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Ok here are the details i have a 3 year lease on my current car. I don’t want it anymore and i don’t want to trade, because ill end up upside down on payments..So would it be better to just give back my car to the dealership and then just go buy a used car..will I get penalized once I leave my contract? Oh also they told me I could break the contract after a year, i’ve had it for 6 months.

6 Comments »

1. 

   you would have a new car

   Comment by John — July 1, 2011 @ 11:28 pm

2. 

   If you "just give the car back to the dealership" you are doing what is called a voluntary repossession and it will destroy your credit. You’ll be out thousands of dollars and you’ll be out of a car and you’re credit will be ruined in the process.

   What has changed in the last 6 months that prevents you from paying the payments? You made the decision to buy the car, now live with the decision you made.

   Breaking the lease will cost you thousands of dollars in penalties and selling the car will result in the loss of thousands of dollars based on the negative equity you have in the car.

   Bottom line. Unless you want to either ruin your credit(repo) or lose several thousand dollars cash you need to keep the car and live with the decision you’ve made.

   Comment by mccoyblues — July 1, 2011 @ 11:28 pm

3. 

   You were upside down the minute you signed. Everyone is always upside down on a lease.

   You cant get rid of it without ruining your credit and ensuring you wont get financing for anything else for the next 5 years.

   Whoever said you could break the contract after a year was lying to you.

   Your options are simply. Pay for keeping the car for the next 30 months or stop paying and eventually pay almost as much, withOUT the car and have your credit ruined and your paycheck garnished. (25% of your pretax income before deductions)

   Comment by n — July 1, 2011 @ 11:28 pm

4. 

   If you don’t want the car after 6 months, then you shouldn’t have signed up for a 3 year financial obligation. There’s no "leaving" a leasing contract. Failing to fully honor the terms and conditions of the lease agreement – which you agreed to – results in penalties.

   Comment by Scott H — July 1, 2011 @ 11:28 pm

5. 

   It is a leased car. You do not own it and cannot trade it in.

   Also, you cannot return it to the dealer as they are not the leasing company. They were merely the delivery outlet for the vehicle.

   You have to talk to your leasing company to see how big the lease termination penalty will be.

   Comment by Chuckles — July 1, 2011 @ 11:28 pm

6. 

   Remember all those papers you signed in the beginning, and got copies of? Time to get them out and read them. Look for something that says "Early termination" which will tell you what the costs will be to terminate your lease. You can bet it’s going to be a large sum of money.

   If you return it, it will be a repossession, they will auction it off and you will be responsible for the amount left owing after that.

   If you do that, your only choice will be a used car you can pay cash for, your credit will be ruined.

   Comment by oklatom — July 1, 2011 @ 11:28 pm

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