What would happen if I lease a car and then change my mind about it?

Question

Let's say I lease a car for 36 months, then after the 8th month, I decide I want another one and take it back to the dealer.

What are the penalties? Any fines, etc?

Answer 1

if you trade it in, you shouldn't get penalized for it. You will DEFINITELY be upside down (owing more than the car is worth), but the dealer should be able to roll-in the negative equity into your new car.

This is what happened to my wife and I: We bought a new 2007 Honda Pilot from one dealership, but after driving it a week, wanted to get out of the lease. The only thing that we could do (without losing our shirts) was trade in the Pilot for the car that we wanted, at a higher monthly payment (because of the negative equity that we had from the Pilot).

Answer 2

There is nothing wrong with leasing. The person who said "after the lease is up, you have nothing" is wrong. You actually have an option of buying it for the residual amount. In some cases, this amount may be less (after say three years is past) than had you been making payments buying it. This could be due to having a lower interest rate. I have leased and had no regrets. Once I bought the car after and once I turned it in. I was actually happy I had the option of turning it in. I had cheap monthly payments and after the term was up, I just wanted something different... if I had bought the car I would have had to try to sell it while financing (and probably upside down at that three year point) - so having options is nice.

Answer 3

Leasing is an alternative form of financing. Both have fixed terms and payments. With a purchase you finance the whole price of the vehicle and pay that amount, plus interest, back to the finance source. With a lease you also finance the full price of the vehicle, and pay all the interest. You only repay part of the principle of the loan. A lease has an estimated value of the vehicle at the end of the lease term. (Residual value) This is deducted from the principle and you only pay the difference in your monthly payments.

For example:

Assume a vehicle that costs $30,000 and a trade in worth $5000. Also assume you are financing, or leasing the vehicle for 5 years. A final assumption is that at the end of the 5-year period, the vehicle is worth $7500.

With a purchase you would pay back $25,000 plus interest over the period of the loan. You would own the vehicle (worth $7500) You can keep it, or trade it in on a new vehicle

With a lease you pay back $17,500 ($25,000- $7500 residual value), and the interest that is charged on the $25,000.

Your payment is less, but at the end of the term you have nothing!

With a lease there is a limit on the number of miles you can drive and a per mile charge after that. You are also responsible for any and all damage to the vehicle. At the end of the lease, when you turn the car in, you will have to pay for any and all damage and over miles charges!

With both a lease, and a purchase, you are responsible for all maintenance. Some leases, but not many, may have a maintenance program, but that does cost extra, and will increase your monthly payment.

If you terminate at lease early, you may have to pay a penalty. and the value of the vehicle will be determined by current market conditions. If you lease a vehicle, you should consider yourself locked in for the term of the lease.

Answer 4

Oh yes...Once you are in a lease there is NO trading out until the lease is up. When you lease a car you are responsible for it's upkeep and you pay more than you would if you just bought it out right. And thew dealer makes much more money on a lease than a sale,, Leases are almost impossible to break. Then too, there is a mileage limit. Go over that limit and pay about 25 cents a mile for overage. When you lease a car, that sucker is yours until the lease is up.. The lease company expects the car to be turned in " as new" condition. That means they can charge you for tire wear and those little parking lot dings and dents..Stop by a dealership and ask for one of their lease agreements. They probably won't give you one but if they do sit down with a couple of friends and read it over carefully. And believe what it says.. No matter what the salesman tells you. That lease agreement does just what it says and you are stuck with it,

Answer 5

well, if you want to buy another car from the same dealer they'll make you a deal to change, but it will cost you.

Here's an example from my life.

in 1999 I got a acura integra, after 18 months, I decide I want a 2001 acura 3.2cl type s. So they make me a deal, I sign a check for 2500$ and get a 3.2cl.

After 2 years I decide I want a manual 3.2cl. I sign a 5000$ check and they change my lease again.

If you want to buy another car elsewhere, you have to give the car back and sign a check equivalent to all the payments you had to do until the end of the lease (better keep the car)

Answer 6

same thing that would happen if you had got a loan.

There is an outstanding balance of your lease (number of payments X term remaining) + buyout = outstanding balance.

You have to find out what the car is worth - outstanding balance = what you have to pay

so lets say you payment is $300X28 months =$8400 and your buyout is $20,000 then your outstanding balance is $28400.

Lets say you bought the car for $30,000 and now it is 8 months old so lets say it is worth $25,000 then your 'penalty' is $3400.

Easy, and not any different than if you had a loan, except that you would be 'upside down' (owe more than it is worth) a lot more

Answer 7

You signed an prolonged term economic settlement. a settlement. an criminal accountability. The broker held up his end, he introduced the motor vehicle you needed. Now it's time to fulfill your area of the settlement. there is not any criminal genuine to return the motor vehicle. yet vehicle sellers are clever businessmen and that they're going to in all possibility artwork with you in case you alter your suggestions. yet do no longer anticipate to stroll out of the dealership with out penalty.

Answer 8

Never lease and never buy new. You are feeding the monster. Be smart now and be rich later.

Answer 9

that's questionable and there are in fact several potential answers to this question