Overpaid for old lease payment once traded in to the dealership

Hey team,

I’m in CA, Los Angeles, and I recently traded in my old lease for a new car lease last November.

The dealership covered my last three payments of the car I traded in, but the following month as I was in my new car I was still charged for the lease payment of the car I had traded in a few weeks prior.

Will I be getting that money back since I no longer drove that car once I was charged for it? Who would send me that one payment i overpaid for?

Call the dealer. If you traded it in within 7 days of the payment due date you might be responsible. But then if you did, the price they paid to buyout the car might be less hence they might owe you some money.

I’m not saying this isn’t how it was presented to you, but most likely this isn’t literally true… but rather the amount in question was part of (or the entire) dealer discount.

Lease payments are generally made in advance (that’s why the first payment is collected at signing).

What was the due date of your regularly-scheduled payment, and when was the payoff processed by the lessor?

If indeed there were overpayments then the bank owes you a refund.

The car was leased on 11/26 and then I was charged the old payment of my turned in lease on 12/12. So it was just over two weeks later from turning in the car

Entirely possible the dealer sent your payoff in via snail mail after the office took a week to process it then the captive bank took a few days to process the payment and while that was happening, your payment was still on auto pay.

Generally, you will receive a check back from the bank if there is an overpayment for your account. So if your payoff was $39,000 and they received a check for $40,000, you would get $1000 back. Similarly, if you have $3000 of payment remaining and the dealer sent a check for $3000 and you paid $1000, you would get that $1000 back minus any turn-in fees (such as damage or disposition).

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Would the check come directly from the bank or the dealership?

The bank since they would be the one that received extra $$

It would come back to you from the bank.

For next time, Once you sell-you should always CANCEL that AUTOPAY setup :+1:

Good advice but would result in OP getting a credit ding if they let it run long enough.

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I would rather over-pay than have the dealership take their sweet time paying off the car and dinging my credit

Any time I have over paid, I’ve gotten refund from bank. No need to worry as long as your have docs from dealer laying the payout info out

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Never had an issue, they usually have a grace period-can always do manual payment as well if it takes too long :+1:

True, I’ve done the same when it was sold too close to payment date… but always cancelled my AutoPay right after for peace of mind :ok_hand: