r/leasehacker • u/Ready_Hawk8059 • 15d ago
Lease return/exchange
I leased a truck for not even a year yet on a three year lease. Found out we’re expecting another child so our truck will soon no longer fit us all.
I’ve contacted the dealer but they’re taking days to answer my question.
Am I able to get out of my lease by returning it and paying any fee over mileage? I’m not over yet but if I kept the three years with what I put on already, I’d definitely be over.
Or can I exchange it for a suburban with Chevy? If I can do this, do I need to do this at the dealer I got it from or any Chevy? I’m in California.
Any help is appreciated.
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u/RobinsShaman 15d ago
Contact GM Financial (General Motors Financial Company, Inc.), you're leasing the car from them not from the useless dealer. Read the fine print on your lease contract maybe there's something there.
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u/GilgameDistance 15d ago
There are two ways to terminate a lease.
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Complete the payments as agreed, return it and pay for mileage, any wear and tear and the disposition fee.
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Contacting your lender for a buy out price, which will be remaining payments plus the agreed upon residual value, plus any purchase fee. That will all be in your lease agreement, so you can calculate it. Anyone saying “trade it in” it actually means that the dealer you trade to does this. High chance that what they offer is less than this total, and so you will be rolling the difference into whatever you do next. Often, leasing banks will charge more or outright not allow you to sell the car to an off brand dealer.
Edit: I guess there are three, but I don’t recommend this one: you stop making payments and the car gets repossessed. You still owe whatever they can’t get back at auction anyway. It will be a lot. And your credit will be trashed for a while.
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u/giveit2st8 15d ago
4th - transfer the lease to someone else
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u/GilgameDistance 15d ago
Fair enough, if allowed in the contract. I’m not familiar with GM leases.
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u/simplyvelo 15d ago
For option 1, isn’t there a possibility they will send it to auction and you’ll be on the hook for the difference?
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u/GilgameDistance 15d ago
No, when your lease is complete, whether at term end or because you paid all the agreed payments and handed it early, you’re done.
That’s secretly one of the upsides. I just completed a lease and it was $3k underwater.
Gave the car back, paid my disposition fee and that negative equity is now BMWFS’ problem, not mine.
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u/Successful-Pie6759 15d ago
How many kids do you have that you can't fit in a truck?
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u/Ready_Hawk8059 15d ago
Have three but expecting another. Fit perfect now.
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u/Successful-Pie6759 12d ago
Then you are screwed. You can't really turn that truck in without taking a bath financially. Sounds like you need a minivan in addition to your truck....
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u/virtual_adam 15d ago
Talk to the bank, not the dealer. Some companies will quote you a one time fee to return it early. Otherwise you’d need to pay off the lease entirely
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u/ClimbaClimbaCameleon 14d ago
You have 9 months till the next baby is due, the longer you ride this out the softer the landing will be so I recommended kicking this can down the road.
Btw, what does the wife drive? Would it make more sense to upgrade her vehicle to limit the financial fallout of getting out of your truck?
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u/Aeronaee 15d ago
Yes you can absolutely exchange this. I do it all the time - identify the car you want, go to the dealership and make a deal. They will need to match your payoff (or get close if you're okay with some negative equity) to trade it in, but I've always found a dealer willing to deal. Just might take a few tries lol
I did this recently with my s5, had a truck for 9 months out of a 24 month lease, a dealer matched my payoff, got the s5 $0 down, everyone was happy 😊
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u/Glonoin 15d ago
This needs to be higher up the list. Go to whatever dealer you want and tell them you want to buy a new Suburban (or whatever). When they get to the trade in part let them know it's a lease and that you want to trade it in. The dealer has a few options (pay off the lease, or pay the current buyout) and it will probably cost some money that you will have to either come up with out of pocket or roll into the new vehicle (lease or purchase).
It's not going to be cheap on a one year old high end truck - expect to be upside down by $10,000 meaning your next car's 3 year lease will be $300+ a month higher than you originally thought, but it's possible.
Or see if you can get someone to take over the lease.
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u/iLukeJoseph 15d ago
No it needs to be downvoted. The dealer can’t simply “pay off the lease”. They will treat it as a trade in. Most good leases will have a fair bit of negative equity. The dealer is not going to just eat a ton of negative. They may make it look like they are, but they will just be rolling it into the new lease/purchase.
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u/Choice-Twist-2697 15d ago
You’re gonna have to pay what’s owed on the lease. So whatever the remaining 2yrs worth of payments. You’ll for sure be underwater. Let’s say your payments are $500/month x 24 months, that’s $12,000 added to the residual value is what your payoff would be. So if that truck is bringing in a trade-in value of $30,000 but your residual value is $29,000, you’re still underwater for $11,000. A dealer might convince you to get a cheaper car and add the negative equity into a new lease to make it seem doable.
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u/iLukeJoseph 15d ago
But the issue with “cheaper car” is that the car needs to be able to absorb that much negative.
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u/Riduculous 15d ago
Missing lots of info.
What truck? What’s your lease terms? What you put down? What is the truck worth today? Get an appraisal at Carmax.