Got a car on lease, how do i get out of it?

[rootaxs]

I got a brand new car exactly a year ago on a lease to own basis, however i wish to upgrade my car as this is just not good for me anymore (it's a slow 2 seater car, expecting more riders soon).

Does anyone if it's possible to get out of the lease terms without having a bad rating on my credit report? One other reason i want to get out of this is because of the high 13% interest rate on it :-( I tried negotiating with the bank but unfortunately they can't go lower than 13% because according to them the current rate is 13.12% or something so i might end up with a higher rating.

Thing is i have an excellent credit & driving history so i don't see why i can't get a lower rate.

Any help/tip/suggestion is appreciated.

Thanks.

 

[iamwiz82]

you can turn it in for a hefty early termination fee.

 

[Tauren]

If you are going to lease another vehicle from the same company alot of them will get you out of your present lease.

 

[JasonG]

You can possibly "sell" the lease to another person. They will acquire your lease and continue the payments.

I'm not sure if your lease will allow that but it's worth checking into.

Also, if you buy from the same dealer or brand, they may allow you to trade it in before the lease is up?

Personally, I will never lease again (tried it once). They get you with all the fine print and when you turn the car back in.

Good luck.

Jason

 

[rootaxs]

I was thinking of trading it up.. seems a lot of people suggest that. I'd like to purchase it this time instead of leasing it as i want to keep the car for good and be able to drive it around without worrying about the mileage limits.

Also hear that terminating the lease before 2 years are up will leave me with negative equity, what does that mean? Any ideas?

Thanks for all the suggestions, truly appreciated.

 

[Emulex]

Negative equity means you owe money on the old LEASE, and it will be tacked on to the new
car price.

so if you owe $3000 (early lease termination fees)

your new car is $20K

You will pay $23K.

 

[kranky]

Here's an article to check out: Bankrate article on getting out of a car lease. It's not a pretty picture, though.

 

[thebestMAX]

Did you see "Braveheart"

My Favorite line:

"The good lord tells me he can get me out of this mess but he is pretty sure you are fuc*ed"

 

[rootaxs]

Doesn't seem good at all.. :-(

Hmm.... i'll have to study my alternatives. Does anyone know if it's possible to move the loan to a credit card line? I have one of those convenience checks given to me by my credit card company and enough credit (with a low APR) to pay off the car loan.