Lease Termination Fees and other costs

kyfdx · February 2006

Ahhh... one of the big advantages of leasing...

If the repair was done correctly, nothing happens... You turn your car in, and happily walk away...

My wife had $9K damage done to her '01 Accord.. I was very happy that we were leasing that car..

regards,
kyfdx
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alboogie7 · February 2006

Hey Guys,

Glad I found this site. I've been learning so much. Here's a pickle for you. I leased a Mercedes benz 2003 ML 320. My lease is due back June 06. Excellent condition but I am over by 20,000 miles. What are my options here? what can i do? In efforts to retain my business and lease or purchase another MB, will MB will work wih me on the excess miles? It is 20 cents for the first 5000 miles and 25 cents thereafter. Do the math. yes, I know! OUCCHH! Any tricks of the trade anyone can provide. And no, burning the car it is not an option

thanks for everyones help!

michaellno · February 2006

Two options:

1) buy car at end of lease for agreed upon residual price

2) turn car in and pay the $4750 in mileage charges

Will MB Finance negotiate the residual price? Maybe; it can never hurt to call and ask.

redlight44 · February 2006

My lease is about to term and I am planning to buy the vehicle outright. I'm getting conflicting stories about negotiating the residual value, etc.

So, are the banks willing to deal on the residual value?

If yes, what kind of percentage?

If not, can you negotiate an extended warranty on the vehicle?

rroyce10 · February 2006

..... It depends on the vehicle, the time of the year, lease co, what the market is doin' on them and how many months are left on the lease .... your have to be more specific ..

Terry.

redlight44 · February 2006

The lease co is Chase, 3 months to go till lease expires

cc72 · March 2006

I'm returning my Mustang in 2 months. The other day, my tire blew out, so I need 1 new tire -- 225/55-16. I'd rather not spend upwards of the $150 I've been quoted. Any suggestions?

Also, would it be a problem to drive with the spare until I return it on May 26th? I purchased a warranty upfront that should cover me for up to $2500 in damage -- WearCare. The spare isn't as large as the other three, but it isn't a donut either. The manual says not to drive more than 2000 miles total on the spare.

brandloyal · March 2006

Here's my dilemma: My lease on a 2003 Accord Ex V6 Sedan will be up at the end of April. My wife and I would like to purchase a CR-V and keep it for 6-8 years. The problem is, well, the 2007s will be coming out in the Fall and its hard for us to anticiapte if we are going to want that one without seeing how much more interior space and engine performance will be part of the redesign. We know that the Gen 2 CR-V will work fine with our 2 toddlers but I guess you can always use a little more room in the cargo area and power in the engine bay.
So what would you do?

1) Buy the Accord at the end of the lease in April and then sell it in the fall to get a 2007 CR-V?

2) Turn the Accord in at lease end in April and buy a 2006 CR-V EX (at hopefully great cost reduction with possible factory finance support).

3) Buy a Certified Pre Owned CR-V for the same amount that the Accord would have cost at buyout and possibly get a 2007 CR-V in the Fall or just keep the CPO?

4) Or rent a car for 6 months till the 2007s come out and buy it if we like it or buy a 2006 cause its really discounted!

I'm leaning towards 2 or 3 but need your advice.
Thanks, Scott

kyfdx · March 2006

What about asking Honda Finance to extend your lease for six months?

Though it might not seem like a great deal for what you get... that is probably the cheapest way to hold off on making a big financial commitment for six months..

regards,
kyfdx
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rivieraranch · March 2006

I am looking to lease a GM car and need to know some information about leasing. I have never leased before and became interested in it to avoid suffering the severe economic depreciation that these cars undergo.

Is the excess mileage charge negotiable?

What is the practical difference between a 36 or 39 month lease? THE GMAC payment calculator lists a 36 month option but the dealer I saw down with pushed a 39 month contract.

