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.
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.
