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Posted in Auto Loans
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SML36

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Auto Lease Question
I have a 3 year lease with about 17 months remaining. I am realizing that the monthly lease payments are more than I would like to spend. I would be willing to get a different vehicle but would really prefer to pay less. Current payments are 460/mo for a 2012 Camry Hybrid. Would love to drive any newer car with payments below $200/mo as soon as possible for a new lease or a purchase and auto loan. Is this possible? If so, how would I do it?

Current payoff amount on the vehicle is about $23,000 total

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Auto leases are one of the most difficult things for a lay person to understand. There are going to be early termination fees, disposal fees, and a host of other fees associated with the new lease. What most people don't get is there is no such thing as a trade in, although the dealer may try to sell you that. One lease will be terminated and a new one will be started. Any fees that remain on your old one will be rolled into your new one in some form, and likely be well hidden from you.

It is not impossible to terminate a lease early and start a new one with lower payment, but the dealer ain't going to lose one dime doing it. If the new vehicle were financed instead of leased you would have a better chance of getting the better end of the bargin but be prepared for a long term note on a low value car where the loan balance will always exceed the current value of the car.

You would be better of dealing with the payments for 17 months and getting a new car after that. If you are financially able...

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