When GMAC does a lease pull ahead do they forgive excess mileage and minor excess wear and tear?

imariquinn · March 2006

I remember reading here (I think) about VW credit giving a credit of $250 or reducing the $350 lease turn-in fee to $250 if we provide the inspector the service records for the car. I showed the inspector the service records and faxed them to VW, but they are only willing to erase the overmileage $9.00 worth and $50.00 for the service records, so they say I just owe them $300 (instead of the $359 invoice they sent). Is there a written policy somewhere, or should I just be happy to only have to pay $300.

thanks

brandloyal · March 2006

Thanks for the advice. I called Honda and they offered to extend the lease up to 24 months at the same rate! Now I don't have to stress about the lease ending before I'm ready.
Cheers

pcline · March 2006

This is my first time leasing. If I want my payments to be lower, what is the disadvantage of using a down payment when the lease is executed?

miamimike1 · March 2006

Does it matter if i take the car to the leasing Honda dealer (thru AHFC) or can I take it to ANY honda dealer (just playing it safe...but how safe should I be?) in other words, am i leasing from Honda or from the dealer?

thanks all

red927 · March 2006

My father-in-law leased a Buick LaCrosse last December for 39 months, unfortunately he passed away earlier this month. I have been in contact with GMAC and am trying to have take the car back and "forgive" the remaining lease payments. They will not speak to me about the lease until I get them a copy of the death certificate and a letter from the executor of the will that gives them permission to talk to me.

Does anyone have any information about what I can expect? I have been told by a GM dealer that GMAC will not go after the estate for the balance due, but others have said that a legal contract was signed and has to be paid off. The selling dealer claims to know nothing about how to end the lease and really didn't have any sympathy for our situation. As a matter of fact, the person I spoke to when I first arrived at the dealership walked away from me when he heard what I wanted.

My mother-in-law does not drive and no one in the family is able to take over the lease.

Any assistance will be greatly appreciated.

Thanks,

Phil

rroyce10 · April 2006

...... 1.) For starters .... dealers have nothing to do with leases once they're signed off - zero, nada, zip ... they don't own it and they don't hold title, it's going to be between Mom and GMAC ....

2.) is Mom on the lease .....?

Terry.

red927 · April 2006

Terry:

No, she is not on the lease.

The other thing I did not mention was that my father-in-law was 89 when he signed the lease. The dealer let him sign for a 39 month lease despite his age. Any recourse on that point?

Thanks,

Phil

rroyce10 · April 2006

.... There's a couple of ways to approach this ..... some good, some bad ..

As far as Dad being 89 and being on a lease for 39 months..?

First of all .. I would have said he needs to BUY a car, not lease one ... but in todays world you have many seniors that are leasing and they "think" or they "feel" they're saving money .. maybe it's a psychological thing on their part .....

I just went through this with my buddies Dad, he's 92 and sharp as a tack, he knows more about world politics, economics and trade issues than 90% of the college professors you'll ever meet .... I talked purchase only - and he went down the street and leased for 24 months ..l.o.l... .... in your case, unless Dad was drooling his cookies, wearing a Pirates costume and talkin' to Greta Garbo then you have no recourse ....

The way it sits .... GMAC will take the vehicle back and charge it off as a Repo if it's not paid ..... because of their age, it "might" make a difference - maybe not ... you can also sell the vehicle and pay the difference, if any .. you can also let the lease company take it back (repo) and you pay the difference from the auction $$ and the payoff ....

Me personally (and not knowing all the facts) ... because of their age, and if everything is in trust and set-up properly .. then I would just make the payments til' everything was washed out of the current estate -- then let it go back .....

That said ... you need to get with attorney that *knows and understands* credit and what the negatives might be in this particular situation - believe me, most attorneys don't ....

