• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
  • Email
  • Facebook
  • Instagram
  • Pinterest
  • YouTube
Living On A Dime To Grow Rich

Living On A Dime

How To Save Money And Get Out Of Debt

  • Shop
  • Free Newsletter
  • Videos
    • Our Favorite Christian Resources – Bible Translations, Christian Speakers And More!
    • Show Notes
    • Amazon Recommended Items
  • Recipes
    • Beverages
    • Breads
      • Quick Breads
      • Yeast Breads
    • Desserts
      • Cakes
      • Candies
      • Cookies
      • Pies
    • Dinner Recipes And Main Dishes
    • Side Dishes
      • Dips
      • Pasta And Rice
      • Salads and Dressings
      • Sauces
      • Soups
      • Vegetables
    • Gluten Free Recipes
    • Cooking Ideas And Tips
    • Miscellaneous Recipes
      • Breakfast
      • Homemade Cleaners
      • Kids Recipes
      • Mixes and Gifts In A Jar
    • Quick and Easy Recipes
  • Saving Money
    • Save Money On Groceries
    • Managing Money
      • Budgeting
      • Getting Out Of Debt
      • Kids And Money
      • Saving Money Everyday
    • Bath and Beauty
    • Organizing Ideas
      • Cleaning
      • Decorating
      • Laundry
      • Organizing
    • Gardening
    • Holidays
      • 4th of July
      • Christmas Recipes And Ideas
      • Easter
      • Halloween
      • Thanksgiving
      • Valentine’s Day
    • Miscellaneous
      • CFS/FM
      • Moving
      • Staying Home
  • Free Bible
  • About Us
  • Contact

Check Out Our Dining On A Dime Cookbooks!

Check Out Our Dining On A Dime Cookbooks!

Get 25% Off Now!
Get Them Here!

How Can I Get Out From Under A Lease Agreement?

Lou from north Carolina asks:

Hi. I am recently living on my own with my two children, 15 & 12. I was married for 23 years and totally blown away when my husband asked for a separation. It was initiated by money problems. I made a big mistake by agreeing to file bankruptcy so my credit is shot. I don’t receive any child support and basically let him have everything. I thought we were going to work it out but we didn’t.

Your web site and cookbook have helped me tremendously. I am living very frugally now.

I have one big problem. I have a leased vehicle payment of $650 a month and two more years on the lease. I’m upside down in the lease as well. I would like to trade the van and buy something else. Something that I can pay for and keep for several years. Do I have to go back to the same dealership I leased the van from to trade it in? I have been unable to get a straight answer anywhere. I know they’re making money on me. Big money. But the $650 a month payment is killing me. Unfortunately, I don’t live near public transportation. I would appreciate any suggestions you could give me.

Hi Lou,

Unfortunately, we don’t have any experience with auto leases. Everything we have heard had sent up big red flags about avoiding getting into lease contracts, but since we don’t have any experience with them, I don’t know the best way to get out from under it if you are already committed.

In a perfect world, we’d probably try to get out of the lease as soon as possible. I looked at a little information on the Internet and it appears that most leases have a provision for early termination, but that the fee associated with that can be thousands of dollars. I would check your lease contract to see what it says about early termination.

If you want to trade the vehicle, I would avoid getting into another lease. It is possible that the dealership where you leased the car may waive the early termination fee if you trade for another vehicle with them. If they say they can do it, make sure that they’re not just taking the penalty and adding it to your new loan. If they do, you are not saving anything.

If you trade it at another dealership, they will probably do it, but I’d expect that they would pay off the lease termination fee and then add it to your new loan, meaning you’d be in the same dilemma for longer.

Read your lease to see what it says about early termination. It is possible that if you called them and explained your situation, they might let you out of it. I wouldn’t count on it, but it wouldn’t hurt to ask. If it costs you $1000 to break the lease, but you can get another vehicle that will cost you $250 per month, you’d save $400 per month and the $1000 would be paid after 2 1/2 months.

If you can get out of the lease, I’d try to buy a used car from another person and not from a dealership. Dealerships charge more (even for used cars) to cover their administrative costs.

Once you know what you’re up against, I’d do the math for all of the possible scenarios (i.e. keep the car until the lease expires, break the lease,pay the fees and buy an inexpensive used car, trade the leased car for the van you wanted, etc.) and see which one will end up costing you less.

I wish we could have given you more specific information, but as I mentioned we have no experience with car leases. It seems unnecessarily complicated (probably so you’re too confused to understand what they’re having you sign).

I hope this helps!

