What happens if you break a lease early?

[Al437737]

I have a 2005 accord auto ex sedan. I have a 3 year 36k mile lease. I have 18000 mi on it. Suppose I trade it in now and wanted to go into a 2006 civic ex, what would happen? Would I end up owing or needing to put in additional money or is it not even possible? I am in New England in the USA if that helps.

Al

 

[Earle Horton]

It all depends on the terms of the lease, how much you got screwed on the purchase price and how much trade in the vehicle is worth. Many people don't know this, but you can negotiate the purchase price on a leased vehicle, and if you don't, you --will-- get screwed at lease termination time. The best way to find out the answer to your question is to take your car and paperwork to a dealer who has the car you want.

Yes, this is possible. Sometimes there are early termination penalties, but after all, if you want a new car, then Honda wants you to have it too.

Earle

 

[Ron Jones]

Don't even think about it! You are generally responsible for all the payments until the end of the lease period. Next time buy the car!

rj

 

[Al437737]

Don't even think about it! You are generally responsible for all the payments until the end of the lease period. Next time buy the car!

rj

I still want to lease in the future, but I was thinking of getting something a little better in bad weather and the snow like the CRV LX 4WD, which should be good in the snow and has good comfort and cargo room. I'm moving into an area which has a higher snow ratio and is more wooded. I cannot afford the Pilot and the Element looks goofy to me. Maybe I'll wait the 1.5 years until my lease is up.

Al

 

[Earle Horton]

I still want to lease in the future, but I was thinking of getting something a little better in bad weather and the snow like the CRV LX 4WD, which should be good in the snow and has good comfort and cargo room. I'm moving into an area which has a higher snow ratio and is more wooded. I cannot afford the Pilot and the Element looks goofy to me. Maybe I'll wait the 1.5 years until my lease is up.

Al

We got my wife a CR-V and she likes it. Go talk to the Honda dealer about this. I am sure that they want you to have that new car too.

Earle

 

[Craig M. Bobchin]

You can always try and find some one to take over the lease.

 

[Elmo P. Shagnasty]

I have a 2005 accord auto ex sedan. I have a 3 year 36k mile lease. I have 18000 mi on it. Suppose I trade it in now and wanted to go into a 2006 civic ex, what would happen?

Jesus Christ, man, what does your LEASE CONTRACT say?

Do you have any idea what you're doing in life? Did you know that you signed a CONTRACT with SPECIFIC TERMS?

Did you even READ the freaking contract BEFORE you signed it, or did you just look at the monthly payment and scrawl an X on the line where the salescreature pointed?

The CONTRACT you signed says EVERYTHING. NO ONE ELSE can tell you "what happens if you break a lease early".

 

[Al437737]

Do you have any idea what you're doing in life? Did you know that you signed a CONTRACT with SPECIFIC TERMS?

Is that why your name is "ShagNASTY"? You don't have to be condecesending, I just asked a simple question.

Al

 

[Elmo P. Shagnasty]

Do you have any idea what you're doing in life? Did you know that you signed a CONTRACT with SPECIFIC TERMS?

Is that why your name is "ShagNASTY"? You don't have to be condecesending, I just asked a simple question.[/QUOTE]

No, you asked a question that showed you to be entirely ignorant.

You signed a contract, then a year later came to a newsgroup and asked random people about that contract (that they've never seen, of course).

NOBODY can tell you, because every contract is unique unto itself.

I bet you don't even know where your lease contract is.

 

[jmattis]

Is that why your name is "ShagNASTY"? You don't have to be condecesending, I just asked a simple question.

[/QUOTE]

No, it was an idiot question that shows your financial
irresponsibility. You will need to make a lot of money in order to keep throwing it away . . . .

 

[Elle]

No, it was an idiot question that shows your financial
irresponsibility.

Why was it an idiot question?

If you and the shag guy want to criticize, then point out that the subject line is misleading. The OP is not "breaking" a lease but wants to try to renegotiate the terms, if possible, as part of a new car purchase.

ISTM the OP has two options:
1. Review the terms of the lease carefully to see whether it's even possible to end it early. One can often terminate apartment leases early, though typically with some kind of penalty. The OP does not seem to be out in La-La land, AFAIC.

2. If the lease is with a dealership, go talk with them about terminating in order to buy a new car. //However//, Al, do not agree to anything, in words and certainly not in writing. Just tell them you want to think it over.

Post numbers (such as penalty for terminating, price they'll give you on a new car, etc.) here, and I'm sure people will provide further input.

You will need to make a lot of money in order to
keep throwing it away . . . .

I thought leasing a car was not necessarily throwing money away. How much luxury a person wants will determine whether lease or buy is more prudent. E.g. some folks like a new car every few years. In this case, IIRC leasing might make sense financially.

OTOH, if the OP's intent is to try to terminate this lease with as little penalty as possible, then buy a new car and drive that puppy into the ground over the next 20 years, then he may be making a financially savvy move as well.

These days the only stupid personal finance question is an unasked one.

Also, Al's question is going to help others.

 

[Elmo P. Shagnasty]

No, it was an idiot question that shows your financial
irresponsibility.

Why was it an idiot question?[/QUOTE]

That simply shows that YOU'RE an idiot.

 

[Elmo P. Shagnasty]

No, it was an idiot question that shows your financial
irresponsibility.

Why was it an idiot question?

If you and the shag guy want to criticize, then point out that the subject line is misleading. The OP is not "breaking" a lease but wants to try to renegotiate the terms, if possible, as part of a new car purchase.[/QUOTE]

It's an idiot question because only the lease contract can tell him the answer.

