zeroday

Anyone have any idea how much of an ass raping i'd be in for if I broke my lease with Honda Finance? I have 18k on my 2002 cls that I leased on 10/01 for 39 mos. I put 7k cash down when I bought it to lower my payments.

TIA

TheModMole

Mine just made more sense to pay out the remainder of my lease payments and re-negotiated the residual buy out amount with applied credits from sec. deposit. Unless you have someone else take over your lease.... its not cheap or easy to break the lease w/o repossession

soopa

yea... same here, when i had my tl it was cheaper to buy out the lease then break it...

and even that costed like 6k.

clscls6s

Try reading the early termination section of your lease contract. It should explain Honda's policy for early terms. With many leases, you're responsible for the difference between what you owe and "fair market value" if you early terminate. Or, you could be responsible for the remaining payments.

Alternatives - trade it in or sell it. If you trade it in, the dealer would pay off the lease (after negotiating terms with you, of course). If you sell it, you'd need to pay it off to get the title to transfer ownership to the buyer. If you put $7k down, you shouldn't be much upside down, if at all.

Call AHFC - they can provide you with a current payoff, then you can consider the alternatives.

bkknight369

i ran into this think when trying to buy my acura (actually i was going to buy a used z2.8 at the time ). neway i think if you take it to the dealer, it depends on the residual value compared to the number of payments you have left...the dealer didnt seem that keen with my oldsmobile alero, cause the resale value is shit. talk to several dealerships, and ask for very specific numbers, if you are going down the path. the best thing to do of course would be to auction the lease off on ebay, since you already paid a large sum of money for the car, maybe someone would like to buy it off at the end of the lease...ive seen people do it on leased porches all the time

suXor

Yeah, you'd be paying whatever the negative equity would be between an average FMV rating and your pay-off...

JasonT

$7K down on a lease! Should have just bought it.

Smitty02CLs

7k! ?,,,,that's your first mistake. Never put a dime down on a lease,,,,,never. I leased mine with $0 down. Honda does now allow to be transfered, they just stareted this about 6months ago. However, you have many miles ....so i may be hard.

Bluto

That is about what I put down when I bought mine, March 01 ... my car is still worth more than my loan payout.

zeroday, Are you staying in the family??? Talk to AHFC, if you get another Honda/Acura and finance with them, they might be more forgiving (edit- just a guess, never leased a car).

01CL-S

A cure for your problems. I might try it soon too.
http://www.swapalease.com/

zeroday

Problem with that is Honda Finance's leases are no longer transferable.

zeroday

agreed. hindsight=20/20

oh well.

zeroday

I'm working this angle right now. I might apply the cash I got from Acura to the lease break penalties. I really wouldn't mind keeping the car if it came to it. It's been pretty problem free other than the tranny and the damn rattles. It'd be nice to have a six speed with navi so we'll see....of course I could just buy a supercharger with the $...but it's leased so dunno if I want to bother. I'm buying my next car. Leasing blows.

01CL-S

OK what I was told by my dealer is that you take your remaining payments + your residual value at the end of your lease = lease buy out.


EX. $400 a month lease
x 20 months left
------
$8000
+$20000 residual
---------
$28,000 buy out