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Old 03-01-2004, 04:05 PM   #1
V6TurboTA
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Default Whats the best way to get out of a lease?

Will it help if I buy at the same dealer?
Whats the normal fee to get out of a lease?
How do I find out what my buyout is?

any help would be appreciated.

~v6
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Old 03-01-2004, 04:28 PM   #2
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Have the car disappear. :devil
You can call the leasing agency for a buyout price. or conversely how much you have remaining to pay. Sometimes you take less of a hit just paying for the remaining months then buying the car out and selling it.

There is no magic wand that dealers can wave to absolve you of mileage or what you still owe. We like to make you think that we can by coming back to us but all we are really doing is discounting the car you are buying and rolling in any overages in to the new purchase or lease.

Good luck. Research the cars value just as if you were selling it and then find out what your buyout is. Dont confuse the remaining payments with the buyout. I had a customer do this and I had to wait an extra month and a half before I could buy the WRX he traded in off of him I still cant figure out why he had to have that IS300.

Eli
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Old 03-01-2004, 04:28 PM   #3
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I think your best bet is to find a buyer for the car and just pay the leaser off. Call the leaser and find out what the buyout is and compare that to the market value. Figure out if the penalties are going to be more than the loss you would take by just selling it privately.
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Old 03-01-2004, 04:30 PM   #4
V6TurboTA
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Good info guys. thanks. Keep it comming

Im going to call the lease company tommorow. I dont have the paperwork on hand.

~v6
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Old 03-01-2004, 04:32 PM   #5
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But typically, the remaining lease payments + lease buyout $ will be way, way more than actual market value.

This is one of those scenarios when leasing kicks your ass, unfortunately. I have a feeling nothing is going to look appealing.

-Brian
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Old 03-01-2004, 04:38 PM   #6
V6TurboTA
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Well kelly blue book says my Resale value is $18,335, trade in is $15k-$16k.

I just guess I need to find out the buyout before I can go any further.

Is there ever a "good" time to get out of a lease? Im about halfway through a 4 year.

~v6

Last edited by V6TurboTA; 03-01-2004 at 04:44 PM.
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Old 03-01-2004, 04:45 PM   #7
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Have it totalled in an accident where the other driver is 100% at-fault.
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Old 03-01-2004, 04:48 PM   #8
V6TurboTA
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Quote:
Originally posted by hypernoodle
Have it totalled in an accident where the other driver is 100% at-fault.


This will not have anything to do with insurance.

If I cant get out of my lease easy I'm just going to stay in it. Im still very happy with the car, Im just weighing my options right now.
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Old 03-01-2004, 04:50 PM   #9
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Well it worked!

Sorta.

2-years later, this April, we'll finally be getting the medical settlement to cover for my wife's injuries and our lost wages.

Not worth it.
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Old 03-01-2004, 04:51 PM   #10
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Quote:
Originally posted by Eli
Have the car disappear.
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Old 03-01-2004, 04:55 PM   #11
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Quote:
Originally posted by V6TurboTA
Is there ever a "good" time to get out of a lease? Im about halfway through a 4 year.

~v6
No. Leases are only good for one thing- low monthly payments. Otherwise, they really, really suck.

For the average person, that is. If you are rolling in money, and can afford to simply get a new lease every 3/4 years, it's great. Or, sometimes a business can benefit from a vehicle lease (tax deductions or something).

I once made the mistake of leasing a car. It was great, because I put almost nothing down, and had super-low payments and a shiny new car. But when it was up, I had nothing... the next car I bought, I financed used. The payments weren't much more, just lasted longer.

-Brian
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Old 03-01-2004, 05:01 PM   #12
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Fire .


Brian

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Old 03-01-2004, 05:04 PM   #13
V6TurboTA
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Quote:
Originally posted by hypernoodle
Well it worked!

Sorta.

2-years later, this April, we'll finally be getting the medical settlement to cover for my wife's injuries and our lost wages.

Not worth it.

Been there, know its not worth it.


Quote:
Originally posted by KD7000
No. Leases are only good for one thing- low monthly payments. Otherwise, they really, really suck.

For the average person, that is. If you are rolling in money, and can afford to simply get a new lease every 3/4 years, it's great. Or, sometimes a business can benefit from a vehicle lease (tax deductions or something).

I once made the mistake of leasing a car. It was great, because I put almost nothing down, and had super-low payments and a shiny new car. But when it was up, I had nothing... the next car I bought, I financed used. The payments weren't much more, just lasted longer.

-Brian
I fit into the "sometimes a business can benefit from a vehicle lease" catagory. I dont think i will be leasing my next car though.

When I got my WRX the difference between leasing and buying was something like $200 a mo.

~v6

Last edited by V6TurboTA; 03-01-2004 at 05:55 PM.
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Old 03-01-2004, 05:11 PM   #14
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Quote:
Originally posted by V6TurboTA
When I got my WRX the difference between leasing and buying was something like $200 a mo.
But don't forget the part where you actually own the car after you're done financing it.

--Since you're only halfway through your lease, you should probably explore what the penalty will be if you just drop the damn thing off at the dealer and call it done. Could the business write it off somehow?

