Open Ended Lease Vs. Close Ended Lease
08-19-2015, 12:49 PM
#16
Putnam is shady and uses the "gray area" in their contract. What they don't do is discount unearned interest on an early payoff but instead use a "quoted value" payoff. So even if one puts a large down, they use one of their "assessed values" as the payoff. One can fight it but it takes a lawyer, time, money. I have had several friends fight them and Putnam pushed back until the end. This is all of course if someone wants to payoff a Putnam lease early. If not you just make your payments (whatever term it is) and then payoff the balloon at the end. The problem is, no one wants to keep their car for 60 months in these leases.
Open ended leases are not all bad- BMW has one where there is no pre pay and they refund your unearned interest in an early payoff just like a normal lease would have. Premier is along the same lines as well. Just stay away from Putnam.
Open ended and closed ended has nothing to do with the issue the OP has, the issue is with Putnam and their early payoff calculation disclaimer. They literally make up some value if one tries to get out early with no break down on monies owed, not earned, etc.
Open ended leases are not all bad- BMW has one where there is no pre pay and they refund your unearned interest in an early payoff just like a normal lease would have. Premier is along the same lines as well. Just stay away from Putnam.
Open ended and closed ended has nothing to do with the issue the OP has, the issue is with Putnam and their early payoff calculation disclaimer. They literally make up some value if one tries to get out early with no break down on monies owed, not earned, etc.
08-19-2015, 12:50 PM
#17
Racer
Thread Starter
I was able to talk to Premier. When they make you an offer, they do provide an amortization schedule of payoffs. When you pay off, it's just principle balance without interest plus 1 month payment. Which I think is fair. The service was great and very transparent. I will most likely go with Premier.
On the other hand, I had a very opposite experience with Putnam. Definitely, I won't go with them.
I guess the lesson is clear. Open Ended Lease can be a good financing option, but MAKE SURE TO GET THE AMORTIZATION SCHEDULE WITH PAYOFF INFO. Thanks everyone for your help!
On the other hand, I had a very opposite experience with Putnam. Definitely, I won't go with them.
I guess the lesson is clear. Open Ended Lease can be a good financing option, but MAKE SURE TO GET THE AMORTIZATION SCHEDULE WITH PAYOFF INFO. Thanks everyone for your help!
08-19-2015, 01:47 PM
#18
I recently completed an open-ended 3-year lease with Premier, and it was a positive experience. I do not think I would do open-ended again (unless I were relatively sure about residual value), simply because the depreciation risk is with the lessee in those transactions, as opposed to close-ended leases. But that's not a criticism of Premier.