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Leasing Advice - Terminating Early
My lease will be up in June 2018. It is my first time leasing, and I'm still figuring out how all this works, so I could use some advice from anyone more experienced.
My company has offered to give me a company car, because another employee is retiring. However, I still have over a year left on my lease. Any advice on how to get out of the lease?
It's my understanding that terminating the lease early would mean I'd have to still pay the remainder of the payments plus an early termination fee. At that point, I see no reason not to just keep the leased car until it is up. Is that correct?
I know I could sell the car and buy out the lease, but again I'd have to pay the leasing company the remaining payments plus the residual value and any other fees. I'm pretty sure all that adds up to more than the car is currently worth.
Do I just call up the leasing company to find out what the costs of terminating would be or do I go to the dealership?
Are there any other options so I could see some actual financial benefit from taking the company car? I know it would benefit me because the wear and tear would be on the car instead of my car, but I was hoping there was maybe a way to lose a car payment too.
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Posted 3/21/17 11:28 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
SusiBee
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Member since 3/09 8268 total posts
Name:
S
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Re: Leasing Advice - Terminating Early
Why do you have to give up your car ?
Can you use the company car for personal use ?
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| Posted 3/21/17 12:28 PM |
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Leasing Advice - Terminating Early
I don't have to give up my car, but I'd like to if I could because it will save me the car payment each month.
Yes, the company car can be used for personal use, and it's a really nice car.
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| Posted 3/21/17 12:35 PM |
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angelicd77
LIF Adolescent
Member since 12/13 794 total posts
Name:
Kim
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Leasing Advice - Terminating Early
You're right in saying about the remainder of the payments and early term fee. What kind of car is it? If its in good shape and has low miles the dealer might be able to buy it for inventory and get you out of it for less then the contract amount or even. It cant hurt to try that, but you're definitely in a tough spot.
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| Posted 3/21/17 1:24 PM |
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Re: Leasing Advice - Terminating Early
Is there anyone in your family/friends circle who could buy out the lease or you could transfer it to them? I was readîng on Edmunds and some auto message boards that this could be an option. What type of car and whats the residual value?
Message edited 3/21/2017 1:25:23 PM.
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| Posted 3/21/17 1:24 PM |
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angelicd77
LIF Adolescent
Member since 12/13 794 total posts
Name:
Kim
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Re: Leasing Advice - Terminating Early
Posted by EclecticEsq10810
Is there anyone in your family/friends circle who could buy out the lease or you could transfer it to them? I was readîng on Edmunds and some auto message boards that this could be an option. What type of car and whats the residual value?
This is an option, but its far from simple. The bank needs to approve the person who will be assuming the lease. OP- if you have this option, your best bet would be to have them make the payments on your behalf and leave all legalities as is.
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| Posted 3/21/17 1:26 PM |
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Leasing Advice - Terminating Early
It's a Jeep Wrangler. It has very low miles and is in good shape.
So is going to dealer my best bet? See what, if anything, they're willing to offer.
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| Posted 3/21/17 1:27 PM |
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angelicd77
LIF Adolescent
Member since 12/13 794 total posts
Name:
Kim
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Re: Leasing Advice - Terminating Early
Posted by starbrightgirl8
It's a Jeep Wrangler. It has very low miles and is in good shape.
So is going to dealer my best bet? See what, if anything, they're willing to offer.
I used to work for a CJD dealer and from what I remember, Wranglers hold their value big time. I would definitely try going to a couple different dealers and see what they say. Normally I don't offer suggestions as to where to go- but in your situation I would try one of the bigger stores like Smithhaven or Atlantic. They do more volume so they are likely to pay more for a car.
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| Posted 3/21/17 1:42 PM |
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lightblue
LIF Adult
Member since 1/17 2249 total posts
Name:
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Re: Leasing Advice - Terminating Early
I would see if you could get someone else to take over the lease. My DH turned in his car two months early and we got hit with an early termination fee, a disposition fee and a few hundred more for BS charges...
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| Posted 3/21/17 1:57 PM |
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Re: Leasing Advice - Terminating Early
Posted by angelicd77
I used to work for a CJD dealer and from what I remember, Wranglers hold their value big time. I would definitely try going to a couple different dealers and see what they say. Normally I don't offer suggestions as to where to go- but in your situation I would try one of the bigger stores like Smithhaven or Atlantic. They do more volume so they are likely to pay more for a car.
Thanks! I'll try it out.
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| Posted 3/21/17 3:01 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Leasing Advice - Terminating Early
Find out what the dealer trade in is on your car currently.
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Then find out what the buyout is on your car after the payments are up.
Find out how many payments you have left and add up the total of all those payments.
Find out how much your disposition fee is for returning the car at lease end. The disposition fee is a sunk cost at this point so have to add this.
Find out how much insurance you will pay per month on this car for the remaining months you will have it.
If the total of all these items is anywhere near the current dealer trade in, bring it to a Jeep dealer and ask them to give you a number to sell them the car.
Wranglers hold their value and if you put down a huge down payment, you may even be ahead with the trade in being greater than all those items.
Message edited 3/21/2017 3:08:39 PM.
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| Posted 3/21/17 3:08 PM |
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