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Early return costs?

5145 Views 10 Replies 10 Participants Last post by  GM Points
I currently have a 36k mile/3 year lease that is fully paid for upfront. At the rate I'm going, I'm going to hit my 36k mile limit in 2 years. A quick Google search seems to indicate that there will be early termination fees/costs if I return my car early.

Question is - does this only apply to monthly payment type of leases? I'm not sure if early return fees would apply to my situation; surely dealers would make more money selling a 2 year old car with 36k miles on it as opposed to a 3 year old car with 36k miles a year in the future? Anyone has any knowledge on this? I don't expect to get any of my prepaid amounts back of course, just wondering if I have to hand over extra fees in addition to what I've already paid (plus the regular disposition fee).

Reason for wanting to turn the car in upon reaching mileage cap: ongoing insurance costs even if I don't drive it.

And before anyone starts on the upfront payment being a bad idea... that's a discussion for another time.
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You can always take it to Carmax or wherever to get an appraisal. Odds are very high their quote will be lower than whatever you owe on the car, but it's worth a shot. If you sell/trade in your Volt to a dealer (any dealer), there is no termination fee. I've done this 3 times with a leased Chevy the past year, so trust me on that. ;)

In addition, in some states if your trade in a leased car to a dealer and lease a new car from that dealer in the same transaction, you actually get a tax credit on the NEW lease. In MD, you get a 6% credit, so if you were to trade in a car and receive $20k for the trade, the sales tax credit on the NEW lease would be $20k * 6% = $1,200.
That's what helped me flip leases with basically no money out of credit on the new lease cancelled out most of the negative equity trading in the old one.

All you would owe is the residual + remaining payments....or just the residual in your case. GMF doesn't charge an early termination fee. They DO charge a $395 disposition fee if you (or someone) doesn't buy the car at lease end.
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