Questions for anyone who as leased a vehicle...

[Denis]

Ok so here's the situation. My fiancé leased a 2013 Honda Accord back in 2013. Well the lease is coming up on the end of its term here in a few months and she's jumping ship from Honda and planning on leasing a 2016 Dodge Charger AWD.

We went into the Dodge dealership a few weeks ago to ask some questions and see what the deal was and the Dodge dealer kept telling us that we can return the leased Honda to the Dodge dealership if we wanted to. Does this make sense? I would only assume Honda wants their car back.

Also what's the deal with trading in early? they really seem to want her to come in and trade in early, obviously the dodge dealer wants her to do that. But what about the remaining payments on the Honda? will that have to come out of her pocket if she decided to do it early (which she doesn't want to do BTW)?

I personally have never leased a car so the whole thing is new to me. and I just think the dealers are just lying to her/us about the whole thing to get her into their car. so I was hoping for some unbiased info from you guys.

[MLL67RSSS]

Originally Posted by Denis

...and I just think the dealers are just lying to her/us about the whole thing to get her into their car. so I was hoping for some unbiased info from you guys.

DING, DING,DING!!!

Google "car early lease turn-in" for more.

"However, since lease agreements are not designed to be broken, substantial penalties and fees are usually associated with early termination. It is, in the end, a question of cost."

http://www.jdpower.com/cars/articles...ur-lease-early

Also note that in their options for ending the lease early they don't mention turning the car over to some other car dealer that you didn't have the lease with.

[drivingagain]

It will not be an early lease termination. They will put the last payments that you have into selling you the new car. Usually best to wait until your lease it up. Now with 2 payments left sometimes the car could be worth more than the lease buy out. You have to run the numbers to find out. If you trade the car into a new dealer they are buying your car. Sometimes this is a good thing as you do not have to worry about any overage miles dents, dings, scratches, etc.

[BillGalina]

fyi
From my experience the same thing happened to me.Tthe dealer wanted the car back because they said it was in high demand .so in this case you are not going to pay the balance of the lease but they will try to lease you something else .but i would still talk to dealer an see what they say, as far as turn into different dealer it would have to be a Honda dealer in your case i believe .

just my two cents

[MLL67RSSS]

May depend on the OP's definition of "a few months."

[BillGalina]

If they are requesting or asking you to return the car you will not have to pay any remaining payments I had almost a year left on mine .bring the car in they try to get you in a new lease if not sign off on the return done deal ..

[ritchet]

There are a lot of questions that need to be asked. I assume this is a closed-end lease with a predetermined residual value of the leased vehicle. It also matters who the lease is through. If the lease is not through Honda Credit it doesn't matter where the car is returned. Since it is a Honda and if the mileage is below the amount prescribed in the lease agreement, it is quite likely the actual value of the vehicle is higher than the residual value. In that case you could trade it early and not be upside down. Hope this make sense.

I not only sold cars but I have worked in Bank vehicle leasing. To recap: trading a lease in early is usually a bad idea but as I explained above, it works sometimes.

[Denis]

thanks for the info guys!

Originally Posted by ritchet

There are a lot of questions that need to be asked. I assume this is a closed-end lease with a predetermined residual value of the leased vehicle. It also matters who the lease is through. If the lease is not through Honda Credit it doesn't matter where the car is returned. Since it is a Honda and if the mileage is below the amount prescribed in the lease agreement, it is quite likely the actual value of the vehicle is higher than the residual value. In that case you could trade it early and not be upside down. Hope this make sense.

I not only sold cars but I have worked in Bank vehicle leasing. To recap: trading a lease in early is usually a bad idea but as I explained above, it works sometimes.

It is leased through Honda Credit and the mileage is way below the prescribed amount.

[Denis]

Originally Posted by MLL67RSSS

DING, DING,DING!!!

Google "car early lease turn-in" for more.

"However, since lease agreements are not designed to be broken, substantial penalties and fees are usually associated with early termination. It is, in the end, a question of cost."

http://www.jdpower.com/cars/articles...ur-lease-early

Also note that in their options for ending the lease early they don't mention turning the car over to some other car dealer that you didn't have the lease with.

thanks for the link, good info!

