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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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Me and my wife have a leased 06 Subaru Legacy in which she was recently involved in an accident. The other party involved was at fault and I have been working with his insurance company for repairs. The insurance company has specified that they will be using non OEM as well as "recycled" parts. We were planning on returning the vehicle at the end of the lease term in March 2010. I am concerned that we may have additional wear and tear charges billed to us when we do this (The lease agreement seems rather vague as to their wear and tear definitions). Has anyone else had to deal with a similar situation?
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Replying to: j_kotrba (Nov 22, 2008 8:40 pm) Now, this is a little vague in and of itself. The source of the parts really isn't an issue, unless to fit/finish of the parts is obviuosly substandard. If the acutal repair work is sloppy, then you can be liable for charges. Personally, I'd get your ins co involved, or maybe a lawyer and try to make sure that the proper parts and techniques are used to return the car to the proper condition. |
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I just called Honda back because my lease was due up in January and decided to extend it month to month for up to 24 months. I work in the car business and I wasn't aware that you could extend the lease for up to 24 months. 1100 miles a month and the monthly payment is the same: $258. I'm going to stick with this for awhile so I don't have to be bothered about buying a new car.
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Replying to: alejandrom (Nov 25, 2008 1:34 pm)
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Replying to: volvomax (Nov 25, 2008 3:26 pm) Perhaps that's due to the new economic realities? tidester, host SUVs and Smart Shopper |
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Perhaps that's due to the new economic realities? It might be.... Why would Honda want the car back now? Why not keep making money on it?
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Replying to: alejandrom (Nov 26, 2008 12:17 am) In times past, I wondered about the financial wisdom of that, but as noted above, the drop in used car prices makes it a no-brainer for them now.
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Replying to: kyfdx (Nov 26, 2008 4:29 am) All you are doing is postponing the inevitiable. if the car isn't worth the residual today, it won't be worth the residual 2 yrs from now.
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Replying to: volvomax (Nov 26, 2008 4:03 pm) I wonder if they adjust the residual/buy-out if you extend? I don't see these being beneficial to the consumer, but certainly the fiance company depending on how they do the math IF there is a residual adjustment. If you're extending a lease, it's most likely post-36 months and the depreciation will be less than the first 36 months. But you're still paying the same payment on the higher depreciation.
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Replying to: sebring95 (Nov 27, 2008 6:43 am) So, if the original lease had a $300 payment with $240 of depreciation each month, the extension will have the same $240/mo. of depreciation. On a two-year extension, the vehicle's residual would then be $5760 lower than the original residual. It's a good deal for the bank in this environment. They continue to earn the same finance charge each month in the meantime, on a lower CAP. Considering the way some lease payments have skyrocketed on some makes,recently, it may be a decent deal for the lessee, assuming they negotiated a good lease payment, originally. regards, kyfdx visiting host |
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