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Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
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Hi eel14. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive. You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: sysop, "Real-World Trade-In Values" #, 15 Dec 2000 2:07 am. One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle or purchase your current one. Banks are much more likely to negotiate the lease-end purchase prices of vehicles a month or two before their scheduled termination dates than they are well before then. Car_man Host Smart Shopper / Prices Paid Forums |
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Here is the information that you are looking for gold233790. According to the latest information that I have seen, if you were to lease a 2005 Jaguar X-Type 3.0 sedan with an automatic transmission through Jaguar Credit right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00125 and 41%, respectively. The numbers for an otherwise identical lease of the 2006 version of this car should be .00070 and 46%. When negotiating your lease on the '05 X 3.0, make sure to take the $4,000 dealer cash that Jaguar is currently providing on leases of it into account. Car_man Host Smart Shopper / Prices Paid Forums |
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Hello genegray. The selling price that you were quoted for your new 2006 ML350 looks good to me. I just calculated a sample lease payment on the truck that you leased for you using Mercedes-Benz Credit's September lease program and I came up with a zero down, pre-tax monthly payment of $565 not taking any negative equity into account. With your $3,874.75 in negative equity added in, this truck's payment would increase to around $677. A $2,800 capitalized cost reduction would bring that number down to around $596. All of these payments are before tax, but I doubt that tax adds up to $70 per month on this truck so chances are that the dealer that you got it from may have marked-up your vehicle's money factor to add additional back-end profit to your deal. Car_man Host Smart Shopper / Prices Paid Forums |
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Thanks desgnconcpts. I can't take credit for the idea, management though that it would make it easier for consumers to find answers to questions about specific vehicles, just like you said. I just created a specific lease discussion for the Buick Rendezvous over on the Prices Paid board for you. No the $2,000 customer cash that GM is currently providing on the 2006 Rendezvous is not available on GMAC leases, but it is providing $500 lease cash on leases of 2006 Rendezvous CX models. As far as this truck's lease program goes, if you were to lease an '06 Rendezvous through GMAC right now for 24 months with 15,000 miles per year, its base lease rate should be 4.0% and 66%, respectively. The numbers for an otherwise identical 36 month lease should be 4.0% and 57%. GMAC's 12,000 miles per year residual values are 1% higher for 24 month terms and 3% higher for 36 month terms. As you can see, GMAC publishes lease rates instead of money factors for the vehicles that it leases. You can convert its published lease rates into approximate money factor equivalents by dividing them by 2400. Car_man Host Smart Shopper / Prices Paid Forums |
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Hello dphantom. I am sorry to say that it is usually fairly expensive to get out of leases well before their scheduled end dates. In order to do so, you need to purchase the vehicle that you are currently leasing from the bank that you are leasing it through. It often turns out that it costs more to do so than your vehicle is worth on the open market. Furthermore, many banks expect consumers who end their leases early to still make all, or at least the depreciation portion of their remaining lease payments. As you can see, this can get very expensive. You can determine approximately how much it will cost you to get out of your current lease by comparing its purchase price to its value on the open market at this time. You should place a call to the bank that you are leasing your vehicle through to find out its exact price. Once you know exactly how much money it is going to cost you to buy your leased vehicle you need to compare it to its current value on the open market. You can find out approximately what your vehicle is worth by looking up its Edmunds.com True Market Value in the Used Vehicle Pricing section of this site. You also may want to stop by the following discussion: "Real-World Trade-In Values". One of our most knowledgeable community members, Terry, frequents that discussion and he is often kind enough to give community members who give him an accurate description of their vehicles with his opinion on their value. Don't forget to check to see if you are still on the hook for your remaining lease payments. The difference between your leased vehicle's current value and how much it will cost you to buy it plus any remaining lease payments that you are obligated to pay will equal the cost of getting out of your lease right now. You may find that you are better off waiting until you are closer to the scheduled end of your lease to get another new vehicle. Car_man Host Smart Shopper / Prices Paid Forums |
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Replying to: dphantom (Sep 13, 2005 3:38 pm) It is possible to trade-in the 325i that you're leasing for the SUV that you want, that's just what i did last weekend  But i think the process of doing that trade off is less complicated if you do it within the same company (in your case, BMW). It's just like swapping your lease sedan for another vehicle. They'll ask you to sign a notice of release of responsibility for your old car. I'm not sure about trading a lease for a vehicle financing set up though. Contact a bunch of dealers and they'll give you their numbers, then pick out the best offer that attracts you. (TIP- don't pick up the phone until you get the cheapest offer ...in your email). 90% of the transaction time on my new lease program were done on the internet and buy phone. After some consultations here and there, i was able to close the deal (over the phone), signed the papers then drove off my new ML350 a couple of hours later that same day. Goodluck and enjoy shopping. 
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Replying to: allinde (Sep 12, 2005 8:44 am) Thanks |
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| Car_Man, do you have any info on the 2006 MX-5 yet? I'm interested in 24 and 36 month (12K and 15K per year) residuals and money factors. In case trim level matters, I'm interested in the Grand Tourning and Limited Edition. Thanks. | |
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Replying to: Car_man (Sep 14, 2005 2:16 am) Any information on Octobers lease deals on the 3 series. That’s when I take delivery. |
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I would like to know if I can get out of lease agreement before I sign the leasing papers and take possesion of the car? The lease is for a 2005 Honda CR-V EX and after leaving the dealership with my head spinning, I realized that I was going to pay $2,000 over invoice for the car (Down payment + 36 lease payments + residual valve) I know with a mortgage there is a 3 day right to rescind. I hope the same is true with this contract. Thanks
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