Options for getting out of a Lease
03-30-2005 | 01:49 PM
#1
Thread Starter
Member
Joined: Mar 2005
Posts: 105
Likes: 0
From: So CAL
2003 SL500, 2003 Honda Metro
Options for getting out of a Lease
Hi,
Tarry, I was wondering what is your advice on getting out of a lease. My company moved so I have to put more miles in then what I am allowed. I got into the lease about 9 months ago. At the pace im going, I am 2,000 miles over then what I am allowed.
The options that I have researched (not to hard on the wallet) for me is either go to a leasing type web site and try to sell my lease, or sell the car. Another quesiton I had was if I do sell my lease to another party, am I still responsible for the lease if the other party is not able to continue the lease or they do not fulfill their obligations. Thanks for your time.
Tarry, I was wondering what is your advice on getting out of a lease. My company moved so I have to put more miles in then what I am allowed. I got into the lease about 9 months ago. At the pace im going, I am 2,000 miles over then what I am allowed.
The options that I have researched (not to hard on the wallet) for me is either go to a leasing type web site and try to sell my lease, or sell the car. Another quesiton I had was if I do sell my lease to another party, am I still responsible for the lease if the other party is not able to continue the lease or they do not fulfill their obligations. Thanks for your time.
Last edited by Joe_SSI; 03-30-2005 at 01:52 PM.
03-30-2005 | 02:18 PM
#2
Former Vendor of MBWorld
Joined: Jan 2005
Posts: 583
Likes: 0
From: Cincinnati, OH
This happens all the time.
Depending on who the lessor/lender is will determine your best option.
Options:
1) Find out your current payoff and try to sell it outright. In most cases the market value is going to be lower than your payoff so you will have some negative equity to deal with.
2) Find someone to assume the lease using a site like Swaplease.com or LeaseTrade.com. This will only be an option of the lender will release you from further obligation after the lease is assumed.
3) Stay in it and pay the mileage penalty at the end. The good thing with this option is there is no tax on the penalty and it's basically an interest free use of the car.
That's pretty much it.
Depending on who the lessor/lender is will determine your best option.
Options:
1) Find out your current payoff and try to sell it outright. In most cases the market value is going to be lower than your payoff so you will have some negative equity to deal with.
2) Find someone to assume the lease using a site like Swaplease.com or LeaseTrade.com. This will only be an option of the lender will release you from further obligation after the lease is assumed.
3) Stay in it and pay the mileage penalty at the end. The good thing with this option is there is no tax on the penalty and it's basically an interest free use of the car.
That's pretty much it.
04-12-2005 | 10:19 PM
#3
MBWorld Fanatic!
Joined: Dec 2002
Posts: 2,399
Likes: 1
From: Irvine, CA
07 M6, 05 Noble, 01 S4, Smart ForTwo
I had my M3 for 7 months, and sold it. Leased thru Chase - they are hassle free (1000% less hassle and early payoff fees than MB credit). Anyhow, They just took the residual + remaining depreciation payments (not finance charges) and my payoff was about 52K on a 60K car. I sold it for 51K, losing 1K. Not bad. In CA, you have 10 days to xfer title without paying taxes. This is why I like leasing (except thru MB as I have learned..). I can sell the car and only pay sales tax on the portion of ownership that I've used. Otherwise, you'd be out the 5K or so you spent up front.
If you gave the car back, you'd probably get screwed big time. Sell private party, but first get a payoff quote, and tell them you are NOT giving the car back, just payoff.
If you gave the car back, you'd probably get screwed big time. Sell private party, but first get a payoff quote, and tell them you are NOT giving the car back, just payoff.
:v
