A family member of mine recently passed away. In May of 2033 he leased a 2023 Alfa Romero Guila Lusse AWD and now his family does not know what to do. I quickly looked at the lease contract and there were no clauses handling deceased or hardship so I would assume that the payments fall on his wife despite it only being in his name.
There are ~22 payments left and the family is wondering what the best course of action is, they got some advice that didn’t sound right to me which was to stop making the payments and let the car be repossessed. I don’t think Ally Bank is just going to forget the debt.
Does anyone have a recommendation? All I can think of is calling Ally and asking for an early termination quote but given how early it is in the lease term I’d expect the fees/payments just to give it back would be super high, there’s a lot on their plate right now so I’m trying to help offload this problem but am no expert.
TIA
If helpful;
State: IL
County: Lake (not Chicago)
Adjusted Cap Cost: $55,890
RV: $23,789
Depreciation: $32,109
Rent Charge: $276
Total of Base Scheduled Payments: $32,385
End of Lease Purchase Option: $23,780
The executor of the estate or next of kin can call Ally. Usually they will terminate the lease on goodwill/compassionate grounds, with a death certificate. If a family member wants the car, they may even transfer it.
I’d call Ally first and talk to them.
It’s a rental and they would take it back if the only person on the lease is dead. Whomever is handling the estate does that. I assume his wife would be the executor unless we are talking about a lot of money in the bank. There is a slight chance that Ally would put a lien on his estate but that is a different issue.
If there is a cosigner, then well the cosigner will now be responsible for the car.
(Edit just reread that he is the only signer)
Is there any reason to contact the dealer first before the leasing company? I’d assume the dealer would want to resell the car as it has very low under 4K miles.
