Auto Loans Opting out of auto agreement

[pewter2k2]

I am 13 months into a 72 month auto finance agreement with a Dodge dealership in New Jersey, but I need you guys assistance with this one. I would like to opt out of this contract to perhaps lease a motor vehicle, is this at all possible?

Thank you

 

[Michael Wechsler]

1) I have no idea what the agreement is. It is critical to see the terms of the written agreement.

2) I highly doubt that the dealership will just let you opt out without some penalty. They leased it to you based upon a calculation that they would make back the money over the term of the finance agreement. If you opt out, there will be additional costs, paperwork, and the need to lease it to someone else as a used vehicle to salvage whatever remains to makeup the difference.

Is it possible? Yes. The parties can make any deal they want and, for all I know, maybe there is some trade in provision on the agreement. Will you get a favorable deal? Maybe. You can always call and see what your options are but my gut feeling says they may not be so willing to be generous. Just a hunch.

 

[disagreeable]

If this is a 72 month purchase contract, you are free to go the dealer of your choice, find the vehicle you want and trade the vehicle you have now in. As to any difference between what you owe and what they give you, you will need to work that into the down payment arrangements on the new car lease. If you have a lease now, there a few auto lease sell sites, where you can bargain off your current leased vehicle. Google is your friend.

 

[Michael Wechsler]

If this is a 72 month purchase contract, you are free to go the dealer of your choice, find the vehicle you want and trade the vehicle you have now in. As to any difference between what you owe and what they give you, you will need to work that into the down payment arrangements on the new car lease. If you have a lease now, there a few auto lease sell sites, where you can bargain off your current leased vehicle. Google is your friend.

I did a search and found the term related to 72 month loans provided by Ford and general articles pertaining to what seems to be a new common practice in the industry. As I don't deal with auto financing (or much with cars in general other than Zip Car) I can't tell you with certainty. But I didn't see anything that allowed you to "opt out" of the agreement. A trade in is a different story.

I didn't see anything that said all 72 month purchase contracts are subject to the same terms, e.g. some government regulation, so I'm guessing it's important to read the fine print. From a quick perusal, I found that terms can vary significantly, e.g. such as the application of overpayments.

Disagreeable (nice search, lol) states that you probably have a trade-in option (as opposed to opting out.) If you want to look at leasing another vehicle, I'm guessing there will be some factoring your decision early in the loan and it will be up to you whether the trade in value is palatable. Good luck.

 

[pewter2k2]

Thank you everyone for your speedy replies but maybe I must make myself a bit clearer. The vehicle I purchased is a financed auto for a term of 72 months. After looking at the whole thing, I feel as though I was surely taken for a ride, but I am not mad, it's part of the game when purchasing a new or used auto, either you get them or they get you. I want to get out of this car, possibly trade this 2007 Dodge Charger in for a later model vehicle of same make and model 2011 or 2012 or just a different type of vehicle altogether. I was wondering if in the state of New Jersey if this was at all possible to get out of this 72 month finance contract and maybe enter a lease program.

 

[army judge]

Thank you everyone for your speedy replies but maybe I must make myself a bit clearer. The vehicle I purchased is a financed auto for a term of 72 months. After looking at the whole thing, I feel as though I was surely taken for a ride, but I am not mad, it's part of the game when purchasing a new or used auto, either you get them or they get you. I want to get out of this car, possibly trade this 2007 Dodge Charger in for a later model vehicle of same make and model 2011 or 2012 or just a different type of vehicle altogether. I was wondering if in the state of New Jersey if this was at all possible to get out of this 72 month finance contract and maybe enter a lease program.

Yes, you can convert from an automobile purchase contract to a lease.

You just have to find a dealer willing to do a deal with a bank or finance company.

But, you'll be very upside down if you do such a trade.

You have no equity in a used car (a five year old car) with low resale value (as if many of them have high resale value, huh)!

Nothing prevents you from talking to a dealer or two about what you want to do.

Yours is not a legal problem, my friend.

Yours will be a financial problem.

Good luck!!!

 

[disagreeable]

You cannot opt out of your contract because you woke up with an epiphany. You must conclude the contract by fulfilling the contractual terms. If you cannot manage the way I told you, you are stuck with your acquisition. I'm bored with it, only works when you have the money to pay for a change.