super4

i love my tsx but got a real itching for the A3, just love it for some reason...here is the problem, tho i got a great deal on my lease, i wanted to put a lot of money down to have very low payments. was woundering if i can get out of the lease (27 mo left) without making a terrible financial desision?

abdulrasta

get out your checkbook.

BENDER08

convince someone to take over the lease..

the way you do that in some country's, find an idiot anyone really invite them over make sure to have some vodka at least a bottle a person.


And walla you can convince them to do anything......

ZhenyaF

iTrader: (6)

If your lease is through honda of america, the only way is to buy out the car. Then you can do whatever you want with it. Honda's leases are not transferrable

phil2

leasing sucks for this exact reason! Buying ftmfw!

CGTSX2004

iTrader: (1)

all the ignorance about leases makes me nauseous...

To the OP, you can trade the car in and have whatever dealership you are getting the new car from buy out the rest of the lease. Any money you have paid into the car beyond the trade-in value (which you should negotiate to be no less than your lease buy-out value, which is available on your statements or at Ownerlink) can be used as equity towards the new car purchase.

Just do your research ahead of time and make sure that you know the buyout value and the current trade-in value on the car.

Bearcat94

I agree.

I won't say they don't have a place, but you better know what you're getting into, how it works financially and the pitfalls that'll cost you $$$.

As noted, you could have someone "take over the lease", but with AHFC, you will still be responsible - very risky.

Sell the car on the open market and use the proceeds to buy out the lease. If you are lucky enough, the buyout will be less than or equal to the 3rd party selling price.

Trade the car in. Apply the proceeds from the trade-in to the lease buy out. Again, if you are lucky, the trade in value will be more than or equal to the lease buy out.

In any case, if what you get for the car is less than the buy out, you'll have to pay the difference out of your own pocket.

- next time, don't lease it if you don't plan to keep it; it's a losing proposition 99% of the time.

Paclark01

Leasing is beneficial if the individual gets the new car itch every couple of years, and doesn't want to modify a car.

I leased cars for a few years, but my terms were no longer than 24 months...

I enjoyed getting a new car every couple of years.

black label

There is really no difference here whether you are leasing and want to get out early or buying and you want to get out early, either way you have made a financial commitment that you are looking to terminate early.

Either way there is a pay off amount that needs to be resolved. If the trade value of your car is less than the pay off, you can roll the remainder into the next lease (with some limitations). If the money factor on the Audi lease is lower than that of the Acura lease, you are refinancing at a lower rate.

In reality, you don't even have to tell the dealer it is a leased car, it doesn't matter! All that matters is that there is a pay off on the vehicle you intend to trade in.

Will Y.

Probably not.

With leases, you should never put the money up front, and you should not end them early. Deductible business use of the car favors leasing, though.

The money up front may have reduced your residual, but you will still have to figure out how much you can get from selling the car to determine if you have a loss or not. I suspect that you will owe a couple of thousand more than the sale value of the car.

IMO, it makes no financial sense to go from an '07 to an '08 anything.

clpassenubye

iTrader: (20)

There is a difference and its called early termination fees. When you buy you don't have to worry about those.

FitnessCC

Believe it or not, I did almost the exact same thing: I had an '05 TSX on lease that I wasn't thrilled with. It's a "nice" car - no problems - but was both uninspiring and too small to carry my stuff. I traded it for an '07 RDX that I absolutely love:

- The Acura dealer gave me full trade-in value
- I paid no early termination fee
- I paid nothing extra for my overage on mileage (substantial)

I don't know if a non-Acura dealer would be as generous - I was staying with American Honda Finance, so maybe they had incentive to keep me happy. But, as was stated, the only numbers that count are the "payoff" of the lease (call AHFC to get it) and how much you get for the TSX. Any difference will have to be added to (or subtracted from) the cost (buy or lease) of the new car.

Good luck

zamo

Agreed. And the terrible financial decision was already made when shelling out all that cash at inception. I do not think the residual might have changed, but he will need to see how much can he get for the car and compare it with the payoff.

In any case, an early trade-in or sale will make him loose a lot of money anyways.

I lease 2 cars, and I believe they are the best financial move in my particular case. $200 due at signing on the first one, $625 due at signing on the second one, both 24 month leases.

stright-(paint)balling

if it was me i'd just keep paying on it for 27 months, at the end of lease (like 2 months to go) order in a new a3 . that way it won't screw your credit. it should build your credit if you pay on time.

clpassenubye

iTrader: (20)

This is one of the few ways out of early termination fees is to get another car from the same manufacturer, since they aren't losing a customer they will waive those fees.

zamo

AHFC is too smart. They don't wave fees. They cover their ass with a hefty amount due at signing, and after 2 years of lease payments, they are pretty sure the payoff is similar to the wholesale value. Negative equity, yes it is possible, and the dealer will either absorb it by using any available incentive (marketing support, cash rebate, dealer hold back, for instance), or just discretely add it to the price of the new car (acquisition fee, dealer fee, bank fee, for instance).