Dear Terry, My boyfriend had two leased cars. He lost his job and the cars were repossessed. We received a letter stating that we had to pay early termination fees for both cars. Do we have to pay that? -- SherryDear Sherry, Unfortunately, the answer is yes. According to most lease contracts, you are liable for any early termination of the lease, whether it's because you just want out of the lease or whether the vehicle is repossessed. Not paying it will likely further damage your credit, so I suggest you contact the leasing company and see if they will settle for a lesser amount. Moving Components - Please WaitThis week•Car incentives often hidden -- but they exist•When a leased car is repossessed is there an early termination fee?•How can an elderly woman get rid of an 18 percent car loan rate?•My son still owes $5,000 on a car he totaled. What can he do?Moving Components - Please WaitIf you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter advertisementRelated Links:Auto loan rates: March 26, 2009Saving on insuranceWhere's my car bailout?Related Articles:Vehicle leases going upOld loan not added to newCan't sell leased car
Dear Terry, My boyfriend had two leased cars. He lost his job and the cars were repossessed. We received a letter stating that we had to pay early termination fees for both cars. Do we have to pay that? -- Sherry
Dear Sherry, Unfortunately, the answer is yes. According to most lease contracts, you are liable for any early termination of the lease, whether it's because you just want out of the lease or whether the vehicle is repossessed. Not paying it will likely further damage your credit, so I suggest you contact the leasing company and see if they will settle for a lesser amount.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter
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