I’m back again asking about early lease termination. Now I only have 6 months left on my 2020 XC60 T5, car is in great shape with only 23,600 of 45,000 miles used.
I’m told by VCFS the early termination cost is the 6 months of payments and the $350.00 turn in fee, taxes on the termination fee. Thats all, but the lease agreement talks about an additional charge and every car lease website talks about penalties - so does anyone know are there additional early termination penalties? Wouldn’t they have to disclose this to me? Once paid they will send someone out to inspect the car and then I can return it to the dealer where I purchased. Other than what the inspector notes on the inspection report, is there any possibility of more being found once I turn the car in? I have leased many vehicles over the years and have never had excess wear and tear charges.
My other option would be to buy out the vehicle which I was told by VCFS would be $34,378.86, title it in my name and pay the taxes (9% I think in PA) then turn around and sell it. Over the summer this looked like a good way to go, but now the quotes I’m getting online (have not gone to Car Shop, etc to confirm yet) are showing I would likely be in a negative equity position greater than the early termination option above.
Finally I am confused as to where it says in the lease that I can’t sell to a third party? In my lease under return of vehicle at scheduled termination date there is the following “if, you decline your purchase option but a third-party, promptly at lease termination, pays the Assignee for the vehicle in an amount equal to the Residual Value plus the turn in fee, the Assignee will waive any excess wear and excess mileage charges”. If I chose to payout the 6 months remaining lease why can’t I then sell it to a third party?
Just trying to understand all my options. I appreciate all your knowledge and willingness to educate us non car people.
It’s their car, not yours and they can make the rules. Including why you can’t sell it.
They have 2 choices, pay 6 months, or whatever they get at the auction. Be careful as the auction option might cost you more. Make sure it’s just 6 months.
Two different things: you’re trying to end your lease early, which is not the same as surrender at disposition (date when your lease technically ends). Paying the obligation early doesn’t move the date on the calendar. During the term of the lease, it’s VCFS and you, hip-to-hip, until your lease ends or you eject (as you’re trying to do now).
Others have reported calling VCFS, getting an inspection, turning it in early, and only owing remaining payments + disposition (no surprises).
Just look at lease contract, find residual value add payments for remaining months and compare with currect payoff. RV plus remaining payments doesn’t include sales tax and purchase fee.
Was curious on a new Volvo lease, since the market is finally starting to come back around. Stumbled upon this topic, that is very similar to what im dealing with. A year ago the postive equity was great. Problem was, I would have had to refinance my lease into a purchase in order to sell or trade to a dealer. Obviously never did it. Now the refinance rates are doubled, the equity is near break even (maybe even negative). At this point (for me at least) it makes sense to keep it for the remaining 6 months and hope the market does better. If not it will get handed back in, until leases come back around. We have multiple vehicles, so its not needed. Our $359 a month xc60 lease would be like $600+ if we did the same DAS. 2020 was definitely a good year to buy and lease
