Leasing Car question?

[hanaimports]

What is the name of your state? Florida.

I'm leasing a 1999 Honda civic and the lease ends in December2002
Honda told me that I have a balloon payment of $7000 left on my account.
At the time that I got my car I wasn't aware of this I believe the dealer didn't mention to me the balloon payment fully or I might have of misunderstood. I can't afford the $7000.00 they're asking I'm a student and I'm barely making my student loan payment right now.
What are my options? Do I file for chapter and default?

 

[CombatTN88]

The car dealer's job is to LIE, LIE, and LIE to customers. You won't believe what had happened to me back in 1996 when I purchased my new car. That dealer lied so much that I end up paying more than I should had.

 

[BlondiePB]

At the end of your lease you have the following options: 1) turn the car in and lease or buy another car, 2) "buy out" the remaining balance of the 1999 Civic which is the $7,000.00 that is being asked for and keep the car, 3) extend the lease, or 4) turn the car in and not acquire another vehicle. You can make your own financial arrangements for the $7,000.00 if you want to keep the car. And, you can make your own arrangements to extend the lease through the leasing company, which appears to be American Honda. If you want to "buy out" the remaining balance and keep the car you can also try to work this out with American Honda, do this at any time, and negotiate the remaining balance. A salesperson at the dealership will gladly help you; however, you'll do much better with the price by negotiating directly with the leasing company. Interest rates are very low right now. Should you choose to just turn the car in, make arrangements for an inspection prior to turning it in and negotiate any costs you may be charged for restoration of the car. The $7,000.00 is the residual of the lease that is being confused with a balloon payment that you do not remember the dealer mentioning. With leases, the proper term is residual. Regardless, they both work the same at the end of the term.

 

[hanaimports]

Thank you for responding to my post, I already turn in my Honda at the dealership on Sunday this past weekend and on Monday I picked up my new car from Nissan. But I didn't find out about this balloon payment until today from Honda, I was worried.


So what you're saying is I need to do nothing if the car is already turn over to Honda. This balloon payment is just an option to buy the car at the end of my lease?

Well, again thank you for responding to my post.