Dealer wants me to sign a new lease contract

stylett9

Well-Known Member
Joined
May 11, 2020
Messages
272
Reaction score
313
Location
Idaho
Vehicle(s)
Jeep
Sorry if this has already been stated by someone else. There are times when the dealer enters into an agreement with you under assumptions they’ve established with the banks. If and when the bank declines a deal, this can put the dealer in a situation to cancel the contract by making you whole, which is give you back your car and money. Even though your credit is good, a simple error where math and numbers don’t add up can be cause for them to have to reverse.

They have every reason to make it right and discount a little more with you when they can. But in some cases if the mistake or credit presumption is large enough, they have no choice but to cancel.

You can try “lawyering” up like many have suggested, but honestly I’d feel that’s a waste of time. It’d be different if they had to cancel your deal and said “sorry, we can’t give you back your down payment” or “sorry we already resold your jeep to someone else”.





Advertisement

 

Saejin

Well-Known Member
First Name
Gene
Joined
Mar 2, 2018
Messages
738
Reaction score
552
Location
Colorado Springs
Vehicle(s)
JLUR - Firecracker Red
Great thread...still reading through it but wanted to post.

I’ve leased once in my life and quickly realized it was not a good deal for us. It was simply the fact we put too many miles on our cars...on average in a non-pandemic year around 20,000. So leasing doesn’t make sense for us. When I turned the lease back in I had to pay for excess mileage.

Also, lots of Jeep owners like to upgrade, change, and or modify their keeps which is also not a good option, however I have seen some owners here with leases doing upgrades.

I do like the example of the cost comparison between a purchase of $45,000 then keeping the vehicle for 9 years versus leasing three vehicles over 9 years. However what wasn’t taken into consideration was the probability the cost of leasing the vehicle would probably increase every three years either by just inflation or based on what vehicle you chose. Also the member mentioned profiting each year when turning the lease in. That’s not always the case and depends on the vehicle.

Pros and cons for both and each persons goals are different. I may lease again one day, but right now I have three vehicles, all purchased...Years 2018, 2019, and 2021. Two are paid off and one is still financed. The paid off ones will eventually go to the kids, one already has, and the 2021 will be a long term vehicle for the wife and I.

And someone else mentioned investing on here. So yes vehicles are depreciating assets and you should never in most cases pay cash upfront for a vehicle. Your money can be put to work in the market or whatever other investment products you have and make more money for you. However if you have an overall investment strategy then it can make sense to pay off auto loans in 2-3 years which is what I’ve done.

Again great thread and it has peaked my interest in leasing again.
 

ctJLnewbie

Active Member
First Name
C
Joined
Apr 18, 2019
Messages
32
Reaction score
21
Location
Connecticut
Vehicle(s)
'02 Audi TT '10 Audi S5 '12 BMW X5d '17 Ibis RipleyLS '18 Wrangler JL
True...but with my lease i'll be banking AT LEAST $5k at the end of each 36 month term when I sell it to a dealer and pocket the extra. Then that $5k can earn interest for me over the years it sits, or I can invest it in my house.

Once again - you don't "build wealth" by buying cars, that's just crazy talk.
[/QUOTE]

I'm an infrequent leaser, so I'd love to know more about how you sell your leased vehicles back to the dealer and pocket $5k. We leased our Wrangler because it was our first Jeep and we weren't sure how we'd like it (we love it). How do you pocket $5k when you turn yours in?
 

DWS44

Well-Known Member
First Name
Dave
Joined
Dec 2, 2018
Messages
224
Reaction score
308
Location
Rock Hill, SC (Charlotte, NC Area)
Vehicle(s)
2018 JLR (Ocean Blue) 2017 Corvette Grand Sport CE
Occupation
CAD Manager (Civil/Airport Design)
I'm an infrequent leaser, so I'd love to know more about how you sell your leased vehicles back to the dealer and pocket $5k. We leased our Wrangler because it was our first Jeep and we weren't sure how we'd like it (we love it). How do you pocket $5k when you turn yours in?
One way you can do it is to take it to a place like CarMax that buys used vehicles. I did that once when I leased a Tacoma several years back. It was a second vehicle and had no immediate plans to either purchase or replace it at end of lease. Got to the end of the lease and realized how much more it was worth at the time vs. the lease residual. Took it to CarMax and got a strong appraisal...signed some paperwork, they took care of the lease buyout, and I left with a nice check for the difference. Couldn't have been any simpler.
 

runningshoes

Well-Known Member
First Name
Eli
Joined
Aug 4, 2020
Messages
106
Reaction score
129
Location
Chicagoland
Vehicle(s)
2019 JLUR
Sorry if this has already been stated by someone else. There are times when the dealer enters into an agreement with you under assumptions they’ve established with the banks. If and when the bank declines a deal, this can put the dealer in a situation to cancel the contract by making you whole, which is give you back your car and money. Even though your credit is good, a simple error where math and numbers don’t add up can be cause for them to have to reverse.

