6500) + "property taxes". The buyout price is greater than the value of the car when I signed the lease(17k + taxes in full because I'm in Texas) . The car itself is in great condition with under 7000 miles on it after 12 months lease period is up.
Does anyone have any experience if this 2500 buyout fee goes away for a dealer buyout? How screwed am I?
If you buyout or sell the car to a dealer you should not owe all remaining payments plus residual and fee. A lot of the remaining payments is interest which you wouldn't owe if paid in full now. So residual plus fee plus some remaining principle amount. Property tax may apply where you live, but probably not on a dealer purchase.
Take your car down to CarMax and see what they will give you for it, then have them contact Ally for a buyout price. Anything more than they offer you will have to be paid to CarMax (in cash or certified funds) to get them to take it off your hands.
I'm planning on going down to Carmax and checking out what they will offer this weekend. I'm also exploring the option of a lease transfer and want to keep the selling as a last option in case the lease transfer doesn't go through.
I have another question, does any dealer take a lease buyout because this will be a sale only? Or only Carmax? Can I go to the dealership I leased the car and check if they will buyout my lease? I'm pretty sure that I'll probably not get a great price for it, but can I check?
Lease transfer may be your least expensive option, even if you have to add cash from your pocket to sweeten 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
With this lease, as described, there is no painless way out. If it were me, I would sell the car, Carmax perhaps, and take out a low interest loan to pay the difference.
A lease is great for many people provided they understand the terms of the lease. This is an example of why people should never, ever trust an auto salesperson or anyone in the dealership.
Look at it as a lesson learned and move on.
'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
I don't think you will find many takers on a transfer - that is assuming Ally allows them and they let you off the hook (some banks hold the original lessee responsible even after a transfer). This is partly due to the fee but your payment is way too high for this car. Someone could get a new lease for less. You will have to offer a large cash incentive to entice someone to take it.
Low mileage lease example for qualified non GM owners and lessees.
$156 per month* for 36 months, includes $500 Auto Show Bonus Cash
$0 Security Deposit
$0 Down Payment
$0 Due at Signing
$0 First Payment
Includes all applicable offers.
(Tax, title, license, dealer fees extra). Residency restrictions apply.
Chevrolet National Lease Offers
Low-Mileage Lease for Qualified Lessees
$199/month 36 month lease.
$0 due at signing (after all offers). Includes security deposit.
Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $0.25 /mile over 36,000 miles.
Please help me detemine if early termination makes sense or if I should continue to drive/lease the truck and cover the expenses at the end of the term (i.e. shipment to new residence, excess wear/tear, excess mileage, and return shipmen to dealership, plus fees associated with giving power of attorney for someone to turn in the lease for me as I will be out of the country). Or if I should cut my losses pay the early termination expenses and buy a new (used) car to use for the next year. Please someone advise. Thanks!!
Can anyone who has signed a recent Ally lease deal confirm this?
Since Ally is no longer (apparently) charging the purchase option fee, are they waiving it on leases signed 2-3 yrs ago?
http://www.hondafinancialservices.com/leasing/benefits
"turn-in" fee listed at 350 on contract
I was wondering if someone could help explain this situation to me. I leased a 2011 Subaru which has about 9 months left on the lease. I have gone over my miles so I went to a Honda dealership and they paid my remaining payments (around $2K). The Honda dealership then sent my car to a Subaru dealership for me. The salesman called me and said for me to call Chase and let them know where the car was so they could pick it up.... which I did.
While being on the phone with Chase (the loaner bank), they explained to me that I terminated my lease early so what happens now is that they will pick up the car, and auction it off. If they don't get the value of the car (I believe it is about $12K for the purchase price), then I have to pay the remaining balance.
Since the Honda dealership paid the remaining payments, wouldn't that mean I fulfilled my legal requirements to pay? What if in the auction, they sell it for $1k? I will $9K (minus the 1k at the auction and the 2k that was given from the honda dealership)??? How do I know they are not scamming me? If someone can xplain this to me, that would be great.... also any advice on what to do would really be helpful Thanks!
