# Cancelling a lease and impact on my credit



## toxict3arz (Oct 12, 2004)

So heres the complicated scenario

I used my credit to lease a car for a friend. The car is leased under my name but he is paying for it. So I think he is co signed as the primary driver. (I think)

anyways he wants to cancel the lease.
His argument is that my credit will not be impacted because I do not use my credit card to pay for the car. 

My argument is that my credit will be impacted because they are using my credit score to quote us a price. 

Whose right?


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## SABL (Jul 4, 2008)

You are listed as the primary.....regardless of whether or not you used your credit card on the lease, you will receive a negative score and may be subject to "universal default". Be prepared to see all credit accounts having the interest rates increased.

It only takes a few seconds to have your credit score ruined......


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## sarla (May 14, 2010)

toxict3arz said:


> So heres the complicated scenario
> 
> I used *my credi*t to lease a car for a friend. The car is leased under* my name*


Sabl is 100 correct. Its on you. YOUR credit and signature . YOUR car and credit


EDIT. Even if you were just a co-signer they could crush your credit.


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## toxict3arz (Oct 12, 2004)

If you dont mind me complicating the matter some more...

What are my options if he wants to cancel the lease? 

FOr example, can he take over the lease and get my name off of the lease 100% so that he can cancel under his own name without affecting my credit at all?


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## toxict3arz (Oct 12, 2004)

Or can he buy out the car cash and sell it off?


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## SABL (Jul 4, 2008)

I'm not seeing anything that your friend can do......he is not the lease holder. 

Everything will be on you.....you need to find out if the car can be purchased and at what price. Get the money from your friend (up front) and make the purchase.....then transfer the title to your friend. At that point it's up to them to figure out how to recoup their money.

The only way to get the correct answer is by talking to the company that financed the lease or the lien holder.


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## toxict3arz (Oct 12, 2004)

Sigh, I'm trying to knock some sense into my friend right now

and sorry for all the questions but I really dont know the answer and the dealers are very confusing 


My friend says that if we take the car back within a certain amount of days then there is no penalty for us. Fee + credit wise. 

is this true? I assume not .. but let me know thanks!


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## Old Rich (May 31, 2007)

Depends on the state you are in . . Your best bet is to talk to the company that carries the lease . .


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## sarla (May 14, 2010)

SABL said:


> The only way to get the correct answer is by talking to the company that financed the lease or the lien holder.


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## toxict3arz (Oct 12, 2004)

alright thanks! I'll go smack some sense into my friend


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## Troy_Jollimore (Dec 31, 2007)

Your 'friend' said your credit won't be affected because you didn't use your credit card. Stop listening to anything this person says, NOW. If they want to get out of the lease, it's also probably not likely they'll want to take it over (they probably won't be able to credit-wise if they needed you in the first place) or buy it out.

I've heard that General Motors and Hyundai are offering a 'return program' of sorts. If the car is returned between 30-60 days or so later, in good condition with less than 4,000 miles or so, they'll take it back. You'll only be out a few of the ancillary fees (like freight and taxes). Again, your local dealer will have the most information about your options. I'm not sure how they could be confusing you. As has been said, your particular State may also have laws that apply in this situation. Research your options.

Beyond that, every lease or loan can be different. Some will let you buy out the entire amount at any time without penalty, some will charge a HUGE penalty for doing this. Read the fine print.

One of the main lessons in Life is you should NEVER get financially involved like this with friends or relatives. EVER. In most cases it ends up putting a strain, both emotional and financial on you, and tends to ruin relationships. A lot of times, it's something outside of the other person's control, but they don't feel so bad hanging you out to dry as they would if it was solely their credit on the line. Unless you can just write off the money the same as if you threw it away, don't do it.


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## toxict3arz (Oct 12, 2004)

If i were to do a lease transfer, then would i be completely cleaned from my responsibility on the lease, or will I still be affected even so slightly if something goes wrong after the lease transfer?


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## sarla (May 14, 2010)

Old Rich said:


> Depends on the state you are in . . Your best bet is to talk to the company that carries the lease . .


I think you have been told this several times


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