| Gladiator |
| A friend of mine signed a 48 months lease on a Mazda 6 last year in January but now finds himself in need of an SUV. Can anyone tell me what kind of penalty he would be facing if he was to return the Mazda now. |
|
|
| andreseng |
| To properly address that concern the actual lease agreement would need to be examined. Sometimes, very rarely, but sometimes if the stars are all lined up properly, and a blue moon is present, you can find out what the total payoff is on the lease if it's a closed end lease, then check www.kbb.com for the value. It's a slim chance, but possible, that you may have some equity there to deal with. But to truly figure out this situation you will need to examine the actual lease agreement. |
|
|
| komondor |
You need to reads the contract if he goes back to the Mazda dealer he has a better chance of not taking it in the shorts.
Basically he will be liable for all his lease payments plus the residual value as staed in the contract. The leasing company usualy will require you to deliver the vehicle to them where they will sell the vehicle at auction and if the sale price differs from what you would have paid plus the residual then you owe $$
The contract is the place to start. |
|
|
| BLEXV6 |
quote:
Originally posted by komondor
You need to reads the contract if he goes back to the Mazda dealer he has a better chance of not taking it in the shorts.
Basically he will be liable for all his lease payments plus the residual value as staed in the contract. The leasing company usualy will require you to deliver the vehicle to them where they will sell the vehicle at auction and if the sale price differs from what you would have paid plus the residual then you owe $$
The contract is the place to start.
All you have to do is trade in the leased vehicle for the new vehicle. There may be a penalty, but I did it once after a year on a 4 year lease and the penalty was not that bad. I cannot recall the specific details. He should just ask the financial commitment required to get rid of the vehicle. |
|
|
| andreseng |
| Again, I would highly suggest you first find out the payoff amount of the lease if it is a closed end lease. Twice I was in an equity position (car value was more than the payoff) and was able to get something out of the vehicle by selling it for more than the payoff. It is rare but worth the shot IMHO. Don't throw away money by just throwing in the towel and giving it up to the leasing company or a dealership. It's not very hard to do. Before you say anything to the leasing company call them and ask them for the payoff amount. Then compare that to the Kelley Blue Book value at www.kbb.com |
|
|
|
