So how do I get out of my 05 lease to get an 07?

Currently I have what I consider a decent lease on an 05 Sedan. However, I have totally made up my mind that I want the 07. The question is how do I get out of my 05 lease in order to get the 07? Can the dealer help me with that or is that solely through IFS? Right now I have 11000 miles on the car and I have had it for 17 months. I was allotted 15000 miles per year so I am way, way, way under mileage. That is part of the reason that I want to swap out the lease. I want to reduce my allotted mileage and probably switch to a 6 speed manual. That should reduce the price and hopefully compensate for the fact that I will probably not be able to get a significant discount on these cars when they first come out. So has anyone else ended their lease early? Is there a penalty involved? Is it significant? What is the best way to go about this?

Thanks for your help!

 

http://www.leasetrader.com/

 

Wow I'm also in a 2005 Lease (**Nissan Altima 3.5 Dark Grey-9300 Miles)
I've made about 18 payments on a 3 year lease.
This is my first Lease--my biz peeps tell me i'm "Upside down" on the lease (Whatever that means)

I guess one way would be to find someone to take over the lease payments. (under 400 bucks)
I sat in the G35S fully loaded (SAMPLE) model it felt great.
They wouldn't even turn it on for me so I could see it light up-It was INSIDE the dealership.

Anyway--I'll B at that party on the 26th.

Let me know if/how U get out of your lease situation.
I caught the G35S bug and I haven't even driven it yet.
And when I catch a bug like this--it doesn't go away till the cure is applied.

Greetings from Los Angeles.

TXT.


**Nissan same company right..??

 

If you want to come out ahead financially, it would be best to complete your lease .... after all the new G would only get better over time .... so for MY '08, they would address some bugs from '07 ... the evolution will continue.

You will probably lose a lot in this bargain (esp considering you only put 11k miles) -- the car is practically new - so its definitely worth more to just keep it rather than terminate the lease. (all the more so since you say its a good lease deal)

But finally, its your money and your call

 

Yea I understand that staying in the lease is almost always the better deal. However, I have heard several people say that Infiniti will allow you to terminate your lease up to 6 months before it was set to end with almost no penalty. Now this is only if you finance or lease another Infiniti through them. Is that true?

 

The problem with selling my lease on a leasetrader or swapalease site is that I didn’t put any money down. My lease payment is great for me because I didn’t have to put any money down. Now when you compare it to other leases on those trader sites then it doesn’t look so hot. What you have to remember though is that almost all of those people put a significant amount of money down in order to get the payment that low. If they simply have someone else take over the payments then they are getting raped of their down payment. Basically they just threw away a couple of thousand dollars to make someone elses payment lower!

 

Check the back of your lease agreement -- if you leased through IFS, you do indeed have the option for early termination provided you've made a minimum of 12 payments and give 30 days written notice.

The fine print, however, states that you will have to make up any difference between the fair market (wholesale) value and adjusted lease balance on your vehicle.

I'm no expert at reading fine print, but reads to me like should you choose to end the lease early, you will have to eat any negative equity on the car up to the point of termination to keep IFS whole.

 

Thanks, I will check the lease agreement. I actually think I am not upside down on this lease. The mileage is what is keeping me positive. 1 month after I signed the lease my company moved to within a couple of miles of my house. My mileage dropped to nothing. I am allotted 22k miles so far and I have only used half of that. That keeps the resale value of the car really high. I will have to check into it though.

 

Torch it...

 

Funny you say that. I actually was driving down a busy road the other day when someone pulled out in front of me. The person was totally blocking my entire lane and I knew I would not be able to stop in time since I was going 44 in a 45. What is interesting is my very first thought was aim for the right front quarter panel where his car should be the strongest. That way I will insure that I total my car. Now that was my first thought. I came to my senses and jerked the wheel to the right and just skidded into the lane next to me. I missed him by about 1 inch and luckily there was no one in the lane next to me. Is it bad that my first thought was “I don’t want to have to drive a car than has been repaired after a 40 mph crash”? I didn't put any money down on it so a high speed accident that is totally someone elses fault is probably the best way for me to get out of the lease. I know that sounds bad but it is the truth. Let's just hope the car is as safe as they say it is!

