Does anyone have any idea how to break yr lease, whats involved , and the penalty when you break a leasing contract? Ive heard many different things and penalties from a couple thousand to paying for the whole car?!?! , but want to be properly prepared before i contact my dealer. incidentally if I do have to break my lease its only coz I being transfered to hk and not coz the s2k is a bad car. Currently I'm paying $423/month and I put a 1k down. its a 2002 spa yellow that I picked up in march. Its a 3 yr standard leasing agreement through honda finance. I really hate to part with it since in hk the car is probably going to cost double. Anyway if anyone can help inform how to break my lease with as little penalty as possible, if possible i'd appreciate it... thanks.

 

There is a standard line in the middle of all lease agreements that states

"Early Termination, I may have to pay a substantial charge If I end this Lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the Lease term is terminated. The earlier I end the Lease, the greater the charge is likely to be."

So know one will know the answer it is a fee only your dealer can decide.

 

Not to spend fear, but I heard that breaking a lease agreement may have a drastic negative effect on your credit rating, similar to having your car repo'ed. Any truth to this?

 

I've always been curious if there is anyway to 'buy-out' the lease. I know it's possible, but will you still suffer the 'Early Lease Termination' fees?

...only your dealer can decide

...and Honda Finance lets the dealer's set the fee?

 

I actually do this with most of my leases. I have a bad sports car habit and have been through 5 new cars in three years.

Basically, a lease is no different from a purchase if you want out of the contract early. You simply have to put the car up for sale and use the proceeds to "buy back" the pink slip.

All you have to do is call AHMF and ask for your pay-off to see if your car is worth what your payoff is. If you paid sticker with 1000 down in March, I'd say your payoff will be 31k-32k. If you can only sell it for 30k, then you have to make up the difference.
There's no bad credit involved.

Most people buying used cars of this value are familiar with buying from a private party and then getting the pink from the lein holder.

Even simpler yet is to use a broker that you trust. I have a guy who deals in high mostly high end cars who simply puts my car on his website and I drop it off when he has someone who wants to look at it. This way he does all the paper work.

 

[QUOTE]Originally posted by Hep
[B]I actually do this with most of my leases. I have a bad sports car habit and have been through 5 new cars in three years.

 

Here is a link to a company that can help you terminate your lease. I've never used them, however, the information looks good.

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

Here is a link to other S 2000's on their site:

http://www.leasetrader.com/e/results.asp?b...a=837933&tipo=0

 

wow thaNKS everyone for their replies. im sort of confused tho on one thisng...so basically I neeed to buy out the car to terminate the lease and then sell it??

but if i can do that, woouldnt the buyer just "buy" the car to begin with and not bother leasing...????

sorry if i was the only one who didnt get it...i wont my if i have to pay a couple thousand penalty but i make 60k/yr and i just dont have the kind of cash unfortunately to just pay the car out right to break my lease.....

 

No you have the ability to just simply sell the car then pay off the lease. If it is a 2002 then you will owe quite a bit more then 31k close to 35k more then likly. As when they terminate a lease they take the lease payments remaning then add the residual value. As such you pay the penaltys of the lease. Now I doubt that you bought the extended as it was a 3 year lease, that being said you more then likly owe about 32. If you can get it you can walk away clean, if not then you simply owe the difference whicih if you get 30 or so is about 2 grand. Not bad for getting out of the lease.

Trying to do the same thing myslef right now.

 

J'S2000,

Don't know what type of company/industry you are in but at firm I work for, they will dispose of the car and take the financial hit. Similiar to leases on rental properties. You may want to check with human resources on your companies relo package.

Michael