Terry

knolan · April 2006

Hey, I'm in the military and will probably one day withing the next three years be stationed over seas. I have not yet leased the the 06 Accord, because of this topic. I talked to two different Honda dealerships about early termination if I am sent over seas on military orders. One dealer said I could not terminate early or take the car to Germany or where ever if I go. Another dealership said yeah I could because Honda changed their policy because of situations like this and that I could terminate and walk away or just take the car with me. Ok so I call Honda three different times and got one that said cannot take over seas but the situation would be reviewed by a supervisor, another said I couldn't terminate and they were not really sure though, and the final one said I could terminate early as long as I was on official orders and could not take the lease with me. I'm confused and would really like to get this lease. Do you know any hunco's at Honda that can show me documentation? Thanks.

t1a2g · May 2006

I am under my allowed mileage by about 6,000 miles at lease end. Can I get credit for the unused miles? I do not want to purchase the vehicle at the end of the lease

red927 · May 2006

Sorry, no credit is given.

gen1 · May 2006

Im going to return or trade-in 2002 Toyota Corolla CE (lease with Toyota).
5-year lease (12k/year)
Payoff Amount $6,524.11 (3 payments remaining)
61,000 miles (1,000 miles over limit).
Condition  clean.
The problem is that Im going to buy new Civic.
Toyota promised me to waive 3 remaining payments if I lease a new Toyota.
But I like Civic more.

Would appreciate anyone's input. Thanks

bigdveedubgirl · May 2006

Never do a 5 year lease again.

How much is your monthly payment?

gen1 · May 2006

My payment is $225.
Thanks

nrmartin · May 2006

I'm looking to get out of a 2006 Saab 9-3 early. The car is great...but I just adopted a 100 LB yellow lab and the car is no longer practical. Jet Black Metallic, auto, fully loaded, grey leather. Excellent condition with only 3300 miles on it. Started lease 12/27/05 (24 months) ends 12/27/07. I got them down to $319 per month after putting $3,000 down. I had 3 dealerships compete for the deal and felt really good about it. I'm worried about trade-in costs with the dealer so I've been doing some research and a Lease Transfer sounds like the best option for me. Is anyone interested? I live in CT. Does anyone have any advice or better ideas for me? Regards, "In need of a bigger dog friendly car"

rroyce10 · May 2006

.... What's your pay-off......?

Terry.

wolski · June 2006

Hi,

I'm looking to trade my lease vehicle (03 Nissan Altima SE) early. I leased at 352/month 39 months and 15K miles. The lease is up in December, but I am already 10K over on mileage. So the car now has a $2300 deficit. That is the dealer is willing to give me $12000 for it, but I owe $14300. I want to lease another Altima SE but with 20K/year.

I am working with two dealers and one of them told me that Nissan has told them to watch out for a Lease Pull Ahead program starting sometime in June. I questioned him about the program and he said that they will wave all reaming payments if the lease ends before 12/31 which mine does. I tried to ask him some questions, but he was very vague. Mainly I wanted to know how the pull ahead program would work for my situation because of my excess mileage. From reading these forums and using some deductive reasoning, I see 3 possibilities depending on how the rules work:

1. They take the car back and I have to pay prorated over mileage. This would not help me at all: 33 months x 1250 month = 41,250 - 58,000 = 16,750 over x $.15 = $2,5512.50
This is more than the current deficit.

2. They take the car back and I have to pay overage on the full 48,750 mile allowance. This would be roughly $1500. This would save me about $800.

3. They simply forgive the last 6 payments so the buyout of the car would only be the residual or about $12,200. The dealer would give me $12,000 and I am only $200 in the hole!

The dealer that I spoke with alluded to the second or third option. Option 3 seems almost too good to be true. So maybe he is just saying this because he couldnt close the deal with me at that moment. See, this dealer doesnt actually have an 06 Altima SE in stock. He said he could locate one though.

Dealer #2 on the other hand has 1 and I do mean one 06 SE in stock and he is willing to make a very attractive deal $380/month 39 months (including tax) 20K per year and $549 due at signing. MSRP of the vehicle is 26,135 (SE with sport package). The 06 SE are very hard to come by right now. I asked him about the pull ahead program and he just said they are not offering it now.

So my two questions are:
1) Does anyone know if Nissan is indeed planning on offering a pull ahead program this month?
2) What are the terms of the pull ahead program (or what were they in past years) and which of the 3 options above would I most probably fall under?

Thanks in advance for any help with this.

dsamala · June 2006

After a car lease contract is signed can the dealer come back and say that i owe them more money due to wrong amount on trade-in payoff???I signed the best of my knowledge clause on the yellow paper. Isn't it their responsiblity to have the correct payoff amount???????

rroyce10 · June 2006

..... It was your pay-off before you came in ... and your pay-off when you left ..