They have every reason to make it right and discount a little more with you when they can. But in some cases if the mistake or credit presumption is large enough, they have no choice but to cancel.

You can try “lawyering” up like many have suggested, but honestly I’d feel that’s a waste of time. It’d be different if they had to cancel your deal and said “sorry, we can’t give you back your down payment” or “sorry we already resold your jeep to someone else”.
I'm not sure where you got this but the credit check obviously takes place prior to closing the deal so there is no way the dealership can make a sale w/o checking credit worthiness. If they make a mistake and see a 680 but write down 780 that's on the dealer. Same holds true for the financing arm (bank or whoever that is) - if the dealer over rides the existing and known parameters given to them, that's on them, not the consumer. If you have an example of lease or sale contracts that show a dealer has the option of reversing a sale due to this type of mistake, especially in CA I'd love to see it so I know what to look for next time I need a vehicle.
 

Saejin

Well-Known Member
First Name
Gene
Joined
Mar 2, 2018
Messages
738
Reaction score
552
Location
Colorado Springs
Vehicle(s)
JLUR - Firecracker Red
C’mon we’re talking loan officers, banks, and loans here so anything can happen.

Dealers will book deals at risk in order to meet quota at the end of month/quarter, etc. What that means is they’ll push a deal through even if all details aren’t clear but they have a good feeling they can. They just want to get the deal on the books so they can meet the number.

Now they will then go back after the fact and verify everything and make the deal happen. I assume in this case they missed something or made a mistake. It’s just funny how a dealer can seemingly cancel a deal days, weeks, and even months after however the buyer can’t ever. What if I went home after a purchase and realized the monthly is too high and doesn’t fit in my budget...nope can’t back out.
I’m sure there is some fine print in the contract somewhere that allows them to do it.

For example my brother bought a truck with the promise of a co-signer since his credit is shit. Co-signer did the credit app but was out of state so couldn’t sign the deal. Dealer said they’d mail it to him and he’d just mail it back. The truck was released to my brother as it was end of month. He signed all the documents. A few weeks later the dealer calls and says the co-signer never signed the paperwork and doesn’t want to. The dealer demanded the truck back, returned the deposit, etc.

And no I wasn’t the co-signer. I know better.
 

runningshoes

Well-Known Member
First Name
Eli
Joined
Aug 4, 2020
Messages
106
Reaction score
129
Location
Chicagoland
Vehicle(s)
2019 JLUR
C’mon we’re talking loan officers, banks, and loans here so anything can happen.
......
For example my brother bought a truck with the promise of a co-signer since his credit is shit. Co-signer did the credit app but was out of state so couldn’t sign the deal. Dealer said they’d mail it to him and he’d just mail it back. The truck was released to my brother as it was end of month. He signed all the documents. A few weeks later the dealer calls and says the co-signer never signed the paperwork and doesn’t want to. The dealer demanded the truck back, returned the deposit, etc.

And no I wasn’t the co-signer. I know better.
Apples and oranges - in this case your brother cut a deal based on an assumption that there would be a co-signer with better credit and didn't make that happen. The dealer knew they were outside the lending parameters w/o the co-signer and said not going to happen. As the OP has disappeared and we don't have the full set of facts, anything could have happened, but based on the limited story that was presented it seems like an unreasonable ask from the dealer.
 

Saejin

Well-Known Member
First Name
Gene
Joined
Mar 2, 2018
Messages
738
Reaction score
552
Location
Colorado Springs
Vehicle(s)
JLUR - Firecracker Red
Apples and oranges - in this case your brother cut a deal based on an assumption that there would be a co-signer with better credit and didn't make that happen. The dealer knew they were outside the lending parameters w/o the co-signer and said not going to happen. As the OP has disappeared and we don't have the full set of facts, anything could have happened, but based on the limited story that was presented it seems like an unreasonable ask from the dealer.
True, but was just saying dealers seem to be able to do anything they want.

Once the OP returned the vehicle and got back the trade-in I’m sure they signed something nullifying the deal. Had they kept the Jeep they could have probably worked something out and/or enforced the contract as signed with some legal help.

Even then I’ve seen some similar stories on here where the dealer has won out with legal or threat of legal action when something goes sideways on their end of the deal after the fact.

Saw a YouTube get shut down hard, lost his channel, and everything after he tried to go after a dealer. Can’t remember all the specifics, but he blew his hellcat engine, dealer replaced it but he had to pay a portion, then his car caught on fire and was totaled. Again not sure of all the details but he posted some things about the dealer and now he doesn’t have a YouTube channel anymore the last time I checked.
 

DaddyEngineer

Well-Known Member
First Name
Scott
Joined
May 8, 2019
Messages
208
Reaction score
178
Location
Tomball Texas
Vehicle(s)
2019 JLU Rubicon
Every lease I’ve ever looked at (and I haven’t looked at the Wrangler’s so maybe they are different with their good residual value) if you consider the lease a loan with a balloon payment at the end (buyback - and is how I look at things as I tend to keep my vehicles a long time, I had my 1986 Pontiac Fiero for 31 years, but only had my 2012 JKUS for 7), it shows a really high interest rate. Of course if you can write off the vehicle, then leasing is the best way and that doesn’t apply.

