How do I get out of a leased vehicle?

[Chino Kapone]

I Leased my 06 Ridgeline at the end of 2005. (good idea then, bad idea now) It currently has around 35k miles on it. The gas mileage is not nearly as good as what it originally stated it would be. I average 15mpg. I bought it cause it is very very handy for doing deliveries for work. I rarely do deliveries anymore. I hire more people out. I am either looking at getting an older toyota pick up or an older s2000. I need something that isnt going to run $80 a fill up. Or I could fix up my old 1985 toyota carolla ae86 or my 96 civic and drive them around again. Really I should probably sell both of those as well and just cut everything down.

Anyway, I am looking to try and get rid of my truck. Any ideas? Has anyone gotten out of their lease in the past? Should I just sell it? If I trade it in, I highly doubt Im getting shit and I would be upside down in a Leased vehicle. I just dont want to spend $300 - $400 a month in gas this summer.

[Arch Stanton]

Open the door and step out. Should be the same as any other car.:icon_mrgr

[mikeybot]

Roll down the window and do it Dukes boys style?

[Three Hole Puncher]

I Leased my 06 Ridgeline at the end of 2005. (good idea then, bad idea now) It currently has around 35k miles on it. The gas mileage is not nearly as good as what it originally stated it would be. I average 15mpg. I bought it cause it is very very handy for doing deliveries for work. I rarely do deliveries anymore. I hire more people out. I am either looking at getting an older toyota pick up or an older s2000. I need something that isnt going to run $80 a fill up. Or I could fix up my old 1985 toyota carolla ae86 or my 96 civic and drive them around again. Really I should probably sell both of those as well and just cut everything down.

Anyway, I am looking to try and get rid of my truck. Any ideas? Has anyone gotten out of their lease in the past? Should I just sell it? If I trade it in, I highly doubt Im getting shit and I would be upside down in a Leased vehicle. I just dont want to spend $300 - $400 a month in gas this summer.

First step is to call the leasing company and find out what your "buy out" amount is. It's pointless to even begin to plot a strategy until you've got that all important figure.

Oh... and prepare yourself. You're probably going to be shocked at how upside down you are... buyout amount vs. Blue Book value.

You'll probably be 'wearing the sombrero'... top heavy that is.

Let us know when you get the buyout, and we can go from there.

[Chino Kapone]

Open the door and step out. Should be the same as any other car.:icon_mrgr

LOL this made me laugh very very hard.

First step is to call the leasing company and find out what your "buy out" amount is. It's pointless to even begin to plot a strategy until you've got that all important figure.

Oh... and prepare yourself. You're probably going to be shocked at how upside down you are... buyout amount vs. Blue Book value.

You'll probably be 'wearing the sombrero'... top heavy that is.

Let us know when you get the buyout, and we can go from there.

Ok, cool. Thanks puncher. Yeah, I figure its not going to be pretty. But in the long run it might be for the best. I still have another year and a half on the lease.

[Three Hole Puncher]

LOL this made me laugh very very hard.



Ok, cool. Thanks puncher. Yeah, I figure its not going to be pretty. But in the long run it might be for the best. I still have another year and a half on the lease. The best way to rid yourself of a car fleece (props to Dave Ramsey) is to private sale the car(to get the max $$$) and then take whatever proceeds you're left with, and buy-out the lease. Even if you're upside down... it's best if you just scrape up whatever amount you're short, and then put a nail in the lease coffin for good and all.

Fleeces blow to begin with, and if you're going to "trade" this truck in for another one(leased vehicle), you're just rolling the loss over and digging the hole even deeper... and everybody knows that the best thing to do when you're in a hole is... STOP DIGGING.

Good luck, bro.

[Ted the Poster]

Unbuckle your seatbelt, disable the airbags, and hit something sturdy at a high rate of speed. That should get you right out of that car.

[Three Hole Puncher]

Unbuckle your seatbelt, disable the airbags, and hit something sturdy at a high rate of speed. That should get you right out of that car.

...but you'll still be balls deep in the lease.

[Sinn Fein]

Go car shopping...

