that's a good way to get yourself killed. Idiot.

 

HE HE he yea i wouldnt suggest insurance fraud as a way out.

 

I'm a financial analyst and I am 100% positive that leasing is a crappy option for the vast majority of people. The only reason 99% of people lease is because they can get a nicer car for a lower payment. But they are screwing you over!

A lease is almost impossible to get out of unless you lease another vehicle from them. If you are going from a higher lease value to a lower one you are going to pay a ton of up front fees. You have signed a contract that is very lucrative to the dealer (that's why they push leases on you) and they want their profit that they built into the lease. If you want out then you have to pay them that profit all upfront.

Dealers love leases because they can get you into a higher end car, at a higher margin and build in all sorts of profit that 99% of people can't even see because they don't understand what is going on w/ the financing. All they do is see $300 to lease an Accord or $300 to buy a Civic and they go for the nicer Accord. At the end of 3 years they have no car and made $11,000 of payments to rent a car for 3 years and they now are in the same boat.

If you have plenty of money and don't care about making car payments every month forever then go ahead and lease. Most people shouldn't be turning over their car every 3 years and making payments for the rest of their lives.

To answer the original question... I don't see anyway to get out of this lease cheaply. It's going to cost you a lot. The entire point of a lease is to not let you get out of it without them making their money.

 

first off the 48 month lease is the one that makes the dealership the most money. the lease is never the best way to go(unless all you care about is the monthly payment) you lease you are getting screwed because you have good credit.i worked for a dealership in chattanooga tn, and once made the dealership a 21000.00 profit (my commission was over 7700.00) on 1 car. if you want more details please pm me . i know what these people will tell you and how you can get as good a deal buying as leasing

 

Can't he just buy it out for the buy off value? At that point he could sell it to a private owner and the gap between what he owes and what the car is actually worth would be less. Correct me if I am wrong.

 

no on a lease you actually owe all the remaining payments + residual value to completely purchase the vehicle. Its not like a retail purchase where you can payoff the vehicle and the remaining interest goes away.

 

So if someone were to do a lease and then halfway through decided to purchase the vehicle they couldn't just buy the car for the buy off value? How do dealerships do it then? Nissan bought out my honda for what it was worth, not what I owed plus the residual value.

 

some times the car is worth more than the two combined for example you owe 3500 in remaining payments and the buy out value is 7500.

so total owed 11000 bucks but the car is worth 11,800 trade value so they payoff 11,000 to get the car.

Samething goes if you owe more as well for example 11,000 like before in remaining payments and residual but its only worth 9,000. the dealer still sends 11,000 to buy out the vehicle but the remaining 2000 is either rolled into your new purchase or rebates are used to offset the 2,000 or the price is lowered 2,000 to compensate.

 

"All they do is see $300 to lease an Accord or $300 to buy a Civic and they go for the nicer Accord. At the end of 3 years they have no car and made $11,000 of payments to rent a car for 3 years and they now are in the same boat."

Not quite that simple. If you pay off a 11,000 civic, in three years you may have a car worth 3000, so your real cost of ownership would be 8000. Realize that you are comparing oranges to apples. Most people who want to drive an Accord are not going to drive a Civic. I would happily pay 11000 to lease an Accord than 8000 to own a Civic. Or to put it better pay 11000 to lease a Accord which is much less than the cost to own when you consider lost capital. Plus if you are a finacial analyst you should realize that many people lease to keep their capital invested, i.e. I would rather make 8% return on my investments by keeping the capital I would have to use as down payment or in higher monthly payments I would have if I purchased a Z. With compounded interest over say 30 years you would be much happier leasing and having a chunk of change in the bank. The reason a lease may be a good deal for some is because you should never invest in depreciating assets, which is exactly what a car is. Do a search on this or contact a CFP.

Also many people continue to keep payments on a car because this allows them to keep a car in good shape and under warranty. My time is worth more than the hassle of repairs on an older vehicle.
To put it simply a lease can be a very good deal for some.

 

I have 20 months to go on my 39 month lease , and I want out...
I pay 599 per month and have 21K on my odometer ( 15K per year ).. any help on what should I expect ?

 

Is it correct that everybody who lease for x months also get x months of warranty? x is between 24 to 60 months.

 

Where are you getting a 8% return on your money A&M 350Z? I really dont know of any investment short of gambling on stocks that will give you a 8% return, I know long term CD's won't give you that anymore...

I've always been told that Leasing is for people who want to buy a car they really can't afford.

Anyways sucks things are taking a bad turn for you, and I hope you figure a way out of your lease...

 

Think of leasing as hedging . . . the residual value (what its worth at the end of the lease term) is the key to all leases. The dealer says its worth X and you say Y. You agree to a residual and you arrive at a rental payment under your contract agreement. The problem for some is that you're never going to win the hedge. The auto industry has an enormous amount of stats that virtually predict the vehicle's value and at lease end, your stuck with negative equity.

What I did was to lease for the first 22 months (lower payment than buy while I was finishing up my MBA), then converted the "no penalty" lease from 5/3 bank into a balloon payment loan from my credit union. Why? It gives me the title to the vehicle and allows me to turn it in should I want to at lease end. Think of my credit unions balloon payment as another lease, but with a title. The title will allow you to transfer ownership at any time . . . and most financial institutions treat vehicles less than 2yrs old as new vehicles, hence a low interest rate.

Cars are expenses . . . just look at the average time you have own the last three vehicles. If its 3yrs or less, just negotiate for a good lease. If it's typically 5yrs or more, then buy. The area in between is where it gets a bit shady.