I checked and I am infact upside down on my lease. It will take until December of next year before I can even come close to breaking even. It looks like the huge initial discounts that dealers were giving on the G35 sedans is starting to show up in the resale value. The resale on my 05 G35 with premium, sport, and aero packages and only 11,000 miles is just over $26,000. The residual is over $22,000 and the lease doesn’t end for another 22 months. I doubt the car is going to be worth more than the residual when the lease expires but who knows?

 

Just go to the dealer and trade your car in on a new one. You'll likely need to pay-off or finance (in a new lease) the negative equity. Find out what your pay-off is vs. the trade value. I had an '03 on a 48 month lease that I traded in on my '05. The negative equity at the time was just $1000.00. There is no need to complete the full lease term or terminate anything if the dealer is willing to negotiate on trade value. Any questions - let me know.

 

How many months into the lease were you when you traded cars? Did you put any money down or pay any upfront charges on the original lease. According to my rough calculations I am about $5000 in the hole. I can’t absorb that much. How is the negative equity calculated? If I have 22 payments of $461 left on my lease. Is it just $10142(22 X $461) minus (the current trade in value of the car minus the residual of the car) That would be about $5000? Or is it the selling price of the car $33,500 minus the total payments I have made $7837(17 X $461) minus the current trade in value of the car($26,000) for a total equity of $337? If you calculate it the second way then I will go trade it as soon as there is one available.

 

The equity is the trade-in value of your car (don't expect full kbb trade value unless you want to pay really close to full sticker on an 07) less the payoff on your lease (just call the lease company and get the 10 day payoff instead of guessing).

When researching, if your ride is in perfect condition, use the kbb trade value in GOOD condition...never expect the "excellent" condition value. If you are going to do this transaction at all you will need to get a longer term lease as you will get killed (payments) on a short term lease with negative equity. I just went through this when I bought by coupe, I had a 2005 BMW that was leased for 36 months with 0 down and I was only 17 months into the lease when I traded it. Since I got the coupe for invoice plus $600 or so, the negative equity on my trade ($2500) did not hurt too bad. I was going to lease for 39 months but I changed my mind and ended up buying my coupe and put a good amount down so I cannot give you lease guestimates...

 

I am still a little confused. Is the way to calculate the equity to take the good condition trade value of the car minus the residual minus the payoff amount? If that is the way to calculate it then I have about $5000 negative equity and I wouldn’t be able to trade it. Or does the residual not factor in it at all? The problem with my lease is that they way over estimated the residual. That gave me a great payment but there is no way it is going to have a trade-in value equal to or greater than the residual when the lease is up. When I leased it that sounded like a great deal because I was just going to hand the car back to them and then lease another car. However, now that I am trying to get out of the lease the residual becomes a factor I think. I will definitely call and get the payoff but I am still not sure how to calculate the equity. Could someone just make some numbers up and show me a sample calculation or use the numbers that I gave in the post above?

 

The payoff that you get from the lease company includes the residual, so that IS the total amount of debt you owe to get out of the car. Again, don't expect full kbb trade value when you trade your car in unless you pay nearly full MSRP. For instance, lets say you call your lease company and they tell you your payoff is $26,000. Then you look up kbb good trade value and it is $24,500. That means you have at least $1500 in negative equity in your trade. (the numbers above are ficticious and just for illustrative purposes)

Now lets say the 2007 you want is $36,000 MSRP. Your dealer may give you the full $24,500 value for your car, but will expect you to pay close to MSRP for the new car or charge you a bunch of fees. Or the dealer will give you less on your trade and come down from MSRP a little.

So the payoff that the lease company quotes you is the TOTAL amount that needs to be paid for you to walk away from the car...