Dealership did not pay off lease as agreed

[looneyboomer]

I took my leased vehicle to the dealership that I leased from at the end of June. I wanted to see what they could do, since I could no longer afford the payments. I had already extended 2 payments to the end of the lease. The lease had about 10 + 2 to go.

Well, the finance mgr told me they could take over the lease and put me into another car with lower payments.

I agreed and turned over my car to them. Problem: they only paid partial of what was owed and now I am being

dunned by the leasing co.

I sent a dispute to the leasing co and just heard back, by phone, that the dealership is not paying the rest that is owed.

The part they are hanging on me are the 2 extended lease payments plus the fees associated with that.

The only paperwork I have is the signed Odometer Statement showing date and mileage when I turned over the car to them.

 

Also, they took the amount that was owed on the car (at lease end) and added the difference to my new loan.

 

What in the world can I do????

 

Thank you for any and all help you can give.

[MarvBear]

On behalf of CreditBoards Admin, MarvBear would like to extend a sincere and warm welcome to the Automotive Forum. We have an Automotive FAQ (Frequently Asked Questions) section that should prove to be very helpful in your automotive knowledge quest.In the Reading and Resource Section of this forum, which is a read only forum, you can look up information regarding Sales Tax by State, Lemon Laws by State, along with a number of industry specific topics very relevant from the dealership's perspective.In the main section of this forum, there are two pinned topics both of which are read only topics. The first concerns Bank and Credit Union rates and tiers. You might find this useful in predicting an interest rate on your next vehicle purchase. The second is a general purpose credit application that you can use to get an idea if you might qualify for an automotive product loan based on an insider's perspective of the information you provide.You, as a consumer, have a unique advantage to "pick my brain"as I have been in the Automotive Industry since 1972. I will endeavor my utmost to give you up to the minute information and explain any insider workings you may question.Due to time constraints on my part, I may not always be available to answer your question right away. Don't be discouraged, this is a very busy board. If some extended time goes by without a reply, feel free to reply to your own post by typing the word *bump*. This will *bump* your post back up to the top of the forum where it is more easily seen.We make every effort to maintain a warm and friendly, and particularly non-judgmental attitude here on CreditBoards. If you find someone is discourteous to you, use the REPORT button located at the bottom of every post-that will ensure that either I or another moderator or Admin looks at the post and decides if it is against our TOS.Off-topic posts should go in the General Forum. And if you are a credit newbie, take a glance at our Newbies Section.Come get your new keys!HAPPY MOTORINGCB Admin: LKH, Pam, radi8, breezeCB Mods: CargoJon, Chris in CA, cotterpin, CramItCCCAs, Cristy, fla-tan, hardpull, MarvBear, pryan67, psp, stealthmidget, Stryker, yourguide, ZeRo_C0oLForum Leads: Brian B The Loan Professor, cedski, DallasLoanGuy, four20nik, hoapres, hurricanesfans27, Lighthouse84, Linx04, Neen, orangecrush, Peekaboo, TeeSharice

[MarvBear]

Does your bill of sale show that your traded in a vehicle?

[looneyboomer]

The bill of sale does not show a trade-in.

 

The only thing I have is the Odometer Disclosure Statement of my old car.

That shows the transfer to them and is signed by them, dated and shows mileage.

When I made the deal with them, I was under a bit of duress and didn't look

over everything as carefully as I should have.

And of course, I was trusting them when they said they would take care of everything on the lease (I know, I'm stupid)

 

But after going over the paperwork that I have, I noticed on the back of one

of the papers (Buyers Order) I signed was a statement that "If Purchasers estimated pay off is verified to be

more then estimated, Purchaser shall pay said difference."

However, on the front of this form it shows "n/a" in the estimated trade payoff section.

 

I think I really got done in by this dealer.

 

When I talked to the leasing company today and they told me I was responsible for the amount owed, I asked for proof that I owed it.

They said the invoice we sent is your proof.

 

Thanks for any help.

[MarvBear]

When you trade in a vehicle, that vehicle is disclosed on your bill of sale and the retail installment contract, are you telling me that in both cases, there are no descriptors that specificially identify a trade-in vehicle on either document?

[looneyboomer]

Yes, that's true. No reference to a trade in. Only the Odometer Disclosure Statement. That is all

I have to show a transfer took place.

 

Thanks for your interest and help.

[breeze]

check the title?

[VPofCredit]

something doesnt sound right here...

 

Please list all the documents you have ? You repeatly state that all you have is a Odometer disclosure statement. Later you state that as you are going thru '' papers''

 

list each document you have

 

1)

2)

3)

etc..

