Can i get out of a lease

[03SiBlack]

Im set up for a four year type of lease thing althought its not like a lease because they stopped all leases or something in ny i think. Its owned by some other party or somethign its confusing. But my question is will they let me get out of the lease within like a year from now without a penalty or something?

[blacksihatch]

Do what I did and find out what the buyout of your car is by calling Honda so know, or go to a Honda dealership and tell them you want to buy out of your lease. That's what I did.

[blacksihatch]

Originally posted by blacksihatch
Find out what the buyout of your car is by calling Honda so know, or go to a Honda dealership and tell them you want to buy out of your lease. That's what I did.

[PAsi]

getting out of a lease is the most painful thing ever. and you totally lose money real bad. i got out of my lease thinking i could sell my jeep privately. but no, now i'm stuck with 2 cars and 2 payments... anyone wanna buy a 99 Jeep Wrangler?

[2.0L Monster]

It is not a lease, its a loan. Just you have to give the car back or pay a ballon payment at the end of the loan. New York is weird.

[blueiedgod]

Originally posted by 03SiBlack
Im set up for a four year type of lease thing althought its not like a lease because they stopped all leases or something in ny i think. Its owned by some other party or somethign its confusing. But my question is will they let me get out of the lease within like a year from now without a penalty or something?

2 liter monster is right, there are no leases in NY. To make the long story short, one guy hit someone in NY, the victim sue his insurance company and leasing company, as leasing company is the legal owner. Since then there are no leases in NY metro area.

Anyway, what you have is a baloon payment. When you are ready to get out, you will have to buy it out from the bank that financed it, it could be Honda or whatever bank they used. If it is honda, then set up your online account at https://www.ahm-ownerlink.com/login.asp it will give you the exact pay off.
Your other option is to pre-pay the payments or pay the early termination penalty, whichever is lesser, and turn in the car. But then, you are out of money and no car. If you are buying another car, then you can roll that lease into the new car, but you better be sure that you want to keep this car until the last payment is due, because you will be severely upside down.

We had this discussion about a year ago here, and I basically still stand on the fact that leases are not for private individuals. Leases are good for companies and corporations that can write off the payments. Individual business owenrs can benefit from leasing as well, but not average person. Put it this way, cars always depreciate, so when you lease, you are paying for depreciation as well letting someone (leasing company) make money on your misfortune. Here is a comparison, for the sake of argument, we will keep the prices the same $16,000.
48 month lease:
$1500 down
$ 500 security - refundable at lease end, not sure if it is charged on baloon payment, probably not.
$500 aquisition fee
$960 tax on the whole purchase price (some staes tax on the purchase price, some tax on lease payments) Since you have a baloon payment, you are most likely taxed on the whole purchase.
You have over $3010 upfront
$150-$250/month payment depending on credit score

At the end of 4 years you turn the car in and have nothing to show for it, except payments. You have a total out of pocket $3010 +($150 to $250)x48= 10,210 to $15,010 with no equity.

60 month loan
$1000 down
$960 taxes (6%)
Finance at 2.9% if you have good credit
$250-$300/ month in payments.
We are going to keep the car for 48 months and then sell it or trade in. At the end of 48 months you have $13,960 to $16,360 out of pocket, but you also have at least $8000 in equity in form of a car. I believe residuals on the Civic are in the 50% range. Plus figure you will owe $3000 to $3600 on the loan for the remaining 12 months, you come out $4400 to $5000 on top.

Good luck with leases and baloon loans. I can't wait to see millions of dissatisfied Mitsubishi customers who jumped on the "no downpayment, no payments for a year" deal. When they go in to trade in the mitsu's and realize that they are about a year behind in payments and need to come up with $6000 - $8000 to get out of car. Once again, there is no free lunch.

Good luck

[K-Series]

The upside to a lease is that the payoff (like most things) is negotiable. They'd rather sell you the car at the end of the term than take it back and try to sell it themselves. Especially a market "giant" like the EP3. :rolleyes:

You would still end up paying more than you would have if you financed, but the "equity" lost could be gained back with good negotiating skills.


Steve

[Siman]

Originally posted by blueiedgod


Good luck with leases and baloon loans. I can't wait to see millions of dissatisfied Mitsubishi customers who jumped on the "no downpayment, no payments for a year" deal. When they go in to trade in the mitsu's and realize that they are about a year behind in payments and need to come up with $6000 - $8000 to get out of car. Once again, there is no free lunch.

Good luck [/B]

I never thought of that DANG SUCKS FOR THOSE PEOPLE!:confused: :eek: