Just wish to know more on the subject if we are not rolling the penalties in a new lease. I had known that we would have to pay the left over lease payments and the ETF (learnt it ranges $200-500) but there may be other costs. (Considering a scenario where we may have to get out of the lease relatively quickly i.e. less than a month and breaking of say a 36 month lease at 21 months)
I have understood of three methods here get out a lease:
Swap it: This is a good option but may take much longer than a month or may be not but I have seen swap leases staying around for while especially if it is not a unicorn
Return it: Easiest, but it is the most expensive as they add more to the penalty. Preparation fees, transportation fees, auction fees in addition to the payments and ETF. BUT there is another major money which is the difference of the sell price (realized value I guess) - residual value
Sell it: Just take it to carmax or get cavana/vroom to do their magic. May be we would break even
Considering 1 may be the safest is there anyways to expedite the same?
For 2, anything major that I maybe missing on the charges like > $500 kinds. Is there any forum / post I can read more on the difference of the auction / residual
For 3, say Carmax would it fetch me a decent value vs auction price. I am assuming yes but any experiences? Is it possible I would be charged an ETF or any other penalties?
There are much general queries and not really based on any numbers (I still have to receive or sign a lease contract) but some experience may help
Thanks.
I would have the contract to read through but thinking here about putting all the effort of getting a lease deal and what if breaking it early which is a possible requirement would be the worst thing ever.
Do the leasing company really hit hard for the 2nd option? How about Hyundai? I have learnt they don’t allow transfers?
If you’re on the West Coast, tred.com is an option too. I sold my Alfa Giulia lease 10 months in (36/10) to a private buyer and broke even (including $350 seller fee), although I did put $500 down (not sure why ) that I obviously had to wave buh-bye to. TRED is a licensed online dealer, so they can charge sales tax from the buyer so the buyout quote is w/o tax. TRED managed all the paperwork, including issuing the payoff to Ally. I don’t have any ties with them except being a happy customer.
I didn’t understand the second point. Current payoff = selling price - lease payments made I assume. You are correct this would be destroying. I’m new to leasing but is this a common practice
I googled but didn’t find much about this or exact terms of any company. May have to reach out to them or wait for the lease contract (that would cost me a lot of time)
If you truly are not going to use the car at all, make sure you also consider the costs of registration and insurance (if it is going to just sit), versus whatever it costs to get out of the car now.
) that I obviously had to wave buh-bye to. TRED is a licensed online dealer, so they can charge sales tax from the buyer so the buyout quote is w/o tax. TRED managed all the paperwork, including issuing the payoff to Ally. I don’t have any ties with them except being a happy customer.