Early Lease Termination: what ACTUALLY happens when you end your auto lease way too early! 

Ari, will the leasing bank allow the person to finance the amount owed after they receive that letter ? that’s determined from what the bank was able to get at the auction? I have a 2020 Jeep Unlimited rubicon recon loaded 23 months left and as I have researched that the vehicle is worth in the low low $50k’s . Jeep has only 810 miles on it. My lease is for 48 months and 22 lease payments left. Thank you Ari

Hey Ari, An acquaintance is coming up on the end of her 3-year lease of a Honda Civic. I will be taking over the buyout. It's due on 2/15/2021 and the buyout is $12,201, plus Honda requires $600 for documentation charges as they handle it through the dealership. And there's always tax. Nissan doesn't add those charges and it's done by mail. If I buy the car a month or two early, how would that affect the buyout? I'm sure I have to pay a majority of the two months or payments, and I don't know if the buyout would be more or if it would stay the same and I just assume the two months of payments. Would you know how that type of scenario is handled? Thanks and of course you always get a 👍from me.

Would the same apply with 1 year left on a car lease?

I was told by GMAC that if I turn it in 1 day more than the last 30 days, my credit report would be tagged. So I’ll just sit on it till then.

2 years ago, I was able to trade in my leased car with a year left on the lease and I got around $2500 of trade in value for it. I tried to do the same thing a month ago now, and they wanted me to pay $5000 for them to take the car off my hands. Really weird. Anyway, I walked, I'll just wait till the lease is up now.

Super Helpful

If i have a lot of months left, will my lender negotiate a payment plan?

If you lease a car say for instance 30 k mikes 10k a year 3 year lease do you have to keep the car the whole 3 years ? Or can you just return it when you hit the 30000 miles ?

Help help I bought a car a month ago I hate it cus of mechanic issues I haven’t even made a payment yet cus it’s no even due yet !

So if I return a vehicle and I get billed and make a payment plan with the leasing company to pay the remaining fees. It won’t affect my credit negatively?

I have 3-4 months of payment with GM Financial. Thought about just dropping it off since i can't pay for it. I know i'll take a hit but i don't care anymore as long as I don't have to pay the 2K left.

24 payments remaining? Wow! I get that was just for illustration purposes, Ari, but if it's my buddy, I'm trying to tell him to hang in a bit longer lol. As for me, I'm eyeing handing in my truck early, but with just two payments left. Looking to see what deal I can work with the dealer of my next car to handle final payout if they'd be willing to buy it off the leasing company. I feel confident, because the vehicle's in good condition with 6,000+ miles under my limit.

Ari, great video as always . In another scenario like buying out the lease (taking ownership of the car) with 38 lease payments remaining, how if you know does Honda financial calculate the payoff. Especially what they do with the finance charge on the lease. I’m currently in this situation and I can’t exactly figure out what they are doing. And it seems they are lost too. I basically leased this car to take ownership a civic type R , and then immediately financed it with my credit union. They sent me a payoff quote with no finance charge attached to it, I paid that and now they said they screwed up and I overpaid by 2k. Thanks for your advice.

Ari, I have a little less than a year left on my 4 year lease for my 2017 Kia Sorento. I came with 4,000 miles on it. There’s a few scrapes on the front passenger side of the bumper. I am thinking about going to a different car manufacturer for my next lease but I am concerned about the bill that Kia will be sending my way when I return the lease. What do you think I should do to keep the bill low?

