Should we try to get out of an auto LEASE (aka FLEECE)?

[jamreed02]

We really want to start living more responsibly, but my hubby and I have this stupid van lease hanging over our heads. It's a five year lease on an '05 Dodge Caravan (leased in June 04) And we've got three years left on the thing... We're paying $300 a month for it. The buyout is going to be 14K, and the 'thing' is worth a hair under 12K. I'd like to get rid of this horrifying reminder of my stupidity, and start paying towards a car I will actually own in three years, not just "air" kwim?

Has anyone ever gotten out of a lease? Good/Bad experiences? Should we try to do it? Or just stick it out & smack ourselves every time we see the 'thing' for the next three years?

[Crystallas]

5 year $300/m isnt bad. Factor in that it costs

$20,000 new

3600/year, and you have 7200 paid off on a $18000 lease. $14000 to buyout.

You need to go to the dealership and see if they will buyback your lease if you decide to buy a new car. Or see if a 3rd party is dumb enough to takeover the lease.


Most leases are like this,

[poundwise]

Maybe this sort of thing can help you...

http://www.leasetrader.com/e/home.asp

If you did something like that, I would suggest verifying completely that you would no longer liable in any way should the person who assumed the lease default.

[wwjdmsl]

One of the biggest financial things I regret is when I "fleased" a van...ended up buying it but seemed like I paid on it forever

[Writer@Large]

I've looked into getting out of my fleece, but so far I've gotten only the cold shoulder. The dealer told me that I'd have to call the leasing agency (Ford Credit). The agency told me that I'd have to call the dealer. Neither one thinks it can be done more than a few months before the end of the fleece.

Really, why would they let me? They're getting more out of me now than they would if it were a purchase. Oh, if only I'd read Total Money Makeover 7 months earlier ... !

--W@L

[VJW]

Not sure if it would be applicable, but I know that GM has what they call “pull-ahead” with their leases, meaning that a couple times a year they will allow people to turn their leases in early and they will buy out the rest of the lease if you are either releasing or purchasing a new vehicle.

Now with Ford just a few days ago announcing massive incentives (thousands in rebates, zero interest loans, and free gas cards), I assume it’s just a matter of time before GM and Chrysler follow suit, as they are all sitting on large inventories they need to move before the 2007s come rolling in only a few months from now.

So I would check with the respective brands, as to wether they can buy out the leases.

~

BTW, speaking of inventories, has anyone else read the account of the Hummers at the one dealer in Southern California ? On the one hand, it’s hysterical, but on the other hand it really woke me up. Also check the later update:

Hummer Overfloweth

#

[jamreed02]

k - the whole point here was NOT to buy or lease another new vehicle. I want to be frugal. That means getting rid of this FLEECE, and buying a good used car. We've found a few nice vans recently that would have done very well for us.

I called the leasing company and the "buyout" is about $3,000 more than what the van is worth. But they can transfer a lease for about $300 in fees. At this point, I can't immagine paying $3000 to get rid of it, and no one in their right mind would take over the lease. So we're a little stuck. Maybe I should call in to Dave?

[PrincessPerky]

Hummer article may be a bit unrelated, but it was certainly interesting!

[sakigt]

Id stick it out for the 3 years. $300 isnt too bad, all things considering. The cost of trying to get out of it is going to outweigh the benefits.

Id try to focus on the positive changes you are making besides the van. Dont let it hold you down.

[Ima saver]

I cannot believe anyone would lease a car, sorry!! What are the benefits??

[jamreed02]

There are no benefits, unless you like wasting money!!! Don't let any salesman ever convince you otherwise. There are absolutely no benefits to leasing! I thought we'd end up with a more reliable vehicle, and since we've got 3 very young kids, it was important, but I've been stuck on the side of the road with this stupid van more than my old car. You basically pay to rent the thing, and then they give you tons of rules about how you must maintain it. Then at the end, we're going to get billed for the times we went over the 3000 miles before changing the oil; the stains from juice on the carpet, the scratches on the paint where the neighbor kid tried his sidewalk chalk on our van, and the wear and tear on the upholstery, and possibly any mileage we go over our alotted 1200 miles per month! We're really going to get skrewed on this one! I think we'll end up just having to buy the thing, even though I hate the sight of it! (just think... I'll have a constant reminder of the stupidest financial decision I've ever made, just waiting for me in the driveway, every day!) Oh well.... I suppose focusing on the good things I'm doing to save money is the best advice so far! And at least I haven't traded in my lease and gotten another car six or seven times over... so it could certainly be worse!

[PrincessPerky]

Jam,
you are not alone, they make it out to be great, salesmen are good at that.

you might want to grab a spreadsheet, list the 'fees' and such for keeping onone hand and the cost of escaping on the other. if escaping is close to keeping, and it wonr mke you pull out a cc you might want to do it....cause nothing worsde than being reminded of a mistake every day..

just don't forget if you escape you will need some form of transportation.

[sakigt]

Originally Posted by Ima saver

I cannot believe anyone would lease a car, sorry!! What are the benefits??

If you like to drive expensive cars that depreciate quickly and ditch them after 4 years its worth it.

But who the heck can afford to do tthat in the first place? lol

People are tempted in because the payment is usually lower than if they finance.