This may have been covered before but I couldn’t find it. I extended my lease with Infiniti for 3 months and I noticed the payoff/residual value has stayed the same after making the extra lease payments.
Shouldn’t the payoff/RV go down with the extension and added payments?
IFS does not adjust the RV for lease extensions any longer.
It depends on the captive / bank as to whether they reduce the rv / payoff amount when you extend the lease. For Toyota ( TFS ) they do reduce the rv / payoff as I recently found out on my extension.
Thanks. Seems like it should be an illegal practice but I’m probably not able to do much.
A bit off topic, but few years I ago I realized I had to pay DMV registration fees for entire year too when I extended for just 2 months. Something to think about when extending lease.
You agreed to it.
If you didn’t understand one of the most important details of that agreement or made an assumption, that’s on you.
More specifically, the contract you agreed to extend has a solitary dollar value for the lease-end purchase option, correct? It doesn’t say anything about RV percentages or how the payoff changes every month of the contract. There’s just a dollar value there. It remains in place.
Understood. But the extension was never accompanied by any documentation that explained the RV would remain the same. My only point is that I’m making depreciation payments on an asset that they don’t give me credit for which seems shady. But given their practice with excessive lease turn in fees, it seems typical for Infiniti.
You wanted higher monthly payments on your extension?
Not sure what you mean?
Lower RV = higher payments
But the RV is calculated based on the length of the lease correct?
If so, wouldn’t the RV go down with the additional months?
And you just extended it. So theoretically you owe them for all that RV reduction as well.
You basically (like Everyone) is looking for the benefit. You know they can deny a lease extension as well for any reason. Basically they let you extend and did not have to extend it. They don’t have to do anything including reducing the RV or allowing extensions.
Makes sense. Thanks for all the replies.