Leased a Honda Clarity, but received a Notice to Cancel from dealer

Ask the Hackrs
1

I helped my mom with a Honda Clarity lease a few weeks ago. We just received a certified mail from the dealer, basically it’s saying that they cannot find a financial institution to place the loan, and that they need to cancel the lease and we need to return the vehicle to them.

I know dealers sometimes close a deal and then place the loan at one of the financial institutions they work with. In this case, I believe they can only go through Honda Financial because the Clarity is a special car.

I just googled and it looks like that the dealer can only exercise the cancellation right within 10 days. We’ve had the car for more than 10 days so I don’t think they can even take back the car. I am currently not at home so can’t read the fine details of the contract, but if it does have a 10-day limit and the dealer has the audacity to send a letter demanding the car back, I am going to be very irritated.

Has this happened to anyone? Or knowledgeable about the consumer’s right on this?

Thanks!

2

Have you contacted the dealer to ask them if the bank is requiring any extra paperwork like Proof of address or Proof of income they’re probably missing something if they really wanted the car back you would be probably getting a bunch of calls from the salesman who sold you the car.

3

They had been calling my mom, but she’s out of the country so she just asked me to call them. I called them, and they said nothing’s wrong. Then all of a sudden I got this certified mail, called again, and the person that signed the paper wasn’t available.

I did confirm that the lease agreement gives them 10 days to exercise option to cancel. Again it’s been over 3 weeks. I am sure they are very well aware of of this 10-day period but still sent the letter.

I am going to contact them as well as Honda Finance Corp tomorrow to see what they have to say. I was wondering why I haven’t received the payment coupon.

4

Its possible that they sent the letter around the 10th day mark but was able to find financing in the next following days hence they mentioned that everything is fine.