 

You must have a bill of sale, and several pages of documents you signed.

 

Were trying to help you here. Give us all the facts before we can give you accurate advice.

Edited October 16, 2008 by VPofCredit

[MarvBear]

Then you didn't trade in a vehicle obviously. It would appear you just signed an odometer statement to terminate the lease which is required by the leasing company to calculate mileage charges if any. Then somebody came up with a dollar value to send to your prior leasing company to pay your prior lease balance. Someone had to come up with that number, I'd doubt it was plucked out of thin air, any idea where that number came from since they paid off the majority of your prior lease commitment.

[looneyboomer]

Sorry if I sound confusing

The only paper I have that "shows" they took ownership of my old car

is the Odometer Disclosure. They (dealer) signed that as well as I.

 

All other papers involved, bill of sale etc, do not reference any trade in whatsoever

 

The dealer told me they had contacted the lease company, and obtained the payoff

and then based our deal on that.

 

But I found out they called several weeks after the fact and obtained the actual payoff

and decided to pay only the amount that would represent the remaining lease payments, (from original lease) and did not pay the

2 extended payments + fees. When the lease company extended these payments, the agreement is

these payments are tacked on the end of the lease. i.e.: My lease would end in May instead of March.(2 more payments).

 

This dealer said they would "pay off" my lease and they didn't.

 

 

I hope this helps to understand. I just don't know what I can do at this point.

 

I sent a dispute letter to the leasing company and they told me they investigated this

and have determined the dealer is not going to pay, therefore I am the responsible party

they are looking to for payment.

 

Thanks for your time and help.

[MarvBear]

The dealer did NOT take ownership of your prior leased vehicle. It appears they merely agreed to pay a certain amount towards your previously leased vehicle as part of the new transaction.

 

That kinda takes 3 parties agreement, You, the dealer, and the old lessor.

[looneyboomer]

They "said" we will pay off the remaining lease. I signed the odometer statement.

And, they told me on the day of the transaction that they had obtained what was owed from leasing co.

and padded the new loan with the negative amount. I'm very stressed by this and only want to know

my options, if any.

 

I received an end of lease paper from the leasing company, about a month after transaction date.

The end of lease paper did not show I owed anything. There was no additional mileage due and

no damage, etc. Just a reaffirmtion of the odometer reading which was preprinted on their form and

was correct.

I just think something took place between the dealer and leasing co somewhere after the fact

and they decided not to pay in full as they had agreed to, granted it was verbal. But there

is some paper trail to this.

My main question is can they get away with this?

I'm thinking of sending a letter to the CEO and ask for an investigation.

But I doubt that would help at this point.

 

In the meantime the leasing co is sending this to collections. Even though

I disputed in writing and asked for validation which they have not provided.

 

Thank you again for any help or light you can shed.

[MarvBear]

That kinda takes 3 parties agreement, You, the dealer, and the old lessor.

 

Whatever this additional amount was that was necessary in order to satisfy the payment obligations under your previous lease, did you personally take no steps to verify that the actual dollar amount being added was accurate?

[maritzet7181]

On 10/16/2008 at 10:18 AM, MarvBear said:

The dealer did NOT take ownership of your prior leased vehicle. It appears they merely agreed to pay a certain amount towards your previously leased vehicle as part of the new transaction.

 

That kinda takes 3 parties agreement, You, the dealer, and the old lessor.

[maritzet7181]

On 10/16/2008 at 11:10 AM, looneyboomer said:

They "said" we will pay off the remaining lease. I signed the odometer statement.

And, they told me on the day of the transaction that they had obtained what was owed from leasing co.

and padded the new loan with the negative amount. I'm very stressed by this and only want to know

my options, if any.

 

I received an end of lease paper from the leasing company, about a month after transaction date.

The end of lease paper did not show I owed anything. There was no additional mileage due and

no damage, etc. Just a reaffirmtion of the odometer reading which was preprinted on their form and

was correct.

I just think something took place between the dealer and leasing co somewhere after the fact

and they decided not to pay in full as they had agreed to, granted it was verbal. But there

is some paper trail to this.

My main question is can they get away with this?

I'm thinking of sending a letter to the CEO and ask for an investigation.

But I doubt that would help at this point.

 

In the meantime the leasing co is sending this to collections. Even though

I disputed in writing and asked for validation which they have not provided.

 

Thank you again for any help or light you can shed.

HelloI went through the same situation, can I ask the outcome? 

[MarvBear]

Quote

They "said" we will pay off the remaining lease

A lease for an automobile is a long-term rental agreement.  What does the above statement I quoted mean?