My brother leased a new '06 QC 4x2 CTD in Nov of last year. Lease agreement was 12k miles per year on a term of 39 months. It's not driven all that much and in Nov of this year it will be 1 year old and 1 year into the lease and he only has 4800 miles on the truck.

He and the wife are having an unexpected, unplanned addition to the family in a few months and he now needs to get out from under the truck payment. To anyone who may have any knowledge, what can be expected if he has to turn this in prior to the lease ending? Would it go down as a repo and ruining his credit or can you even turn one in at such an early time?

Thanks,
Rick

 

Bank will expect residual value + total payments left. So if the residual is 20K and he still has 10k in payments the bank will expect $30,000.00. If the truck is worth 28K then he will owe the bank $2,000. Just like trading in or selling a used vehicle.

I am not a banker, but I did sleep all day..

DuaneW.