Ending lease early?
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Post Fiend
Joined: Nov 2001
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From: Neenah, Wisconsin
Ending lease early?
Heres my question...gm allows my friend out of his 3 year leases every 2 years....they do this as long as he gets another gm product. Does ford allow leases to end early under these types of circumstances?
Ryan
Ryan
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Joined: Feb 2003
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From: Las Vegas
Leases are no different than retail purchases. You always have a payoff. Your friend either is rolling the negative equity of his previous lease into the new lease or the car he is trading in has a heck of a re-sale value (very doubtful) One other way would be for the dealer to make the last remaing payments and roll that into the price of the new lease.
My last example always intigued me in that people would finish the full term of the lease early yet still give the car back. I suppose if the miles were already maxed it does make sense.
My last example always intigued me in that people would finish the full term of the lease early yet still give the car back. I suppose if the miles were already maxed it does make sense.
Last edited by DOHCmarauder; Jul 15, 2005 at 04:11 AM.
Post Fiend
Joined: Feb 2004
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From: Damascus-Boring, Ore
GM has "early pull ahead" programs for current GMAC leaseholders where, depending on the promotion going, lessees can get out of their leases 6-12 months early with no penalties, etc. I haven't seen Ford do anything like this.
Postmaster
Joined: Feb 2003
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From: Las Vegas
PB, so basically GM offers an early out for current leasees during certain periods? Is it something that may or may not happen during your lease or is it something that's pre-determined? (I'm reading that and getting confused)
How does that affect the new deal? Do you have to give up rebates or rates?
Man, GM is trying hard to earn bizz. Too bad I'm so buried in my Marauder......A GTO would be cool right about now.
How does that affect the new deal? Do you have to give up rebates or rates?
Man, GM is trying hard to earn bizz. Too bad I'm so buried in my Marauder......A GTO would be cool right about now.
Post Fiend
Joined: Feb 2004
Posts: 10,728
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From: Damascus-Boring, Ore
GM's been offering the pull-ahead through most of the year, but consider it like a loyalty rebate for lessees (so it's not pre-determined). Basically, lets say you're 25+ months into a 36 mo lease. If you're within mileage guidelines, GM will let you do an early walk-away (with zero left to pay) into a new lease or purchase. If you're out of mileage giudelines, they just ding you for the excess and still let you walk away. It's one heckuva deal- I just had to get the shovel out today to get a young couple out of an Explorer that had a little over two years left on a 60 month lease. Cripes- they were close to $10K upside in the stoopid thing. 
and you wonder why I'm sooo down on leases
BTW- the way to slide into a GTO is to wait for us to buy an early lease return from GMAC. We've plucked three of those in the past few months, along with a Caddy SRX and two XLR's. I swear, it's like going to work in a toy store around here.
Edit: I forgot about the big Yellow H2. Holy rolling banana, batman!
and you wonder why I'm sooo down on leases BTW- the way to slide into a GTO is to wait for us to buy an early lease return from GMAC. We've plucked three of those in the past few months, along with a Caddy SRX and two XLR's. I swear, it's like going to work in a toy store around here.
Edit: I forgot about the big Yellow H2. Holy rolling banana, batman!
Last edited by polarbear; Jul 16, 2005 at 01:02 AM.
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From: Las Vegas
I know why you're down on 60 month leases!!!! I've never been burned or felt guilty about the 24-36 month leases..............I actually LOVED the 24 month leases, but that's been a few years ago.
So next question............When GM lets these leases come in early; how do they figure ACV?
I'm thinking the average 1 year early lease trade in is at LEAST 5 dimes upside down. Does GMAC just eat this?
So next question............When GM lets these leases come in early; how do they figure ACV?
I'm thinking the average 1 year early lease trade in is at LEAST 5 dimes upside down. Does GMAC just eat this?
Post Fiend
Joined: Feb 2004
Posts: 10,728
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From: Damascus-Boring, Ore
GM just eats it. The car/truck comes in on trade, the dealer has the opportunity to take it at the current residual (depreciation divided by # of days in the lease, times number of days left, plus residual at lease-end). Orrr...it just hits the GMAC online dealer auction.
This isn't completely unprecedented- for years, there were always two payoff figures on a GMAC lease. One to a GM dealer ("dealer buyout"), the other to everyone else. There was a significant difference- especially early on in the lease.
This isn't completely unprecedented- for years, there were always two payoff figures on a GMAC lease. One to a GM dealer ("dealer buyout"), the other to everyone else. There was a significant difference- especially early on in the lease.
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