Scott
 

stylett9

Well-Known Member
Joined
May 11, 2020
Messages
272
Reaction score
313
Location
Idaho
Vehicle(s)
Jeep
I'm not sure where you got this but the credit check obviously takes place prior to closing the deal so there is no way the dealership can make a sale w/o checking credit worthiness. If they make a mistake and see a 680 but write down 780 that's on the dealer. Same holds true for the financing arm (bank or whoever that is) - if the dealer over rides the existing and known parameters given to them, that's on them, not the consumer. If you have an example of lease or sale contracts that show a dealer has the option of reversing a sale due to this type of mistake, especially in CA I'd love to see it so I know what to look for next time I need a vehicle.
It's not uncommon for dealers to authorize loans based on levels of risk, only to have them turned down or away from the bank after the customer has already signed and walked out. I work for a credit union where we do audit loans and in rare cases reject them, and I've also had a dealer fail to deliver my personal deal to a bank, and to make it right they had to discount my deal further to get me to accept higher rate. Had I said no, they would have taken a "new" car back with 150 miles and had to give me my old one back.

My situation is unique from the original poster, I'm just trying to shed light that there are instances where dealers can fail to fulfill the contract. Plus I've heard verbiage when signing paperwork that if the dealer has any hiccup in financing, I do have to come back and try to make it right with them, or return the vehicle.
 

TheRaven

Well-Known Member
First Name
Kevin
Joined
Oct 22, 2020
Messages
354
Reaction score
450
Location
Reading, Pennsylvania
Vehicle(s)
2021 JLU 80th, 2020 Challenger Scat Pack, 2010 Tahoe Z71
I'm an infrequent leaser, so I'd love to know more about how you sell your leased vehicles back to the dealer and pocket $5k. We leased our Wrangler because it was our first Jeep and we weren't sure how we'd like it (we love it). How do you pocket $5k when you turn yours in?
You do it exactly the same way you would with a financed car. Take it to a dealer and trade it in. Even better - Carvana or Vroom. They generally give fantastic trade offers and are experts at buying out leases. It's a super easy process.

Just keep track of the value of your vehicle vs. the lease payoff (which you can get online where you make your monthly payment), and (with the Wrangler, at least) you'll almost definitely find that it's worth quite a bit more than you owe. So don't turn it in at the end, sell it to Carvana, Carmax, Vroom...etc. Pocket the money and go get another one!
 

WhiskeyChick24

Well-Known Member
First Name
Jennifer
Joined
Sep 15, 2020
Messages
79
Reaction score
173
Location
Philadelphia, PA
Vehicle(s)
N/A
I recently traded in my 2018 JL Wrangler (only 18 months into lease) because I fell in love with the 2021 Sarge Green Altitude. I made the trade three weeks ago, put an additional 5K down and got a new payment, which turned out lower than my original payment. Got a call yesterday asking me to come in because they needed me to sign something. Turns out, the payment on the new contract is more than the original. I didn't sign, they gave me my original vehicle back and the paperwork to review at home. I am now sitting in limbo with my original Wrangler, new lease at the dealership and have no idea what to do. HELP!!!!
Sounds like a problem on their end if you ask me. Something they need to take up with the sales person that made the mistake on the paperwork. Customer is “always” right - right? You signed where you needed to on the original paperwork and they gave you the keys. Period! If they messed up, they should eat any loss. Just my opinion of course. And I’m no lawyer. Just a chick sipping whiskey at 2:22AM listening to jazz since I can’t sleep. 😂😉
 

DaltonGang

Well-Known Member
Joined
Sep 29, 2018
Messages
1,275
Reaction score
1,474
Location
Houston, Tx
Vehicle(s)
2018 Wrangler JLU Sport S, Rubicon Suspension, Tires, and Rims. Firecracker Red
So, are some of you guys feeling like another Troll got one over on y'all yet ???

P.T.Barnum: "There's a sucker born every minute".

..
 

SlowPoke21

Well-Known Member
First Name
Brent
Joined
Oct 18, 2020
Messages
169
Reaction score
263
Location
Ohio
Vehicle(s)
2021 JLUR
^^wanting to ask the same thing. OP has been mia.
 

Strommen95

Well-Known Member
Joined
Feb 5, 2019
Messages
919
Reaction score
1,918
Location
New York
Vehicle(s)
2019 Mojito Sport S JLU
I made the trade three weeks ago, put an additional 5K down and got a new payment, which turned out lower than my original payment.
Troll or not, just remember this is why you never go by monthly payment. She put down $5,000 on a lease and thinks she’s paying less 🤦‍♂️ Too many people get nailed by car dealers and walk away thinking they did great because of a “lower monthly payment”. Don’t be that guy.
 

Advertisement




Quake LED
 



Advertisement
Top