Letter from CCAP

Hi all,

I am a first time lessee (Feb. 2022). I just received a letter from CCAP that I have a hard time understanding, it has any implications for third party buyouts or anything else. I appreciate if someone simplifies this for me since I didn’t find anyone else posting about it here. It states:

“We are writing to inform you that, in the event of an early lease termination, the early termination charge described in your lease agreement (the amount by which the adjusted lease balance exceeds the realized value) will not exceed any remaining lease payments and charges for excessive wear and excess mileage you would have owed had your lease terminated as scheduled at the end of the lease term.”

Thank you

They forgot some boilerplate language in the contract?

We’ve seen some contracts and letters over the years regarding early termination, where the lessee owes the lesser amount of:

  1. Negative equity post termination

  2. Remaining contractual payments.

Therefore any negative equity charge cannot exceed your remaining contractual payments.

the 4xe threads are all about this letter, what I read it as:

  • You flippers out there! We are about to raise the fees to sell early, don’t say you weren’t warned.
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Ugh… not I have to go to that thread and search for that part among others in the deep end of that group…

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It’s at the end, roughly last 100 posts. Its going a bit crazy since a bunch of people got it.

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Found it. Reading responses RN. Thanks fellas.

Not sure, doesn’t seem anyone knows what it means yet. Not sure about the negative equity or remaining payments.

Gotta read this again

Great, thank you for your response. I had to play a scenario with numbers to get it. Not sure if negative equity charge can exceed remaining contractual payments with this market. But good to know for when things change [if they change]