KBS756

Hey everyone. Was wondering if anyone knew my options in getting out of a lease on an Acura aside from having the car bought out or paying the remaining monthly payments. Is there anyway that I could transfer my lease to someone else or does Acura Financial Services Not allow that.

Sorry I hope this is in the right section I don't post much here.

I don't drive as much as I used to and was thinking of going to a used car now and saving some money.

I got a 2011 Acura TSX Wagon w/Tech with 9,300 Miles on it with 22 Payments left on the lease, so was just wondering if anyone knew if I could transfer the lease to someone and the best way to find someone to transfer it to along with the process.

Thanks in advance.

BobbyC

Sellyourlease.com.
Lots of folks sell leases there. It's a good place to go if you want a specific car for a year or so.

I usually just outright sell it. Acura retains pretty good resale value so you should at least break even minus your down payment.

BobbyC

Www.swapalease.com is a good one too

KBS756

would you happen to know the fees involved in swapping a lease?

And does Acura charge you a fine for doing so?

Thanks in advance

KBS756

Also My current Payments are 450 including tax, would anyone be able to give me a good price i should offer it up at in order to get rid of it quickly? (Wondering how much I should offer as a cash incentive)

Im on a 12k a year 36 Month lease so Im around 3k under milage

and from what I can see a base wagon (Mine has Tech Package) is leasing for 360 before tax so 385 with tax with 10k miles allowed a year.

Thanks

ceb

What is your buyout? What does Edmund's or KBB say your car is worth?

KBS756

Already tried that approach I would be losing somewhere in the 4000's based on dealer trade in (Since dealers Dont pay sales tax). Or like around $1,000 if I wouldnt have to pay sales tax on the buyout so still in the 3,000's if I managed to get private party Very good which I really doubt I could.

Think It would be easier if I could get someone to take over my lease but never done that before so going to call Acura Monday morning and ask them about the specific Process

Thanks for the advice though I appreciate it

BobbyC

Jeez that's high. Mines less than that and my trade in was upside down with no down payment.

Why are your payments so high?

KBS756

Had Quite a bit of negative equity going in (a Large SUV I had to get rid of) which makes this one hard to get out of now. So these payments include tax + fees + some negative equity not paid for in the down payment.

Thats why I'm wondering what would be a good cash offer to make the payment appealing to someone looking to assume a lease.

Swapalease.com doesn't have any TSX Wagons Listed so I don't really know what I should be offering here.

Thanks

ceb

If you want proper advice then you'll have to post up some real numbers - buyout, value etc.

What are the lease numbers for a new car configured like yours using and average purchase price from a place like Truecar.

KBS756

K

Buyout : $32,353 (includes Sales Tax)
Dealer Buyout: $30,236 (Dealer doesnt pay sales tax)

KBB Values
Private Party: Excellent $29,596
Very Good: $28,896

Trade-in
$26,991
(Tried to Trade got offered Galves Value $25,000)

K now Truecar for my area

MSRP : $35,905
Factory Invoice: $34,079
Avg Price Paid: $33,889

Dont see any specific residuals listed for a TSX Tech Wagon anywhere but the sedan seems to be 54% at 12k miles and a 0.00038 Money factor?

If i dont include fees and plug that into a lease calculator I get $456 a month

So I hope I've provided enough information

ceb

Yep, that's plenty.

The problem is that you've got to quit thinking lease but rather just thinking overall costs.

Your buyout is about $1500 less than a new car and the target for buying a used car is somewhere between dealer trade in and private party - that's the incentive you have to offer a prospective buyer.

You need to decide if getting out of your lease is worth the $7k you'll lose. Realistically, your car is worth no more than the "average" condition, so somewhere between $25k and $28k. You owe $32k.

Me? I'd put the $7k towards lease payments and drive the car another 15 and a half months ($7k/$450) At that point you won't be so far underwater anymore and might be able to have a better shot of getting out of your lease.

KBS756

I've already given up on trading it in or selling it as the loss I already know on it is around $5000. The specific scenario I was requesting some help with was trying to get someone to assume my lease through a site like swapalease.com where someone could take over the remainder of my lease. So what I was wondering in relation to that is my current payments are $450 a month how low would i have to subsidize that (give up a little in cash) to likely have someone take over my lease.

