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Old 10-25-2011, 07:50 PM   #1
Michel
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how to get rid of a lease?



I've got a 2010 corolla - 5 year lease, I pay 229/month for it. How do I get rid of it with minimal losses? I put 500 down originally and toyota matched it with $1500, so I know I'd be losing that.

I know you can find someone to take over the lease, but say I wanted to get a car from a dealer (not toyota), can I trade it in at that dealership somehow and they would deal with toyota credit?

Thanks,
Michel
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Old 10-25-2011, 08:16 PM   #2
sirex
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well im not sure what kind of loan you got, but you can probably pay it off in full.
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Old 10-25-2011, 08:22 PM   #3
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Read this http://www.ellenroseman.com/?p=1108
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Old 10-25-2011, 08:28 PM   #4
Michel
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^thanks, but I'm aware of all that; I'm not returning my lease, I'm trying to get rid of it.

Sirex you're right, I'll likely have to buyout the car, and trade it in... will probably lose on the trade in value.
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Old 10-25-2011, 08:46 PM   #5
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Quote:
Originally Posted by Michel View Post
^thanks, but I'm aware of all that; I'm not returning my lease, I'm trying to get rid of it.

Sirex you're right, I'll likely have to buyout the car, and trade it in... will probably lose on the trade in value.
just give someone an incentive to take over on leasebuster, incentive might be cheaper than trading in, losing value.
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Old 10-25-2011, 09:09 PM   #6
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I think an incentive is a good idea. For sure you will lose on a trade in, but than again, most likely they will low ball you when you wanna sell it. IF you are in a hurry, go with an incentive idea.

My 0.02c
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Old 10-26-2011, 09:52 AM   #7
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There is a fairly easy systematic approach to determining what to do about a leased vehicle (if you want to get out early).

A) Call the leasing company and find out what your "Current" buyout is.

B) Do some research, and find out what your car is actually worth. Not Max Sale Prices, max lowballer purchase prices, but actually what the car is worth. Look at Autotrader, Kijiji and get the wholesale values.

C) Considering the Corolla is still in production, find out what a lease payment would be for a new car. You'd be screwed if the 0% down, lease payment on a new Corolla is more than your current lease payments.

D) Despite what people say on max, you don't automatically loose your deposit. The only thing that matters is the difference between actual value and current buyout. Also a major factor, is the mileage on your car. If you are over, you will have to give an incentive, if you don't have 20,000KM minimum per year of mileage left per year. In general, if you put $500-$2000 down, you wouldn’t ask for that back, because that would have helped make your lease payments attractive (for a take-over).

If you put $10,000 down, you’d be in a position to ask for some of that money back, as your payments are probably too low and you’d be stupid to do a take-over. You’d be better to buy the car out, and sell it.

I've actually bought and leased several NEW BMW's (E36, E46, E92), Acura's and GM's.

Start by gathering the above information, and see where you stand based on the images below.
(Remember, when you buy the car out, you’ll have to pay taxes on the buyout amount. If you trade it in again, you’ll save on the taxes. Keep that point in mind).

.... hope it helps...
Attached Images
File Type: jpg Lease1.jpg (81.7 KB, 129 views)
File Type: jpg Lease2.jpg (58.8 KB, 129 views)
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Old 10-26-2011, 08:59 PM   #8
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^thanks, but I'm aware of all that; I'm not returning my lease, I'm trying to get rid of it.

Sirex you're right, I'll likely have to buyout the car, and trade it in... will probably lose on the trade in value.

i think i confused my self.

this is a lease or purchase finance?
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Old 10-26-2011, 11:07 PM   #9
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^it's a 5 year lease - buyout at the end is $5500 i think.

I might be in a bad position actually; I called the leasing company and they said the current buyout is 14k + tax... black book on my car is between 11.5-13k so it could be a close net zero position.
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Old 10-27-2011, 09:07 AM   #10
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^it's a 5 year lease - buyout at the end is $5500 i think.

I might be in a bad position actually; I called the leasing company and they said the current buyout is 14k + tax... black book on my car is between 11.5-13k so it could be a close net zero position.
Actually, you may not be that bad. Take a look at what your car/model/with mileage sells for on Autotrader.

If it's worth $16-$17K retail, you might be alright (Not the highest, but average selling price across Ontario).

If you're buying a more expensive car from another manufacturer, you could ask the dealer to give you say $13.5K-$14K trade in (they buy the car our for you), and you pay MSRP on the new car.

Actually, if you're paying MSRP on the new car, you should be able to get the dealer to step up to $14K trade in value.


If this was a GM/Chrysler products, your buy back would probably be $14K and the retail would have been $11K.

Good luck. Hit as many dealers as you can. This might turn out okay.
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Old 10-27-2011, 10:29 AM   #11
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^yea you're right! I'm seeing them go between $14.5-17$ with mileage ranging from 22k-55k. Mine's at 27k so somewhere in between - its also a 5spd so thats about 500-800 off.
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Old 10-27-2011, 10:58 AM   #12
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You can't trade in a leased car, you don't own it.

You have to either settle with the leasing company (buyout) or get someone to take over the lease. Listen to MrRWD, he seems to know what he is talking about.
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Old 10-27-2011, 06:20 PM   #13
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^yea you're right! I'm seeing them go between $14.5-17$ with mileage ranging from 22k-55k. Mine's at 27k so somewhere in between - its also a 5spd so thats about 500-800 off.
You really might come out okay. Wish you the best on this!

Print out the CanadianBlackBook values, as backup.
They will say, that that "Low" and "High" values reflect KM as well (It used to, in the actually little black book days, with 20K/year allowance).

So, for the same car, print out values for 60,000KM, 27,000KM, 15,000KM and take them with you.

What car are you going to get?
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Old 10-27-2011, 07:44 PM   #14
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^thanks for your help man, I will do that.
I might look into a 335i pending on selling my E46 (if I can even get myself to do it emotionally lol)

-->http://www.maxbimmer.com/forums/show...79#post1531679

If I sell the e46 and get rid of my corolla, I'll get a 335 for daily driving instead of summer/winter car swapping.
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Old 10-28-2011, 07:04 PM   #15
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I don't understand why anyone would ever lease a car. I just don't get it.
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