You owe what you owe ....

Terry.

puffamp · June 2006

My daughter turned in her 2002 toyota corolla le for a used camry. The dealer paid the last 3 payments & told her she could drive it until the lease was up & still take the camry. She turned in her corolla & called to make sure everything was right. She was told she had to pay $245.00 for replacing the hubcaps, a $350.00 disposition fee, $45.00 for a dent she didn't even know she had and appx. 600.00 in property taxes. She called the dealer she traded it in to and he could explain nothing. Didn't know what a disposition fee was. She never missed a payment. What now?

Kirstie_H · June 2006

The disposition fee was likely stated in the original leasing contract, so I can understand that.

Were the hubcaps missing? And is there a dent? If so, she is probably obligated by the leasing contract to pay for these items, regardless of whether she knew they were there or not.

However, the dealer can't resolve or really help you with any of this. The best thing to do is to work directly with the finance company (Toyota, I suspect) who should provide you with documentation on how they calculated the amount of property tax owed.

puffamp · June 2006

Is anyone familiar with the Mitchell Guide? That is apparently how the bank estimated my $245 cracked hub caps that were on the car for 5 years that basically dry rotted to my 2002 Corolla. Does anyone know where I can get a copy of this to investigate for myself?

sganju · June 2006

Hello,
I need some help here.

I have a 2005 Jetta GLI on a lease and would like to trade it in and BUY a used car-2005 Saab 9-2x Aero wagon w/7500 miles on it. I need more trunk space than what the Jetta provides. The price on the Saab is $18995.

The buyout on my GLI is $15570 and I have about $5700 left in payments at $265 p/month. The residual at the end if about $10K. The blue book value is about $16500 on it w/$26K miles.

The dealer is quoting me about $320 p/month on a 5 year loan at 8.9%-seems high, with $2500 down.

Might it be wise to get out now? or just wait until the lease ends or am I missing something completely?
I'm trying to do the wise thing here.

Any help is appreciated.
Thanks!

nigil · July 2006

I am being told that if I sign a lease and make a minimum of three payments I can then buy the vehicle after the third payment? The dealer says the vehicle discounted very high in leasing and to take advantage lease the car and then buy the car after three payments. What's the scoop am I getting one pulled over my eyes????? sounds too good to be true am I right???

qbrozen · July 2006

Possibly. Just what are we talking about?

With a lease, all finance charges are built in up front. So UNLESS there is a special discount for leases only AND it outweighs all the finance charges and inception fees that would be tacked on to a lease, then, yes, he's full of it.

I could see, for instance, in the case of Volvo, they are offering something like $10k off on non-volvo-backed leases. That's a big chunk of change. However, a non-volvo-backed lease comes with a pretty high rate of interest. I haven't plugged away at the numbers, so I don't know exactly how much that is. So the question comes down to, how much difference is there between the cap cost of such a lease and the selling price if I paid cash, and is that difference greater than all the finance charges and inception fees.

And, of course, you have to make sure there are no prepayment penalties if you chose to lease and then buy it out before lease end. (i wonder what the significance of 3 payments is???)

british_rover · July 2006

Three payments is usually the minimum required for the F&I guy to get paid his commission on the financing. If you prepay the loan before making three payments the F&I guy gets charged back on the comission.

qbrozen · July 2006

Ah. OK. So, really, the buyer isn't obligated to make those 3 payments. he could pay if off immediately, right? Unless, of course, he wants to reward the F&I guy.

british_rover · July 2006

Perhaps it depends on how the arrangment is made with the bank/leasing company. Most of them do require three payments or they will charge back the commission on the loan.

The auto business is one of the few jobs where you could make a ton money one week and then end up owing your employer money a month down the road.

If you have a really good week as an F&I manager you might sell enough waranties, loans and other products to make a two or three grand one week. Now if a month or two later all of those people trade in their cars which cancels their warranties and ends the contracts on the loans you would be charged back on all of those commissions.