Thanks

ceb

Sorry if I wasn't clear enough. Trade, sale or lease, the new potential buyer is going to be looking at the same thing - cash. The new buyer is going to look at your payments (22x$450 or $9900) plus the residual (about $18500) for a total of $28400. Since the actual value of your car is nearer $26k, you're looking at $2400 (at best) plus transfer costs. Without a substantial cash payment, the new buyer has no incentive to buy yours.

KBS756

I guess I misunderstood the meaning of assuming a lease. I assumed if one was to swap a lease the person taking over the lease would be taking over the remaining 22 payments and be responsible for any overages or damage.

The way in which you put it ... I would be subsidizing the lease by $2,400 in cash making a $450 a month payment (including tax) into a $340 a month payment including tax. Which is about $35 a month less than a Base wagon (mine is a tech) currently leases for and that too is an offer with 10k miles per year.

The way in which you've laid it out is not in accordance with someone taking over the lease but buying the car out. Also I believe the residual listed on my paperwork is $21500

Sorry appreciate the help but your response didnt make sense to me based on what I am asking. I must be misunderstanding something or not explaining something correctly. Trying to ask about someone taking over my lease rather than buying my car from me. Thanks again.

ceb

Right, I had a math error in there as I used the 54% rather than your actual buyout.

That said, you are obviously correct that the new buyer will be responsible for the payments and damages/overages (but you may be on the hook for all of those as well depending on the exact wording of the lease transfer.)

The current cost of your car is $32k+ and the actual value is between $25k and $28k.

What incentive does a buyer have to buy your car at $32k (payments plus residual) rather than walking into a dealership and leasing a used wagon for $25-$28k?

The only incentive is if you hand them an envelope full of money. BTW, listings for wagons on Cars.com start at under $18k for a non-tech. Most low mileage wagons are in the $29k range which is probably a negotiated price of $27-28k

You'd need to price yours at under $28k to make it interesting. Most swap lease places have calculators so that you work out leasing costs based on the actual price of the car.

OTOH, you might get lucky as nobody under 40 seems to understand leases and focused only on the monthly payments and is clueless about the true cost of a lease. The other option is to find someone who only wants a short term lease and is willing to pay the extra price - but I can get a 24 month lease too, so what makes your 22 month lease special?

Did that help? Any way you slice or dice it, you'll need to come up with cash for the difference between what the car is worth and what you owe - lease or sale.

Getting out of this lease will cost you $7k any way you look at it.

What did Acura say when you spoke with them today?

KBS756

Thanks for the help ... but seems Acura doesnt allow lease transfers, or at least thats what they told me.

http://swapalease.com/lease/details/...x?salid=752966

Though it seems some people with Acura Financial Leases have been able to. So guess I'm just gonna have to keep the car till the end of the lease.

Btw I know I could have gotten out for it costing me $5k as I was already inquiring about trading it in on a used car.

Anyway thanks for the help guess theres nothing I can do about it though.

cudfoo

Problem is that it's just not an attractive lease for someone to take over. Sounds like the capitalized cost and interest were probably kind of high when purchased and the payments are high - especially for only 10k a year.

The price of the wagon has come down in the last year as the '12 wagons are going at or under invoice with a money factor (or interest rate) at under 1% and that can be had for 15kmi per year.

MrOtocinclus

You can "transfer" the lease, but you'll still be responsible for the payments and upkeep. If you can find someone you trust and is willing to pay $450/month for 22 months, then you can walk away when the 22 months is over. Of course, that's assuming you can find that mythical someone.

I faced the same choice a little while ago and decided that saving $3K was not worth the risk of someone "taking over" my lease and then destroying the car or skipping payments. For me, paying the dealer $3K so I could walk away was well worth it.

To be honest, if the buyout you list above is the same as the "payoff" that Acura lists on the monthly invoice, then you WAY overpaid for the car. I'm kinda scratching my head at how, after 14 months, the payoff is still above $32K. That would make the price of the brand new car almost $40K, 14 months ago. Hopefully I'm wrong and you didn't really pay that much for the car. Good luck man.

ceb

He was upside down on his trade so that got rolled in too.

Once you're upside down you'll be upside down for a long, long time. That's why it'll cost him $7k to get out of that lease and if he has the $7k then he might as well just put that towards 15 months of lease.

People don't understand how to buy or lease a car. Most are looking at the monthly payments only and that always comes back to bite them in the ass.

1cleantsx2012

+1 my