Hey Everyone,
Can an Audi dealer or someone who has had a One Pay lease from Audi confirm if they return a pro-rated amount of the total upfront payment in the case of a total loss? I’ve seen conflicting answers and I’m debating on how to structure a deal.
Thank You!
Where have you seen conflicting answers? AFAIK every bank will return a pro-rated amount in the event of a total loss on a one-pay lease. Otherwise no one would even consider one-pay’s due to the risk of losing everything.
NMAC won’t, AFAIK.
With so many changes to what were once industry norms (returning excess insurance proceeds, for example) it definitely pays to make sure.
OP, get it in writing from AFS directly. Don’t even rely on an Audi dealer’s reassurance.
I’m not sure that’s true. In my experience the money stays in your account and NMAC draws down monthly. Thus the money is still yours until its credit toward each month’s charge.
If someone knows definitively though, would be interested in hearing more.
I got a copy of the lease contract and was able to review the disclosures. There is a special carve out that effectively speaks to a pro-ration of the payments being returned in the case of a total loss.
I’m not an attorney and this is not legal advice, just my interpretation.
I wouldn’t take much solace from that in itself. Accounting rules require unearned revenue to be moved to “earned” status over time or as criteria are satisfied.
That doesn’t necessarily mean you’ll get any cash back. Think of gift cards from most stores.
There’s probably an accounting mechanism for unearned revenue to be considered forfeited or the contract terminated, and the revenue becomes “earned”. Cash doesn’t go out unless there’s a contractual obligation.
Post the verbiage or a pic.
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.