Last post on Nov 11, 2013 at 11:47 AM
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Car Leasing, Car Buying
#371 of 499 Getting out of a lease
Jul 01, 2012 (8:31 pm)
Please advise on the best option to get out of a lease premature....I am only 4 months into a 36 months lease and have changed my mind. Is it better to:
1. deal with my current financial institution to get out of the lease
2. get new dealer to buy me out of the lease
3. use one of the lease swap or carmax service
#372 of 499 Re: Getting out of a lease [moogmoo]
Jul 03, 2012 (6:37 pm)
Absolutely swapping it if you are allowed would be the least painful option. And, really, the only even partly reasonable. The other 2 choices would cost you a small fortune.
#373 of 499 Re: Getting out of a lease [moogmoo]
Jul 03, 2012 (6:58 pm)
Agree that finding someone to assume your lease will be the best on your pocket assuming the lease is economically reasonable. A lot will depend on what you have and the payment vs what someone could walk on the lot and get one. Most that look for lease assumptions (like myself) are looking for a bargain. There's really not many other reasons to do that type of deal.
#374 of 499 Reducing capitalization cost for lease
Jul 06, 2012 (4:32 pm)
I am considering a lease and would like to know any tips and suggestions to lower the price before getting into the down payments and monthly payment negotiation. Should I start by saying that I want to purchase the vehicle and get a lower sale price first and then change to a lease after the sale price is agreed upon?
#375 of 499 Re: Reducing capitalization cost for lease [ksrp]
Jul 07, 2012 (5:21 pm)
Every part of a lease is negotiable.
IMHO, go in trying to get a price you are comfortable with and then bring up the lease. Then negotiate the residual (can be difficult) and the rate.
#376 of 499 Re: Reducing capitalization cost for lease [ksrp]
Jul 08, 2012 (4:57 am)
As robr2 mentioned, the purchased price (cap cost) is the most negotiable piece of any lease simply because that's the part the dealer fully controls. Residual and rates CAN be negotiated but it's usually more difficult and might require getting the leasing company involved. I lease heavy equipment all the time for my biz and I've changed almost every word in some of these contracts. But overall it's much easier to lease multi-million dollar equipment than a vehicle. The dealers/leasing companies go to great lengths to make it as difficult as possible to understand where all the money is landing. So if you really don't understand all these number and what's going on...be very careful.
Now for my obligatory soapbox speech...don't take it personal:
If the only reason you're leasing is for a low payment and you don't have the financial means to get out of the lease early, I advise people to stay away. My rule is...if you can't pay cash for the vehicle, you shouldn't be leasing it. That's a pretty broad rule but it gets the point across. If you have very little cash at your disposal and just trying to get a nicer car than you can afford, a lease will just decrease your overall financial position in the long run. Buy a car you can afford and drive it for a long time.
#377 of 499 Re: Reducing capitalization cost for lease [ksrp]
Jul 08, 2012 (11:18 am)
There is no need to play games. Know all of your numbers before going in and just state what you want. "I'd like to lease this vehicle and have a net cap cost of $xxxx. I know the XX Financial MF is .00xxx, and the residual is xx%. So my payments should be $xxx with $xx out of pocket."
#378 of 499 Re: Reducing capitalization cost for lease [sebring95]
Jul 08, 2012 (7:55 pm)
> If the only reason you're leasing is for a low payment
> and you don't have the financial means to get out of the lease early
> Buy a car you can afford and drive it for a long time
Good advice, provided I am looking for a long term solution, which I am not.
I am considering a lease because I am looking to provide a vehicle to a family member for a 2-3 year duration only.
In any case, thanks for the response sebring95
#379 of 499 Re: Reducing capitalization cost for lease [ksrp]
Jul 09, 2012 (4:56 am)
No response necessary for the obligatory blather. Like I said, don't take it personal. Let us know how the negotiations go. Leases aren't nearly as attractive as they once were. Too many banks/captive fiance companies took a beating on leases when resale values fell through the floor so they don't take on as much risk these days with high residuals.
#380 of 499 Contract question
Aug 30, 2012 (7:27 pm)
We leased a vehicle a week ago. Today we received a call from the dealership asking if we could come back in and sign a new lease, they made a mistake and had us sign the wrong lease. My question is...if we are not all that crazy about the vehicle, can we return the car in lieu of signing the new lease agreement?