Early Lease Termination

NoVaGT · Sep 20, 2017

Chef jpd said:
I turned in a Ford lease 1 year early to purchase a 13 Focus ST.
I had to pay $1000 early termination fee and walked away from it.
Probably would have been a different story if I weren't buying a car from them.

What was the monthly payment on the lease you turned in early?

jstump2490 · Sep 20, 2017

NoVaGT said:
The entire 6 months were paid. You just think you only paid for three months. There's no getting out of the lease, it has to be paid. The other three months of the lease were rolled into what you paid for the next car.

It's a shell game, meant to make people think they got a "good deal".

This is false, I negotiate all deals before even mentioning trades. I brought up the lease right before signing for my new car and would have walked away from the deal if they made me pay any more than 3 months of payments. I should also mention this was a Ford/Mazda dealer and I was trading in a Mazda3 for a Focus ST so they had the means to break my lease. If I went to a Toyota dealer trying to break my Mazda lease, that probably would not have happened.

NoVaGT · Sep 20, 2017

jstump2490 said:
This is false, I negotiate all deals before even mentioning trades. I brought up the lease right before signing for my new car and would have walked away from the deal if they made me pay any more than 3 months of payments.

No, you talk deals before mentioning trades. Trades change the deal, period. There is no "deal" until a contract is signed.

Let me state this simply; the lease MUST be paid. It must be. Where that money comes from, either the purchaser or the seller, is immaterial. The lease must be paid for.

If you offer "$X" for a vehicle, and the dealership accepts that offer, and then you add in that they must pay three months of your lease too, that just means the dealership is willing to take that much less profit. Or, in other words, they had that much profit at your "$X" offer to give up.

It doesn't matter where the money comes from, the lease will be paid.

jstump2490 · Sep 20, 2017

NoVaGT said:
No, you talk deals before mentioning trades. Trades change the deal, period. There is no "deal" until a contract is signed.

Let me state this simply; the lease MUST be paid. It must be. Where that money comes from, either the purchaser or the seller, is immaterial. The lease must be paid for.

If you offer "$X" for a vehicle, and the dealership accepts that offer, and then you add in that they must pay three months of your lease too, that just means the dealership is willing to take that much less profit. Or, in other words, they had that much profit at your "$X" offer to give up.

It doesn't matter where the money comes from, the lease will be paid.

Who cares if the dealer paid for it?? It is still the same to me since I negotiated paying $X amount for the new car anyway, regardless if I were trading or not. Who cares if the dealer, your neighbor or jesus christ pays for the rest of the lease payments, I didn't have to AND I got a new car for thousands under invoice. The price negotiated did change after bringing up the lease, but only in the amount of 3 of the remaining 6 lease payments which is what I agreed to.

NoVaGT · Sep 20, 2017

jstump2490 said:
Who cares if the dealer paid for it?? It is still the same to me since I negotiated paying $X amount for the new car anyway, regardless if I were trading or not. Who cares if the dealer, your neighbor or jesus christ pays for the rest of the lease payments, I didn't have to AND I got a new car for thousands under invoice. The price negotiated did change after bringing up the lease, but only in the amount of 3 of the remaining 6 lease payments which is what I agreed to.

You did pay for the remaining lease payments, you just didn't see it.

Trust me, nothing is free. Nothing.

If you hadn't had the lease payments to roll in, you could have gotten the car that much cheaper.

I'm just bring reality to the discussion, so don't blame the messenger.

I am, though, intrigued at the idea of getting a car thousands under invoice. Truly, intrigued.

pmr2000 · Sep 20, 2017

If they think they can make money on it the dealer will buy it outright on put on the lot. Just turned in a 15 Edge Titatium which had residual of 23k plus 4k (11 months) of lease payments. They put it on the lot for 30k.

jstump2490 · Sep 20, 2017

NoVaGT said:
If you hadn't had the lease payments to roll in, you could have gotten the car that much cheaper.

Ok man, if you want to think this to make yourself feel better, that's fine. I know I got a killer price BEFORE my trade of the lease because no dealer in 400 miles would even come close to what I paid AND I traded my lease in early on top of the deal. Sorry you are butt hurt that you can't negotiate but leases are not the end of the world like you are making them out to be. You CAN get out of them early and be ahead, but it will take some work.

So for the OP, don't get discouraged by nova, he has no idea what he is talking about. Shop around to different dealers and see what they say. Try my tactic though and negotiate the new car price first then bring up the lease. You will probably get some flack from dealers who don't want to play that game, but you may find one like I did who will bite. The end of the month is prime deal making time, they will practically suck you off if they are behind in their numbers for the month so getting out of a lease with good terms is not so far fetched.

