OT: Getting Out Of A Car Lease

[T-Bone]

My fiance wants to get out of her car lease because it's an unnecessary expense right now for us. She works a mile and a half down the road and she thinks a used car will easily suffice for what she needs it for.

I got ahold of the dealership FINALLY (after trying all day) last Thursday, and the finance guy said he'd call GMAC Friday morning. That was good, because I had a few used cars to look into Friday afternoon. Waited all morning, and no call. I called him again, and the finance guy still hadn't called GMAC. I stressed that we wanted to get this done ASAP, and for the rest of the afternoon, still no fucking return call. I finally stopped in and met with the finance guy face to face and got the runaround about how busy he was etc... Oddly enough, when we were looking into BUYING, they were quick with the return calls.

Saturday morning, 8AM, I called the guy and he said that he'd call right away and then call me back. Nothing the rest of the day. I recieved No calls and when I stopped in, I saw him once, and then he was gone. I know he saw me. They said he had left for the day about 30 minutes ago. "But I just saw him 5 minutes ago" This is also the last time we deal with this dealership. They've tried to screw me over in the past with repairs etc..., but yet I bought my Trailblazer there and Lisa is on her 2nd lease from there. They'll never see a dime of our money again.

I have half a mind to drive the fucker down there, drop off the keys and say "Fuck You", but I'd be afraid of what the financial consequences would be for Lisa. We're not sure if she has to pay an early lease termination penalty, or what. She's only put 4500 miles on the car.


Anyone here ever have to deal with getting out of a car lease?

[dcvader]

If you signed the contract - you are obliged to fulfill the contract. You knew the details when you signed it. It's not the finance companies fault something MAY have changed on your end.

[The Sushi Hunter]

Yeah, I'd say the guy your talking with down at the office is stalling you because it's about this time of the year, the big man is most likely out of the office on a holiday vacation with his family. These type of unplanned transactions will need to wait for his boss to get back to work.

And as dcvader said, you signed a lease agreement. I've never leased a vehicle but I can tell you if you op-out early your going to be paying a heavy penalty. You must have a copy of the lease in your possession right? Read that now and it should state on there what the penalty would be for oping out early and what you need to do in order to do it. I would guess that the penalty will put you in the same place as if you just bit the bullet and kept the car for the entire lease period.

[larryfromnextdoor]

I finally stopped in and met with the finance guy face to face and got the runaround about how busy he was etc... Oddly enough, when we were looking into BUYING, they were quick with the return calls.

you might stop dealing with this guy, .. get the owner to at least get some answers..

[efrasjourney]

Hey T-Bone I work for a leasing co. here in PR. I'm sure there will be difference in how the leasing companies work here vs. there but maybe I can give you some ideas to what to do with the car.

First, you can do what you said about leaving the car over there but your girlfriend is going to take a hit in her credit score and still she'll be responsible for the difference in the payoff amount vs. the resale amount.

In our company we have the option for the customer to leave the car in our used car lot for resale but still making the monthly payments until the resale. This won't hit the credit score of her but still will be responsible for the difference in resale value vs. payoff value.

In either option I think she'll be hit with a early termination penalty but in our case it's like a 1 month rental.

Saludos from PR

[marco17]

T-Bone... I lease through GMAC. The only way they will let you out of a lease early without penalty is if they are running some pull ahead offer to try and get you into another GM vehicle. Then depending on the promotion, they will waive "X" number of payments. Right now my lease is up in July 08 and I have started to receive pull ahead offers, but only waiving two months worth of payments. If I took the offer, I would still have to pay 3-4 payments or have that outstanding balance transferred into the new lease agreement. Unfortunately, if you try to break the lease they will make you pay for the payments you have not paid yet, or a very large some of the outstanding balance.

[T-Bone]

She got out of her last lease because of that Pull Ahead deal. That's how she got the new vehicle. Hindsight is 20/20 I guess. I know that she can get out of it, but just wanting to know what the penalties or fines are if she decides to do so since I can't get a straight answer from the finance guy.

[Rockindeano]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

[The Sushi Hunter]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

http://www.youtube.com/watch?v=j3QKRl43i4g

[Rick]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

http://www.youtube.com/watch?v=j3QKRl43i4g

Cool!!