ISTM the OP has two options:
1. Review the terms of the lease carefully to see whether it's even possible to end it early. One can often terminate apartment leases early, though typically with some kind of penalty. The OP does not seem to be out in La-La land, AFAIC.

2. If the lease is with a dealership,

The lease IS NOT with a dealership. Dealerships DO NOT sell money or hold leases. They sell cars. They may act as a selling agent for a leasing company, but they sell the car--PERIOD.

And yes, the OP is in la-la-land if he doesn't review the terms of his lease contract but instead goes to a fucking newsgroup to ask random strangers from around the world to tell him what he can and can't do.

I thought leasing a car was not necessarily throwing money away. How much luxury a person wants will determine whether lease or buy is more prudent. E.g. some folks like a new car every few years. In this case, IIRC leasing might make sense financially.

You recall incorrectly. It's throwing money away, for a number of reasons.

 

[Al437737]

The lease IS NOT with a dealership. Dealerships DO NOT sell money or

hold leases. They sell cars. They may act as a selling agent for a leasing company, but they sell the car--PERIOD.

Well excuse me for living! Not everyone is knowledgable about leases. A person that leases cars most likely because they like a new one every few years and like up to date luxury. I am one of those people.

And yes, the OP is in la-la-land if he doesn't review the terms of his lease contract but instead goes to a fucking newsgroup to ask random strangers from around the world to tell him what he can and can't do.

News groups are for debating and for getting and sharing information. I am sure you looked at my profile and saw that I go to the herpes newsgroup because I have genital herpes. When you have a common interest whether Honda's or Herpes, you can go and talk to strangers about your situation. BTW you don't have to use vulgar language.

You recall incorrectly. It's throwing money away, for a number of reasons.

Depends how you look at something. Heres something to think about: You could buy the civic lx for 17500.00 or the civic hybrid for 21500.00. The 4000 dollar difference would take 10 years to recoup based on the mpg difference and cost, and after 8 years you'd still need new hybrid batteries, which would cost somewhere around 5000 dollars from what I was told, so its not really a good deal.

Some people would rather spend slightly more and have a new car than not.

Al

Ps. Elle, thanks for the information, I'll think it over more as far as what I'm going to do. Good to find a civil person in this group!

 

[Elmo P. Shagnasty]

The lease IS NOT with a dealership. Dealerships DO NOT sell money or hold leases. They sell cars. They may act as a selling agent for a leasing company, but they sell the car--PERIOD.

Well excuse me for living! Not everyone is knowledgable about leases.[/QUOTE]

And yet you entered into one.

To think that you can vote.

By the way, this isn't a lease issue. This is a CONTRACT issue. You don't have to be knowledgeable about leases; you have to know what a contract is, and what a contract means. Then you read the contract, and suddenly you're knowledgeable about what you held yourself responsible for.

Only you can know, because it's YOUR contract.

Do you own a house? Did you take out a mortgage? That's a contract, you know. Did you have a lawyer with you, or did you just blindly sign all those documents that held you responsible for $500K?

News groups are for debating and for getting and sharing information.

OK, you want information? Here's some information: nobody can help you. Read the lease CONTRACT which you're obligated to fulfill.

I
am sure you looked at my profile and saw that I go to the herpes newsgroup because I have genital herpes.

ummmm.....no....why the hell would I look you up? Oh, I get it--that's something YOU do with people in newsgroups, so you assume everyone else does it.

When you have a common
interest whether Honda's or Herpes, you can go and talk to strangers about your situation.

Yeah, but this isn't about Hondas or herpes or any other common situation. This is about the lease contract that YOU signed--something no one else can know anything about.

 

[Elle]

"Al437737" wrote

BTW you don't have to use vulgar language.

Going to that level is a sure tip-off that someone is angry about things other than the previous post.

snip

Some people would rather spend slightly more and have a new car than not.

Right. It's a matter of taste. I'm sure Shag guy or whoever does things that others would call throwing money away but which he feels is not.

Ps. Elle, thanks for the information, I'll think it over more as far as what I'm going to do. Good to find a civil person in this group!

Don't let the guys/gals having a bad day keep you from
asking questions. In these days when so many people are making financial decisions of dubious wisdom, ISTM the only explanation can be they did not ask enough questions in advance.

I hang at a financial planning newsgroup, and yesterday some guy over there was touting how U.S. real estate appreciates on average around 10% a year. Not; it's closer to 2% a year, as several of us pointed out. A closer examination of his email addie revealed that he works for a company that will provide anyone a loan ("no credit checks"), at the princely rate of 15%(!) a year and for 5(!) points down.

If anyone is considering any financial deal and wants to make sure s/he is not missing anything, then like you say, online fora can be a great starting place.

 

[Elmo P. Shagnasty]

Ps. Elle, thanks for the information, I'll think it over more as far as what I'm going to do. Good to find a civil person in this group!

Don't let the guys/gals having a bad day keep you from
asking questions.[/QUOTE]

Even if no one here can answer those questions, because the answers are contained wholly and solely within his lease contract.

Yeah, that's good advice, Elle. Tell the guy to go get random crap from random anonymous people, and then act on it. Yeah, superb advice.

 

[Elmo P. Shagnasty]

If anyone is considering any financial deal and wants to make sure s/he is not missing anything, then like you say, online fora can be a great starting place.

Does that include "what happens if I break my lease early"? Is that the kind of "financial advice" for which an online forum is a "great starting place"?

You are so full of shit. Maybe when he takes this online advice and gets royally screwed, he can come back to you for compensation?