That is one issue I remember reading about in regards to early lease return. Some users kept insisting that if you paid off the entire balance, you are free and clear, but that’s not what the contract says.
Dam that is steep. Guess you cannt do much now. On the last sentence of your contract that you posted it stated “thousand of dollar fee if you end the lease early”
Wait, if you turn in the lease 4 days early there are fees? I can’t believe GM is going to force you to pay the difference because it is early. You are literally doing them a favor… the car at auction will not bring more in 14 months than it will now.
Good catch. The disclaimer is vague though.
Yes I also thought they would win on that. I went to the dealer a month early to see about waiving the disposition fee. We called gm financial and no one ever mentioned any of this.
If you put that many miles a year, it makes zero sense to lease cars. I would finance if I were you.
Also, there is nothing you can do about that bill at this point.
@Supakimchee did you see how much he paid for the entire lease? OP would have spend a lot more if financing.
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That would be true if he actually kept the car for 24 months, instead of turning it in 9 months later - not to mention the bill he’s about to get from GM. That one pay was great, but someone who’s going to go over 10k over what’s allowed is looking at thousands in overages, this is with a second lease!
The point is, if I was driving that many miles, I’d just get a base civic and just drive it until it dies. Seems like a lot of trouble leasing two cars every year - turning cars in early, dealing with fines and all the headaches.
This is common place , galves value can be used to check auction price. This depends on how you used rebated were they used to adjust selling price of adjust lease payments
Audition value of 10.5k to 11k currently , gm estimated it to be 16100 for you but that is not true market reality. Not sure if this analysis is true …m
I’m purplexed by this one. My last gm return was 6 months early, in which I rolled the 6 payments into my new lease. In essence I did the same thing you did…paid my existing balance and turned it in early. They ate their loss when it was sold at auction. Granted, I did lease another GM vehicle at the time, but that shouldn’t make a difference, unless it was a courtesy to keep me happy and not write them off in the future.
They bought the car from the leasing bank. Its like you traded it in.
Oh wow. With one-pay, I would’ve thought like the OP. It looked like OP did GM a favor. Lesson learned for me.
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Incorrect. It went to auction, was bought by a dealer out of state, and they started out selling it for less than my residual. GMF lost money and I didn’t pay a dime of it.
Because dealer paid remaining payments and gm agreed to pay the loss when it went to suction.
Incorrect again. I rolled remaining payments into new lease. Nobody paid them on my behalf. I can loosely agree with your assessment they “agreed” to eat the loss. They had no other choice but to. They agreed to a final residual value once I paid what I contractually owed. If I don’t agree with that final value, one of my contractual options is to return the car to them. Once it’s in their possession, they can do what they want with it as it’s their car. If that includes selling at a loss, that’s their vehicle and their prerogative.
My situation is similar to the OP, yet different at the same time as I leased another gm vehicle. I suspect that played a part in it, yet if the OP paid his one pay lease and his disposition fee, he theoretically should have met his end of the bargain. If he would’ve defaulted, then I can see how they could come after him, however, that’s not the issue.
This also hasn’t been the first time I’ve done this with GMF or the legacy GMAC. I’ve never had a dealer buy a GM car before lease end, have always had them sent to auction, have never had anyone pick up any payments that weren’t rolled into a new lease (outside a captive pull-ahead offer) and have never been billed anything for a loss at auction. GMs don’t hold their value, and id bet 60-80% lose money at auction.
As explained to me by a dealer - the contract is
-You lease on 1/1/2018 for 24 months
- Finance company agrees to residual at 60% on 12/31/2020
-Any termination in between is handled via auctions / dealers post all payments and early termination is paid
-Dealer has the option to buy from finance company at residual value set/ by negotiating - Finance companies negotiate all the time with dealer and sell at less than RV but here they have an opportunity to make the difference by auctioning so they will not negotiate the RV and dealer did not prefer to buy at RV as auction prices are lower
- You can get higher amounts as well if it sells for more at auction similar to positive equity
I’m not going to argue about what happened to my car, as I watched it go down, and out of curiosity, tracked it after I was out of it… The dealer I turned the car in at declined purchasing it. They do it when they ground the car. Yes, they can buy the car at a better price than I can, this is true. They are offered a lowball price they must take when grounding the car. If they decline, it’s offered to all gm dealers for 7 days at residual. If they decline to purchase in that 7 days, it goes to auction.
Although I don’t know what it was purchased for at auction, I know what my residual was. I also know the dealer that bought it out of state (sold at auction via carfax), started selling it 1500 less than my residual. They surely bought that car for a minimum 2k under that amount. I did not see a bill for the loss.
You rolled 6 payments into the new lease.
Hi Stark,
I had a Encore and I turned it in early as well due mileage. Before bringing it to the dealer, I did do inspection and called GM. They said I would only have to pay for the depos fee and any excess wear and tear…I think the auction letter goes out by default. Cause when I got that letter, I called GM again asking if I would have to pay any differences when sold to auction. They said no.
After that letter, I did get the final billing statement. I was waived the excess wear and tear fees (inspector will mark every single little ding on car) and only paid the depo fee.
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