If you are looking for a new car, you can probably address both issues at the same time. My father bought a vehicle and still had 3 months to go on his lease. The dealer bought out the lease. They do it all the time.

[Three Hole Puncher]

Go car shopping...

If you are looking for a new car, you can probably address both issues at the same time. My father bought a vehicle and still had 3 months to go on his lease. The dealer bought out the lease. They do it all the time. Three months is one thing... the dealer probably didn't give your father TOO bad of a shelacking in the bargain what with only three payments left.

It sounds like Chino has a coupla YEARS left on his lease. If a car dealer "buys you out" of a lease with years left on it, trust me, they're going to gut you like a mackerel on the deal.

[ih8Uboo-boo]

You could also try to get someone to assume your lease by listing your car on Leasetrader (www.leasetrader.com)

[Sinn Fein]

They didn't penalize him in the least. He didn't discuss the trade when they negotiated his price. You never do that, unless you just fell out of a tree. They bought out the lease because they knew they'd be able to sell the car. After he made the deal, they asked him about his lease. He told them he was turning it in. They said they wanted it. Car dealers can buy out a lease cheaper from the lease company than a consumer can.

[Arch Stanton]

LOL this made me laugh very very hard.



Nice!

Also, check the contract, see if you can get out early, possible transfer whatever. You may have a shot, or you have to suck it up.


Oh, no more leases. Just purchase.

[Nortonsmeatytit]

You need to have the buyout figure first as others have mentioned. Are you over the mileage terms on the lease, 12,000/15,000 miles per year? if you are, get ready to be bent over the wood shed & pounded w/out lube, as if the buyout isn't enough the mileage over costs are brutal. Remember in a leased vehicle you don't technically own it, the leasing company does (they can offer you the buyout price on actual ownership of the vehicle if you want, otherwise you just turn it in) , the benefit of a lease is that you can get into a more expensive car for less $$$ per month as opposed to financing the vehicle to own it long as you adhere to the mileage terms, the bad thing is that you're stuck under the contractual obligations to payout the balance of the leasing payments within the time term of the lease, tough to unload gas guzzlers this way.

[Three Hole Puncher]

They didn't penalize him in the least. He didn't discuss the trade when they negotiated his price. You never do that, unless you just fell out of a tree. They bought out the lease because they knew they'd be able to sell the car. After he made the deal, they asked him about his lease. He told them he was turning it in. They said they wanted it. Car dealers can buy out a lease cheaper from the lease company than a consumer can.

Again... three months left on the lease. We're talking, what? Three payments left? A coupla grand? If that? For all intents and purposes, your dad owned that car free and clear.

Chino isn't anywhere near that situation... he's probably looking at a coupla ten thousands dollars. Any dealer that "buys out " that lease is just going to roll Chino's negative equity over(plus some) into a new lease or new car purchase, and reset the clock at 4/5 years... and Chino goes from up to his balls to up to his chin.

[Chino Kapone]

I always told myself i would never lease a vehicle. I should really listen to myself more, cause apperently Im really smart but do really dumb things. (see my toe trigger thread eek). My payments are $380 a month compared to $560 a month if i would have bought it outright

I owe $20,910. I have 16 payments left. The KBB price is $19,280-$20,520. I want to buy a vehicle for $15,000 or less. So trading it in really isnt an option. I really like the Toyota tacoma x runner and found one for $15k, but I think gas mileage is just as bad. I would perfer to be getting 20+ mpg. I think something older like an 01 tacoma or older would be best for my situation right now. Im not sure the mpg on those. Or an 02 s2000... I think I can get one for around $15k and they get better than 25mpg.

Thanks for the help.

[thegreatgazoo]

Go car shopping...

If you are looking for a new car, you can probably address both issues at the same time. My father bought a vehicle and still had 3 months to go on his lease. The dealer bought out the lease. They do it all the time.

Best thing to do with a lease is to notify them with about 7 months to go that you are not sure that you want to exercise the buy out. Most dealers sell the car to a bank who then leases it back to you. At the end of the lease the bank does not want the car back so you can bargin with them. The result is that you renegotiate the buy out and get out of the lease with about six months to go. I have done it twice and am planning to do it with my new car in about another year. each time, I bought out the car/truck for less than it was worth / had the bank refinance it at a low rate and had them forgive the last six months of my lease.

