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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
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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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Replying to: qbrozen (Sep 16, 2008 2:30 pm) If the calculation is done with some other formula that allows you to pay less than the remaining payments, then I can understand prorating the mileage. |
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Replying to: qbrozen (Sep 16, 2008 2:30 pm) If you trade it in, you never take title or pay sales tax... I don't consider that the same thing, at all... Plus, depending on the bank, you can just sell it straight out to a car dealer.. Generally, you'll come out ahead that way.... rather than turning the car back in.. As in all things, it depends...  Early termination of a lease can result in many unexpected charges... Some banks are better than others... I've heard Chrysler Finance is one of the worst. Rather than hundreds or thousands in extra charges, I'd let the car sit in my driveway and make the monthly payments.. After all, who doesn't need and extra car? Or, three?
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