-Brian


edit: Does terminating a lease early affect your credit? It might be viewed similar to a loan default. Check that out also.
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Old 03-01-2004, 05:16 PM   #15
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Quote:
Originally posted by KD7000
But don't forget the part where you actually own the car after you're done financing it.

--Since you're only halfway through your lease, you should probably explore what the penalty will be if you just drop the damn thing off at the dealer and call it done. Could the business write it off somehow?

-Brian


edit: Does terminating a lease early affect your credit? It might be viewed similar to a loan default. Check that out also.
I know thats why im thinking about buying now. At the time there was no way in hell i was paying >$500 a mo for a WRX... I still wouldnt.

I do not believe you will get anything bad credit wise if you legally get out of the lease.

~v6
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Old 03-01-2004, 05:19 PM   #16
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I leased my last car, and a situation came up where I absolutely could not make payments. So I signed it over to my brother.
He took it over, and it cost me nothing more than I had already spent in payments. So he got a low-milage RSX Type-S for a couple grand under the list price, and I got Honda's foot off my neck.
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Old 03-01-2004, 05:20 PM   #17
V6TurboTA
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Does your brother want a nice 02 WRX? It will spank the RSX

~v6
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Old 03-01-2004, 05:31 PM   #18
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If your in the military, get deployed! They take your lease back, no questions asked!
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Old 03-01-2004, 05:36 PM   #19
V6TurboTA
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Quote:
Originally posted by wrk king
If your in the military, get deployed! They take your lease back, no questions asked!

Haha... thats it im signing up!

~v6
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Old 03-02-2004, 12:39 AM   #20
Eli
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Youd be amazed at how accurate leasing companies are at hitting the residual value for a car at lease end. You really only pay for what you use. But just like purchasing a car the first 2 years you are going to see faster depriciation then the following years. If you financed for say 60 months with the same money down you would probably be just as bad off now as if you leased. You would be upside down or close to a wash depending on the surrounding factors.
For your average person who doesnt mind driving the same car for 36 months and knows that they will only drive x number of miles per year, they can be better off with a lease because they dont have to tie up a lot of money on a down payment and can keep there payments down. The problem lies in the fact that most people stretch into a vehicle they probably can just afford and are unable to save any money over the course of the lease. A simple rule people should follow is if they cant afford to fianance it, they shouldn't lease it either. Unless they plan on making a lot more money in the future.

Leases are NOT inherintly evil.

Subaru owners are.

Eli
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Old 03-02-2004, 01:18 AM   #21
V6TurboTA
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Quote:
Originally posted by Eli
Youd be amazed at how accurate leasing companies are at hitting the residual value for a car at lease end. You really only pay for what you use. But just like purchasing a car the first 2 years you are going to see faster depriciation then the following years. If you financed for say 60 months with the same money down you would probably be just as bad off now as if you leased. You would be upside down or close to a wash depending on the surrounding factors.
For your average person who doesnt mind driving the same car for 36 months and knows that they will only drive x number of miles per year, they can be better off with a lease because they dont have to tie up a lot of money on a down payment and can keep there payments down. The problem lies in the fact that most people stretch into a vehicle they probably can just afford and are unable to save any money over the course of the lease. A simple rule people should follow is if they cant afford to fianance it, they shouldn't lease it either. Unless they plan on making a lot more money in the future.

Leases are NOT inherintly evil.

Subaru owners are.

Eli
If I put alot down would it be cheaper to get out of it?

~v6
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Old 03-02-2004, 09:23 AM   #22
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Quote:
Originally posted by KD7000
edit: Does terminating a lease early affect your credit? It might be viewed similar to a loan default. Check that out also.
Not if you pay the outstanding lease payments. If you default on the lease it will definitely effect your credit. If you make a deal with them (which they are unlikely to do) it may effect your credit unless you negotiate as part of the deal that the leasing company reports the account as paid in full with no derogatory information. An unlikely scenario.

J
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Old 03-02-2004, 09:26 AM   #23
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Ira Subaru bought me out of my Honda lease to get me in a WRX.
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Old 03-02-2004, 09:41 AM   #24
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Move to Canukistan or Meh-hee-co.

--kC
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Old 03-02-2004, 09:51 AM   #25
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Although I'm a big fan of staying away from leases, I had a rep that I worked with. He owned his company and leased a BMW 540i. 1 year lease for about $4k a month. Why?, you ask. Well, at the end of the lease (paid by his company and written off as a business expense), his buyout was $1. So it then became his personal car.

I asked my dad, who's been in the tax business since he was a sophomore in high school if that's legit. His answer was that as long as he's not audited, anything is legit, but if he is audited, he's either paying big fines or learning to be the wife of a guy named Spike.

I'm a big fan of using system loopholes to get stuff for free. (which is why I'm able to go on vacation and fly first class for no extra charge). I took this guy's scenario and expanded it. Say I buy a $10k car. Do a lease at $10k a month for a year. At the end of the lease, they give me the car for $1 and pay me $110k. I write off $120k as a business expense (get back $36k in taxes...assuming I paid in that much plus get most of my money back plus the car). I'm sure the IRS would be happy to give me a nice dress for my visit with spike.

jack
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