Dealer wants me to sign a new lease contract

JW12

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It’s a long thread and I haven’t read all of it, so this may have been said. I’m no longer in the car business, but I did at one time work in F&I for a dealer. There is typically a conditional delivery document that is signed, which protects the dealer from mistakes and the risk of financing falling through. There is also an error and omissions doc for minor typographical errors. The signed documentation protects the dealer and not so much the consumer, so it may be hard to win with a lawyer. At this point the dealer should unwind the deal and refund the $5K. Sounds like they have already given the car back.





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TheRaven

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Every lease I’ve ever looked at...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
Actually the vast majority of leases have GREAT interest rates. It's the Wrangler that is the exception here...Wrangler lease APRs are terrible. Of course that's because the RV is so high that there's no need for a low APR. You can lease a Wrangler, with the insane APR, then trade it at the end and still walk away with a pile of cash, having done WAY better than an ultra-low APR lease like a Cherokee...and the best part is you didn't have to drive a Cherokee for three years!!

Look at Cherokee and GC leases, their APRs are like 1-1.5%.


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.
This is why I stress that it's important to KNOW what you are getting into, lease or otherwise. Because for someone who understands leasing, there's no reason you can't put $5000 down. There are savvy leasers who do what's called a "one pay" lease, where they just pay the entire sum of payments at the time of delivery...banks will give you a much lower interest rate for this kind of lease. However you are correct that in most cases people put $5000 down because it makes the $550 payment a $300 payment. It makes them feel like they're getting the vehicle at a lower price when in reality they are probably getting raped by the dealer because if they don't realize THAT error they certainly didn't notice that the dealer padded the MF and saddled them with a third party bank.
 

shekmark

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Actually the vast majority of leases have GREAT interest rates. It's the Wrangler that is the exception here...Wrangler lease APRs are terrible. Of course that's because the RV is so high that there's no need for a low APR. You can lease a Wrangler, with the insane APR, then trade it at the end and still walk away with a pile of cash, having done WAY better than an ultra-low APR lease like a Cherokee...and the best part is you didn't have to drive a Cherokee for three years!!

Look at Cherokee and GC leases, their APRs are like 1-1.5%.




This is why I stress that it's important to KNOW what you are getting into, lease or otherwise. Because for someone who understands leasing, there's no reason you can't put $5000 down. There are savvy leasers who do what's called a "one pay" lease, where they just pay the entire sum of payments at the time of delivery...banks will give you a much lower interest rate for this kind of lease. However you are correct that in most cases people put $5000 down because it makes the $550 payment a $300 payment. It makes them feel like they're getting the vehicle at a lower price when in reality they are probably getting raped by the dealer because if they don't realize THAT error they certainly didn't notice that the dealer padded the MF and saddled them with a third party bank.
Can you start a new thread and teach us more of this. Very interesting. I am in the “ don’t lease” camp, but now you have me wondering. So my GF has a 2018 Civic 36 or 39 month lease. she has super low miles on it and lease is up in summer 2021. I want something different but thought I could only get out early or benefit if we turned it in for a new Honda, which we don’t want. Are you saying Carvana might buy it now, paying off the lease and giving cash based on value being better than the residual?
 

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Can you start a new thread and teach us more of this. Very interesting. I am in the “ don’t lease” camp, but now you have me wondering. So my GF has a 2018 Civic 36 or 39 month lease. she has super low miles on it and lease is up in summer 2021. I want something different but thought I could only get out early or benefit if we turned it in for a new Honda, which we don’t want. Are you saying Carvana might buy it now, paying off the lease and giving cash based on value being better than the residual?
You can always just start a thread with your questions about leasing...i'm not the only guy on this entire forum who understands it. This way you'll get more perspectives.

Carvana will buy your lease at any time, so will any regular car dealer (unless they're idiots I suppose). The real question is how good of a deal did you get on this lease? For this to work the car has to be worth at least as much as you owe on it...for me that's almost never an issue because I always seem to want the cars with great resale value or really high desirability. If you bought the $199/month advertised special lease you may be out of luck because they often fudge the numbers on those deals, inflating the residual to artificially close the gap. However, there are plenty of automakers that create those deals by just dumping a ton of incentives into the deal, and that works out in your favor.

