My husband and I are leasing a car. We've got about a year and a half left on it but the payments are astrionomical. We got in over our heads. Is it better for us to just suck it up and wait out the whole lease, or can we turn in the car early and take some sort of penalty? Will it damage our credit?
2007-12-03 01:05:41 · 5 answers · asked by CMPINVA 1 in Cars & Transportation ➔ Buying & Selling
If you decide to turn in the car before the lease is over -- watch out! In a creditor's eyes, you just did the same thing as defaulting on a loan.
Creditors see that on a report and form the same opinion as if you decided to stop paying your mortgage. Unless you make a deal prior to the termination, it's a voluntary surrender, which equals a repo.
Defaulting on a lease is a breach of contract, and it has adverse effects on your credit report.
Adding to the financial wreck, you're often faced with a stiff early termination fee. You're not only out of a car, but you have less money in your pocket and a damaged credit report. Yuck!
2007-12-03 01:13:21 · answer #1 · answered by Anonymous · 6⤊ 1⤋
If you do it right, it will not damage your credit. Every lease has what is called a payoff amount. Basically, the bank calculates how much you owe them at any given time to buy the car from the lease. This is not a termination because you would be physically buying the car from them. If this number is at or around the private sale value of the car, you can then sell the car privately and get out of it. call your bank and get this value.
2007-12-03 05:01:14 · answer #2 · answered by Jay P 7 · 2⤊ 0⤋
You can pay the car leasing company what you still owe them and return the car; however, the amount you owe on your lease can be much more than what you might have expected. So I suggest you transfer your lease instead. There's a whole lot of potential buyers out there who are looking for short-term leases without going through dealers and the associated extra costs. You can also visit this site: www.leasetrader.com; this site works on helping leasing buyers and leasing sellers transfer their car leases.
For best car lease deals, check this site: www.carleasingsecrets.com.
2007-12-03 02:23:59 · answer #3 · answered by dreamraven 2 · 2⤊ 0⤋
ok, the 1st guy easily sucks. The contract is like examining the announcement of Independence. you will could make the the rest money regardless of the shown fact which you're turning it in and in maximum circumstances, a penalty. once you provide lower back a lease, they'll fee for scratches, lacking aspects, oddly worn aspects, etc. So be sure and spiffy your journey up earlier handing them lower back the keys i.e. having bumpers and wheel rashes touched up, etc. i would not do leases anymore if I have been you. they have the yankee public authentic the place they % them. IN DEBT!
2016-09-30 12:18:03 · answer #4 · answered by ? 4 · 1⤊ 0⤋
It won't damage your credit but you will get hit hard with early termination fees.
Read your contract.
2007-12-03 04:10:27 · answer #5 · answered by mccoyblues 7 · 2⤊ 0⤋