Currently leasing a 2015 Lexus RC350 F-Sport, and I have about 6 months remaining on the lease. I am currently paying about $370 a month for it, which is fine.
However, I am actively looking at cars nevertheless, and have seen a few very attractive deals. I was wondering if you guys know of certain dealerships or whether its common practice, for a competing brand to payoff the remainder of your lease if you decide to get a new car from them? I know that many will take whatever you still owe on the car in terms of payments and just stack it on your new car. However, what I am looking for is a full on waiver - basically them paying off the rest or giving me a check for whatever I still have to pay.
I am in no rush, I can probably wait out till the end and see whats up then, but just wanted to see if there are any options out there and how it works.
It’s easier if you have equity in the vehicle. But you can always negotiate on a new lease without mentioning your current one, and then bring it up at the last minute. “I can sign today if you buy out my current lease, otherwise I’ll have to wait until the lease is up or I can sell it privately.”
Hey Guys, I have a Jaguar F pace leased from Chase bank which doesn’t allow lease transfers. I am getting transferred to a different country, and can’t take the car along with me. I am new to lease early termination, and wanted to understand the options I have. I called chase and they suggested two options
Early termination charge which is adjusted lease balance minus vehicle equity fair value
Purchasing the vehicle and selling to third party
I wanted to understand these options, and get suggestions. The vehicle has 20 months of lease left
Hey Shantanu,
Curious to know what option you chose and your reasons for doing so. I’m considering a 2 year lease and I need to account such a possibility of early termination. Is there anything that I should consider before I get in ?
Both of these options suck. You need to figure out which one sucks less. for that we need more info such as
a) Current payment
b) Current payoff
c) Current kbb value
Your options are limited, but I will tell you what I did when I had a lease short of maturity and wanted to get a newer car.
Years ago I leased a Honda Accord for 36 months with 12K miles/per year allowed (@$0.15/mi for over 36,000 miles at turn in). I ended up putting 145,000 miles on it by the time I had to turn it in. If I returned it to Honda I would have to pay a hefty fee for excessive use and wear. I didn’t want to buy that car. And Honda didn’t allow me to transfer a lease. So, one day I washed, vacuumed and waxed it, took 30 good quality pictures, with lots of close-ups (including for any dings and scratches car had), and posted it on autotrader.com and cars.com
Shortly after I posted it online someone called, we agreed on price, he came over, brought a certified check and waited for two weeks before I could pay off the vehicle, get a title and transfer it to his name. Within three weeks car was sold, title transferred (I added $1800 to the amount I sold the car for and paid off my lease). I drove that car 109,000 miles over what I was allowed, and paid $0.016 (less than two cents) for each mile I drove over the limit.
I also was able to turn in my leased Acura before lease maturity. The balance of payments were added to the cost of the new lease**, they were rolled into my payments, but with incentives and discounts I received on a newer car I ended up making a better deal than most people who lease the same car without negative equity in trade.
None of the above options are sure bets. It’s not easy to sell a car that you don’t own. Someone must have a faith that you will not take their money and disappear into thin air.
As to second option, you will have to get large discount on vehicle price and there must be additional rebates and incentives for you to bring a negative equity and not end up with the deal that sucks.
Good luck!
**Dealership had appraised my car at the total payoff amount minus the $ (dollar amount of my monthly payments) times number of months my lease was short of maturity.
I had an Accord in 2003, that was 15 years ago. Back then no circumstances changed. I knew I would drive it a lot, but was young, needed a reliable car , couldn’t afford to buy it and decided to lease Accord and deal with over the limit miles later (which I did by selling it in the end).
“Changed circumstances” apply to my Acura, which happened relatively recently.
You are wasting your time with your sarcasm and sneer comments. I don’t have a hidden agenda and don’t come here to tell tall tales.
BTW, in retrospective I did the right thing. I leased a car, paid the price of a leased car, ended up using it 4 times above the limit and paid less than two cents for each mile driven in excess of what I was allowed to.