Usually don't like leasing but since I do a schedule C , I need the deduction.

Best thing to do if you have years left is to call up the bank/dealership, whoever still owns the car and tell them that you are interested in buying the car if they can renegotiate the buyout. If you do that , see if you can sell if for as close to that price as possible and give the money to the bank and terminate the lease. Good luck.

[Sinn Fein]

Again... three months left on the lease. We're talking, what? Three payments left? A coupla grand? If that? For all intents and purposes, your dad owned that car free and clear.

Chino isn't anywhere near that situation... he's probably looking at a coupla ten thousands dollars. Any dealer that "buys out " that lease is just going to roll Chino's negative equity over(plus some) into a new lease or new car purchase, and reset the clock at 4/5 years... and Chino goes from up to his balls to up to his chin.

Since you can't let go of this...

He didn't spell out the terms of the lease until after BOTH of my replies, SO STOP BUSTING MY FUCKING BALLS. He didn't say he was almost $21K in the hole and had 16 fucking payments left until AFER I posted. He said it was the end of 2005, since most leases are 2-3 years - I figured he was getting near the end. Understand now? Christ...

In my father's case it was a 2-year, so no, there is absolutely NO FUCKING WAY he would have owned the car free and clear.

[Sam_Adams]

I always told myself i would never lease a vehicle. I should really listen to myself more, cause apperently Im really smart but do really dumb things. (see my toe trigger thread eek). My payments are $380 a month compared to $560 a month if i would have bought it outright

Jesus fuck, how did you get yourself into that fella? I'm saving up a little bit of cash and with my downpayment the monthly statement for a 2008 Xterra will be about $250 a month.

I could never lease a vehicle. I already pay for a place to live that I don't own(apt) and I need to own something.

Good luck with it. Just pray for a hail storm :action-sm

[Chino Kapone]

Since you can't let go of this...

He didn't spell out the terms of the lease until after BOTH of my replies, SO STOP BUSTING MY FUCKING BALLS. He didn't say he was almost $21K in the hole and had 16 fucking payments left until AFER I posted. He said it was the end of 2005, since most leases are 2-3 years - I figured he was getting near the end. Understand now? Christ...

In my father's case it was a 2-year, so no, there is absolutely NO FUCKING WAY he would have owned the car free and clear.


Its all good either way. I appreciate the info and wish I could pull some shit off like what you said. I should have been more clear in my originial post. I bought it Dec. 31st 2005. Brand new. Got a 3.5 year lease @ 15K miles per year maximum. I have had this mother fucker keyed up and down, dents taken out, lost one of my $250 keys. Its been a great truck, but these things on top of gas prices have really made me not want a nice car anymore. Im kind of sick of it. I just need a well running easy on the gas kind of vehicle that I don't need to worry too much about.

I am willing to eat the rest of the cost of the vehicle if I can't sell it for the note. Im crunching numbers now and I can lose $1000-$1500 on it and be ok for the rest of the year. I am also looking at what the trucks are selling for around here and they are still selling for like $22k with the amount of miles I have on it.

[Chino Kapone]

Jesus fuck, how did you get yourself into that fella? I'm saving up a little bit of cash and with my downpayment the monthly statement for a 2008 Xterra will be about $250 a month.

I could never lease a vehicle. I already pay for a place to live that I don't own(apt) and I need to own something.

Good luck with it. Just pray for a hail storm :action-sm

My credit was good enough I barely had to make a down payment. :D

They were asking $31k for it brand new and I got it for $27k.

[Sam_Adams]

My credit was good enough I barely had to make a down payment. :D

They were asking $31k for it brand new and I got it for $27k.

Well with a lease you ALWAYS lose money unless it's a car for business only and you can write it off on taxes.

I'm not worried about credit, I'm more concerned with low payments so I'm not paying $600 a month for a vehicle and insurance.

How much is your insurance on that thing?

