Terminating the lease a year early. Need help in terminology
05-21-18, 03:16 PM
#1
Driver School Candidate
Thread Starter
Join Date: May 2018
Location: CA
Posts: 7
Likes: 0
Received 0 Likes
on
0 Posts
Terminating the lease a year early. Need help in terminology
Hi,
I leased a Lexus NX 200t 2016 model back in 2016 for a 3 year lease (12k miles per year). I have to move to Canada next month due to work so I need to turn in the car earlier or find a new person to take over the lease.
1. I am going to talk to the dealer and see if I can turn in the car early by not paying all the outstanding payments. I am fine with losing some money for early termination
2. If option 1 doesnt work out and if they say I need to pay all the payments, I am thinking of going to Carmax to get a quote on the car. Did anyone do this previously?
Right now, on CreditKarma, the value for trading in the car is shown as 29,325$ (vehicle is in a very good condition with no dings or accidents these past 2 yrs)
On Lexus site, the payoff for the vehicle is 31,963$.
This is my first car so I am not aware of what to look for when I talk to these people. What can I do to come out of this by paying as less as possible?
Any help is appreciated. Thanks in Advance
I leased a Lexus NX 200t 2016 model back in 2016 for a 3 year lease (12k miles per year). I have to move to Canada next month due to work so I need to turn in the car earlier or find a new person to take over the lease.
1. I am going to talk to the dealer and see if I can turn in the car early by not paying all the outstanding payments. I am fine with losing some money for early termination
2. If option 1 doesnt work out and if they say I need to pay all the payments, I am thinking of going to Carmax to get a quote on the car. Did anyone do this previously?
Right now, on CreditKarma, the value for trading in the car is shown as 29,325$ (vehicle is in a very good condition with no dings or accidents these past 2 yrs)
On Lexus site, the payoff for the vehicle is 31,963$.
This is my first car so I am not aware of what to look for when I talk to these people. What can I do to come out of this by paying as less as possible?
Any help is appreciated. Thanks in Advance
05-21-18, 07:37 PM
#2
Lexus Champion
One thing to remember is that when you lease, you do not own the car, the company leasing you the car retains ownership.
If you wish to terminate a lease early and return it without conditions, you pay out all remaining payments that are still owing. The leasing company remains owning the car.
Or, you can try to find someone to take over the lease from you; that person will then become responsible for the remaining payments. The leasing company remains owning the car (but if done legally with all paperwork, you are no longer responsible for the car).
Or, you can try to buy the car now. The dealer (or the leasing company) will sell you the car for a price that is equal to the remaining payments PLUS the lease-end buyback value. If I interpret your post correctly, Lexus is allowing you to buy the car now for $31,963. You then own the car and you can do with it as you want.
You can take it across the border with you (import it into Canada, assuming that it legally passes the import regulations, which it likely will).
Or you can sell the car and be rid of the responsibility for that car. If you are lucky, and sell for more than $31,963 (what you bought it for from the leasing company), you make money and are ahead; if, however, you sell for less than $31,963, you have lost money on the deal.
Unless you know someone who will buy from you now for more than $31,963, it is a gamble. There is the risk that you sell for less than $31,963 but there may also be an opportunity to sell for more than $31,963 if, as you sale, your car is still in excellent condition.
If you wish to terminate a lease early and return it without conditions, you pay out all remaining payments that are still owing. The leasing company remains owning the car.
Or, you can try to find someone to take over the lease from you; that person will then become responsible for the remaining payments. The leasing company remains owning the car (but if done legally with all paperwork, you are no longer responsible for the car).
Or, you can try to buy the car now. The dealer (or the leasing company) will sell you the car for a price that is equal to the remaining payments PLUS the lease-end buyback value. If I interpret your post correctly, Lexus is allowing you to buy the car now for $31,963. You then own the car and you can do with it as you want.
You can take it across the border with you (import it into Canada, assuming that it legally passes the import regulations, which it likely will).
Or you can sell the car and be rid of the responsibility for that car. If you are lucky, and sell for more than $31,963 (what you bought it for from the leasing company), you make money and are ahead; if, however, you sell for less than $31,963, you have lost money on the deal.
Unless you know someone who will buy from you now for more than $31,963, it is a gamble. There is the risk that you sell for less than $31,963 but there may also be an opportunity to sell for more than $31,963 if, as you sale, your car is still in excellent condition.
05-23-18, 04:10 PM
#3
Driver School Candidate
Thread Starter
Join Date: May 2018
Location: CA
Posts: 7
Likes: 0
Received 0 Likes
on
0 Posts
One thing to remember is that when you lease, you do not own the car, the company leasing you the car retains ownership.
If you wish to terminate a lease early and return it without conditions, you pay out all remaining payments that are still owing. The leasing company remains owning the car.
Or, you can try to find someone to take over the lease from you; that person will then become responsible for the remaining payments. The leasing company remains owning the car (but if done legally with all paperwork, you are no longer responsible for the car).
Or, you can try to buy the car now. The dealer (or the leasing company) will sell you the car for a price that is equal to the remaining payments PLUS the lease-end buyback value. If I interpret your post correctly, Lexus is allowing you to buy the car now for $31,963. You then own the car and you can do with it as you want.
You can take it across the border with you (import it into Canada, assuming that it legally passes the import regulations, which it likely will).
Or you can sell the car and be rid of the responsibility for that car. If you are lucky, and sell for more than $31,963 (what you bought it for from the leasing company), you make money and are ahead; if, however, you sell for less than $31,963, you have lost money on the deal.
Unless you know someone who will buy from you now for more than $31,963, it is a gamble. There is the risk that you sell for less than $31,963 but there may also be an opportunity to sell for more than $31,963 if, as you sale, your car is still in excellent condition.
If you wish to terminate a lease early and return it without conditions, you pay out all remaining payments that are still owing. The leasing company remains owning the car.
Or, you can try to find someone to take over the lease from you; that person will then become responsible for the remaining payments. The leasing company remains owning the car (but if done legally with all paperwork, you are no longer responsible for the car).
Or, you can try to buy the car now. The dealer (or the leasing company) will sell you the car for a price that is equal to the remaining payments PLUS the lease-end buyback value. If I interpret your post correctly, Lexus is allowing you to buy the car now for $31,963. You then own the car and you can do with it as you want.
You can take it across the border with you (import it into Canada, assuming that it legally passes the import regulations, which it likely will).
Or you can sell the car and be rid of the responsibility for that car. If you are lucky, and sell for more than $31,963 (what you bought it for from the leasing company), you make money and are ahead; if, however, you sell for less than $31,963, you have lost money on the deal.
Unless you know someone who will buy from you now for more than $31,963, it is a gamble. There is the risk that you sell for less than $31,963 but there may also be an opportunity to sell for more than $31,963 if, as you sale, your car is still in excellent condition.
Thread
Thread Starter
Forum
Replies
Last Post
