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  1. #1
    Join Date
    Feb 2014
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    USA
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    90

    Default How to Get Out of a Lease to Own and Pay Off the Rest of a Car

    My question involves a consumer law issue in the State of: tx,

    traded a grand Cherokee for 20,000 and used 30,000 cashiers check to put on the car. The cash value of the vehicle was 90,716$ and it says amount financed was 60,239.91 which confuses me because its not including the value of the jeep. The dealership said at the end of the 36 month term I could buy the car for 36,000 .Is it possible to just pay the Boolean payment and be done with monthly payments and be out of the least so I retain ownership of the car instead of the finance company? its my understanding that leases don't lower the value of how much you pay at the end of the term, so I think it would be beneficial to buy it.am I correct?

  2. #2
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    You can ask them if they will allow you to buy out the lease but you can expect it to be higher than the balloon payment as they will factor in fees for terminating the lease as well as the fact it is actually worth more than the balloon payment at this point.

  3. #3
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    Most leasing firms will let you buy out of a lease. It isn't going to be cheap by any measure. They aren't going to reduce the income they would have made on the original deal.

  4. #4
    Join Date
    Feb 2014
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    USA
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    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    Quote Quoting free9man
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    You can ask them if they will allow you to buy out the lease but you can expect it to be higher than the balloon payment as they will factor in fees for terminating the lease as well as the fact it is actually worth more than the balloon payment at this point.
    so, what your saying is wait till the end of the term so it will be cheaper?the guy at the dealership, said id be liable for TTL and sales tax.

  5. #5
    Join Date
    Jul 2010
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    8,006

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    Quote Quoting D-town
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    so, what your saying is wait till the end of the term so it will be cheaper?
    The balloon payment you were given is what you will be paying at the end of the lease if you choose to buy it. That's not going to change much, if any. That is cheaper than if you choose to buy out the lease, yes because you will have given them all your monthly payments.

  6. #6
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    Quote Quoting D-town
    View Post
    My question involves a consumer law issue in the State of: tx,

    traded a grand Cherokee for 20,000 and used 30,000 cashiers check to put on the car. The cash value of the vehicle was 90,716$ and it says amount financed was 60,239.91 which confuses me because its not including the value of the jeep.
    I guess you didn't read and understand your contract before you signed it.

  7. #7
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: How to Get Out of a Lease to Own and Pay Off the Rest of a Car

    Quote Quoting D-town
    View Post
    The cash value of the vehicle was 90,716$ and it says amount financed was 60,239.91 which confuses me because its not including the value of the jeep.
    When you lease a car, you are effectively paying for its depreciation over the lease term. The amount you financed represents depreciation, and the balloon payment at the end (if you choose to keep the car) represents what you agree to be an appropriate market value at the conclusion of the lease term.

  8. #8
    Join Date
    Feb 2014
    Location
    USA
    Posts
    90

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    Quote Quoting free9man
    View Post
    The balloon payment you were given is what you will be paying at the end of the lease if you choose to buy it. That's not going to change much, if any. That is cheaper than if you choose to buy out the lease, yes because you will have given them all your monthly payments.
    ok, I was operating under the assumption that they wanted the lease because they wanted to benefit of the interest payments. yet again, I told them no multiple times on the lease and they forced it on me. I wanted to put the traded car plus 30,000 and pay the remaining 40k on the car off in 5 years for low payments monthly but they didn't give me the option and took advantage of me despite saying no. By paying on the lease, I would pay I would pay over cash value not including interest because of hidden factors? if thats the case, could it qualify as misrepresentation?

    Quote Quoting adjusterjack
    View Post
    I guess you didn't read and understand your contract before you signed it.

    did read it,didnt fully understand why it was allocated that way.

  9. #9
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    You were not forced to take the lease. You could have and should have walked away when they did not wish to do traditional financing.

    The cash value is what the car would be worth at the end of the lease, not right now.

  10. #10
    Join Date
    Feb 2014
    Location
    USA
    Posts
    90

    Default Re: Getting Out of Lease to Own and Paying Off Rest of Car

    Quote Quoting free9man
    View Post
    You were not forced to take the lease. You could have and should have walked away when they did not wish to do traditional financing.

    The cash value is what the car would be worth at the end of the lease, not right now.
    guess it would be best to wait till end of the term to pay the Boolean payment then.

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