Getting out of a 36 month lease with 10 months left?

[Big B Hova]

My wifes tahoe is lease is over 10/2019. Toying with the idea of selling my truck and getting out of her lease and buying a new 2500 ram.

What are penalties for early termination?
Mileage is right on the money (1000 miles a month / 12000 miles a year)

 

[rrrr]

Read the lease. The penalties vary, and no one can give you accurate information.

 

[Rondog4405]

If you are going to re-buy at that same dealer they most likely will have no problem rollin you out of the old lease amd into a new.vehicle. i did it . leased a 2016 chevy silverado. Kept it for just about a year and had to have a 4wd 2017 model. I was under my miles for the year . they were happy to make the deal. No early termination fees. You should be good .. Give it a try

 

[JB in so cal]

Try leasetrader.com or similar sites.

 

[Bigbore500r]

I’d just wait till the lease was up. Nobody is gonna just let you off the hook, all they will do is roll that penalty value into the new loan. You’ll pay it on the new monthly but for the new truck, or with added down payment.

 

[hallett21]

You can try car max depending on value of vehicle. They do buy leases.


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[HB2Havasu]

My wifes tahoe is lease is over 10/2019. Toying with the idea of selling my truck and getting out of her lease and buying a new 2500 ram.

What are penalties for early termination?
Mileage is right on the money (1000 miles a month / 12000 miles a year)

The penalties to terminate early may exceed your last 10 lease payments, lol. I would read the small print in your lease agreement before doing anything else. Your going from 2 vehicles to 1? Do you like walking? lmao

 

[Big B Hova]

The penalties to terminate early may exceed your last 10 lease payments, lol. I would read the small print in your lease agreement before doing anything else. Your going from 2 vehicles to 1? Do you like walking? lmao

I got 4 vehicles trying to go down to 3

 

[steak&lobster]

There is no early termination penalties, you just owe those 10 payments and a disposition fee of a few hundred bucks. Either you can roll the negative equity into the new lease or maybe the value of your vehicle is higher than the residual + those 10 payments (HIGHLY UNLIKELY) and you can trade it in. Sometimes manufacturers have programs where they will forgive the last 6 payments if you re-lease with them, check it out.

 

[Andy01]

Go to carmax and get a buy bid. That will get you really really close to trade in value. Next call your lender and get your 10 day payoff. Find the difference in those two numbers and that is the check you will be writing to end your lease early. You can speculate all you want, do that and you’ll know where you stand.
I say at a minimum your $6,000 negative.

 

[Big B Hova]

Go to carmax and get a buy bid. That will get you really really close to trade in value. Next call your lender and get your 10 day payoff. Find the difference in those two numbers and that is the check you will be writing to end your lease early. You can speculate all you want, do that and you’ll know where you stand.
I say at a minimum your $6,000 negative.

I can wait the 10 months. Lol

 

[2FORCEFULL]

Go to carmax and get a buy bid. That will get you really really close to trade in value. Next call your lender and get your 10 day payoff. Find the difference in those two numbers and that is the check you will be writing to end your lease early. You can speculate all you want, do that and you’ll know where you stand.
I say at a minimum your $6,000 negative.

spot on right there and that's how I do it...the math is the same rather you buy or lease, or pay cash for the car... the early pay off on a lease is less because on a lease you pay tax as you go, but no matter how you bought the car, acv is the same..the part that gets everyone bummed is on a lease, you have a cheep payment, and a low down, and top that off, you pay tax by the month....but when you don't want the car,.. you have to come out of pocket to get rid of it...most of the time...the residual is what you have to watch...cars with high residual value have lower payments...BMW does that allot....makes you stay in the car for the term...

so say you bought a new bmw…;

and you pay cash...say 50k plus tax of 4000,..so $54,000. you drive it for 26 months...buy bid is 32k.... so it cost you 22k plus interest you would have made on the cash you put up front...not a lot but when you are counting beans.. they count...so we'll say about $840 sumthin a mo.

