Getting out of car lease

InDebtInDC · #1 (**permalink**) 08-21-2007, 05:30 AM

I'm trying to get rid of my car lease. I now realize it's not worth it any more. I needed cheap wheels when I signed it 5 months ago, but now I moved so close to work that I don't need it.

Any thoughts? I took it to a dealer as a trade in and they said voluntary lease termination shows up on your credit as a repo, even though you gave it up voluntarily.

Any truth to this? Thanks.

Daniel_Shop · #2 (**permalink**) 08-21-2007, 05:43 AM

They are such a Shark. I don't know if it is true but certainly it's immoral!

Finish it off and save your money to purchase a good looking used car.

Mike_Joiner · #3 (**permalink**) 08-21-2007, 05:51 AM

That's terrible. If true get everything you need credit for quickly and then give the car back! :-)

LuckyRobin · #4 (**permalink**) 08-31-2007, 12:51 AM

But you can amend anything on your credit report. If it shows up as a repo just write a letter asking the credit bureau to include the detail that you voluntarily terminated the lease on your own terms. Then anyone seeking to give you credit in the future would know its not a repo.

InDebtInDC · #5 (**permalink**) 08-31-2007, 05:16 AM

Quote:

Originally Posted by LuckyRobin

But you can amend anything on your credit report. If it shows up as a repo just write a letter asking the credit bureau to include the detail that you voluntarily terminated the lease on your own terms. Then anyone seeking to give you credit in the future would know its not a repo.

I need to check with the credit agency first before doing this. I think it still goes on your record as a voluntary repo.

momof1in150 · #6 (**permalink**) 08-31-2007, 06:24 AM

Even though you can do a write up on your credit report doesn't mean that it will help your score. I think you need to try to honor the contract and turn it in when the time is due. It will take a LONG time to get that negative spot off your report. If you have a bad credit score most lenders won't go further into your report to look at other information.

disneysteve · #7 (**permalink**) 08-31-2007, 06:59 AM

There are companies that broker deals to find someone to "buy" your lease from you. I don't know the names but you can probably find them if you search online.

loanstar · #8 (**permalink**) 08-31-2007, 10:08 PM

couldn't you have got a valuation from that dealer? if you work out that there's not much to loose, you could pay it by other means e.g. credit card, sell the car then return the money..

LivingAlmostLarge · #9 (**permalink**) 09-02-2007, 10:42 PM

Sell it then take out a private loan for the difference. OR put it on a CC. I normally don't say this, but better to owe $3k than $15. or something. You know? You are dumping debt after all.

Daniel_Shop · #10 (**permalink**) 09-03-2007, 01:18 AM

what did you do in the end? updates requested!

InDebtInDC · #11 (**permalink**) 09-03-2007, 06:43 AM

There's no update because I'm still trying to figure it out. I may just do a lease buyout and refinance.

I owe a friend some money from him bailing me out of my house so right now he's using the car as partial payment. At least the car is being used to pay off my personal loan from him so I guess it's a good deal.

His family is getting bigger and his two-seater won't cut it any more. If he decides to keep the car I'll sell it to him at a discounted price and call our debt settled.

poundwise · #12 (**permalink**) 09-03-2007, 07:15 AM

I would pursue the angle of paying off the vehicle early. If you don't have the cash, then a loan will do the trick. If you can't get a bank loan (which would probably want a title lien as collateral) you can always try Prosper.

Another option is to check into a service like swapalease.com - car lease takeover - auto lease assumption - car lease transfer - auto lease take over and see if that will fit your needs.

As for the friend using the car, I'd be double-sure that you have proper insurance. For instance, what if he wrecks the car? Are you covered? Be sure.