Michael

From: Dig Out Of Debt

photo by: zayzayem

Related Posts

If you struggle with how to make a budget, these easy printable budget forms help you make a simple family budget without a lot of stress!

Simple Family Budget Ideas and Easy Printable Budget Forms

10 Meals in 30 Minutes or Less

10 Meals in 30 Minutes or Less

Are you doing too much work cleaning? Do you wish it was easier to keep everything clean and tidy? Here you'll find some inspiration along with 13 quick cleaning tips to save time and energy so you don't have to spend as much time getting it all done!

13 Cleaning Tips To Make Cleaning Easier! Save Time and Energy!

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sidebar

22 Dinners In 20 Minutes!

22 Dinners In 20 Minutes!

Free e-cookbook

(No strings attached.)

We respect your email privacy | Powered by AWeber Email Marketing

Recent Posts

  • Easy Beef or Chicken Fajita Recipe – Quick And Easy $5 Dinner Recipe
  • 2-3 Ingredient Biscuits Recipes! Quick and Super Easy!
  • Chocolate Lava Cake Recipe – Chocolate Hot Fudge Cake!
  • Garlic Chicken Recipes – Easy And Delicious Chicken Dinner Recipes!
  • Easy 5 Ingredient Homemade Fudge Brownies Recipe
  • Email
  • Facebook
  • Instagram
  • Pinterest
  • YouTube
Search This Site

Categories

  • CFS/FM
  • Chit Chat
  • Dessert
  • Featured
  • Organizing Ideas
    • Cleaning
    • Decorating
    • Laundry
    • Organizing
    • Staying Home
  • Reader's Favorites
  • Recipes
    • Beverages
    • Breads
      • Quick Breads
      • Yeast Breads
    • Breakfast
    • Desserts
      • Cakes
      • Candies
      • Cookies
      • Pies
    • Dinner Recipes And Main Dishes
    • Dips
    • Drinks
    • Gluten Free Recipes
    • Homemade Cleaners
    • Kids Recipes
    • Leftovers
    • Miscellaneous Recipes
    • Mixes and Gifts In A Jar
    • Pasta And Rice
    • Quick and Easy Recipes
    • Salads and Dressings
    • Sauces
    • Side Dishes
    • Soups
    • Vegetables
  • Saving Money
    • Holidays
      • 4th of July
      • Christmas Recipes And Ideas
      • Easter
      • Halloween
      • Thanksgiving
      • Valentine's Day
    • Kids
    • Managing Money
      • Budgeting
      • Getting Out Of Debt
      • Kids And Money
      • Saving Money Everyday
    • Miscellaneous
      • Bath and Beauty
      • DIY
      • Gardening
      • Moving
    • Save Money On Groceries
      • Cooking Ideas And Tips
      • Kids And Food
      • Meal Planning
        • Quick and Easy Meals
      • Quick And Easy
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Shop
  • Free Newsletter
  • Videos
    • Our Favorite Christian Resources – Bible Translations, Christian Speakers And More!
    • Show Notes
    • Amazon Recommended Items
  • Recipes
    • Beverages
    • Breads
      • Quick Breads
      • Yeast Breads
    • Desserts
      • Cakes
      • Candies
      • Cookies
      • Pies
    • Dinner Recipes And Main Dishes
    • Side Dishes
      • Dips
      • Pasta And Rice
      • Salads and Dressings
      • Sauces
      • Soups
      • Vegetables
    • Gluten Free Recipes
    • Cooking Ideas And Tips
    • Miscellaneous Recipes
      • Breakfast
      • Homemade Cleaners
      • Kids Recipes
      • Mixes and Gifts In A Jar
    • Quick and Easy Recipes
  • Saving Money
    • Save Money On Groceries
    • Managing Money
      • Budgeting
      • Getting Out Of Debt
      • Kids And Money
      • Saving Money Everyday
    • Bath and Beauty
    • Organizing Ideas
      • Cleaning
      • Decorating
      • Laundry
      • Organizing
    • Gardening
    • Holidays
      • 4th of July
      • Christmas Recipes And Ideas
      • Easter
      • Halloween
      • Thanksgiving
      • Valentine’s Day
    • Miscellaneous
      • CFS/FM
      • Moving
      • Staying Home
  • Free Bible
  • About Us
  • Contact
  • Email
  • Facebook
  • Instagram
  • Pinterest
  • YouTube

Copyright © 2023 · Kellam Media And Publishing, Inc. dba Living On A Dime · All Rights Reserved · Privacy Policy · Disclosure Policy · Terms Of Service · Refund Policy