Automotive

Returning car before lease

  • Last Updated:
  • Nov 28th, 2017 10:34 am
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Deal Fanatic
Feb 9, 2009
8314 posts
5403 upvotes

Returning car before lease

So I lease a car mainly cause I use 60% approx for business so a nice write off.

I have a car lease ending in July... if I go earlier will they add the remaining lease payments of this car into the next car or could I get a car at a fair price (car a little over mileage not much and in good condition).

Just seeing if any people know. Thanks.
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Deal Addict
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Jan 8, 2009
3514 posts
2097 upvotes
Ontario
Sanyo wrote: So I lease a car mainly cause I use 60% approx for business so a nice write off.

I have a car lease ending in July... if I go earlier will they add the remaining lease payments of this car into the next car or could I get a car at a fair price (car a little over mileage not much and in good condition).

Just seeing if any people know. Thanks.
If you give it back early you will need to pay the remaining payments. If it is over the agreed lease km then you will likely pay a high premium per km for your over usage. It will probably be punitively high. You will pay for what you are over now either way. So it all depends on the km rate and how many km you will put on between now and July, and if you think that amount is worth paying to have the car until July. It will also depend on what you are buying and if that is likely to be cheaper now or in July 18. For example an EV might be cheaper now with the rebate. However a Ford for example may be cheaper in July with employee pricing. You may also want to replace it with a vehicle that is not available yet such as a diesel F150.

I am sure the dealer will be happy to give you extra credit by rolling the remaining lease payments into the next car and making more on interest.

If your tires will be worn beyond what they deem acceptable by July you may have an extra cost replacing them.

From a business perspective there may be reasons why you might want to end the lease and make the remaining payments in this financial year rather than next and an accountant could advise on that aspect.

If by any chance your car is a BEV or a PHEV and you have had a government rebate don't return the car early or you will have to pay the whole rebate back.
"Never wrestle with a pig. You'll both get dirty, and the pig likes it"
Banned
Jun 13, 2011
59 posts
82 upvotes
RICHMOND HILL
It all depends on your lease. I have a lease through employee and i can return it at anypoint and not loose a penny.
Newbie
Nov 26, 2016
94 posts
74 upvotes
Vancouver, BC
If you are going back to the same brand, they usually cover you easily for 2-3 months early but July is 8 months away!

If your car's current market value is worth more than the remaining months lease payments + buyout amount, then you can try to private sell it. But 8 months left means you will have to pay a lot of penalty and doubtful. You should ride it out till at least April before switching.
Deal Addict
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Jul 26, 2007
4561 posts
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Toronto
I returned my lease 6 months earlier but bought another one from same dealer. They were very happy to sell another car and didn't care for dents and scratches. Even gave me positive equity trade-in for the lease that saved me another $1000. Nice guys!
Banned
Aug 22, 2017
367 posts
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peteryorkuca wrote: I returned my lease 6 months earlier but bought another one from same dealer. They were very happy to sell another car and didn't care for dents and scratches. Even gave me positive equity trade-in for the lease that saved me another $1000. Nice guys!
Which car dealership was this?
Deal Addict
Jan 15, 2017
2899 posts
2240 upvotes
This really depends on the type of car, the original lease conditions, the dealer, and the current condition of the car. You are basically asking a dealer to take you out of a lease early and put you into another for the lowest costs. It can happen - but it will be on a case by case basis.
Deal Addict
Jan 8, 2007
2446 posts
962 upvotes
Calgary
Sanyo wrote: So I lease a car mainly cause I use 60% approx for business so a nice write off.

I have a car lease ending in July... if I go earlier will they add the remaining lease payments of this car into the next car or could I get a car at a fair price (car a little over mileage not much and in good condition).

Just seeing if any people know. Thanks.
Don't think of it as a lease. Think of it as any car you want to trade in. (Unless you want to pay out your lease and sell it privately).

So, basically you chose your new car. You go in and trade in your lease to the dealer. You lease will have a buyout amount. There are no penalties as you are free to pay out your lease any time right up until it expires. There is a balance that changes every month. You negotiate price of your new car, dealer offers you a value on your existing lease. If that offer is higher than your balance owing you have a credit toward you new car, if it's lower, you are upside down and have to roll it in to your new car or pay out of pocket to cover it.

The tricky part is, no one here can tell you what to do. If you shop around enough you will find that you will get significantly different offers from each dealer even from the same brand. I've had leases that I made $7000 back and ones that barely broke even. So very highly dependent on what your lease is and how desirable it is on the used market.
Sr. Member
Sep 13, 2008
746 posts
151 upvotes
Toronto
what happens if you plan on leasing a new car, but the car won't be available until after your lease ends? Is it possible to extend the lease beyond the agreed upon term? would payments be the same or renegotiated. For example, lease ends Jan 30/2018, but new vehicle not available until March 31/2018.
Deal Guru
User avatar
Jul 12, 2003
10671 posts
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Toronto
If the dealership will eat up the remaining payments for the X months of your lease, Sure.

If they are just rolling the remaining payment to your new car's payment, that's stupid.
Why you pay the lease for nothing?

Dealers will sure do this for you, they are there to sell you a car not to make a financial decision for you, even that is a non sense decision.
Last edited by MP3_SKY on Nov 28th, 2017 10:32 am, edited 1 time in total.
Retired Forum Moderator February 2009 - June 2015
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Mar 1, 2011
436 posts
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Stoney Creek
It depends on your lease terms and the actual residual value left in your vehicle and not the value estimate at time of initiating your lease. I had a 2013 F150 that was supposed to be a 3 year lease. I went into the dealership 6 months earlier to have a look around. They took my truck back, I did not have to pay the remaining monthly payments and they gave me $9000 cash for the tuck as well since it retained it's value very well.

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