Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Smart Shopper Lease Termination Fees and other costs
1038 messages, Last post on Nov 19, 2009 at 9:34 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
|
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? |
|
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
|
|
|
Replying to: dburke (Sep 16, 2004 10:18 am) MSRP new (if known) Residual Major options Miles (currently) |
|
|
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 |
|
|
I'm 12 months into a 60 month lease on a 2003 Infiniti FX35. For a variety of reasons, I wish to leave the lease. I had contacted Infiniti a month ago and they said they could only give me an early termination quote after the 12th payment had posted, but that it would be anywhere from $100 to $4000. Since my payments are $586 I figured I could more than make up the fee over the next 4 years by getting a lower lease amount on my next vehicle. When the 12th payment posted yesterday I called back to get the quote. I was informed that since I lived in California they could not give an early termination quote. The best they could do was put the car up for auction. I would be responsible for the difference between the final auction price and the payoff. I could get it appraised before to get an idea of what I would be looking at. Either way there would be no guarantee I would get the appraised amount and I could be looking at a deficit larger than $4000. I had considered swapalease.com, but Infiniti is one of the lenders that does not allow you to do a complete lease assumption. Even with swapalease's "Peace of Mind" program I will still be listed as a cosigner on the lease for the next four years. This is a frightening prospect. The option I'm currently exploring is Car Max. The payoff is $35,757. According to KBB the trade-in value is $32,250. According to Edmunds, it is $30,413. Even if I get the Edmunds value, if the lease on my new vehicle is less than $475/mo I will make my money back. Add to that the fact that I am getting 13.5 MPG and my next car will definitely get better mileage than that, I will be saving money in the long run. The only other option is to sell the car outright. This is a hassle I really don't want to deal with. So my question is, am I on the right track in thinking about Car Max as my best solution, or am I overreacting to the limitations I face with swapalease.com? Any input would be most welcome. |
|
|
Replying to: pjo1966 (Oct 01, 2004 10:19 am) And.. stay away from any lease over 39 months. regards, kyfdx
|
|
|
Replying to: kyfdx (Oct 01, 2004 10:54 am) I learned my lesson on this deal. As my friend said, I drove by the dealer and saw that bright shiny red FX and had to have it. No more impulse buys for me. I've been reading on Edmunds about negotiating via phone/fax/e-mail and that is definitely the way to go. As for your advice, that is most likely the way I will go. I would also like to hear more about swapalease.com. That would be the least amount of money out of pocket but it will be a gamble... I'm just not sure how much of a gamble it will be. |
|
|
... a piece of advice I'd like to throw out is not to roll negative equity into a new lease. With a lease you are already in a negative equity situation for the term of the lease. Adding more will only set you back even further if you try to get out of the new lease early. When I got my FX I had 6 months left on my BMW Z3 lease. Infiniti cut me a check for the last 6 months and rolled that amount into my new lease. The BMW sat as a lawn ornament for 6 months when a friend paid it off and took it away. YMMV, but what I took away from that experience is "don't do it" |
|
|
Nothing wrong with swapalease. Especially, if you are the one taking over the lease.. If you are having yours taken over, you have to make sure that your bank releases you from all liability... if not, I wouldn't do it. Also, the chances of someone wanting to take over your lease with almost 48 months left is virtually nil. They can most likely lease a new one for that amount and for less time. I agree with pjo1966.. Don't roll over any negative equity.. Pull it from savings and start fresh. regards, kyfdx |
|
You are here:
Forums
Smart Shopper Lease Termination Fees and other costs
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
