Help Needed with Lease

[TheIronMaiden]

Originally Posted by undercoverbrother

South Trail

Scum. I'd leave them a nasty review on google let folks know who they are giving money to.

[Winsor_Pilates]

Originally Posted by TheIronMaiden

Scum. I'd leave them a nasty review on google let folks know who they are giving money to.

I may have missed a post, but what's scummy about this situation?

[blankall]

Originally Posted by undercoverbrother

$434 a month

ends some time in 2027

Just looked again at resale value on 2024s, and it's pretty high. If the buyout on the lease is considerably lower than what used cars are selling for, it could really incentivize someone to take over the lease, as your father has paid a significant amount into the purchase price.

[Bend it like Bourgeois]

Originally Posted by flamesfever

That's not the way to do business. There is a contract and the honorable thing to do is to honor it.

Also, I don't believe there is an increased risk for dealing with an octogenarian.

Probably the best thing would be to discuss the matter with the dealer and try to strike a deal that's best for everyone.

Completely agree with the last part.
I don’t want to let a negative impression sit. Yes, if everyone acted in good faith please do the same. In the end we all answer to the mirror in the morning.
Maybe I personalized ‘don’t ##%%ing get me started’ too much from my experiences but they entered into a contract with dad. If dad can’t fulfill it that’s the other parties problem, not UCBs. Walking away is an option and no one should feel bad for it. I’d not suggest it’s the first option, but they don’t owe anything past trying to do the right thing.

[Derek Sutton]

Getting out of a car lease is fairly simple, and even easier if there’s any equity. Arrange to meet with the finance manager at the dealership where the vehicle was purchased. From him/ her get the details of the lease, basically you’ll want the residual value, and lease obligation, you’ll also need and Actual Cash Value of the vehicle, talk to someone in Sales or the Used Car Manager to get this. With this information you’ll know if you have any equity in this thing. That will determine how to proceed.

I’ve never seen any sort of”mercy” in getting out of a lease but the leasea obligation would be the residual value, pls GST, plus reaming payments. If this amount is higher than the ACV (what the dealership will pay for it) you’re in a good position. If this amount is lower then the ACV you’ll have to pony up a few bucks to get to the “break even” amount.

This option is much less hassle than trying to find someone to take over a lease. If wanting to sell on your own, you’d have to buy out the vehicle (pay all remaining payments, and residual plus GST. Wait several weeks for the title to clear, then re sell it, it’s a bit of a pain to go this way AND you’d need to come up with a bunch of cash to buy everything out. BUT it’s the way you’d get the most value out of the vehicle.

[Derek Sutton]

Originally Posted by Bend it like Bourgeois

There are way smarter people than me, and it will depend on what other assets you might want to protect etc., but I’d at least consider just driving it to the dealer, handing over the keys and waving goodbye.
Practically there is really nothing they can do. Take your dad to court? Ruin his credit? Great. Then what? They made the mess entering into the lease in the first place. They can clean it up.

What? Why? This is just stupid. First the lease agreement is with Hyundai, not the dealer. Second, there is a good chance there is equity in this vehicle, and third, that will not stop any payments from coming out of the bank account.

[D as in David]

Originally Posted by Bend it like Bourgeois

It’s not fata-ing anyone. I say it as someone with spotless credit who takes obligations seriously and owns a business. I pay my bills.
There are risks entering into a contract with an octogenarian. Risks get priced. Who was in a better position to understand that - the lender or the 87 year old. No one made the lender sign up. Somewhere in their math, it allows for some of these deals to go sideways. You can bet they did not feel guilty charging a premium and will use any in every tool at their disposal. No one else should feel bad for doing the same.

It sounds like you only take your obligations seriously until you reach a certain age. Do they lose their seriousness as you age?

[you&me]

Originally Posted by Derek Sutton

...
This option is much less hassle than trying to find someone to take over a lease. If wanting to sell on your own, you’d have to buy out the vehicle (pay all remaining payments, and residual plus GST. Wait several weeks for the title to clear, then re sell it, it’s a bit of a pain to go this way AND you’d need to come up with a bunch of cash to buy everything out. BUT it’s the way you’d get the most value out of the vehicle.

All good advice, except there's no way someone would have to wait "several weeks" for a lien release (title to clear?), and no reason to buy out the lease prior to listing or selling the car.

[blankall]

Originally Posted by Derek Sutton

What? Why? This is just stupid. First the lease agreement is with Hyundai, not the dealer. Second, there is a good chance there is equity in this vehicle, and third, that will not stop any payments from coming out of the bank account.

If there's equity in the vehicle and that specific model is holding value, the dealer may just take the vehicle and works things out with the leasing company. I brought up this option earlier.

You're right though, that's very different than just dropping off the keys and ceasing payment without any kind of deal in place. In that situation the leasing company will repossess the car and you could also be on the hook for the balance on the lease, any costs associated with repossessing the vehicle, costs associated with a court case, interest, etc...If the father has any other kind of assets, that's a bad idea. Especially, as from the sounds of it, the vehicle is likely almost brand new and would likely be easy to move.