Nagare · Sep 20, 2017

jstump2490 said:
Ok man, if you want to think this to make yourself feel better, that's fine. I know I got a killer price BEFORE my trade of the lease because no dealer in 400 miles would even come close to what I paid AND I traded my lease in early on top of the deal. Sorry you are butt hurt that you can't negotiate but leases are not the end of the world like you are making them out to be. You CAN get out of them early and be ahead, but it will take some work.

So for the OP, don't get discouraged by nova, he has no idea what he is talking about. Shop around to different dealers and see what they say. Try my tactic though and negotiate the new car price first then bring up the lease. You will probably get some flack from dealers who don't want to play that game, but you may find one like I did who will bite. The end of the month is prime deal making time, they will practically suck you off if they are behind in their numbers for the month so getting out of a lease with good terms is not so far fetched.

He's not wrong though, if they were willing to give you your deal and eat the cost of your lease buyout, you probably could have negotiated your deal price down more. I don't know why each of you are being hostile about it when it is a fact.

The dealership has nothing to do with your lease agreement directly, the Ford Motor Company does as that is who your leasing agreement is with. If the dealer thinks they can flip the car for more than their total cost, they'll take the risk and it doesn't impact you anymore after they agree to take it on.

Maggneto · Sep 20, 2017

woofer196 said:
Has anyone done early lease termination with Ford before? I want to get out of my current 2015 mustang lease early (it ends in April) to pick up a 2017 model

We lease my wifes cars and always turn them in early. Since 2008 we have turned in 5 leases so I am an expert on early lease termination. We never put any money down on our leases so we never have any equity when we turn them in. At best the dealership will eat a few months payments on the current lease and roll the rest into the next vehicle.

The trick is to get the best deal on the next car to absorb some of the roll over from the lease. If you put money down on the lease you may be in a better position financially then if you put zero down.

On our last lease termination it cost me 3k to buy out the lease to get her into the Mustang which we are purchasing. The Mustang was 5k off MSRP and zero percent financing for an additional 2k savings for a total of 7k. If we didn't buy out the lease they would have rolled the 3k into the Mustang.

Chameleon · Sep 20, 2017

TomcatDriver · Sep 20, 2017

Leasing is also known as residual based financing. Basically you are financing the projected depreciation of the vehicle over the lease period, with interest. If you read the fine print, it's all in there.

jstump2490 · Sep 21, 2017

Nagare said:
He's not wrong though, if they were willing to give you your deal and eat the cost of your lease buyout, you probably could have negotiated your deal price down more. I don't know why each of you are being hostile about it when it is a fact.

The dealership has nothing to do with your lease agreement directly, the Ford Motor Company does as that is who your leasing agreement is with. If the dealer thinks they can flip the car for more than their total cost, they'll take the risk and it doesn't impact you anymore after they agree to take it on.

Because this dude is trying to convince OP it is impossible to get out of a lease. Like you said, they could have bought my lease and flipped it, which means no, they didn't just add more to my new car price or have any money left on the table to pay the lease with. I know my lease was worth more than residual because I was considering buying it out at the time due to being 6,000 miles over my agreement. There was no "you think you got a good deal, but they really got you" going on, I really did get a good deal while trading in a lease, it is not impossible.

VinnAY · Sep 21, 2017

I tend to do my deals on the trade or sale of the current car first as if I can't walk away from it breaking even then I just don't progress to the new car, I go home and make a few more payments or whatever knowing ultimately I can (simpliefied) walk in and hand them the keys and walk back out again.

jstump2490 · Sep 21, 2017

VinnAY said:
I tend to do my deals on the trade or sale of the current car first as if I can't walk away from it breaking even then I just don't progress to the new car, I go home and make a few more payments or whatever knowing ultimately I can (simpliefied) walk in and hand them the keys and walk back out again.

By doing this, you are kinda shooting yourself in the foot because it is easy to get someone out of their current car, just make the new one more expensive or not negotiable in price. If you work out a deal on a new car then throw in at the end you are trading, they have already given their best price (or the best price you may be able to negotiate) and they will be more willing to get you out of your current car to make the sale. If you negotiate the best deal you can then say "I need to break even on this trade and we have a deal" then you have drawn the line in the sand and they can't just sneak more into the new car price since it is already negotiated.

VinnAY · Sep 21, 2017

jstump2490 said:
By doing this, you are kinda shooting yourself in the foot because it is easy to get someone out of their current car, just make the new one more expensive or not negotiable in price. If you work out a deal on a new car then throw in at the end you are trading, they have already given their best price (or the best price you may be able to negotiate) and they will be more willing to get you out of your current car to make the sale. If you negotiate the best deal you can then say "I need to break even on this trade and we have a deal" then you have drawn the line in the sand and they can't just sneak more into the new car price since it is already negotiated.

you should write a book on car deals or work professionally with all your wisdom.

Early Lease Termination

NoVaGT

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jstump2490

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NoVaGT

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