Dealer wants me to sign a new lease contract

[TheRaven]

I think we can call the thread highjacking complete....

Hey at least there's something to talk about now. It's been six pages of guys saying the same thing and "anyone have an update on this?" until now.

Sponsored

 

[Bswen]

Im starting to get worried about the OP. I mean, did the sales guy hold her hostage? Is she ok?

 

[darylgordon]

Several years back, as the owner of a landscaping company, I purchased a John Deere skid steer. Signed paperwork, paid a big deposit, took possession, a month went by, made the first payment. Then John Deere contacted me and told me that after consideration, they wanted me to sign a personal guarantee on the note. I said no. The whole point of being incorporated is that you are a separate entity from the company you run. Specifically I said "What the hell would I personally want with a skid steer?" They insisted. I told them to return all of my money including fees, sales tax, deposit, fuel, and the first monthly payment I already made, then come take the damn thing back and I would go 3 more miles down the road to buy a Bobcat instead, and then spend all of my free time trashing John Deere and the dealership online indefinitely. A few hours later they called back and said OKAY, keep the deal as it is.

The paperwork they signed is legally binding on BOTH you and the dealership. Tell them to give you the new Jeep back immediately or get a lawyer immediately. My two cents. Good luck.

100%

 

[JSFoster75]

If you lease - you get ZERO value for your money at the end of the deal, you can trade it and make payments indefinitely, but you never have any equity at all.

If you decide to buy out the lease, you may as well have purchased it in the beginning. Not to mention what they charge you for going over on your miles, etc.

 

[aldo98229]

Glad you think that. Since it's not a big deal for you, I'm sure you'd be happy to cover the difference for her... way to go!

Clearly you have trouble reading.

 

[ItsNo4RE]

Clearly you have trouble reading.

Lol.. I read it as it wasn't significant! Lol... still, pay it!

 

[TheRaven]

If you lease - you get ZERO value for your money at the end of the deal, you can trade it and make payments indefinitely, but you never have any equity at all.

Not true. As already discussed, you can sell or trade your leased vehicle at any time and you will walk away with whatever "equity" you had in it.

If you decide to buy out the lease, you may as well have purchased it in the beginning. Not to mention what they charge you for going over on your miles, etc.

Why? If I purchased it from the beginning, my payments would have been at least 2x what the lease payments were, and that extra money would be doing nothing for me. In a lease, I can pay the lower payments, and put the extra money saved into a real investment.

Also, you only get charged for extra mileage if you turn the vehicle in. If you buy out, sell, or trade, there is no charge for mileage.

 

[Quick]

To hijack this thread again - wouldn't it be nice if there were a button on forums to remove off-topic posts from a thread and separate them into their own standalone thread?....

 

[rockadile]

With respect to those referencing a potential clause that allows re-signing contracts due to mistakes, what constitutes a mistake? I can see if there is some factual information that needs to be changed but it would seem illegal to use this post-deal to change the financial terms. If there is the ability to change it due to the numbers, again I ask what is a mistake? Is there a concrete profit margin the dealer can claim that they were under? Is it if they end up negative on the deal? What if they though they'd get more for your trade at auction than they did and now they come back wanting the difference?

 

[darylgordon]

With respect to those referencing a potential clause that allows resigning contracts due to mistakes, what defines a mistake? I can see if there is some factual information that needs to be changed but it would seem illegal to use this post-deal to change the financial terms. If there is the ability to change it due to the numbers, again I ask what is a mistake? Is there a concrete profit margin the dealer can claim that they were under? Is it if they end up negative on the deal? What if they though they'd get more for your trade at auction than they did and now they come back wanting the difference?

I haven’t read this person’s contract, but these clauses generally refer to immaterial errors like a typographical error in inputting a VIN. I’ve never seen a contract that allowed someone to unilaterally withdraw from a written contract because of a material error...like someone at the dealership gave a person too good of a deal.

 

[JSFoster75]

Not true. As already discussed, you can sell or trade your leased vehicle at any time and you will walk away with whatever "equity" you had in it.

I've never seen a lease that benefitted the consumer in any way. And just by doing the math, there's no way you can pay $200/month less and expect to build equity the same as financing a purchase of the same Jeep. The only savings going from lease to lease is that you don't have a huge down payment when you trade... But you still don't own anything, you are basically using a long-term rental which is like renting a home instead of buying it.

 

[TheRaven]

I've never seen a lease that benefitted the consumer in any way. And just by doing the math, there's no way you can pay $200/month less and expect to build equity the same as financing a purchase of the same Jeep. The only savings going from lease to lease is that you don't have a huge down payment when you trade... But you still don't own anything, you are basically using a long-term rental which is like renting a home instead of buying it.

Again, no different than financing. As long as you have a lien on your vehicle, you don't own it.

And a home is an investment, unlike a car which is a depreciating asset...so why would you want to build equity in a car? Instead of paying $600 a month for a car you will likely just trade in after 3-4 years, you can pay $300 a month for same, and put $300 a month extra into your house. Now that's smart.

So if you've never seen a lease that benefitted the customer, you haven't seen many leases.

 

[Bswen]

Come on folks, who cares. It may be good for you, it may not. Lease, buy, nobody cares. Everybody's financial situation is different. Maybe you want a Jeep and need a lower payment, maybe you are going to keep it forever. Maybe you want to marry it. Why argue over your situation vs someone elses. What I want to know is what happened to the OP?? Im really worried...

 

[Comandore3]

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!!!!

Well,
Original 2018 Wrangler was in the lease agreement not with the dealer and dealer have notting to do with your 2018 vehicle , bank own it!
What was probably happen : dealer put you in the new lease agreement and truing to deal with the bank on your 2018. Most likely did not went well on numbers , because dealer should pay for off 2018 to leasing company/bank. So they realize that they loosen $$$ on your 2018 , so in order to cover there looses they called to sign you new lease agreement . Well unfortunately they did not loose notting , because they sold you 2018 and 2021
And for 2018 vehicle you are responsible not a dealer.
Now in order to get rid of one you can put on Lease trader or Swapalease

 

[JSFoster75]

Again, no different than financing. As long as you have a lien on your vehicle, you don't own it.

And a home is an investment, unlike a car which is a depreciating asset...so why would you want to build equity in a car? Instead of paying $600 a month for a car you will likely just trade in after 3-4 years, you can pay $300 a month for same, and put $300 a month extra into your house. Now that's smart.

So if you've never seen a lease that benefitted the customer, you haven't seen many leases.

Wrong, if I purchase a vehicle and finance it and pay it down, when I sell it I can regain all of my equity. In a jeep wrangler that is not hard to do, my wife and I have both had ours just over a year and we already have had offers more than what we owe. You won’t do that in many other vehicles in today’s market.

The problem today is that most people don’t hold onto the vehicle long enough and they don’t care if they have a payment or if they don’t have equity as long as they drive something. They have absolutely no desire to build wealth, or even think about the future. All they care about is today and not looking forward to tomorrow. My goal is to pay mine off and drive the wheels off of it. That way I can go several years without a payment.

Sponsored