and now, same car you do a standard buy...you put 20k down and finance 34k, on a 36 mo loan,payment is 1000 plus, but just for bean counting , 36 payments= 36k, plus 20k up front =56k .so now, you only keep it 26 mon. buy bid is 32k... you have 26 payments made,26k plus 20k, that's 46k out of pocket..car acv is 32k...you still owe 10k on the car, that leaves you with 22 k equity..so you take 22k off the 46 you paid..= 24k.. divide by 26 about 930 sumthin a month to drive the car

now you do a lease same 50k car...you put 4k up front,lease payment $400plus tax..so just say $432 per month..you pay tax on the payment.. not the car..and lets say the residual is 32k...you paid 26 payments about $9900. plus the 4k =13,900 out of pocket so far..=about $550 per month... so now pay off is 10 payments,of 400 per month to a dealer, you don't have to pay the tax unless you buy it..so...32k+4k =36k pay off...so now you have to come out of pocket with 4k... so...4k plus the 14k is 18k
divide by 26 = $690 something a month..

every deal is different,..but I did find it was cheeper for me to lease my wife a new car every year than but a new cars cash every year..I always figured about 12k a year,.. and lease cost me about 6k..so she got a new BMW or mercedes.I had a dealer that used to buy out my leases for clean low mile new cars... lease when the new yr cars hit the lot...never go for the end of the yr deals..


the thing that gets everyone is not doing the math..cash… all up front..finance 20% up front,.. and lease, you pay at the end to get out...even though it's less total money...scream like a stuck pig when you have to come out of pocket for a car you don't want ...lol

 

[2FORCEFULL]

Here's how I live my life,.. I don't like having someone else's money in my pocket...If I owe it ..I pay it... if I have something monthly to pay...I do it automatic on the day due..I never use the grace period..thats there incase something happens..not for every month...on a lease,.. I just do the math and at that point decide how much I just saved over a cash, or financed buy... then I'm happy to write the check...you have money because of all the little savings...it's not how much you make.... it's how much you save..live life below you means,.. not above and you will not only have money,.. but you will enjoy it...

 

[2FORCEFULL]

Go to carmax and get a buy bid. That will get you really really close to trade in value. Next call your lender and get your 10 day payoff. Find the difference in those two numbers and that is the check you will be writing to end your lease early. You can speculate all you want, do that and you’ll know where you stand.
I say at a minimum your $6,000 negative.

less is a positive... not a neg... but good post..

 

[Motoxxxloak]

In the same damn boat at our house. I think we are at 10 months as well, mileage is under, for now. I may have to pre-pay if we do not get out of it. I called Kia/Hyundai leasing (leased a brand new fully loaded Optima in 16) and they said they send it to auction and whatever they get is what they get and we pay the difference. I think I'd be looking at owing like $8k or so; not worth the risk. I will call them again to see if I can just pay the remaining payments (like $4k worth) as Steak & Lobster mentioned. She wants a Jeep and I much rather get her into something else but....you know how that goes.

 

[steak&lobster]

In the same damn boat at our house. I think we are at 10 months as well, mileage is under, for now. I may have to pre-pay if we do not get out of it. I called Kia/Hyundai leasing (leased a brand new fully loaded Optima in 16) and they said they send it to auction and whatever they get is what they get and we pay the difference. I think I'd be looking at owing like $8k or so; not worth the risk. I will call them again to see if I can just pay the remaining payments (like $4k worth) as Steak & Lobster mentioned. She wants a Jeep and I much rather get her into something else but....you know how that goes.

You can just have the dealer you get your new car from do a "courtesy lease return". You just make the remaining payments and they return the car for you.

 

[Ziggy]

Leases are designed to bind you into an attractive monthly, not designed to make it easy to get out of.

 

[Shrub Lurker]

a "good" dash fire will take care of it