First Time leasing questions

[Cruncher2504]

Hello all,

I'm planning to lease a R1S dune and upgrading from my G1 Quad. This is my first time leasing since I want to take advantage of all the incentives and tax credit. I'm also looking to buy out the lease as soon as it closes to minimize the rent cost.

Can anyone who has gone this route advise me on the terms of the lease in the attached pictures? The early termination term has me concerned. Will I have to pay termination fee if I buy out early? How does the lease term look? Am I missing anything in regard to credits, incentives and taxes?

I'm afraid that Chase might have changed the terms recently in light of all the discussions with big beautiful bill.

*I can't seem to attach photos somehow...

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[jimboski93]

I got my lease docs yesterday. Hopefully the language hasn't changed.

You should focus on Section 32 of your lease Purchase Option
If you buy before the end of the lease, you'll have to pay the Adjusted Capitalized Cost minus the sum of monthly depreciation payments you have already paid when you choose to do the buyout, plus the monthly depreciation payment for the current month (if you are buying out immediately on a 36 month lease, you've made one payment upfront, so Depreciation/36 times two which accounts for the first month payment and the payment for the current month).

Section 30 Early Termination only applies if you were coming to Chase to say "I can't do this lease any more and want to exit" (financial hardship, etc.)

As for the Senate version of the Big Beautiful Bill, that's going to be a decision from Chase as to whether they want to continue to take the risk while this language is out there that uses June 16th as a cutoff.

 

[Cruncher2504]

Thanks for the reply. Here are the terms in my agreement. Anything weird that you noticed?

 

[jimboski93]

Your lease is the same as mine. Mine also has this warning about early termination, but again, that really goes back to the Early Lease Termination liability outlined in section 30 where you are trying to exit the lease (not through a buyout). Chase doesn't want this back for term of your lease, and they can charge you penalties for their lost interest income, inconvenience, change in market value, and other

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