When leasing, who has to allow early lease termination ? Manufacturer or dealer ?

ahmadka · October 2017

I'm in the process of leasing a 2017 Mazda 6 GT and am looking for a lease which allows early termination in some way (e.g. making all remaining monthly payments and returning the car, etc.). I talked to a dealer yesterday and he told me that the dealer cannot authorize this, and only "Mazda" can. He told me to contact Mazda directly and ask them this question.

He also replied the same thing when I asked if I can transfer the lease to someone else.

Is the dealer telling the truth, that Mazda itself should be asked this question and not the dealer ?

kyfdx · October 2017

ahmadka said:
I'm in the process of leasing a 2017 Mazda 6 GT and am looking for a lease which allows early termination in some way (e.g. making all remaining monthly payments and returning the car, etc.). I talked to a dealer yesterday and he told me that the dealer cannot authorize this, and only "Mazda" can. He told me to contact Mazda directly and ask them this question.

He also replied the same thing when I asked if I can transfer the lease to someone else.

Is the dealer telling the truth, that Mazda itself should be asked this question and not the dealer ?

It's actually the bank. Mazda Finance (aka Chase).

Terminating a lease early can be very, very expensive. Do not enter into a lease contract, unless you are certain that you can fulfill the terms.

isellhondas · October 2017

Yep, good advise! The dealer has nothing to do with this.

Make the remaining lease payments and walk away! An expensive decision to be sure.

ahmadka · October 2017

isellhondas said:
Yep, good advise! The dealer has nothing to do with this.

Make the remaining lease payments and walk away! An expensive decision to be sure.

I don't mind making the remaining payments, however one dealer told me I can't terminate the lease early *even* if I make all the remaining payments. Is this true ?? He said it was something to do with the returned car not having any insurance while it sits in the warehouse.

kyfdx · October 2017

ahmadka said:

isellhondas said:
Yep, good advise! The dealer has nothing to do with this.

Make the remaining lease payments and walk away! An expensive decision to be sure.
I don't mind making the remaining payments, however one dealer told me I can't terminate the lease early *even* if I make all the remaining payments. Is this true ?? He said it was something to do with the returned car not having any insurance while it sits in the warehouse.

If you terminate the lease early, your financial obligation could be much greater than just the remaining payments. You'll owe the difference between the current value of the vehicle and the lease payoff. So, you can end a lease at any time, but your costs can be a lot higher than you might think.

ahmadka · October 2017

What about transferring a lease to someone else ? Is that normally allowed ?

kyfdx · October 2017

ahmadka said:
What about transferring a lease to someone else ? Is that normally allowed ?

That depends on the leasing bank.

Honda Finance, for instance, does not allow lease assumptions.

ahmadka · October 2017

kyfdx said:

ahmadka said:
What about transferring a lease to someone else ? Is that normally allowed ?
That depends on the leasing bank.

Honda Finance, for instance, does not allow lease assumptions.

So how do I find out if Mazda allows or not ?

When leasing, who has to allow early lease termination ? Manufacturer or dealer ?

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