I'm not sure if this is the right forum or not. I called GMAC and asked about early termination of a lease. They quoted me an amount, then said, "We'll send you the final bill after it is auctioned off". From what I got when talking to him was that if it sells for a lot less, I have to pay the difference? I shouldn't have to make up any loss becuase of the car itself, right? Anyone have input on this?

Check your lease agreement. It should be in there.

Also the payoff should be no more than what the total combined monthly payments would be or atleast I would think. Also Im sure an early termination fee would be less than the above. So I don't really know why they are talking about an auction. Just make sure they are not trying to screw you over and thats why you need to look at the lease.

The cool thing is on a lease, you pay the exact payoff even if they get less at auction unless you have alot of wear and tear.

The cool thing is on a lease, you pay the exact payoff even if they get less at auction unless you have alot of wear and tear.

FYI They sell additional coverage (around $650) on the SmartLease which covers wear and tear, and also allows extra mileage.

I had that lease protection on my old car. I only kept the car 2 years on a 39 month lease. I never recieved my money back for it and I didnt use it.

Ok, thanks. I did read the buyout price, but he made it sound like that didn't matter. The buyout was about $100 less than the monthly payment also.

I have dealt with GMAC and what they told you I have heard but I think it may depend what you do. If you just pay off the remainder of your payments they will gladly take and you should be done. If that is the case I will be happy to assume your lease and work with you on something like that.

I am not sure how it will work but GMAC should not charge you any more than you making all your payments. It it goes to auction and sells for a fair price you may pay a little less. They should be able to tell you a set price now based on your lease contract.

Good luck and if you want someone to assume your lease contact me as I may be able to help.

Back in the day, I turned in a GA 2 years early, it went to auction and I got over $1000 back.

I still had a year and a half on my Cobalt when I got my G8. The early termination was almost as much as the rest of the payments, so I kept it.

After more research, this is what I was told. The early buyout amount is the most I will pay; except for excess wear, tear, and mileage of course. If they get MORE than this, it will cost me less to get out then.

I'm not sure if this is the right forum or not. I called GMAC and asked about early termination of a lease. They quoted me an amount, then said, "We'll send you the final bill after it is auctioned off". From what I got when talking to him was that if it sells for a lot less, I have to pay the difference? I shouldn't have to make up any loss becuase of the car itself, right? Anyone have input on this?

If you keep the lease though normal termination (36 months, 48 months, whatever), that is one scenario. In that case, you can walk away assuming no damage and you're within mileage limits. You may have an option to buy the car at that residual value, but GM had been subventing their leases so much, that the residual is often above wholesale value.

If you terminate early at your option (not on a special GMAC program), then you have a problem. You are liable for all of your remaining payments + the residual value less what they can wholesale the car for (i.e., at auction). Unless you paid a large capital reduction when you started the lease, there is probably going to be a "gap" between what you owe and what the car is worth.

BTW, this is the same situation that occurs if, heaven forbid, you total your car.

That said, some leases have a "get out of jail free card" that says you aren't responsible for the gap. That's something to look for on your next lease. From what you've written, apparently you don't have this on your lease.

My qualifications on this: I'm a retired Pontiac dealer who still owns and operates a leasing company. If you want more specific details on your particular lease, PM me and I'll work through your numbers for you.