[Perrydise]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

I am laughing so hard i have freaking tears running down my face on that one

[Rockindeano]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

I am laughing so hard i have freaking tears running down my face on that one

Thank you thank you, but I am serious. The Railroad just writes a check and you're on your way. Just remember to run towards the train so the exploding auto/suv shoots it's seats, tires, gasoline and metal away from you.

That bit of advice is worth a Bennie for Daddy.

Watch, someone here who is down on their luck, with a piece of shit car will undoubtedly try this.

[The Sushi Hunter]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

I am laughing so hard i have freaking tears running down my face on that one

Just remember to run towards the train so the exploding auto/suv shoots it's seats, tires, gasoline and metal away from you.

Also the hail storm of rocks in it's wake. That's just insane!

[Eric]

You can trade in that leased vehicle on the used one you buy. That new dealership pays off the lease. You'll take a hit, but it may be worth it?

If it were a Honda or Toyota - you can do quite well with the above tactic. I made $1500 on a Tacoma swap in the late 90's......

[wildone]

No brainer. She's insured, right?

Drive down to the CP or BNSF tracks, park that motherfucker right on top of the tracks, get out of the way, collect the insurance money, wipe her ass with the Bennies and get a new vehicle. Very simple actually.

Don't forget to send a few Hundreds Daddy Deano's way.

no kidding getting out of a lease is a easy as smashing there car!

[Red13JoePa]

Check the terms and conditions of your lease.

I'm guessing you'd have to pay the full balance of it off no matter what AND possibly an early termination penalty AND you might not be able to return it early... .

Lease contracts are usually an ironclad thing in favor of the lessor.

[larryfromnextdoor]

t-bone.. was watching the news today and they showed a clip of folks exchanging leases on
Autotrader.com.... i went to the site.. but cant find it .. but apparently it happens all the time..

[T-Bone]

I think Lisa will end up keeping the car But I'll check it out

[Behshad]

I think Lisa will end up keeping the car But I'll check it out

The best would be if you would find someone that could buy the vehicle from you for the lease buy out amount.
If you can not do that, any other option is a loss, so she might as well just keep the vehicle till the lease matures and make all the payments.
I just hope she didnt go for a lease longer than 24 months.

[T-Bone]

I think it's a 24 month lease.

[Behshad]

I think it's a 24 month lease.

PM me regarding the vehicle info(Make model year), monthly payments and payoff amount,,,, I will check and see what I can come up with .....

Leasing, as great as it is for some (like myself) , is NOT for everyone.....

[strangegrey]

You can trade in that leased vehicle on the used one you buy. That new dealership pays off the lease. You'll take a hit, but it may be worth it?

Not true and not a good idea regardless.

Most dealerships wont pay a dime on a previous lease. What they do is capitalize the remaining value of the lease into the cost of your new car.

I'll keep the numbers unrealistically simple.

Lets assume you buy a new car for $18,000 and it's a 36 month plan. You pay $500 per month before interest.

Lets assume you have $1,800 left on your previous lease. The cost of that $1,800 left on your previous lease is added to the principal of $18,000. You end up paying $550 per month before interest.

Obviously, interest compounds this a bit....but there's no need to go into it.

The point is, why on *earth* would you pay an additional $50+ dollars a month for a car you no longer own. Hell, towards the end of the new payment structure, the old car might not even exist anymore for all you know, and you're still paying for it!??!

Some will argue the time/value of money comes into play here...but that's hogwash. Most of the time, we're talking about a car payment or two....just pay it and reduce the basis on your new car. Otherwise, you're just extending the amount of time you'll be upside down on your new car loan.


In the end, t-bone's fiance should either work out a deal with the leasing company (which will result in a penalty payment) or suck it up and keep the car.


Tbone, I would bypass the dealership and call the leasing company directly. The guy at the dealership isnt going to have any incentive to help you, because he's not making any money on you...and in fact, he might find himself saddled with inventory he can't move because the value of the car is less negotiable (because it will be dictated by the leasing company)....

[Behshad]

You can trade in that leased vehicle on the used one you buy. That new dealership pays off the lease. You'll take a hit, but it may be worth it?

Not true and not a good idea regardless.

Most dealerships wont pay a dime on a previous lease. What they do is capitalize the remaining value of the lease into the cost of your new car.

I'll keep the numbers unrealistically simple.

Lets assume you buy a new car for $18,000 and it's a 36 month plan. You pay $500 per month before interest.