I'm going to give them about $9,000 in cash for a downpayment and a $4,000 trade-in for my truck (2001 w/ 106k) so I should be somewhere between $215-230 a month.

And there isn't much point in getting a used Xterra because even with one having like 40k miles it's going to run around $20k. So, I might as well get a brand new one for around $26,000

[THE FEZ MAN]

5 gallons of gas a road flare and a half decent alibi, thats a sure fire way to get out of that lease

[d0uche_n0zzle]

A gallon of gas and a book of matches use to do the trick.

However, since CSI came along it's gotten a lot harder, those bastards.

[JimsInfectedEye]

Can't you leave the keys in it in an undesirable neighborhood?

[Chino Kapone]

Can't you leave the keys in it in an undesirable neighborhood?

Im living in North West Arkansas..... Isnt that undesirable enough?

[Mabe]

Dont forget that while a S2000 may get 25mpg, it also runs on 93.

I'd buy a funner car that can tow a little and buy a $500 trailer.

[oandapartycock]

If you're only paying $380 a month (vs the $560) with only 30k miles on it, I'd say you're ahead of the game. After owning it about 30 months, you're averaging 1000 miles a month which puts you pretty below the annual 15k.

The way dealers make money on a trade is the overages on the mileage, and if you're not going over, I'd say you're ok.

Also, gas mileage savings takes a long time to recuperate. Consumer Reports did a study saying it takes about 3.5 years to recoup the extra $3000 for a Hybrid (But that was last year when gas was under $3.00 a gallon.

At $3.75 a gallon, going from a 15mpg car to a 20mpg car saves you only $830 a year. You can do your calculations here:

http://www.mpgomatic.com/mileage_calculator.html

Maybe dump that $1500 or $2000 you were willing to take the hit on the truck into your Honda or Toyota and use those more often. Ups their resale value too and keeps the mileage down on your lease.

[Chino Kapone]

If you're only paying $380 a month (vs the $560) with only 30k miles on it, I'd say you're ahead of the game. After owning it about 30 months, you're averaging 1000 miles a month which puts you pretty below the annual 15k.

The way dealers make money on a trade is the overages on the mileage, and if you're not going over, I'd say you're ok.

Also, gas mileage savings takes a long time to recuperate. Consumer Reports did a study saying it takes about 3.5 years to recoup the extra $3000 for a Hybrid (But that was last year when gas was under $3.00 a gallon.

At $3.75 a gallon, going from a 15mpg car to a 20mpg car saves you only $830 a year. You can do your calculations here:

http://www.mpgomatic.com/mileage_calculator.html

Maybe dump that $1500 or $2000 you were willing to take the hit on the truck into your Honda or Toyota and use those more often. Ups their resale value too and keeps the mileage down on your lease.

Wow. Baggers, thanks for the posts. I <3 teh bag.

Part of the reason I wouldnt mind getting rid of my truck is cause of the payments. If I can get something cheaper and could save between $150-$200 a month on payments and insurance, then save maybe $25-$75 on gas a month. That would be some serious cash I could put towards my taxes and a few other things I need to take care of.

I should probably drive my other vehicles around I just havnet had the time to fix them back up. My Civic gets 30 mpg for being a tricked out little ride. The carolla averaged around 25, but thats cause its 22 years old and I would consistently drive it @ 7-8k rpm. I have never driven a more fun car.

Thanks again for the posts :D

[Mule Spanker]

Stop making the payments and let them repo the car, problem solved. No?

[DonTheTrucker]

I Leased my 06 Ridgeline at the end of 2005. (good idea then, bad idea now)

Leasing a car is NEVER a good idea. Not then, not now. Leasing is for when someone else is paying for your car (like a company car).

You're gonna lose money on it. No two ways about it. Bite the bullet and chalk it up to stupid tax. If you're lucky you can have the dealer buy you out of the lease on a new car BUY, but you're paying anyway. They just tack the extra money onto the purchase price of your new car. It's a shitty way to do things but if you don't have the cash to buy out of your lease, it's one way to get out of this money trap.

The ONLY good thing you have going for you is the good residual value of Handas. You'll lose less money than if it were a Kia at least.