Autostar Lease Agreement - How to end it early

Though I don't have first hand experience with Autostar, here is how such things go in KSA.

- Have a look at the termination clauses in the contract you signed with them.
- Visit their office and ask them for the early termination.
- Say your remaining balance is 50K. They'll ask you to pay the same and they'll process the car ownership in your name.
- It's the time to ask for a discount. Try to negotiate on 5-10%. This works with most bank loans and it makes sense. They had done calculations assumping you'd be paying back in 4 yrs period time. And that's how they applied interest. If you terminate ahead of time, there would be no need to follow the interest based calculations.

Hope this helps.

Thanks for the advice.

A work friend also told me it is possible to sell the lease to another person and transfer the lease into his name.
..This sounds easy enough but I'm not sure what benefit the new owner has as I assume they'd have to be approved by the lease company anyway so could just lease a new car instead.

Open to any more advice / comments

Thanks

Oh yes. I thought you wanted to close the deal only

Yes, you can transfer it to someone else. he'll have to meet the same requirements as you had done when you signed the deal. You'll have to offer that guy something good. Say you have paid 40K so far, ask him to pay a little less and get the car.

thanks for the advice.

i want a used toyota car for lease in amount 10,000 or less than please help me out

TheLegendLeads wrote:

Though I don't have first hand experience with Autostar, here is how such things go in KSA.

- Have a look at the termination clauses in the contract you signed with them.
- Visit their office and ask them for the early termination.
- Say your remaining balance is 50K. They'll ask you to pay the same and they'll process the car ownership in your name.
- It's the time to ask for a discount. Try to negotiate on 5-10%. This works with most bank loans and it makes sense. They had done calculations assumping you'd be paying back in 4 yrs period time. And that's how they applied interest. If you terminate ahead of time, there would be no need to follow the interest based calculations.

Hope this helps.

TLL,

Thank you for your great advices. I learned alot from you on this forum.

One thing I would like to point out, and lots of people might not be aware about, is a reduction of the paid amount ending the buyer to be on SIMAH's black list, most of the times. This hurts in case the applicant applies for a new loan, a new credit card, or even a new lease.

Say the car worths 225 kSAR. Say one paid 160 kSAR, the left is 65 kSAR. If they said it is OK to pay the full 61 kSAR now, this would be a trap they do. They, then, will add the buyer's profile to SIMAH's blacklist. There are many kinds of lease termination. Two of them are Bargaining and Clearance, 'Musawamh' and 'Mukhalasah', in order. Bargaining means they will not sue you nor ask you for further payments, while the other means the same in addition of clearing your name from the debtors list. I know it is malicious, but banks do it. They did it to my cousine. He went to SAMA and made a big fuss about it to have them remove it through the bank.

So I recommend the person paying the full amount no matter what, or request the assistance and clarification of an attorney, in case that person wants to pay it out now.

Regards,