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Mr. Ford,
I have a 2002 Nissan Altima SE. When I leased the car, I unfortunately signed up for a five-year lease with a mileage limit of 12,000 per year. My lease isn't up until October 2006 and I am 3,000 miles away from reaching my limit for the lease.
I would very much like to get another car in the fall, but I don't know if it's possible. By then, my car will have around 65-to-70,000 miles on it. I realize I'll be upside-down, but I just don't know by how much.
Do I have any options? Do you see any way that I'll be able to get out of my lease 12-14 months early, especially with a car that might be as many as 10,000 miles over the limit?
Thanks very much,
Mike Ogulnick
Answer -
Hi Mike and thanks for the question. Unfortunately you have discovered the bad side of leasing. The correct answer to your question is NO. There are many plans currently being offered by dealers and manufacturers now but they all add the defecit on your current vehicle to the new vehicle you are going to lease/purchase. The wordage on the first page of the lease(which is not the page you signed, rather the back of that page) is that you will make all payments no matter when you turn in the vehicle and that you will be responsible to the vehicle inreasonable condition and agreed to miles. There are a lot of programs out there who offer to take over your lease, but be aware, unless you get an UNCONDITIONAL RELEASE from the lease company you are still responsible for all charges at the lease end, as well as during the remainder of the lease. Best bet is probably try to put as few miles as possible on the vehicle, go to term, and do not lease again unless there are valid reasons to do so. If you have further specific questions feel free to let me know. Best of luck to you. Bud
Mr. Ford,
Thanks for getting back to me so promptly. After your answer, I feel I'm in quite a quandry. While I can try to put as few miles as possible on the car, often times I have no choice. I work 50 miles away from home, and have to drive in at least a couple times a week.
I want to see if I understand completely what you said. I always thought if I turned the car in early, I would be responsible for the difference between what the buyout amount is on the car and the value of the car. You said I would be responsible for the rest of the payments. Is that right? If so, I can see why unloading the car early is virtually impossible.
I have heard that if your six months or less from the lease ending, dealerships will be more willing to help you get out. Is that the case, or will I absolutely have to wait until October 2006?
Thanks again,
Mike
AnswerHi Mike and hello again. While there are always different programs being offered by different dealers/makers/finance cos. the facts still remain the same. If you have a copy of your lease agreement you should read it(some lawyers have a problem understanding it) and see what your specific obligations are, but I will bet you are responsible like I said before. Sometimes, if you have a dealer you work with and your vehicle is very desireable they will work with you to a degree by cutting the profit they make on the lease, but this is strictly something you have to negotiated. Again, best of luck to you. Bud
