how do u terminate your lease? what kind of penalties are there?
01-30-2002, 04:20 AM
#3
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Some options...
1) You can buyout your lease. To do this, call Audi Financial Services and ask them for the payoff (including state sales tax). There are no penalties or early termination fees if you do this. In essence, you are purchasing the car directly from AFS.
2) You can trade your car in at any dealer. You will need to provide them with the payoff figure you get from Audi Financial Services (without state sales tax). Here's the problem, unless you are almost at the end of your lease, you will have to come up with a large amount of out-of-pocket money to fill in the gap between what the dealer will give you for your car and what the payoff is. Or, you can roll that money into your new car. Once you decide on a number, the dealer will payoff your car. There are no penalties or early termination fees from AFS if this is done. I have done this a few times - it's a losing proposition 99.9% of the time.
3) You can sell your car privately to someone for the amount of the payoff from AFS. I have done this twice. It's a hassle, but I did not lose any money. No penalties or fees here.
4) You can have someone take over your lease payments. This is very involved. The one thing you must know about this is that you will remain on the lease as a guarantor until the lease is up. So it is important that you know the person who takes over the lease or you could be left holding the bag. There is a fee, usually ($25 to $250) to process the paperwork).
Bottom line is read your lease and call AFS and ask for the Payoffs Department. You can ask them more about these 4 options.
2) You can trade your car in at any dealer. You will need to provide them with the payoff figure you get from Audi Financial Services (without state sales tax). Here's the problem, unless you are almost at the end of your lease, you will have to come up with a large amount of out-of-pocket money to fill in the gap between what the dealer will give you for your car and what the payoff is. Or, you can roll that money into your new car. Once you decide on a number, the dealer will payoff your car. There are no penalties or early termination fees from AFS if this is done. I have done this a few times - it's a losing proposition 99.9% of the time.
3) You can sell your car privately to someone for the amount of the payoff from AFS. I have done this twice. It's a hassle, but I did not lose any money. No penalties or fees here.
4) You can have someone take over your lease payments. This is very involved. The one thing you must know about this is that you will remain on the lease as a guarantor until the lease is up. So it is important that you know the person who takes over the lease or you could be left holding the bag. There is a fee, usually ($25 to $250) to process the paperwork).
Bottom line is read your lease and call AFS and ask for the Payoffs Department. You can ask them more about these 4 options.
01-30-2002, 04:26 PM
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This option is only viable if...
you have a few months remaining on your lease. If you terminate your lease early and do not purchase, trade-in or sell your vehicle, you are reponsible for any payments remaining on the lease, any applicable sales tax, and a lease termination fee of around $250.
I ended leases early on two occassions. I traded a in VW two months early and traded in a Bimmer 6 months prior to my lease expiration.
I ended leases early on two occassions. I traded a in VW two months early and traded in a Bimmer 6 months prior to my lease expiration.
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