Lease early termination?
06-10-2006, 11:57 AM
#11
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So arialcam you still lost your entire first payment right, about $3600?
I got the car below invoice and didn't put anything down except the first months payment, registration fees and a few document fees whcih came to around $700. My payment before taxes was $337 a month.
If I had put up the larger amount, the payoff would have been that much less. So instead of $26500 the payoff would have been $23500. You would only 'lose' the $3000 if you assigned the lease to someone else instead of paying it off.
But I prefer to put as little down as possible on a lease. Especially on a deal like this one with such a low interest rate.
06-10-2006, 05:09 PM
#12
Originally Posted by aerialcam,Jun 10 2006, 02:57 PM
Not at all. The $299 lease deal from Honda had an estimated driveoff of around $3600 which included a capitalized cost reduction of around $3000 and assumed you were paying close to the MSRP for the car.
I got the car below invoice and didn't put anything down except the first months payment, registration fees and a few document fees whcih came to around $700. My payment before taxes was $337 a month.
If I had put up the larger amount, the payoff would have been that much less. So instead of $26500 the payoff would have been $23500. You would only 'lose' the $3000 if you assigned the lease to someone else instead of paying it off.
But I prefer to put as little down as possible on a lease. Especially on a deal like this one with such a low interest rate.
I got the car below invoice and didn't put anything down except the first months payment, registration fees and a few document fees whcih came to around $700. My payment before taxes was $337 a month.
If I had put up the larger amount, the payoff would have been that much less. So instead of $26500 the payoff would have been $23500. You would only 'lose' the $3000 if you assigned the lease to someone else instead of paying it off.
But I prefer to put as little down as possible on a lease. Especially on a deal like this one with such a low interest rate.
How many months of your lease had you paid when you sold it? Thanks.
06-10-2006, 05:37 PM
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How many months of your lease had you paid when you sold it? Thanks.
Like Platinum I only had a few thousand miles on the car and it was just taking up space in the garage. Besides, I'm getting married in a couple of weeks and we're moving from Los Angeles to Bellingham, Washington. Not exactly convertible weather up there...
Bellingham isnt that bad but yeh I hear lot sof snow during winter if its cold in the PNW 
06-11-2006, 12:51 PM
#15
Originally Posted by aerialcam,Jun 10 2006, 08:37 PM
12 months. I had the car 1 year and 1 week.
Like Platinum I only had a few thousand miles on the car and it was just taking up space in the garage. Besides, I'm getting married in a couple of weeks and we're moving from Los Angeles to Bellingham, Washington. Not exactly convertible weather up there...
Like Platinum I only had a few thousand miles on the car and it was just taking up space in the garage. Besides, I'm getting married in a couple of weeks and we're moving from Los Angeles to Bellingham, Washington. Not exactly convertible weather up there...
Due to personal reasons, I might have to sell the car, but no way that'll happen for 29k.
06-11-2006, 07:08 PM
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Any ideas why my payoff number would be SO much larger than yours?
I'd have to see your lease agreement, but something sounds fishy with your lease. How much is your residual? Mine was $19862 which is 59% of the MSRP. Your gross capitalized cost should be around $30500. Did you pay any driveoffs or did they lump them into the capitalized cost?
Your payments look right, so if you keep the car for the lease term it doesn't matter. If they inflated the residual value in order to charge you more in interest, it will only screw you if you want to buy the car at the end of the lease.
PM me if you want to go over it.
06-12-2006, 10:44 AM
#17
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Originally Posted by erik,Jun 11 2006, 01:51 PM
That's interesting. I'm at a year too, have 6000 miles on it. But my payoff number is $29k. I got the car for invoice. I put nothing down, and my payment is $373. Any ideas why my payoff number would be SO much larger than yours?
Due to personal reasons, I might have to sell the car, but no way that'll happen for 29k.
Due to personal reasons, I might have to sell the car, but no way that'll happen for 29k.
06-12-2006, 02:35 PM
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I can only think they added some things to the capitalized cost. If you want to share that, the money factor (interest rate) and residual we can provide a more informed comment.
06-12-2006, 02:55 PM
#19
Ah, this is just great. I'm starting to think I got the car for $500 over invoice, but I know that is it, but for someone reason, I'm thinking I demanded invoice. Damn it, this sucks, I can't remember.
Anyway, I have the same residual as aerial, 59%, same exact $ amount. But my gross capitalized cost is way different, $31815. I got the best rate, because this was a point of contention, and the finance manager stepped in and "helped" me out with it. Helped is in quotes, because now, maybe she didn't. The MF isn't on the paperwork, but I remember it being pretty low.
On the right, there is a line and it states the agreed upon value of the vehicle is $30544.
All I paid up front was the first month plus fees, in fact, my paperwork states I had $66 for cap cost reduction.
Ok, folks, so let me have it, should I be kicking myself in the rear for not paying closer attention to the paperwork!?!?
I also have a rent charge of $1542. Is this normal? I might as well start learning so I don't **** up my next deal!!
Anyway, I have the same residual as aerial, 59%, same exact $ amount. But my gross capitalized cost is way different, $31815. I got the best rate, because this was a point of contention, and the finance manager stepped in and "helped" me out with it. Helped is in quotes, because now, maybe she didn't. The MF isn't on the paperwork, but I remember it being pretty low.
On the right, there is a line and it states the agreed upon value of the vehicle is $30544.
All I paid up front was the first month plus fees, in fact, my paperwork states I had $66 for cap cost reduction.
Ok, folks, so let me have it, should I be kicking myself in the rear for not paying closer attention to the paperwork!?!?
I also have a rent charge of $1542. Is this normal? I might as well start learning so I don't **** up my next deal!!
06-12-2006, 03:25 PM
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Residual is not negotiable.
Wow, that gross cap cost is huge. How many years is your lease? Did they sucker you into a 5 year or something?
It sounds like you got bent, real bad, man. What is the total of payments listed on the contract?
The key points on a lease:
MSRP (what residual is calculated from)
Cap Cost (total cost of the car)
Money Factor
Residual
Time in Months of lease.
This should tell you everything you need to know about the lease. It sounds like you have some terms mixed up? Not sure, but the figures you posted don't make sense. How many months have you made payments? your drive off is way high for 12 months.
Wow, that gross cap cost is huge. How many years is your lease? Did they sucker you into a 5 year or something?
It sounds like you got bent, real bad, man.
What is the total of payments listed on the contract? The key points on a lease:
MSRP (what residual is calculated from)
Cap Cost (total cost of the car)
Money Factor
Residual
Time in Months of lease.
This should tell you everything you need to know about the lease. It sounds like you have some terms mixed up? Not sure, but the figures you posted don't make sense. How many months have you made payments? your drive off is way high for 12 months.