You keep on looking at your watch. It very distracting. Good video

I just signed a lease on a vehicle. I am a little over a week in and I already want out of the lease for another vehicle but to purchase.. I think I am screwed

It's not as much of a 'scam' as I thought: assuming everyone wants to be fair....This is more interesting than I thought. Really puts the question "how much is your time worth"? into perspective. If a car is worth $50k, and I take the 36 month lease with payments at $500, such that I call it quits at 12 months in. The single charge to settle the account isn't the remaining $18k. It will be somewhere in between $0 and $18k. The reasoning we are on the hook for paying the difference between when the car was new versus what it's worth now, due to our time with the car off the lot There's more to recalculating the monthly payments at 36 months vs 12 months because of that money factor (the money factor won't be the same at 36 months vs only servicing the lease at 12 months). But bottom dollar, people should be expected to pay up to the $18k for that last invoice to settle. The dealership can't charge you more than what the lease is worth, especially if the car's value at auction sold, is higher than what was expected at lease end. So, if the residual value was expected to be $30k after 3 years at lease start, but the car sold at auction (realized value) was $40k, 12 months at early lease termination, we are on the hook for $10k at minimum or less, in order to make the lessor whole, as if we never leased the car to begin with. Money wise, paying 10k out of the 18k (55% of your lease payments) sounds terrible to break a lease and it's solely to the dealership' benefit. On the other hand, that's 2 years that you no longer have to be held liable for that car and can move on to something else. To most, that upfront charge isn't worth breaking the lease. To others, being free of the lease agreement 2 years early is worth the $10k price to be done with it.

Hi I have signed a contract on lease and deposited $1000. Only thing what I asked for the car which I need it to be delivered within 3 weeks. The dealer promised on that but in the contract they have mentioned the date more than what they promised. Since it’s a sale they are very positive and polite Ana they keep promised that it will be delivered within my requested dates so that I signed. Later there is no response from then after 3 weeks I followed up multiple times and they don’t know the real time of the vehicle when it will be land as the transit of vehicle itself they are not sure. then I decided to cancel my lease. And let them notified that I want to cancel, but they are not accepting that and provided me couple of option on other vehicles which if not in my choice and saying that I can’t cancel the lease as per the law. I keep twisting them for my deposit for a month Ana there is no use. Now they are forcing me to take the vehicle after a month. Pls let me know how to sort this and they have sent me a contact breach recently and vehicle is still with them only.

Hello, I did finish my lease and I went over mileage 12000 mile over. What happened if I don’t want to pay the 1500$ to my credit

What if you lease a car and after 5 months it already broke down ..than what? Because this happened to me and its been having problems the day I took it home now I don't want to keep paying to fix it when it has only been 5 months..now I am in ontario canada and don't know what to do and my finace people are not helpful and the dealership hung up on me and blocked my number so can't call them. Should I just go there..also I paid for a 6 month warranty where things are suppose to be cheap or free to fix which hasn't been the case they refuse to get me into a mechanic for 4 months.

Ari, some of us( new Buyer's) are waiting to purchase the new 2021 BMW G80/G82....... When are you going to cover the BMW Lease deals for these new BMW G80/82 vehicles. Although, with my limited college math ability .......it tells me to buy the $100,000 dollar car.

Hey Ari I got Volkswagen atlas 2020 cross sport 2L for 330 $ a month with 2000 down payment... is it good deal?

Typically how long would a repossession stay on your credit report?

Hey Ari, Is it common for a 19 year old college student to lease a brand new Honda Civic? I don’t have bills to take care of. My credit score will be on the good side next year. I also plan to keep the car after the lease (finance the rest after), and also want to put a very high down payment ($4k+) is this all possible to get a new car? A response would be great. Thanks.

can someone pls help me, I want to turn in my leased car that I can no longer afford

Hello So I just brought my car 3 days ago with Toyota I have a 3 year lease now I came with a Decision of canceling and just getting my down payment back to me and return the car is that possible or is it too late is there an open window for me to return the car or after you get it from the dealership you cannot return it because it’s been only three days since I bought the car from the dealership

So no one is going to ask why does he keep looking at his watch in the beginning? 😅

Always pay cash I guess

Yeah I am tired of these car note payments and autbody shop payments and car insurance. Next year I'm just going to buy me a car and hire a credit lawyer.

Just returned my car early screw it brought me a used Toyota Avalon

Bro anyone ever tell you that you sound like Christopher Walken?