Returned a lease 2017 a month and half early

jaycha2

Tried to post this last night for some reason did not go thru....had posted on another forum.

Returned A4 early. Little apprehensive about what I owe Audi financial. I had done the inspection without any excess wear and tear and under milage. Found out after the fact that I did it before the 30 days, so it is early lease termination.
Can somebody confirm by that I owe the Last payment and the disposition fee.
Here is the letter from Audi (Just a little confused and worried)

You will receive an early termination invoice within 2-12 weeks of returning the vehicle. The amount you owe will take into account the realized value* of the vehicle and may include the following charges:
a. Vehicle Return Fee
b. Remaining payments not yet paid minus the unearned rent charge
c. Taxes, fees, and any other outstanding obligations
d. Excess wear and use charges (not repaired prior to turn-in)
e. Excess mileage charges
*In the event the realized value of the vehicle exceeds the residual value on your lease agreement, you will not be assessed excess wear and use or excess mileage charges, and the surplus will be applied as a credit toward your outstanding obligations. Any additional amount beyond the remaining obligations will not be issued as a refund or applied toward any additional fees owed. In the event the realized value of the vehicle is less than the residual value on your lease agreement, your early termination charges will consist of a, b, and c above plus the lesser of excess wear, use, and overmileage charges OR the loss at auction

Thank you for your patience

kyfdx

jaycha2 said:

Tried to post this last night for some reason did not go thru....had posted on another forum.

Returned A4 early. Little apprehensive about what I owe Audi financial. I had done the inspection without any excess wear and tear and under milage. Found out after the fact that I did it before the 30 days, so it is early lease termination.
Can somebody confirm by that I owe the Last payment and the disposition fee.
Here is the letter from Audi (Just a little confused and worried)

You will receive an early termination invoice within 2-12 weeks of returning the vehicle. The amount you owe will take into account the realized value* of the vehicle and may include the following charges:
a. Vehicle Return Fee
b. Remaining payments not yet paid minus the unearned rent charge
c. Taxes, fees, and any other outstanding obligations
d. Excess wear and use charges (not repaired prior to turn-in)
e. Excess mileage charges
*In the event the realized value of the vehicle exceeds the residual value on your lease agreement, you will not be assessed excess wear and use or excess mileage charges, and the surplus will be applied as a credit toward your outstanding obligations. Any additional amount beyond the remaining obligations will not be issued as a refund or applied toward any additional fees owed. In the event the realized value of the vehicle is less than the residual value on your lease agreement, your early termination charges will consist of a, b, and c above plus the lesser of excess wear, use, and overmileage charges OR the loss at auction

Thank you for your patience

Good lesson on not turning your car in early. If the only thing you are out extra is the last payment, plus the other charges, consider yourself lucky.

A through E are normal end of lease charges.

jaycha2

I think this is what is causing me a little heartburn...In the event the realized value of the vehicle is less than the residual value on your lease agreement, your early termination charges will consist of a, b, and c above plus the lesser of excess wear, use, and overmileage charges OR the loss at auction

SO I pay a.Vehicle Return + b.Remaing balance + c. Remaining taxes + d&e ($0)

and as total of d&e will be less than the loss at auction, I will be paying lesser of the two , which is $0. Please can you confirm, I am reading it right! ....THANK YOU

kyfdx

jaycha2 said:

I think this is what is causing me a little heartburn...In the event the realized value of the vehicle is less than the residual value on your lease agreement, your early termination charges will consist of a, b, and c above plus the lesser of excess wear, use, and overmileage charges OR the loss at auction

SO I pay a.Vehicle Return + b.Remaing balance + c. Remaining taxes + d&e ($0)

and as total of d&e will be less than the loss at auction, I will be paying lesser of the two , which is $0. Please can you confirm, I am reading it right! ....THANK YOU

That sounds good for you. Many banks will hit you with the loss at auction, even if that is greater.

Yes, I read it the same way. If D & E are zero, then you just have A + B + C.

kyfdx

This could have turned out poorly. Don’t just drop off your lease early.

jaycha2

Yes...A big lesson learnt ...Thank you!