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Lease Termination Fees and other costs

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Comments

  • delta737hdelta737h Posts: 603
    edited July 2011
    rx2man,

    The "blame it on the computer" is typical. Software vendors generally provide outstanding training and support on new software. As such, that story is real tough to swallow. And so, I think they all new exactly what they were doing. Independent of software and, regardless of the computer software used, they had to know that Ally charges a $2,500 purchase fee. My God, that's common knowledge among all dealers having agency agreements with Ally Bank. So, their computer explanation is pure BS.

    If they hadn't reduced the buyout to a residual buyout, would you still have leased the vehicle? If not, there's your answer. They were able to make a sale because they changed the buyout price to a residual buyout, even though it's bogus.

    As for Ally Bank kicking back the faulty paper work, they'll cross that bridge when they get to it. By that time, the hope is that you will have fallen in love with the vehicle. And, the more time that passes, the easier it will be for them to convince you to keep the vehicle. Don't be surprised if they offer you some sort of split on the $2,500 purchase option fee particularly if they already have enough profit in the deal. So, time is their ally (no pun intended). Frankly, they should eat the $2,500. My dad told me long ago that if you make a mistake in business, you eat your mistake... no exceptions!

    John
    The AutoLeaseGeek
  • rx2manrx2man Posts: 14
    Wow, NO I would not have bought at the higher amount. Its was supposed to be 13800 and the sales person said there was some confusion on their end and the 13800 was for a base, mine was 15800 once we showed up at the dealership. At that point we were walking and they split the diff to 14787 but in the end it was 14419. The 16919 was a no deal.
    They have my trade in as well so if they sell it are'nt they in a bit of a jam, also is this now technically a used car. All I have to do is say original deal or give me my car back and they are somewhat stuck with having to honor it?? Sorry to keep asking questions but trying to get an idea as to how this is going to play out. And thank you delta for taking the time to reply
  • delta737hdelta737h Posts: 603
    edited July 2011
    In your original post, you said...

    "I said thats' still not right and he this time writes over the top of the stack in pen and makes the change, all copies reflect the 14419 and I initialled the change."

    I have no idea what "writes over the top of the stack" means. The bottom line is this...

    Was this penned change written on the lease agreement or was it written on some dealer internal document? If it was some internal document, then Ally will never see the penned change. So, you go merrily along until lease end when, to your surprise, you discover that the buyout is $16,919 and nothing was ever changed. The paper you're holding with the penned change could be meaningless and unenforceable in a court of law.

    I can't believe a dealer would amend a contract by using a pen to cross out a number and, then, inking a different number. If I were the fund provider (Ally), I would send it right back to the dealer. They should know better which leads me to think that they inked the change on some meaningless document.

    If they made the change on the lease contract, then, in all probabilty, they'll have to eat the $2,500. I don't know how much trade credit they gave you, if any, but they may have enough profit in the deal to eat the entire $2,500. DO NOT let them negotiate the $2,500 by agreeing to some split. That's out of the question and, as far as I'm concerned, it's non-negotiable as it's a done deal. If they made a mistake, it's on them.

    I don't blame people for being stupid, but I do ask them to pay for their stupidity (mistakes). I'm not about to be victimized because of their stupidity.

    John
    The AutoLeaseGeek
  • rx2manrx2man Posts: 14
    I have no idea what "writes over the top of the stack" means. The bottom line is this

    sorry yes the lease contract, about 4-5 pages, you write on the top one it goes through all copies. they made a change on the contract. It sounds crazy but thats what happened. I have no idea if they made much on the trade. A 08 Sonata base 4 cyl auto in good shape no issue with 81k. So a lot of miles. We owed $7700 on it paperwork shows $9150 trade in which is high KBB trade in. But $9150 is just a number if the cost of the vehicle is higher as well. So I dont know what their margin is but I really dont think its $2500, they were trying to make this go through. Thanks again for your time.
  • dwynnedwynne Posts: 4,018
    Keep in mind, you said:

    "Last night I leased a wrangler, I was told my residual would be 14419, seemed fair enough to me. Went to finance and noticed the 14419 was 16919 in the Purchase option section at the bottom."

    So your lease payment is correctly based on the residual you think is fair. The only problem is that the lease bank charges this silly-high buyout fee on top of the residual. Check your lease contract and see what the turn in fee is, it could be a rip of as well. The bank will not fund the lease if the numbers are not correct and the dealer can't change the residual or buy out fee or price. So unless they didn't change the copy they sent to the bank it is coming back. At hat point you should just unwind the deal - if you plan on buying the vehicle at lease end - and leasing from another bank or dealership. You can also check online at leasecompare.com to see what rates / payments they have.