I really think the new dealer (who we probably wont end up using) was feeding us a line of crap and it would end up costing her money in the long run.

[SuperSound]

Dodge dealer was trying to do the same thing to me. I have 8 payments left on my lease when I went to look at a SP Charger. So what they don't tell you is they are going to roll those payments into the new lease. So now you will be a leasing a car worth less than the Cap cost. This is an absolutely terrible idea in 98% of cases. Very few cars will actually be worth more than the buyout at the end of a lease. Not impossible but very unlikely.

As for turn in, most likely what the dealer would do is buyout the car and then it's theirs to do with what they want. I suppose they could hold onto it (since they have now rolled your remaining payments into your new lease) then turn it end at the end of the term.

Bottom line, run from this. Unless you are down to your last 1 or 2 payments, it will most likely work out against you. If down to those last payments, you may be able to negotiate the difference in price off the new car.

[Denis]

Originally Posted by SuperSound

Dodge dealer was trying to do the same thing to me. I have 8 payments left on my lease when I went to look at a SP Charger. So what they don't tell you is they are going to roll those payments into the new lease. So now you will be a leasing a car worth less than the Cap cost. This is an absolutely terrible idea in 98% of cases. Very few cars will actually be worth more than the buyout at the end of a lease. Not impossible but very unlikely.

As for turn in, most likely what the dealer would do is buyout the car and then it's theirs to do with what they want. I suppose they could hold onto it (since they have now rolled your remaining payments into your new lease) then turn it end at the end of the term.

Bottom line, run from this. Unless you are down to your last 1 or 2 payments, it will most likely work out against you. If down to those last payments, you may be able to negotiate the difference in price off the new car.

thanks for the info.

yea, shes down to her last 2-3 payments but is in no rush to trade it in. so we're going to wait it out. but the dealer wont stop calling now, to the point where we're probably going to use a different one. I hate car shopping

[vegas girl]

Originally Posted by Denis

Ok so here's the situation. My fiancé leased a 2013 Honda Accord back in 2013. Well the lease is coming up on the end of its term here in a few months and she's jumping ship from Honda and planning on leasing a 2016 Dodge Charger AWD.

We went into the Dodge dealership a few weeks ago to ask some questions and see what the deal was and the Dodge dealer kept telling us that we can return the leased Honda to the Dodge dealership if we wanted to. Does this make sense? I would only assume Honda wants their car back.

Also what's the deal with trading in early? they really seem to want her to come in and trade in early, obviously the dodge dealer wants her to do that. But what about the remaining payments on the Honda? will that have to come out of her pocket if she decided to do it early (which she doesn't want to do BTW)?

I personally have never leased a car so the whole thing is new to me. and I just think the dealers are just lying to her/us about the whole thing to get her into their car. so I was hoping for some unbiased info from you guys.

You are SMART to question and be concerned. My son returned his leased Malibu to Scion when he bought his new car. For MONTHS he kept getting calls that his payments were behind on the Malibu. He kept telling them what the deal was. It was a nightmare....and his once great credit suffered. He FINALLY got it all straightened out....but what a hassle....Return the Honda to Honda....JMO

[Denis]

Originally Posted by vegas girl

You are SMART to question and be concerned. My son returned his leased Malibu to Scion when he bought his new car. For MONTHS he kept getting calls that his payments were behind on the Malibu. He kept telling them what the deal was. It was a nightmare....and his once great credit suffered. He FINALLY got it all straightened out....but what a hassle....Return the Honda to Honda....JMO

i appreciate the info. sucks it happened to your sin like that.

[BMR Sales]

Originally Posted by Denis

thanks for the info.

yea, shes down to her last 2-3 payments but is in no rush to trade it in. so we're going to wait it out. but the dealer wont stop calling now, to the point where we're probably going to use a different one. I hate car shopping

If she is in no hurry, wait it out. It's not like a Honda will break down!