Can you turn a leased car back into the dealership after a certain amount of time?
I financed a car, by cosigning with a family member, however due to income not being sufficient enough, I've only managed to barley get by paying for this vehicle. I have had it for about three months now, but it's coming clear that I am struggling to make the money for it, and I know that obviously there is a contract that reads information out, but I need to know from prior experience the consequences for turning a financed car back in. I have paid on time every month so far, however, I just don't feel that I am prepared to start making these payments for the next several years. Any advice on what I can do to save myself the trouble? Or am I completely going to throw myself into the hole by doing this?
- STEPHENLv 76 months ago
There is no "after 6 months you can return the car without penalties" thing. You can turn the car in. The dealer will make money out of you.
You have a co-signer. If YOU stop paying, THEY are responsible for the payments.
- AlCaponeLv 76 months ago
You seem to be confused about leasing and financing with a loan bur regardless, terminating either a lease or a loan can be very expensive and may have impact on your credit. If you can't afford payments, you almost certainly can't afford the one-time cost of termination and payoff. These are all things you should have thought about 3 months ago.
- InLv 76 months ago
"I have paid on time every month so far, however, I just don't feel that I am prepared to start making these payments for the next several years."
You apparently BOUGHT the car, not leased it. If you had leased the car you would have had to make a very substantial down-payment and the term of the lease would have been spelled out, at the end of which you would have to return the car. If you can't afford to make your car loan payments then sell the car. If you can't sell it then take it back to whoever has financed the loan and sign some paperwork. You may still owe some money after you surrender the car and it might have a slight negative impact on your credit report. The absolute worst thing you can do is make them reposess the car which will have a negative impact on your credit report for 7 years and you may still have to pay a deficiency judgement.
- JetDocLv 76 months ago
Unless you had a substantial down payment when you BOUGHT (NOT LEASED) the car, you are "under water" on your loan... That means you OWE more money than the car is actually worth. Giving it back to the dealer is a really DUMB idea.
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- Jay PLv 76 months ago
Your question header states LEASING but the body of your question mentions FINANCING twice. So which one is it?
Terminating a lease early involves lots of penalties. Selling a financed vehicle requires lender approval and you will be on the hook for the difference between the purchase price and selling price ( the depreciation hit on a new vehicle can be steep ). Either way, this can become very expensive.
- ntLv 66 months ago
Early lease termination is VERY expensive. After 3 months, you would owe almost the same amount as keeping the car. Find a 2nd job of face ruined credit and maybe a wage garnishment. And you will ruin your cosigners credit for 7 years too. Your cosigner did not do you any favors. You should not have leased and now you have to pay. Not sure how much your payment is but a 12-15 hour a week part time job would easily cover the payment.
- ScottLv 66 months ago
Yes, when the lease is up, otherwise you will have to pay the early termination fee. It would be almost cheaper to keep the car.
- boLv 76 months ago
what's your contract say
- EvaLv 46 months ago
Is it a leased car or a financed car? There is an early termination fee for ending a lease early. If you financed the car without a down payment you probably owe more than the car is worth now. You can turn it back in, but you're still going to have to pay the difference between the loan balance and what the car is worth. Your cosigner is on the hook for any balance as well. You could try to sell it privately and pay off the loan, but you might have a hard time getting enough for it.
- Rick BLv 76 months ago
You can turn it in, but it will be VERY VERY expensive. Read your contract.
Never “Rent” a car, which is what a lease is. Never buy a new car at all. Buy good used cars for CASH or very short term.