Breaking a lease on a car

[Explorer21]

Need some feedback. My father is paying $1,500 a month on an SUV lease and they can't afford it anymore. They have another year and a half, has anyone out there break thier lease? Would it be cheaper to break the lease at this time?

[buoy37]

If he wants to keep it, could it be refinanced for a few more years to help bring the monthly payments down a bit?

If he no longer wants it, is your Father at a stage in his life where giving it up and taking a hit on his credit report wouldn't really cause any future problems?

[coachlaw]

$1500 monthly for a car?????????? I would be sunk. Hope it turns out ok.

[corndog]

Get rid of it!! Also go get him a book by Dave Ramsey "The total money makeover" Texxan1 sent me one for christmas. Thanks Texxan1!!!Best book you can read. You dont need credit if you are debt free!! I paid 2000 for my daughters truck nice silverado. No debt is awesome!!

[Gilbert]

he needs to talk to the leasing company. i broke a lease once in my dumber days but it didn't go against my credit cause the bought the car back. i just told them i couldn't pay for it anymore. wht corndog said is great advice and how me and the wife roll.

[reeltime]

Need some feedback. My father is paying $1,500 a month on an SUV lease and they can't afford it anymore. They have another year and a half, has anyone out there break thier lease? Would it be cheaper to break the lease at this time?

I would say saving 27,000.00 dollars is a good reason to break a lease

[coachlaw]

Forgive me for the humor Mike, but is it a Rolls Royce SUV? Man, that's over twice my mortgage payment.

[small bites]

wholly cow, that is a heck of a lot for a ride. But it is what it is, there has to be something in the contract about early return on it. And hopefully it will be less than the remainder of rental.

[gleach]

Also try posting it somewhere like swapalease.com. There may be someone out there willing to take over the lease.

[Robalo]

I agree with Buoy-if they are retired and have house and all, then credit is not a great issue of concern. Now they may get sued, harrassed by collection agencies, but under Homestead laws, they have little chance of ever satisfying any judgement (but I aint no attny either so that's just my un-legal, personal opinion based on nada). Read the Lease Contract, make some calls and explain gonna AMF the vehicle-but they may first want to go buy another, much cheaper reliable vehicle before dinging credit by "walking on lease"????

[OR19]

Like gleach said...the details are in the contract...don't know for sure but I bet turning it in early involve some kind of lump sum payment to buy out the lease if they will allow it at all. If he quits paying and turns it in whatever the lease company doesn't recover will end up as a charge off on his credit report which is not a good thing for anyones credit.

You can finance $40k right now for 60 months and the payment are around $725/month(just bought my wife an suv)...I don't know the details but either they leased a really expensive suv or someone took advantage of them on the front end...I thought lease payments were 30-40% lower than a purchase???

[Gilbert]

60mons at $725

[OR19]

60mons at $725

they are actually $431 because i put some $$ down...just using $725 to illustrate the point....

[PasadenaMan]

I hope they are able to work it out with the leasing company. 1500 a month for an suv is way up there. I am sure the leasing company has many people in the same situation. I beleive calling them would be the best thing to do.

I am not a shady person, other wise I would drive across the border and go shopping

[FP10]

Mike if this is not resolved yet call me. Sorry it took me so long. I was in Vegas all weekend.