Another problem - did you lease with Honda or with USbank? USbank will not let you out of the lease early for any reason - they inflate the buyout so you can't sell out of the lease. The third party banks are REALLY shady...ALWAYS lease with the captive bank for the brand you are buying, even if you have to pay more.

You can get a free offer from Carvana any time, just go to their site. It takes about 30 seconds and they'll tell you what they will actually give you for the car (not a price you SHOULD get that no dealer will actually match). If that offer is higher than your residual plus remaining base payments (that excludes the interest and tax), then you win. You can accept their offer on the spot and they'll come and get the car, pay off your lease, and hand you a check for the difference. If the offer sucks, just close that tab and you'll never hear from them again. You can do the same with Vroom, and Carmax (but you have to actually GO to Carmax).

One thing working in your favor at this moment is the insanely over-inflated used car market. Dealers are desperate for used inventory and are paying big bucks. So now's the time to try it.
 

ocrejects

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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!!!!
Hate to say it, but you should have never taken the vehicle back. So now that you gave the new vehicle back, you either keep your or pay the higher price. I had a 2018 and bought a 2021 and the 2021 is 4,700 more with the exact stuff. You had a great deal. :)
 

ocrejects

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Can you start a new thread and teach us more of this. Very interesting. I am in the “ don’t lease” camp, but now you have me wondering. So my GF has a 2018 Civic 36 or 39 month lease. she has super low miles on it and lease is up in summer 2021. I want something different but thought I could only get out early or benefit if we turned it in for a new Honda, which we don’t want. Are you saying Carvana might buy it now, paying off the lease and giving cash based on value being better than the residual?
FYI, you can sell you car anytime you want. Get the payoff, you can sell fir what is owed or for more. You do not have to wait until the lease is up. I never take back a lease, I always sell it!
 

G.D.S. 4x4

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If you sell your leased vehicle at the end of term you'll do better than turn in. Think of it as cashing in your equity. Have done this several times and never lost money.
 

LeodaJeep

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if you already signed a lease on the 2021 and you have a copy, I would go see a lawyer.
Also check the "miles" allowed on the lease. They are allowed to get out of it though as they will claim an error and there is fine print that allows this.
 

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Sounds like BS to me.

The dealership where I bought my JL was horrible. I had the numbers on sale and trade worked out on my ordered JL. The sales manager was an ass and tried to strong arm me, too, trying to change it. What should have been an easy transaction took many hours because of his crap.

I was angry and got ready to leave. I do wonder if he would have pulled that act on a man.

Good luck!
They are asses to all of us.
 

aeonixx1001

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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!!!!
The exact same thing happened to my wife and I. We traded her Matrix in on a Tacoma (nice). It was on a Sunday and we signed all the papers and and agreed on all the money changing hands and we were getting a huge trade in for the Matrix?. The called Monday and asked me to come back and rewrite the contract. I told them I have already signed a contract which would is legal and binding. I told them if they want to pursue it, have a lawyer draft me a letter telling me I am wrong and the reason. Never heard another word. You signed it seems binding, I would check with a lawyer, you can pay $25 on the internet and get an answer. They dont have any claim other than they made an error and it unfortunately wasn't in their favor. Too Bad, So Sad.Think they would call you and tell you to come and pick up a check you over payed.
 

ocrejects

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Take the paperwork to an attorney and make them honor the deal
It’s to late for that, he took it back and took possession of his old Vehicle. I’m sure he sign something when they gave his vehicle back along with his down payment
 

TPAJETSKI

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It’s a long thread and I haven’t read all of it, so this may have been said. I’m no longer in the car business, but I did at one time work in F&I for a dealer. There is typically a conditional delivery document that is signed, which protects the dealer from mistakes and the risk of financing falling through. There is also an error and omissions doc for minor typographical errors. The signed documentation protects the dealer and not so much the consumer, so it may be hard to win with a lawyer. At this point the dealer should unwind the deal and refund the $5K. Sounds like they have already given the car back.
Lawyer here for car dealerships. This is the correct answer.
 

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Lawyer here for car dealerships. This is the correct answer.
Agree. The 100's of tough talkers here saying to "call a lawyer" - probably never have. Either find a better deal you like, or walk. A newer vehicle with a lower payment? Dream on. They laughed you right out the door with your old Jeep at the thought of that mistake being binding - is what I just read.
 

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I sued Ford over a lease and was awarded all lease payments back and 5k extra for car traded and attorney fees
 

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