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.”
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]