I have an 02 4 Runner I am paying way to much for in a lease. My payout if I buy it now is 17,000...but I cant even afford that. I dont know what happens if I terminate my lease early, or if I voluntarily reposess it. (give it back) but my credit is shot anyway. Any advice?
2006-08-04 16:06:15 · 4 answers · asked by devonwest 1 in Cars & Transportation ➔ Buying & Selling
A lease is a finance contract with a balloon payment at the end. You do not say if it is a two or four wheel drive vehicle, nor do you list the trim level, but it is possible that you may be able to sell the car for the buyout figure, or a little less.
Check with a place like Carmax, or an independent used car dealer, to see what you car would be worth. If the figure is close, you can pay the difference, buyout the lease and sell the car. You will not hurt your credit that way, and you may actually end up with a few dollars in your pocket!
If you give them the car back, they will sell the car at auction. They will take the amount that they get for the vehicle, deduct any and all fees, repairs, transportation, reconditioning, and any other costs they can think of, and apply the remaining amount to the balance you owe. They will then sue you for the difference, and attach your wages if you do not pay!
2006-08-04 16:47:22 · answer #1 · answered by fire4511 7 · 5⤊ 1⤋
Well, if you try to terminate your lease, it'll be worse than trying to buy it outright. Will most likely pay hefty contract fees, and other issue and charges that they will trow at you. Best bet is to read that contract, wor for word. Even if you voluntarily reposess it, it'll still be a bad thing on your already bad credit. Will take even longer to straighten that out.
2006-08-04 16:13:28 · answer #2 · answered by Silverstang 7 · 0⤊ 0⤋
you can opt to pay all the early termination fees if you decide to go that way...
i advise you to not reposses it..as it will take 7yrs to get off your credit..you could always have someone else take over your lease also..or buy the vehicle from you.
2006-08-04 16:20:06 · answer #3 · answered by mommy2savannah51405 6 · 0⤊ 0⤋
you ought to study your hire contract with the aid of fact each and every person of them is different. Your words must be stated because it pertains to open or close ended hire agreements, early termination penalty, mileage regulations and expenses, etc.
2016-10-01 12:02:13 · answer #4 · answered by rajkumar 4 · 0⤊ 0⤋