Honda Lease Return - when lease owner sells it to a dealer / auction >= residual value.

frankblackmgfrankblackmg Member Posts: 8
edited August 2019 in Honda
Hi,

Can anyone please let me know the following on a lease return:

1. When the car is returned at lease end, the company that owns it usually sells it to an auction or a dealer....regardless of which one, if it sells at residual or higher, do you still have to pay for any damages they assess? I think this is not true, you don't have to pay for any damages, since it sold at residual or higher, but just want to confirm it.

2. However it's sold (dealer/auction,) the lease company should have to tell you how much the vehicle sold for in order to collect damages if it sold under the residual?

3. If the lease company still has not sold the vehicle, are you allowed to wait until they do to see if it sells >= residual value?

4. If it sells at residual, do you still have to the disposition fee?

Thanks!
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  • MichaellMichaell Moderator Posts: 259,728
    frankblackmg said:

    Hi,

    Can anyone please let me know the following on a lease return:

    1. When the car is returned at lease end, the company that owns it usually sells it to an auction or a dealer....regardless of which one, if it sells at residual or higher, do you still have to pay for any damages they assess? I think this is not true, you don't have to pay for any damages, since it sold at residual or higher, but just want to confirm it.

    2. However it's sold (dealer/auction,) the lease company should have to tell you how much the vehicle sold for in order to collect damages if it sold under the residual?

    3. If the lease company still has not sold the vehicle, are you allowed to wait until they do to see if it sells >= residual value?

    4. If it sells at residual, do you still have to the disposition fee?

    Thanks!

    1. Has the car been inspected? Did the inspection show any damages for which you are responsible?
    2. If you are simply turning the car in at the end of the lease, it doesn't matter what happens to the car afterwards. You have satisfied the terms of your contract, except for any damage and the disposition fee.
    3. Unless you buy or lease another car from the same brand, you will always owe the disposition fee.

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  • kyfdxkyfdx Moderator Posts: 261,916
    frankblackmg said:

    Hi,

    Can anyone please let me know the following on a lease return:

    1. When the car is returned at lease end, the company that owns it usually sells it to an auction or a dealer....regardless of which one, if it sells at residual or higher, do you still have to pay for any damages they assess? I think this is not true, you don't have to pay for any damages, since it sold at residual or higher, but just want to confirm it.

    2. However it's sold (dealer/auction,) the lease company should have to tell you how much the vehicle sold for in order to collect damages if it sold under the residual?

    3. If the lease company still has not sold the vehicle, are you allowed to wait until they do to see if it sells >= residual value?

    4. If it sells at residual, do you still have to the disposition fee?

    Thanks!

    None of that matters. You don’t have a contractual interest in what happens, after you turn in the vehicle. Your end-of-lease charges are due according to the contract.

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  • frankblackmgfrankblackmg Member Posts: 8
    Thank you both, but from what I read (can't find the source right now) that if the car sells at residual or higher, they can't charge you for damage because that is the amount you'd owe if you'd want to buy it and what they expect to get at the end of the lease as the value of the vehical, but they can for the disposition (which makes sense esp. if you switch brands and didn't negotiate that for the new dealership to eat the cost of getting your business)

    1. Has the car been inspected? Did the inspection show any damages for which you are responsible?
    -->We had minor scratches on one mirror, paint off the rear bumper from someone scraping in a parking lot and dent on one door -- we didn't have it inspected, but we took pictures before we gave the car to the dealership brand we switched to, to have them return it.

    2. If you are simply turning the car in at the end of the lease, it doesn't matter what happens to the car afterwards. You have satisfied the terms of your contract, except for any damage and the disposition fee.
    -->I'll see where I can find where I read that (sells at >= residual, then you don't pay for any damages) and I'll call them to see if it was sold and for how much.

    3. Unless you buy or lease another car from the same brand, you will always owe the disposition fee.
    Makes sense, we forgot. My wife wanted to try another brand after 9 years with Honda (went to the Chevy Equinox), but I stayed with Honda, from the 3 gens of Honda Accord V6's to the Passport.

    I'll contact a local attorney and find out more details on this and check the contract we signed with the attorney. They are reasonable with the costs of repairs, but want to confirm that if it did / does sell at >= residual, can they charge us.
  • kyfdxkyfdx Moderator Posts: 261,916
    Repeating myself, but here goes:

    None of that matters. You don’t have a contractual interest in what happens, after you turn in the vehicle. Your end-of-lease charges are due according to the contract.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

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