 

LOL this is the best thread ever!

Your statement of "$500/month on a lease. That's INSANE! I'm only paying $322/month"

Dude, do you realize you put $7,000 down! LOL, i hate to say this but your insane because in reality you just paid the same amount of money of $500.00 a month but you just did it in one lump sum. You paid it all up front. And in 2007 if you would of bought your Z and put the $7,000 down and say you wanted to get rid of it. IM sure the car will easily be worth $20K because the Z has a HIGH resale value, say in 3 years your payoff is 10K because you paid $19K that means if you were to sell your car at 20K you just have 10K extra (this is considering the value in 2007 for the Z will be about 20K which im sure will be close enough, if not check the Kelly's blue book now. I think LEASING IS INSANE, I have a Base Model 350z and my payments are $550.00 a Month with NO MONEY DOWN! And guess what I GET TO KEEP MY CAR! Its foolishing giving my money away...

 

I traded in my 2003 Performance after 2 years, and I paid 3000 of negative equity, which was added to the loan of the new car.

 

Leasing is an ok way to buy some cars if your lifestyle fits the purchase plan, but your lease (especially on a car like the Z with such high resale) should be about 1/2 your payment. Your basicly buying 1/2 the car at a time (actually its depreciation).

As for ending a lease early after 2 payments, basicly your going to have to pay like 24k to get out of it, its pretty much impossible to even trade it in unless you put down 10k and put the rest on the loan of the next car.

As for the lease swapping on the web site, thats actually a great way to do it BUT Ill warn you, nobody will do it. For the payment and term you have people can get a porshe

Sorry bro you got laid away, they took advantage of you now your sort of forced to live with it.

Only thing I can say is that your loan has GAP insurance built into it (lease has to) so if it is stolen/totaled it will be paid in full. Maybe you should start leaving it unlocked in a bad area of town and pray some crackhead takes it

Only advice I have for people is not to lease unless you KNOW for a fact (no idea how this is possible) that you will NEVER EVER want to end it early.

 

Leasing is only a good option for some people, and ONLY if you know what you are doing, that's for sure.

It's never a good idea to put any money down for a lease. If you put $7000 down, and a week later you total the car, your insurance will cover you for the cost of the car but guess what? The $7000 you shelled out just a week ago is gone forever, and you don't get it back.

True, your monthly payments will be lower if you put money down, but if your primary goal is to have lower payments, then IMO you should seriously reconsider your ability to lease/drive a car that may be out of your price range.

For me personally, I enjoy leasing and think it's ideal for me. I put $0 down and my monthly is $500/month, and that includes 15000 miles/year for 3 years. And now, after 13 months, I only have 9000 miles on the car, so when the time comes for me to return the car, I may just end up buying it and reselling to someone for more than the residual and pocketing the profit. That's one of the benefits of a lease - at the end of the term, you are GUARANTEED a certain value for the car as long as you keep it in good condition. So if the car is worth more than the residual, sell it yourself and make some money. If it's worth less than the residual, it's the leasing company's problem, not yours. Give back the car and you're done.

I never planned to keep and drive my Z until the wheels fall off of it, anyway. I like keeping the car only during its warranty period and not have to worry about maintenance after that. Besides, in another 2 years I plan on buying or leasing a new NSX or 911.

Anyone considering leasing should check out http://www.leaseguide.com and MEMORIZE the salient points of leasing before going out and possibly digging a hole for themselves. Also, remember that you don't HAVE to lease from the dealer - there are third party lease companies out there that have much better rates and terms (like http://www.leasecompare.com, which is where I got my lease thru US Bank).

Remember - buying/financing a car is essentially a lease with a $0 residual.

 

One more thing to keep in mind...if you're going to compare monthly payments between leasing and buying, then you have to make sure the same terms apply.

Your comparison is only valid if your term is the same as the guy who's leasing. However, it's a known fact that the monthly payment on lease with the same down payment, interest rate and term will ALWAYS be cheaper. Always.

So laughing about someone who's paying $500/month on a lease when your payment is $550 doesn't make sense unless you're paying off your loan completely in 3 or 4 years or whatever the term is on the lease.

 

you put 7Gs down? on a lease? wtf? only paying 322? wtf? a 60 month finance on 21K should still make payments in the upper 300's (impending credit) but rates are so low how can you loose? so if you decide to keep the car you paid 11592+7000 = $18592 that you lost. whats the residue of the car? lets say $15K. so then the car would have cost you $33K+refinancing 15gs if you decide to keep the car. seems like you would loose less money if you had baught the car, then trade it in after 3 years with less downpayment would be cheaper. btw, the dealership gets to keep the downpayment+trade as profit because the lien holder is getting the rental money and the car back at the end.

to get out of a lease, the easiest way is to sell the car yourself. your payments after 48+residual= the price of the car. is what i'm told.

 

Leasing makes sense for me. I never keep a car that long to begin with, and its easier to dispose of at the end. I know up-front what my costs will be and don't have to gamble with residual values. Plus, with leasing, I only pay sales tax on the portion of the car that I use, instead of on the whole thing up front.

That being said, our G35c was leased on a 39 month term. After 18 months, we decided to trade it in on a Dodge Magnum, for more room and to have a less expensive car. You can get a payoff for the lease from NMAC anytime. Probably wouldn't be with the Z, but the Infiniti actually was traded for $1000 more than the payoff, plus, I got credit for sales tax, which I hadn't paid to begin with! (In georgia, you only pay sales tax on the difference between your trade and new car)