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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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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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What about tire wear at the end of a lease? Any charges for that?
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Replying to: bleacher1 (Jan 22, 2009 12:02 pm) You can either go w/ an off brand new tires, or a good set of used tires will acceptable tread depth. |
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Greetings all, Just wondering which one of the "third" parties to swap or transfer the lease you would recommend? I am basing my choice on prior success, fees, ease, etc. Thanks for any input.....
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Replying to: houston_man (Jan 23, 2009 3:38 am) Assuming you have a reasonable lease and/or are willing to pony up cash to the buyer you shouldn't have any trouble. If you have a four year old vehicle over the mileage limit with 20 payments of $500/month remaining and aren't offering a cash incentive...you might as well save the $50 listing fee because nobody will assume that nasty paper. The folks looking to assume leases are typically bargain hunters (myself included) looking to make out on someone else's misfortune so there aren't many suckers looking to assume someone else's bad dealings. I would also assume in this economy there is an abundance of folks trying to get out of leases and an abundance of folks who can't get approved to assume the lease. I'd say you better have a pretty sweet deal or again, save the $50 listing fee. |
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Seabring95, Thanks for your thoughts on this. Actually, I have a Toyota Highlander LTD on lease with 18K miles/year with about 16 months remaining. Plan is to offer it up with about 12 months left and throw in some sort of cash incentive. We'll see how things look towards the summer..... |
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