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Smart Shopper Lease Termination Fees and other costs
1004 messages, Last post on Jun 24, 2009 at 4:20 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
| I have a lease that I need to end early....it was a 42 month lease for a Nissan Pathfinder that is over mileage ($1320 according to the Nissan dealer)has a cracked windshield and bald front tires. I need to end the lease early as I am starting a new sales job and the mileage that I will put on a car will be extensive. I am nearly locked in on purchasing a Nissan Altima, however I feel the dealers fees are unreasonable for my early termination. They are saying $1972 for the remaining payments on my lease PLUS an early lease termination fee ($350 included in the above figure) AND mileage overage. Isn't there a way I should be able to negotiate these fees down or off entirely since I am purchasing another Nissan? I've heard that people have done this. Please advise! I think I'm getting taken advantage of! | |
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I would be very surprised if those charges weren't outlined on the lease contract that you signed when you got the Pathfinder. You did read the contract you signed, right? |
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Hi patsy7. I am sorry to hear that you need to get out of your current lease early. It is usually fairly expensive for lessees to get out of their current deals many months prior to their scheduled termination dates. The dealership that you are working with does not have the power to just make your current truck disappear. If they help you pay the penalty that you will have to pay for ending your lease early, it will just cut into their profit on the Altima and hurt your ability to negotiate an attractive deal. The least expensive way for you to get out of your Pathfinder would probably be to purchase it from the bank that you are leasing it through and sell it on your own or trade it in on your new car. To find out if this is a feasible option, you need to place a call to Nissan Motor Acceptance Corp., or whichever bank you are leasing your Pathfinder through, to find out exactly how much money it would cost you to buy it right now. Certain banks are actually willing to negotiate lower lease-end purchase prices in some instances, but since you are trying to get out of this deal early that will probably will not be the case in your situation. Once you know how much it will cost to buy your truck, you need to compare that figure to what one could realistically expect to get for it on the open market. You can get a pretty good idea of this vehicle's actual value by looking up its Edmunds.com True Market Value in the Edmunds.com Used Car Appraiser section of this site or by stopping by the Real-World Trade-In Values discussion where one of our most knowledgeable community members, Terry, is often kind enough to give consumers an idea of what their vehicles are worth. If the difference between your Pathfinder's actual value and your cost to purchase it is less than what you would have to pay to just break your lease at this point then you may want to consider buying it and selling it or trading it in. By far, your least expensive option would be to keep your Pathfinder and if you are way over your mileage allowance, just purchase it at the end of your term and continue to drive it. Car_man Host Smart Shoppers / FWI Message Boards |
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| You're going to have to repair or replace the windshield and replace the bald front tires too. | |
| I'm 30 months into a 36 month Audi A6 4.2 lease. I'm under mileage but have some minor body damage which I can fix for about $1000. I was surprised to learn that with early termination I was responsible for a "garage fee" for the remainder of the lease and any difference between the anticipated residual and the actual residual( sort of blows away the concept of a closed end lease). I'm willing to make the remaining lease payments but being responsible for the residual and the garage fee seems unreasonable, especially since they will clear it at auction almost immediately. Oh and BTW this has not been a typically termination clause based on the 4 or 5 leases I have had previously. It is particularly sad given it is a standard VW financial lease. Even BMW is more friendly( I plan on taking delivery on a 04' 745i in about 4 weeks). Any suggestions, or should I just take my lumps and get out? | |
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Hi ksurg. If you are going to have to make all of the remaining payments on your Audi and are way under your allotted mileage, why not just keep it for the last couple of months and drive it occasionally? Of course, you will have to continue to insure it, but I probably would choose to keep the car rather than turn it in if I had to pay for it anyways. If Audi is going to charge you all sorts of early termination fees, you always have the option to purchase your leased vehicle and sell it on your own or trade it in on your next vehicle. You may find that your vehicle is actually worth close to your purchase option price if you are way under your allotted mileage. In order to find out if purchasing your car is a realistic option, you need to figure out what it is realistically worth on the open market right now and then compare that figure to a purchase quote that you get from the bank that you are leasing it through. Car_man Host Smart Shoppers / FWI Message Boards |
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To change the thread... The lease on my '01 Pathfinder is almost up. I am trying to find out what to expect when I walk in to buy-out the lease. I want to turn my ass-u-mes into something I can rely on. -My assumption is that since I Leased from NMAC, I can return at a different dealer? -What kind of 'fees' can I expect to be charged? In looking at my contract, I will be responsible for the $150 buy-out-fee and the end-of-lease buy-out price of 16,563.80. Taxes and title fees on top of this- will I have to relicense with the state (Colorado)? Aside from those questions I need to find out what kind of 'phases' I will go through in buying the lease out? e.g., Buying a new car generally involves three phases: actual car price negotiations; trade-in credit; last, finance dept. I would be shocked if it was just, "'Here, take money.' 'Here, take keys.'" I am already expecting the pitches for the extended warranty (Don't want) and in-house financing (Getting outside financing from CU). What am I missing or should be aware of either money or other? Thanks for the help:) |
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| If you're buying out, you don't need to "walk in" anywhere. Just call up Toyota Finance (I assume you leased through them) and tell them you want to buy it out. They'll tell you where to send the check, and when they get it, they'll send you a title. No dealership involved. You _might_, though, want to see if you can negotiate the buyout price. Check with Terry (rroyce10) over in Smart Shopper/Real-World Trade-In Values and ask how much your truck is actually worth. If it's less than the buyout, you might be able to convince Toyota to lower the buyout. If I remember correctly, they rarely, if ever, do, but it can't hurt to try. | |
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Thanks for the advice. I called NMAC and got a payoff faxed over (Residual is non-negotiable:( ). My CU is going to do a loan for 4%. Best of all, no yahoos to deal with at a dealership. The regional Kelly Blue Book is about $1500 above residual and locally about $2-3,000 above residual. I'm shocked- Take Money- Take Keys- Good to go:) |
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| If you have to pay the lease payments for the Audi, why not just keep it until the end of the lease? You only have 6 months left. The BMW 745 will still be there in July. | |
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