    Most every dealer will make you sign a form that says if the financing does not go through you have to bring it back. This lets them do business nights and weekends when they can't get approval for every deal before handing over he keys. Some have a per day and / or per mile charge on this form. If you signed one of these, then you have to pay them to take back the car -the amount based on days and miles you kept it,

    Lease then purchase CAN make sense and I have done it before myself, but only when I had a super low factory backed lease rate. This lease deal is probably not at a promo rate so probably does not make any sense to lease then buy if you want to own the vehicle just get a loan and buy it now. You can run the numbers and see how much money you are tossing away on the lease / purchase but I would guess it is a large amount.
  • rx2manrx2man Posts: 14
    I ran the numbers both ways and its a wash in the end within a few hundred IF I did the numbers right and I think I did. IT got me a payment my wife is happy with now so thats what counts at this time. I talked with a dealer on a jeep forum, he does not think it was intentional and they have a new computer system at dealers that is causing problems. I dont know why they say they were not familiar with the Ally leasing program. The other dealer said it should all work out in the end and to just wait for them to contact me.
  • rx2manrx2man Posts: 14
    For anyone who is curous as to how this turned out. The dealer called last Tues, the GM said all their Ally leases were messed up and I would have new paperwork to sign. Today I got the new paperwork. This time with Bank of America. Same numbers as before and BOA does not have $2500 buy out at the end. So I am happy it all worked out.
  • pwong8pwong8 Posts: 3
    I am halfway through my lease right now for a 2010 Audi A3 and I need tires pretty soon. Does anybody know if Audi will charge me if I return the car with tires of a different brand? I find the stock tires too noisy and planning to opt for a "quieter" set.
  • qbrozenqbrozen Posts: 17,148
    Look on your contract and see what the requirements are. The only car I ever had to worry about tires on was our Chrysler and the terms merely said the tires had to have at least 4/10" tread depth. No mention of brand.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • Kirstie_HKirstie_H Posts: 10,824
    edited August 2011
    Agree w/qbrozen on checking the contract, though I can't imagine why they'd be upset at you returning the vehicle with nicer, newer tires on it, as long as they were the right size.

    If it's a problem per the contract, you can always keep the old tires and have them put back on right before the lease ends.

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  • dwynnedwynne Posts: 4,018
    Only an option if the OEM set has 4/32" or more tread left.

    I would check the lease contract, I am sure there is something about the tread depth and they have to match. If the car has a full size spare all 5 may have to match. The speed and load ratings have to meet or exceed the OEM tires as well. They could limit you to just OEM tires (there could be several) as well. To CPO a car they have to have lots of tread and be OEM tires, so dealers do not like to see turn ins with non-standard tires.
  • im_brentwoodim_brentwood Posts: 4,883
    As long as they match and are the right size and speed rating you should be fine.

    Just make sure they're name brand... get some Chinese no names and you might get hit.
  • lch77lch77 Posts: 53
    Agree with Brentwood, with emphasis placed on the rating. If the car came with "V" rated tires, don't replace them with "H" rated tires.
  • im_brentwoodim_brentwood Posts: 4,883
    Exactly.

    Jaguar would allow one speed rating downgrade, from a Z to a V, but if the car came in with non-performance tires, you'd get charged for a set of OE rubber ($900+)
  • Kirstie_HKirstie_H Posts: 10,824
    Well yeah... I'm assuming that the vehicle is fairly new to the lessee, and thus would currently have barely-worn tires. I can't imagine bothering to replace the tires for better ride quality near the END of a lease!

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  • dwynnedwynne Posts: 4,018
    They said "I am halfway through my lease right now for a 2010 Audi A3 and I need tires pretty soon" so I assumed they would be too worn out to turn in.

    Another reason to love Honda Finance lease "Excess Wear and Use Waiver" of $500 per incident up to a total of $1,500. I turned in my 2005 S2000 (before getting the 2008) with 2 low tread tires on it. No charge since they were under the limit.
  • ronnycronnyc Posts: 33
    Hi. I have a CRV lease. BUT, unfortunately, due to the economy, etc., I've been out of work for 2 years. Still looking! I can't afford the car any more. It's a 2009 CRV with less than 6000 miles, so it's totally cherry. What should I do (besides move to Brazil).

    RON
  • kyfdxkyfdx Posts: 27,667
    Do you have a CarMax nearby?

    They'll make you an offer to buy your car, and check with Honda Finance for the payoff amount..

    Most leased cars are worth less than the payoff, but since yours has low miles and CR-Vs hold their value, you may find that they will pay you enough to walk away from it.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • ronnycronnyc Posts: 33
    THANKS!!! I'll try that.
  • dhyun3dhyun3 Posts: 11
    Anyone has experiences? I will need to return my 3 series in a month and would like to know whether I should take my car to an auto shop to look at it before I meet with an inspector from BMW. I've heard that once they find some issues, the car must be fixed by a licensed BMW shop which tends to be more expensive...
    I also lost one of my car keys - do you guys know how much they will charge?

    Leasing at the beginning and driving until these days are wonderful...but not look forward to paying some fees...
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