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Smart Shopper Lease Termination Fees and other costs
1039 messages, Last post on Dec 03, 2009 at 10:15 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: jmp7882 (Sep 15, 2008 8:52 am)  One would think that the fair market value at lease termination would include the vehicle's actual mileage though it's possible the lessor has separated the two. Your contract should spell out the details. Perhaps someone with experience would care to jump in here? tidester, host SUVs and Smart Shopper |
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Replying to: tidester (Sep 15, 2008 8:39 am) Essentially, you are doing THEM a favor. Option A is you drive 60k miles in 5 years, making all payments over 5 years, and turn the car in. They have a 5-year-old, 60k-mile car. Option B is you drive 60k miles in 4 years, making all 5 years of payments, and turn the car in. They have a 4-year-old, 60k-mile car. Which one do you think is worth more? Option B, of course.
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Replying to: qbrozen (Sep 15, 2008 11:45 am) Also, one agrees to make ALL of the payments when signing the contract and one agrees to the early termination fees including paying excess miles according to the schedule specified. Reasonable or not, it's what one agreed to. However, it is reasonable, in a legal sense, since no one was coerced into signing a contract. tidester, host SUVs and Smart Shopper
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Replying to: tidester (Sep 15, 2008 12:03 pm) You break the contract, you pay the price.. reasonable rarely shows up.. 
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Replying to: tidester (Sep 15, 2008 12:03 pm) But I do contend it doesn't make sense from a manufacturer's standpoint. There is no choice of one with fewer miles here. It is the 2 choices I stated above. And we all know a 2004 with 60k miles is worth more than a 2003 with 60k miles. So as long as all the payments are made good on, it makes no sense to charge miles based on what MIGHT happen in the next year. They are making out twice on the deal. They are getting all payments PLUS excess miles that don't exist PLUS they have a car to auction off that is worth more than was projected in the residual. And, yes, again, so as to not cause confusion, if the contract states all of this will take place, then the person who signed the contract owes all of that. And shame on them for signing it. I wouldn't give anyone my business who structured the contract that way.
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Replying to: qbrozen (Sep 16, 2008 8:25 am) Nor would I. I always wonder how many people actually read the contracts they sign and commit to. tidester, host SUVs and Smart Shopper
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Replying to: tidester (Sep 16, 2008 8:44 am) Almost no one. When I did F&I maybe 1 person a year would read the front and back of the contract.
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Replying to: volvomax (Sep 16, 2008 9:25 am) And every F&I person I've dealt with has agreed with that. They are always shocked I read it (although quickly) and make some sort of comment.
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Replying to: qbrozen (Sep 16, 2008 9:28 am) The leasing company really would rather you comply with the terms. I've found most banks to be very fair at lease end, assuming you've held up your end.. If you want out early, there are other ways than just turning the car back in... that usually turns out to be the most expensive way to get out of a lease. regards, kyfdx |
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Replying to: kyfdx (Sep 16, 2008 11:03 am) (keep in mind, I consider selling it privately or trading it in "buying it" because that is essentially what you are doing) I had to turn my Accord in early because it was already worth FAR below its residual and still had 9 months to go. |
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