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Lease-end restrictions
hellothere5
Member Posts: 4
Others may already be aware of this, but I wanted to share my experience. My Lincoln lease recently ended. I had planned on trading it at another dealership where I was about to lease my next car, as I have always done at the end of my leases. When I went to do this, I found out that Ford and Lincoln both have a policy that if you are within 90 days of your lease ending, your only two options are to turn the car in or to buy the car yourself at the originating dealership. It created quite a headache for me (turning in the car was not a good option, as there would have been wear and tear fees and we actually had equity in the car by buying out the lease).
Having depended on these forums a lot (thank you!) I just wanted to pass this along in case it will help someone else down the road.
Having depended on these forums a lot (thank you!) I just wanted to pass this along in case it will help someone else down the road.
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Actually, I think you could have traded it in, but Ford reserves the right to ask market price from a third party vs. lease payoff to the actual lessee.
In other words, they aren't going to let the lessee profit from an unexpectedly high value on a lease turn-in, other than what's provided for in the contract. They take the risk, they get the profit.
Not a good thing to find out later, though.
I think every bank's lease contract could be enforced this way, but most don't do it.
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Many captive banks have one price for the lessee, another for a captive dealer, and a 3rd for a non-captive dealer.
Not a contract lawyer, but it seems they could have been doing this all along.. just starting to tighten things up, now. Not all, but some of them.
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We searched the contract documents and could not find anything pertaining to this. Went to two different dealers and both were dumbfounded when told by Lincoln and the dealership that they could not purchase it (both were non-Ford/Lincoln dealerships). I saw that another person posted back in July about the same issue with only being allowed to go through the original dealership for a Ford, so I don't think this is just me. However, I had never heard of this.
I'm never fond of captive banks that make you involve the original dealership. Just one more party to the transaction to muck things up.
If you want a repeat customer, give good value and great service. Don't try to handcuff the customer. Just makes them angry.
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We just found out the hard way that you have to turn in your vehicle before the last payment is due. We turned in our vehicle two days “late” and now we have to pay and don’t even have the vehicle anymore. Ford is not willing to help us at all and the dealer says they are already negative in the deal and can’t budge no more.
Of course they are pointing fingers at each other and we are sitting at the loosing end.
Lesson learned!
So frustrating!
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