Archived Need to get out of my lease ASAP

[BigDan]

My house just sold and I need to get rid of my $500 a month lease payment. I just want to pay it off with the money from the sale of my house.



Its a 2002 Dodge Ram 2500 4X4 Quad Cab Long Bed with 23,000 miles and is 13 months old. I read somewhere that there will be penitilites if I end it early. How can I get out of this? Current paperwork says lease payoff is $31,000 + penitilies + maybe even the ridusual it $11,000 at end of lease.



Should I just trade it in to a dealer who says "i'll take anything paied for or not"



Thanks a bunch

BigDan

 

[kbond]

Originally posted by BigDan

My house just sold and I need to get rid of my $500 a month lease payment. I just want to pay it off with the money from the sale of my house.



Its a 2002 Dodge Ram 2500 4X4 Quad Cab Long Bed with 23,000 miles and is 13 months old. I read somewhere that there will be penitilites if I end it early. How can I get out of this? Current paperwork says lease payoff is $31,000 + penitilies + maybe even the ridusual it $11,000 at end of lease.



Should I just trade it in to a dealer who says "i'll take anything paied for or not"



Thanks a bunch

BigDan

I don't think you will be able to get out of a lease without penalties. I can tell you for 42k I'd be dropping that thing off at the dealer and saying you can have it. Then with the funds from your house sale, go to Nevada and buy a 2003 HO. Sure it will hurt your credit but that might be the lesser evil of the two. Also typically these "Take anything paid for or not" is a ploy to get you in there and they stack your loan on you next vehicle loan. Can you say screwed. Then you'll be paying 50-60k for a truck. I actually had a friend that did that and paid 35k for a toyota Camry. Wasn't even the 6 cylinder. Where did you buy it? Folsom Lake Dodge?

 

[BigDan]

Yes, the truck came from Folsom Lake Dodge.



I'm thinking that we'd owe the payoff amount to the leasing company plus the residule... which is like 43k.



Does anybody know for sure if that's how it works?

 

[The patriot]

I'd talk to a lawyer....

My MIL has gotten herself out of leases a few times. It will cost you $$$ but I dont know how much.

I'm fortunate enough to pretty much own everything I have outright.

Eric

 

[KBalzuweit]

What ever you do don't just give it back!! The lease company will just send it to the auction and take you to court for the difference. Call the lease company and get your buy out. You will most likely find you owe thousands more than its worth. The only option is usually down trading (buy a really cheap car and add the diff between what the dealer gives you and what you). The bad part is you end up with $3000 car and finance $10000. Plus your credit has to be really strong to do this. I have been around the car business for 14 years and leasing a car to a person is the most profitable thing for a dealer. Most people who lease have no idea what they actually are paying, they only look at the payment. Maybe you will get lucky like a friend of mine and the truck will get totaled and the insurance company takes the hit. Oh thats only good if nobody gets hurt like in his case. If I can be of any other help let me know. Karl

 

[jrollins]

the main problem you may run into is that many lease companies require you to have possession of the vehicle for so long, that is even if you paid the first part of the lease in full (not including the balloon payment) they will not allow you to return the car until you have had possession for a said length of time; IE a four year lease normally will allow you to return the car in two to three years early but not before even if the lease is paid in full. From my experiences leasing a vehicle is almost never a way to go...

 

[Pit Bull]

Call the lease company and get your buy out. Then like you stated below pay it off and now you own a low mileage truck If you then trade it in and buy something else your just taking the hit on trading a low mileage almost new truck and getting it in the shorts again. Get the payoff and pay it off. You might consult a lawyer to make sure that the lease company does not screw you. That should not cost more then $100 for the Lawyer to look over the lease and tell you where you stand and what you will pay. Good luck. Don't feel bad I leased once. That was the last lease I did.



"My house just sold and I need to get rid of my $500 a month lease payment. I just want to pay it off with the money from the sale of my house. "

 

[esdd]

For what it's worth; Did you read the lease before signing? Or did the lower payment close the deal? I am in a lease that I am happy with, the leasing co. only leases commercially or trucks, I have a foxed residual and a verry small buy-out fee at the end of the lease. Also the terms of early buy-out are clearly stated as the buy-out fee + residual + principal on remainder of payments. Is this a Chrysler Credit Lease or an independent lease? You may be able to convert this lease to a conventional loan by re-financing and including the residual using the same financial company. There are many ways out of a lease if you know your contract, don't take no for an answer, make the leasing co. bend to your terms. Commonly the first two people with the leasing company cannot re-negotiate the terms to suit you. Remember MONEY TALKS, AND BULL SH** WALKS!!

 

[jrandol]

You can trade in a lease at anytime. Depending on the terms and length of the lease will depict how you fair. There is always a current buyout or payoff on leases that you can call your leasing company and they will provide for you. If you need to get out, about the only option I can see that you have is to trade it in and buy outright. We had pretty good luck with this trading the wifes Civic in after less than 2 years on a 4 year lease on a new Explorer. Once again it all depends on your lease terms but we only ended up paying off an additional $530 from what we received on trade in from what her payoff value was. Hope this helps some.

 

[IdaH.O.Train]

BigDan,



On the two leases I have gotten out of, as long as the payoff amount was met, that's all the lease company cared about. Of course, I took it in the shorts to the tune of $6K on this last trade-out. When researching my options, I called the lease company and asked them how much it would cost me if I just wanted to turn the truck in early. They told me it would be the remainder of the lease payments. What sense does that make to give them your truck and a bundle of money?



As previously stated, leasing is often times the worst possible thing to do. Although the payments may seem right, as the old saying goes, "You can't get somethin for nothin. " And long-term leases, they're the worst thing you can do. I was told by a car salesman, if you're going to lease, make it no more than a 24 to 30 month term.

 

[BigDan]

This sucks. My lease is through Wells Fargo. I guess I'll stick it out for the remainder. At the end my Resuduial is only $11,000 so I'll private sale at $17,000 pay off the 11,000 and walk with $6,000 in my pocket.

 

[Pit Bull]

Originally posted by BigDan

This sucks. My lease is through Wells Fargo. I guess I'll stick it out for the remainder. At the end my Resuduial is only $11,000 so I'll private sale at $17,000 pay off the 11,000 and walk with $6,000 in my pocket.

I assume you are paying $500 per month for 60 months = $30000 paid at the end of the lease. Then you can buy it for $11,000 at the end of the lease. Meaning you will have $41,000 + whatever you paid when you started the lease. Not a bad deal, sounds about like what you would be paying if you would of bought it. Just remember most people that buy any vehicle with mimumin down are upside down in their vehicle for the majority of the 60 month loan payment interval. Also at the end of the lease you will have a little over 100K miles on your truck and it will be worth keeping if you want to keep it. Nothing lasts like a CTD Look at this as a good thing, it might keep you from trading and losing more money on car deals.