I leased a Subaru about a week ago and the dealership called me in because they wanted me to resign the contract. Apparently the original contract said n/a for the annual allotted miles. But the contract I have says 12000 a year. I honestly don’t want to continue with this lease. I would rather be done with it. My question is what would happen if I don’t resign the contract? Also I traded in a car and had negative equity of 5500 which I think they added to the lease payments.
What?
You signed a lease a week ago and now you don’t want it?
If it had 5500 in negative eq, it was either added to the lease payments or you paid for it.
Buyers remorse?
Yes I know it was an impulsive decision
I think you’re SOL especially w a trade involved
If there is an issue with the contract stopping the bank from fulfilling the contract, you can return the car and walk away since it was the dealers fault. Going to be complex since you traded in a car underwater as the car is likely gone (or the dealer will say it’s gone) so you would have to come up with $5,500 or lease another car from them.
I honestly would rather pay the 5500 and be done with it. I wish I would have done that in the first place but I didn’t know that was an option
that’s one way to get rid of negative equity…
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why would you roll in the negative equity in the first place if you have the cash? Subaru MF is low but still paying it off over 3 years and also sales tax on it. Likely puts you at 7-9%.
You think they added it to your payments? Where else would it go?
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I asked them if I could cancel the lease and just pay the 5500 and he said they couldn’t do that
I can’t find your original post, oh wait you just signed up! That’s pretty standard around here…
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If they are asking you to re-sign, there is a signficant issue with the contract. Do your due diligence including calling your original financing company to find out the exact payoff and if the dealer has completed the payoff and status of the title.
If you don’t have a copy of the issue with the issue, I would pay dumb with the dealer and ask to see a copy of the contract to confirm the typo. I would also ride by the dealer to see if your old car was put up for sale on their lot.
If they need your signature to get the lease funded by Chase, you have some leverage here.
I just checked the dealer is selling my old car. How can I use this leverage to my advantage? I just leased it a week ago I already put 2000 down and I only put a few miles on it
You’ve literally posted none of the details and want all of the answers
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This happens more than you would think as leases are not accepted by the financing bank for one reason or another after the fact. Chase likely flagged the issue when processing the lease.
There is always language in the lease contract stating that if the contract cannot be assigned to the bank it’s null and void and they take the car back and you walk away. If there truly is an issue, they cannot make you resign it because it’s a two way street.
They can easily take the car back and make it a loaner or demo, so not the end of the world.
Since you put money down, they technically should refund that but since a trade is involved it’s complex. You can give the the remaining $3k, but if they paid off the lease and have the title, you may need to pay DMV fees based on state if you want the car back, which is probably the best decision in the short term.
This was a different scenario but ultimately came down to the bank not accepting the lease and the dealer taking back the car.
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What would happen if I don’t sign and they won’t take the lease back?
Did you read the other post? They have to take the car back. They are on the hook as it’s their $30K+ asset out on the road since the bank outlined in the contract is not fulfilling the financing as planned.
My advice until this get figured out is try to limit the mileage on the car and obviously avoid any wear and tear. Legally, you can walk away but they could make it hard especially due to your trade so I would just be upfront and direct.
I would love to hear the details of this lease/trade-in as your obvious buyers remorse makes me think it was “no bueno”.
If you have the cash, I don’t see why you wouldn’t be able to get more selling your current car privately too.
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I traded in a 2012 Camaro the trade in amount was 16000 and the payoff was 21500. I leased a 2019 impreza with 2000 down and my monthly payments were 450 for 36 months. Should I sign the contract and sell the car to CarMax and just pay the negative equity?