Lets assume you have $1,800 left on your previous lease. The cost of that $1,800 left on your previous lease is added to the principal of $18,000. You end up paying $550 per month before interest.

Obviously, interest compounds this a bit....but there's no need to go into it.

The point is, why on *earth* would you pay an additional $50+ dollars a month for a car you no longer own. Hell, towards the end of the new payment structure, the old car might not even exist anymore for all you know, and you're still paying for it!??!

Some will argue the time/value of money comes into play here...but that's hogwash. Most of the time, we're talking about a car payment or two....just pay it and reduce the basis on your new car. Otherwise, you're just extending the amount of time you'll be upside down on your new car loan.


In the end, t-bone's fiance should either work out a deal with the leasing company (which will result in a penalty payment) or suck it up and keep the car.


Tbone, I would bypass the dealership and call the leasing company directly. The guy at the dealership isnt going to have any incentive to help you, because he's not making any money on you...and in fact, he might find himself saddled with inventory he can't move because the value of the car is less negotiable (because it will be dictated by the leasing company)....

not completely true
the examples youre using above are more like a retail purchase deal than a lease. Youre example above describes a negative equity more than an early lease termination/buy out.
Its all about the current market valye of the vehicle.
We have ended up takin in vehicles before the lease matures, due to high demand,,, most of the time, we take them in on trade and give the
customer the pay off value.

Its also not gonna matter if he goes straigh to the lessor, which in this case is GMAC,,, the rules are gonna remain the same.

T-bone, your best bet is to keep the vehicle for the full term
if you dont want to , second best , is to try to find someone that will buy the vehicle from you... either friends/family, or through ads.
3rd options is try to take it in on a trade for another vehicle.... now I know GMAC/GM do have pull ahead programs, but its only if you get into another new lease, which you dont want at this point,,, but maybe you can work them on a used cheaper vehicle and see if they will give you actuall pay off amount on the trade , when you purchase a used vehicle from them. Most dealerships have alot of room when it coms to trade allowance, so with a bit of luck and some good haggling and negotiation skills, you may be able to get this done.
The last thing you ever want to do is to just drop the vehicle off at the dealerhip. As mentioned above , this will affect her credit score and she will still have to pay the difference on what the auction sells it for and what she owes on it.

[Ratgirl]

Getting out of a lease.. We've done it.. quite a few years ago. I dont know if things have changed since then.

We contacted the finance company and told them we wanted to break the lease.
They told us we needed to meet them and they would "inspect" it (look at mileage, damage, etc).
Then we had it dropped off at a location in Orlando per their request. It was then auctioned off.
The financed amount that was left we had to pay for.

Big, big lesson learned here. I will NEVER lease a vehicle again. The auctioned off amount was quite a bit
less than what we anticipated. Someone got quite a deal on the car.

[strangegrey]

not completely true
the examples youre using above are more like a retail purchase deal than a lease. Youre example above describes a negative equity more than an early lease termination/buy out.
Its all about the current market valye of the vehicle.
We have ended up takin in vehicles before the lease matures, due to high demand,,, most of the time, we take them in on trade and give the
customer the pay off value.

It depends, I've never seen a car dealer give a potential buyer a dime towards paying off an existing lease. If thats something your dealership does, well I would suggest that t-bone come to you to iron this out!

I can see a dealer doing this in a situation like you describe, ie a high demand vehicle. But in the end, the lease is really going to have to be lived out to maturity, whether the buyer pays it off in full or does it in pieces over time.

[Behshad]

not completely true
the examples youre using above are more like a retail purchase deal than a lease. Youre example above describes a negative equity more than an early lease termination/buy out.
Its all about the current market valye of the vehicle.
We have ended up takin in vehicles before the lease matures, due to high demand,,, most of the time, we take them in on trade and give the
customer the pay off value.

It depends, I've never seen a car dealer give a potential buyer a dime towards paying off an existing lease. If thats something your dealership does, well I would suggest that t-bone come to you to iron this out!

I can see a dealer doing this in a situation like you describe, ie a high demand vehicle. But in the end, the lease is really going to have to be lived out to maturity, whether the buyer pays it off in full or does it in pieces over time.

That's why I told him to PM me

Here in Ohio, people who want to get out of a loan/lease early, normally end up having a deer "accident"