How can I eliminate/renegotiate an auto lease...

Discussion in 'Random Thoughts' started by Over_Easy, Jan 26, 2009.

  1. Over_Easy

    Over_Easy GEO-STABILIZATION EXPERT Donating Member Registered

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    Well, with the economy sucking wind, and subsequently my monthly income, in addition to my wife starting her own business last September, and subsequently her monthly income initially decreasing as a result, I'm facing the issue of having to do something about the lease on my car. By that I mean get out of the lease.

    Also, in light of my recent moving violation under FL's new "motorcycle only" laws I may be selling the Busa as well, only to get back in the game at a later time.

    I've heard stories of dropping the car off at the dealer with the keys to negotiate a reduced monthly payment, try to trade it in on another vehicle and Lease Trader.

    The car is a 2008 Inifniti G35 sedan, the lease is 39 months, 15,000 miles annually or 48,750 total and it started in August 2007 (almost at half way point). I have 23,000 miles on it now, $482 monthly.

    Anybody have experience in eliminating/restructuring an auto lease?
     
  2. racerV

    racerV Did you say something? Donating Member Registered

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    They aren't designed to be beneficial to you and the finance company will not give you a break. If you turn it in, you are still liable for the remainder of the lease. You need to sell it or trade it in on another vehicle. Do so knowing that you are going to take it in the shorts without any lubricant.
     
  3. CTA_Busa_LE

    CTA_Busa_LE Donating Member Registered

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    It's been years since I worked for a dealer but there should be a buy out price on it, similar to if you just wanted to pay off a conventional loan. I would look at that as well as what the car is currently worth if you were just sell it outright as well as trade. Once you find out where you are at, if you have an equity (not likely with a lease) you could do the buyout then trade or sell the car for something else or possibly just trade it. Depending upon the buyout price you can weigh out if converting to a conventional auto loan would help you out as well. With interest rates being lower it may be an option to look at. Either way it would be beneficial to know where you stand on it as it would be hard to tell if any negotiations that may be made were a good or bad deal for you.

    I suppose dropping it off at the dealer would work but it would be a default on your lease and would kill your credit plus if they auction the car or sell the car for less than your buyout you could be liable for the difference. I'm not 100% positive on all this but this would be my best guess.
     
  4. shawnski

    shawnski Donating Member Registered

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    i work for honda dealership and lease programs are pretty much the same for honda/acura or nissan/infinity.
    just like financing a car you have a payoff in leasing, make a call and find out that number. you can not return the car back till end of lease but you can trade it in or sell it yourself or come up with dollars for whatever payments you have left and turn it in.
    your best result is to put a ad in auto trader or craigslist and try to sell it at least for what your payoff is.
    return the car back and not paying off the lease will result like repo and mess up your credit.

    good luck
     
  5. Over_Easy

    Over_Easy GEO-STABILIZATION EXPERT Donating Member Registered

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    I really didn't plan on the "drop off w/ the keys" plan since my intentions are to get a less expensive car in it's place.

    Can the car be traded in to a dealership other than the one I purchased it from?

    Obviously, a private sale is where I will make the most money. Guess I'll need to find out the pay-off amount and try to sell it for that as a start.
     
  6. shawnski

    shawnski Donating Member Registered

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    yes you can, you have payoff like if you finance the car, they get your car appraised and find what you want and that is it!
    you might be upside down, not sure what your car worth or what your payoff is but most factory financing can go up to 120% carry over with good credit. this would help you if you have negative equity.
    plus you save money on tax when you trade in.
    find the car you want and lease again if you want to have lower payments,
    find deals with very low "money factor" and good residual value.
    some cars they have special lease with even tax credit.

    i leased an acura tl last year and they had a excellent lease program as i mentioned above.

    let me know if you need more help down the road!
     
  7. Revlis

    Revlis Re-Recycled, Busa-Less... Donating Member Registered

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    Lease trader.com Should have some success...

    I'll likely be doing something similar.
     
  8. GSXcite

    GSXcite Squirrel Master Donating Member Registered

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    You can't trade in a leased vehicle and just pay sales tax on the difference as you do not own the vehicle. A dealer can buy the leased car for the payoff amount, but you will pay sales tax on the entire amount of the new vehicle.
     
  9. shawnski

    shawnski Donating Member Registered

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    incorrect!
    as i mentioned above you can trade a lease car like if you finance it.you have a payoff that dealer has to pay off that's all the infinity financing care.
    call your infinity dealer or finance and find out!
    normally the payoff are higher and you will have negative equity!
     
  10. GSXcite

    GSXcite Squirrel Master Donating Member Registered

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