What happens if I lease my '04 for three years and want to get out of it in two?????

 

Bend over.....

 

That all depends on your lease. Most have a termination fee and then your walk away fee. My gf and now fiance leased hers through GMAC and htey wanted over 3k plus the walkaway fee...figured it out and they wanted the leased paid up intil it was turn in time plus the walkaway. We figured if we were gonna pay the same amount to keep it another year as to turnin it in early we would keep it no matter how much we hated it. Most term fee's I see though are like 600-700 though. I woud def check before signin though if its something your thinkin of doin

 

All depends on the dealer. It is completely up to them as far as any lease cost. When I leased a 99 Mustang before my current truck it was a 3 year lease. I called Ford about ending it a year early and what would it cost me. They told me to talk to the dealer that leased it to me and they would figure out the cost. They further told me it is completely up to the dealer.

So in 2001 I walked into my dealer where I have bought or leased 5 other vehicles previously and asked them if I could get out of the lease a year early to get into the 2001 truck I now have. It was no problem and only cost me $200…

 

As the math works, you agree to pay x dollars over 3 years. If you want to get out in two years, you still agreed to pay x dollars, and still owe that money weather you drive the vehicle or not. There is a catch though.

The amount you agreed to pay is based on the depreciation over three years and y miles. If the vehicle is only two years old, and has only 2/3 rds of y miles on it then it is worth more than the residual value. You can then sell it and use the proceds to pay off the residual value plus one years lease costs. The problem is, the dealer won't tell you that, and even if they do tell you, you are working with their trade in value. If they are interested in the sale then they can work out a deal.

Also, if the used value of that vehicle is high then you are in good shape. If not, you're not. For a rough estimate, look at the resitual value. Add the sum of the remaining lease. Can you sell it for the total? Many times it's a good deal if you can find a buyer.

Right now residual values are low, and payments are high. It's more likely the 04 will hold it's value against the residual. The problem with that is the lease payments are high, and interest rates are low, making the cost of buying not much more than the cost of leasing. If the lease payment is the same as a purchase price why would you even consider a lease?