Typically when you trade-in a leased vehicle, the dealer buys out the lease. It sounds like this Honda dealer just paid the early termination fee and is now trying to turn the car back to Chase. That would probably work unless there is an open-end clause which requires a fair-value adjustment.
I would try to work this out with the Honda dealer. If they accepted the terms to take that vehicle on trade they should make it right. The really bad part is that since they didn't keep your car they obviously buried the fee somewhere in your deal. So you paid that $2,000 fee as well.
The only way to terminate your lease early, is for someone (you or a car dealer) to buy the car from the bank for the payoff amount. The only time you can drop your car off and walk away, is at the end of the lease term.
I'm sure that the Honda dealer knew your car was not worth the current payoff amount, and suggested this, knowing that you would assume the risk and liability, and not them.
If it's not too late to unwind this deal (have you taken delivery of the new car?), then that's what I would do... As you note, your liability in this scenario could be large.
On the plus side, Chase isn't going to "auction" this to a buddy for $1K, and stick you with a giant loss... They are going to send the car to a wholesale auction (like Manheim), where hundreds of dealers will be there to bid on the vehicle, so it should at least bring a fair wholesale value.
Hope that helps... you aren't the first person to assume you could just pay the rest of your payments and end the lease early.. Good luck!
kyfdx
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With a lease a person agrees to make a number of payments and limit the amount of miles driven. If all lease payments are made the lease terms were met. It makes no difference if the payments are made over the life of the lease or before the end of the lease. Under those circumstances the leasee is only responsible for excessive mileage and wear and tear and any lease termination fees included in the lease.
Other than excessive damages, the leasee is not responsible if the value of the vehicle is less than the residual value. In any case, returning a leased vehicle before the end of the lease term should result in a higher value than would returning the vehicle at the end of the lease term.
The lease is governed by a contract, that specifies what happens in case of early termination. What logically should happen or what seems fair isn't relevant. The only thing that matters is the contract language.
regards,
kyfdx
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Ditto what kyfdx said. What you mentioned is only part of the lease agreement terms. Depreciation is calculated to represent the value over time as well as mileage.
Let's say I lease a 2014 vehicle today for 3 yrs/36k total miles. I drive it all over the place and put 36k miles on it in 6 months, make all of the remaining payments and want to turn it in. Now how well do you think a 6-month old miled-up vehicle is going to sell as a used car? The dealership would have to sit on it.
And, even if that did make sense, as kyfdx said, it's about what's in the contract. Those are usually a few pages long. If it were that simple, you could write the contract on a napkin.
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Just keep in mind, the difference you would owe is between the auction value and the RESIDUAL price, not the current buyout. The current buyout would be the residual plus all remaining payments, but since you made the remaining payments, you just owe the residual.
If it is something that concerns you, then take the Subaru back and keep it sitting in your backyard for 9 more mos.
I had this very argument with Mistubishi about 12 years ago. My new wife had entered a 4-yr Mitsu lease before we met. She was at her mileage limit about 14 mos before lease end. After about 4 mos of finding ways not to use the car, we bought another. We rolled the remaining payments, but Mitsu threatened the same results you are seeing now. I tried to explain they were only hurting themselves because we'd be turning in a car in 10 mos that would be worth less than it is now, but the folks on the phone are just following the rules set forth for them, regardless of the lack of good sense. So it sat in our backyard and we kept the money from the rollover in our account and continued making the scheduled payments until the term was up. Then gave Mitsu back their older, dirtier car with flat-spotted tires that required a jumpstart.
'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
We often pay remaining lease payments for customers who want to move to another car...but it can be a little tricky but there is a work around... first of all the dealer should have made the remaining payments out the the customer and let the customer make his remaining payments...then some lease co, like chase, won't let the dealer terminate the lease with more than 180 days remining, any point before that it creates all kinds of issues, potentially vol repo....so the customer or dealer should have held on to the car until that point. Customer should also keep the insurance on the car. At the 179 day point take the car to the dealership to terminate the lease and its over.