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39 month lease.

699 Views 2 Replies 2 Participants Last post by  ahiltunen
Today is a sad day. I have been able to find a MINI through an outside source, but it looks like I will not be able to purchase it. I am currently driving a 2000 Beetle and have 13 months remaining on my lease. The dealer I purchased it from will not take back the car unless I payoff the remainder of the lease. I guess I will just have to wait until the end of my lease to buy a MINI unless there is another way. Any suggestions please advise. Thanks.
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ahiltunen -
That is one of the major downsides to leasing. It's a contract between you and the leasing company, and it will get enforced no matter what. If you want out of a lease early, read the section of your contract titled "Early Termination". I'm currently leasing, but only for 3 more months (whew!) If I wanted to terminate early, I'd have to make the remainder of the payments, pay the disposal fee, and pay a 4% penalty. Sometimes they'll let you out early if you're within 90 days, but often that just means they'll waive the penalty.

Leasing, for the vast majority of the people, is a Bad Idea. The only time it makes sense is where you're able to deduct the cost of the lease as a business expense. Otherwise, you're making payments during the period of highest depreciation, and in 24-39 months you turn it in and have nothing to show for it.

If you're a person who puts more than 12,000 miles a year on a car, leasing is even worse because of the excess milage charges. There's a lady on the Compuserve Automobile forum who has put 70,000 miles over what her allotment was on her car, and is looking at $10,500 in milage charges when she turns it in.

Obviously, IANAL, and a lot of what I've said may vary depending on your country and locality. Check with a financial advisor for detailed info about auto leasing. A book that helped me was "Look Before You Lease", available on Amazon, Barnes & Noble, etc.

Chip H.
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Thanks for the good advise. I will certainly not lease the MINI when the time comes. If I had known the pitfalls of leasing two years ago, I would not have leased the Beetle. One advantage to waiting another year is that I can get the exact car I want instead of taking what is available.
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