Show us the contract. I think it will reflect what is quoted above. That being said, a pull-ahead or any other form of satisfaction of the contract is a very different way of ending a lease than an actual early termination resulting in negative equity.
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With all due respect I agree the calculations are easy, when we’re taking about how many payments are left, or here’s how many miles I’m over when I give the car back. It’s simple math.
It seems you agree that leasing companies have some sort of vested interest in how many miles a car comes back with. And in a lot of cases I would guess most leases end in typical cases. My question was more along the lines of this:
Given the contract says they can pro rate excess miles upon early termination at their discretion, I’m wondering if anyone has experienced this case. Seeing as not many people either understand the question, or I can’t find anything on it, maybe it has not been done before. But I just wanted to ask.
Will take a screenshot of the wording when I get home in a couple hours.
I’m not asking about hypotheticals. That would be the case if there was nothing in the contract to support my question. Again I’ll show the wording later.
Your overage of 5k estimated will be around a $1250 penalty at 0.25/mile (perhaps less if you buy in advance at a discount). Since you will need to still pay your 12 months of payments (unless you sell to a third party like Vroom) I can’t see how it makes financial sense to not just ride out the lease and pay the overage at the end as surely 12 months of payments are well in excess of any penalty you might face at the end.
The numbers I used were just as an example and not the actual numbers. Thanks. Also here’s a screenshot. Read last sentence.
Where did you lease from? I note the kilometers references…
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I believe “Lease terminated early” means you don’t fulfill the lease contract; ie. you terminate it early without making all your payments.
If you make the payments, I can’t imagine they’d penalize you.
Then again, if you’re going to fulfill the financial obligation on your part, it would be silly to turn it in early.
There’s going to be other language in the contract addressing an early termination.
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And the British commonwealth spelling…
Maybe a dumb question, but, OP, are you in the US?
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My original question was whether anyone had experienced lease companies prorating excess mileage on early return. What is hypothetical about that? Not trying to be rude or a troll - It’s either yes or no I haven’t.
I created an example situation to illustrate my point since others did not understand the original question. Anyway seems as though most people have misinterpreted the question and “don’t have time” for “hypotheticals” which I never asked for in the first place.
Thanks to all who were helpful.
I have never seen a lease in the US where miles are pro rated like you’re asking. When you turn it in, you have a mileage limit that you agreed to on the contract.
I have never seen a lease in the US use kilometers.
I’m guessing you’re not in the US. Pretty much everyone here is. Your experience with a non-US leases may vary wildly.
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In US, pretty much all captives compare the odometer at turn in with the total lease allocation in the contract.
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