I'm planning on LEASING a G coupe, good idea? But first I got a few questions for you gurus.

1. Can I... pay off the lease amount before the final date without a penalty?

2. Can I trade in my G earlier than the final date with less mileage? is there a penalty?

3. Are there X number of miles I am limited to throughout the duration of my ownership?

4. Is leasing the best route if I will become an eventual owner? What about if I'm planning on trading it in for the new 08 G's?

Those are my main concerns... THANKS FOR YOUR HELP.

 

I am by no means an expert, so take my answers w/ a grain of salt...

1. I don't think you can 'pay off' the lease amount before the final date, otherwise there's going to be a prepayment penalty.

2. I'm not sure about 'returning' the G, but you can trade it in earlier.

3. Mileage limit: it's usually stipulated when you sign the contract (i.e. 10/12/15K miles/year w/ a 0.30 cent penalty for every mile over the allotted mileage.

4. Leasing is better suited if you like to get a new car every 3-4 years; otherwise get into a purchase.

Like i said, I'm by no means an expert, that's just info I gathered off various forums.

 

thanx for the reply.

Just to clear a few things up:

On #2, can I trade in the G at anytime without a penalty as well? I've never leased a car before so I am new to the game.

 

No. Not without penalty.
Well, at least, I have never seen a dealer do that (and I have tried ).

If you do, they will roll the penalty into your new cars payments somehow. Your lease should have the specifics. If you are unsure, ask your finance guy what would happen if you turned it in early.

With a lease, plan on going the entire term with the car, and giving it back at the end--no earlier (well, give or take a couple of months). Leasing only makes sense if you plan to keep the car for the term of the lease and get a new one at the end, or if you get tax benefits.

 

May I ask what kind of penalty are your talking about and how much? Dealership have no say so in the matter cus the lease contract is thru a lending company, dont be confuse of being upside down on your lease/loan to early termination penalty, as long as you satisfied the "payoff" amount, there is no separate penalty to be tag on.

If dealership didnt offer you enough for your trade in to payoff the loan? then they either roll the difference into your new contract or you pay it out of your pocket, that isnt an penalty, just being upside down.

Early termination penalty/fee is when you just take your leased car and give it back without first paying the "payoff" amount first, its usually but not limited to...the diffrerence of, than current value of your car (whole sale, probably below trade-in value) then what you still owe on the car, plus set fee of around 495.

 

Sorry, that is what I meant by "penalty." Not necessarily an additional tacked on expense, but you can't turn it in early and not expect to pay the balance of what you owe/value of the car. I should have worded that better, but I was trying to say what you did -- just wasn't as successful at it .