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Smart Shopper Lease Termination Fees and other costs
1038 messages, Last post on Nov 19, 2009 at 9:34 AM
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| Hi, quick question. I recently lease a toyota sequoia. I am in month 32 out of 60 months. I can get more for my car selling it privately vs. trading it in. So, am I allowed to do that? I just don't trust toyota, they kind of screwed me when I leased this car while trading in previous lease, so I am done with leasing and just want to start fresh. Are there other fees other than what my buyout amount is from the bank? It is early termination, but I am not turning the car in. Do I have the ability to do it this way. Thanks a bunch. | |
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Hi netchick. You can purchase your leased truck and try to trade it in or sell it on your own, however it will likely be very expensive for you to do so. Not only is there a good chance that it will cost you more to buy your truck than it is worth on the open market right now, but if you do so the bank that you are leasing it through may still want you to pay them your remaining payments. As you can see this could end up being very expensive. Generally speaking, consumers are able to get more for their vehicles by selling them privately than by trading them in. Having said this, the more expensive the vehicle that you are trying to sell is, the more difficult it will be for you to find someone who has the resources to purchase it from you. Unfortunately, you are probably going to lose money trying to get out of your lease almost 30 months prior to its scheduled termination date, but you may be able to minimize your losses if you are able to do a private sale. Your least expensive option would be to continue leasing your Sequoia until you are much closer to its end. I could understand trying to get out of your lease if you could no longer afford to make the payment, you are way over your mileage allowance, or you needed a different size vehicle, but to do so just because you don't trust Toyota does not make a while lot of financial sense. Car_man Host Smart Shoppers Message Board
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Oh, no, I wasn't thinking of trading in my car cause I don't trust toyota, I am planning to purchase a house next year and want to sock away as much money as I can and wanted to get into something smaller, I just wanted to know if trading in to Toyota was my only option, because it's my least favorite. Thanks for your insightful information. Nanci
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You're very welcome, Nanci. I know how expensive purchasing a new home can be and completely understand where you're coming from. You can trade your car in on any brand that you would like, not just Toyota. The problem is that you will likely lose a lot of money when you do so. Car_man Host Smart Shoppers Message Board |
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Replying to: netchick (Sep 09, 2004 4:24 am) I'll bet the house that if you take your residual (per your lease agreement) + 30 months of Payments + Sales tax on the residual you are going to be thousands of dollars higher than what you could get on the open market for it. |
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My girlfriend leased a Nissan 240sx for 5 years and was allowed 1250 miles per month (didn't go over the mileage) and she just turned in the car. We received a bill for $1,200 for excessive wear and tear. There were two small dings on the doors and a puncture hole in the rear bumper. How do they determine excessive wear and tear on a 5 yr old car that has 75,000 miles on it and should I just pay the charge or is there a way for me to challenge it?
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Replying to: carcrap (Sep 15, 2004 6:17 am) Why worry about it or challenge it now when she knew taking it back with the damage would cost her? Did she bother getting the damage estimated before turning it in? |
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I currently lease an 03 Expedition, I have 27 payments left. The car is just too big. The bank has told me I can be outof it for 28483.94 + sales tax unless I trade it in to a dealer. My question is with all the incentives right now wouldn't this be the best time to trade it in using those incentives toward my pay-off. Also a dealer was trying to explain to me they have a formula where they take the remaining payments and look at paying that, Do they just let it sit on their lot until the lease is up 20 some months down the line? Thanks dburke
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Replying to: dburke (Sep 16, 2004 10:18 am) MSRP new (if known) Residual Major options Miles (currently) |
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Hi dburke. The Ford Expedition certainly is a large truck. Unfortunately, it is often quite expensive for consumers to get out of their leases well before their scheduled termination date. While it is true that you should be able to purchase your leased vehicle from the bank that you are leasing it through at this time, it will probably cost much more to do so than your truck is currently worth on the open market. As a result, if you were to trade your truck in, you would either have to come up with the money to cover the negative equity that you have your Expedition out of your own pocket, or try to roll it into your next loan or lease. Since most banks will only loan up to a certain percentage of a vehicle's MSRP, if you want to roll most of your negative equity into another loan (which is never a good idea) then you will have to purchase a new vehicle that has very high cash incentives on it. The next time that you speak with the bank that you are leasing your Expedition through, make sure that you will not still have to pay your remaining lease payments on it if you were to buy it at this time. Many banks require consumers to make all of their remaining lease payments when they try to purchase their leased car or truck early. As far as the timing of getting out of your current lease goes, the fact that manufacturers are providing a high level of incentives on their products right now is not a good excuse to run out and break your lease right away. Incentives aren't going anywhere. In fact, manufacturers' incentive spending has steadily increased over the past several years. While it is impossible to predict what automakers will do with their future incentives programs with 100% accuracy, I would be shocked if they cut their spending. Sure the support on 2005 models will initially be lower than it is on the 2004 models now as dealers try to blow them off of their lots, but the incentives on 2005 models won't stay low for very long, especially those models that have not had any major changes on '05. Your least expensive option would be to continue driving your leased Expedition for as long as you can stand to. Car_man Host Smart Shopper Message Board |
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