How to Handle a Hated Leased Car

Dealing with a leased car you hate can be frustrating, but there are several options you can consider to make the situation more manageable. Whether you want to buy out the lease, transfer it to someone else, or simply let the lender take it back, each method has its pros and cons that you should be aware of.

Buy Out the Lease with a Penalty

One option is buying out the lease with a penalty. In this scenario, you are taking full responsibility for the vehicle by paying off the remaining balance. Even though there might be a penalty for early termination, it can be a viable solution if you are committed to owning the leased car.

Tips:

Calculate the total cost of the remaining lease payments plus any penalties. Check if your credit score is stable enough to get a loan to buy the car outright. Seek professional advice from a financial advisor to ensure the decision aligns with your overall financial plan.

Find Someone to Take Over the Lease

Another approach is to find someone to take over the lease. This involves arranging a lease takeover agreement with the new driver to assume the remaining payments and responsibilities of the lease. This can be a good option if you are willing to help the new driver in a temporary transition.

Tips:

Thoroughly investigate the new driver’s financial situation and creditworthiness. Draft a detailed lease takeover agreement to protect both parties. Ensure that the new driver is familiar with the vehicle maintenance and how to handle any unexpected issues.

Let the Bank Reposess the Vehicle

If you are upside down on the lease or driving far beyond the established limits, letting the bank reposess the vehicle might seem like an easy option. However, this should be a last resort as it can tarnish your credit score and leave you in a difficult financial position.

Tips:

Contact the lender to discuss your options and explore solutions before you are too far in. Understand the repossession process and the legal implications involved. Seek professional assistance to navigate through this situation and possibly negotiate a better outcome.

How the Seller Transferred the Lease to You

The seller of your leased Subaru BRZ transferred the lease over to you with the pre-approved consent of Toyota Finance Corp. He did this because he was moving away and did not hate the car. However, if you are in a similar situation but find the car you are leasing to be a source of repeated dissatisfaction, knowing how others have handled their leased car issues can be beneficial.

Understand the Agreement:

Read through the lease agreement to identify the terms and conditions regarding lease transfer. Understand the responsibilities and liabilities you will assume as the new lessee.

You may also contact Toyota Finance Corp. or the leasing lender directly to discuss your options. They may be open to negotiating a better solution if it is in their best interest to retain a good customer relationship.

Consider the Alternatives:

Avoid leasing in the first place if you are unsure it will meet your long-term needs. Choose a shorter lease term if you anticipate the car not being suitable for long-term use.

Conclusion:

While dealing with a hated leased car can be challenging, understanding your options and taking proactive steps are crucial in managing the situation effectively. Whether you choose to buy out, find a new lessee, or face eventual repossession, careful planning and preparation can help mitigate the negative impacts on your financial health and credit standing.

Key Takeaways:

Buy out the lease with a penalty to take full responsibility for the car. Find a new lessee to take over the lease if both parties agree. Avoid letting the bank repossess the vehicle as it can harm your credit. Consider alternatives like avoiding leasing or choosing a shorter term lease.