If you just happend to have a bad week that week and only made a less then a grand then you would owe the dealership the differance and they would take it out of your following paychecks.

nigil · July 2006

Thanks for the reply, I knew it was too good to be true. I questioned the salesman further , then the manager had got involved, both big liars!!! Turns out I would have paid an extra 2000 when all said and done, I guess some dealers think customers do not know how to do math...

nortsr1 · July 2006

"I guess some customers do not know how to do the math"...Your guess is absolutely correct. Some do not do the math, all they care about is "How much is the monthly payment"!!!

barbarag · July 2006

We recently leased a Ford F-150 pickup. Due to some personal changes in our situation, plus the fact that we are not crazy about the vehicle, we are looking for options to end the lease One of the options given in literature sent by Ford credit is to pay the difference between the lease balance and the wholesale market value of the vehicle which is an amount agreed upon between us and the dealer according to the literature from Ford. How would I get any idea of what this value might be before talking to the dealer so I might have an educated discussion?

Kirstie_H · July 2006

You might try posting details about the vehicle in our Real-World Trade In Values discussion.

cme2c · August 2006

I have a GMC Envoy Smartlease, payments 550/mo. 18 months left on the lease. I know I am upside down, but doing more driving than anticipated and want to get something more fuel efficient. I called for myself for a buyout price and was quoted 25,000. I talked with a dealer who called and was quoted by GMAC a buyout of 21500 outright or 7000 to just turn it in. Does GM give an incentive to their own dealers for buyout?

luna01 · August 2006

I am trying to get out of my 2005 Nissan Pathfinder. My options are a lease buyout, which puts my car payment a little higher than I want or trying to purchase a new car and rolling the negative equity into the new purchase. First, is that even possible ? Second, is it even smart ? And, what is this I hear about still possibly being responsible for the remainder of the lease payments ? ?

qbrozen · August 2006

yes, its possible. no, its not smart. rolling negative equity is never a financially sound move.

Once you buy it out, there are no more lease payments.

why do you want out of it so badly?

luna01 · August 2006

For the most part, I like the vehicle, but Nissan is making it extremely difficult to just buy out the lease. They are telling me that I need to relinquish the vehicle to the original dealer until the check clears... and they get the title from whomever holds their titles, which is about a two week process. It sounds ridiculous to me. So, to save some aggrevation, I am thinking if it is just better to get rid of the SUV entirely... plus the check is from my bank, not a personal check...does this sound right to anyone ?

bobst · August 2006

" I like the vehicle, but Nissan is making it extremely difficult to just buy out the lease."

If you like the vehicle, why are you trying to get out of the lease?

Before buying or leasing a car, you should make very sure that you like the car.

qbrozen · August 2006

and why do you want to buy it out before the end of the lease? There is never any good reason to do this that I can think of. You are not saving any interest by buying it out early and, even worse, if you finance the buyout, you are paying double interest if you buy it out early.

lissavt · August 2006

I have a '03 VW Jetta GL w/ not quite 44K miles on it...coming to the end of a 4yr lease. Payoff is approx $9800. Bluebook around $10,800. No issues during the lease but am balking at buying b/c the warranty is up. A few very minor scratches (less than an inch) - no other issues. Dispo fee of $350 if I turn it in. Would be waived if I re-lease another VW. I really want to get into a small SUV so I am shopping around.

Not a lot of disposable income on hand for $ down and my mother has suggested I feel out some local dealers to see if they would pick up my lease/vehicle. She had a good experience where she "traded" in her leased Chevy (at the end of the lease) for a new leased Honda - they drove it from NH to her workplace in VT, she gave them the agreed amount owed, and they took care of the Chevy......Anyone else had a positive experience like this??

qbrozen · August 2006

I have traded in a leased vehicle before with no problem.

You just need to see if its worth it. Your mom gave you good advice. If a dealer will give you more than the buyout, GREAT! You have equity to apply to a new car. If not, then come up with the $350 and turn it back in and start all over again.

If you lease again, you don't need any money to put down. You obviously don't drive very much (11k miles per year), so another lease should be ok for you if that's what you want.

Lease Termination Fees and other costs

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