runis

I am in a position where I need to terminate my lease with Honda Finance early and wanted to know if anyone has has any experience with this. What can I expect? Here's what I got:

2002 CLS w/ NAV
Lease Start 11/2001
Lease End 03/2005 (39 mos)
Current milage: 15k (12k/year allowance so about 1k over)
No damage...few rock chips on bumper and hairline scratches.

Had dual household income...lost one so things are a little tight. I can still afford to keep it but if there is not too much of a penalty I would like to depart with it. Thanks for any advice you can give me.

nate'sCLS

need more $$ for weed then...

runis

Its all medicinal

devnull

You should call them and find out what your payment will be to buy. Then sell it on your own. This (I believe) is the only real way to do it unless special circumstances (I had a 2001 TLP with two bad trannies in one week, and got out).

Good luck with it though..

NJTypeS

As far as buying it directly from American Honda, they only accept a lump payment in full. My lease is up in July and I'm interesting in buying my car out. I called American Honda and they will not let me finance from them. They said if it is not paid in full you have to get a loan from a bank or dealer.

Beltfed

You can trade your car into a dealer or find out the buyout from Honda and sell it privately (attempt to get your buyout or accept less and you come up with the difference).

If you go ahead and trade into a dealer or sell it through a used car lot (where they would just pay off Honda)....you are going to lose serious money- about $5-$7k in negative equity.

With Honda, you can't let anyone take over your payments (lease transfer) since Honda won't take your name off the contract. If the new owner kills someone with the car or the car is involved, you can be sued.

You could try and get into a new car and roll some or all of your negative equity into that car....but I don't recommend that.

So, basically you can't just terminate a lease without making up the payments you owe. You signed a contract and Honda is holding you to it.

1killercls

Get set for the "Penalty Phase" of the game.

runis

Ok, what if I wanted to trade it on something cheaper like a Civic. Since it is still honda, would they still hold me accountable for negative equity or just take it back and start over with the new vehicle? Also is there any loopholes for getting out of leases? Someone said 2 bad trannies in a week. Anything else like that?

Beltfed

You are still accountable for the payments on your lease (they don't go away by getting a new Honda), rolling in negative equity is going to be your only option if you trade the car in.

There are really no loopholes in getting out of a lease early, its really cut and dry. Sell your car privately or trading it into a dealer is really your only options. Of course there are some other ways of getting out it, but they aren't legal.

You can surrender the car and just claim you can't afford it anymore, but that will go against your credit.....you don't want to do that.

zeroday

well, I sued honda for my tranny failure and paid to get out of the lease with my settlement money which was around 3k$.