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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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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. |
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Replying to: pjo1966 (Oct 01, 2004 10:19 am) And.. stay away from any lease over 39 months. regards, kyfdx
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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. |
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... 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" |
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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 |
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Replying to: pjo1966 (Oct 01, 2004 11:08 am) First: You are not going to "make your money back" by getting a lease with a lower monthly payment. Once the money is gone, it NEVER comes back. Yes, you will have less of an expense going forward, but it never comes back. Second: It seems like you have a history of loosing money on leases. Although I didn't loose any money because I waited until I could get what the payoff was, I also didn't like the lock-in schedule of leases. So now I purchase my vehicles. Why are you considering leasing again? If you take the $4,000 and the $2,000 that you are going to be loosing from your last two leases that's a nice down payment on a vehicle. Why not just purchase your next vehicle then you can sell it any time you want on your own terms?
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Replying to: mfullmer (Oct 01, 2004 1:14 pm) Second: I did not lose any money on my BMW lease. I will not lose any money on this lease in the long run as I stated above. I made a mistake with this lease. I learn from my mistakes. Why am I considering leasing again? I can get more car for the money. I like a new car every couple of years. I drive less than 12,000 miles a year. I tend to buy things that appreciate in value and lease those that depreciate in value. I am self-employed and can get a nice tax break for leasing.
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Replying to: pjo1966 (Oct 01, 2004 1:37 pm) Leasing can be a good deal... but the deal has to be right, and you have to be able to meet the contract terms.. Keep your leases to 39 months or less, and it will limit your exposure.. Learning from your mistakes is good.. Some people never do... Good luck! kyfdx |
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Replying to: pjo1966 (Oct 01, 2004 1:37 pm) Where are you going to get that "difference" between the two lease amount payments to put back into your savings each month? That is going to come from money you earned, which you would have anyway. |
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