My friend had a 4 yr lease for Mercedes 2017 CLA250C4 on 9/06/2017. Returned the car to MB dealership after only 1 yr 4 months. Made only 35% payments of 799.33 ea. Of course over the years they sued her, she was 22 when she did this lease with mom as co-signer.
Being sued for $23,592. + 2,173. fees = est $25,622.00
Here are the details, can anyone explain why Goss Capitalized Cost stated at $36,600. ended up at $52,515.00.
Details:
Agreed value $36,600, but gross CAP COST 52,515.
Cap Reduction 1,200.00
Adjusted Cap Cost 51314.
Residual Value: 18,619.00
Depreciation and amortized amounts: 32694.00
Rent Charge: 5,673.00
Total of base monthly payments: 38,367.00
Collection attorney paper states, Gross proceeds from Vehicle dispostion $18,900. Did MB really sell off her car worth 52K in 2017 for 18,900 after 17 months?
The attorney wants 18K to settle, is this fair?
That car wasnât worth $52k, it sounds like she had a bunch of negative equity rolled into the lease. The car was âworthâ $36600 and it wouldnât surprise me that they only received $19k (after fees/repo/misc costs etc).
Do you have anything else other than this, there should be a statement on a trade-in for sure unless the dealer had 19k in fees that were rolled on-top of the agreed value (vehicle selling price) to get gross cap cost (selling price + Capâd fees & Capâd negative equity).
These are the only possible explanations for this scenario.
Yes, a very old friend indeed! The other replies are helpful since my thought was something wasnât right with this lease. They didnât notice it since first timers of doing a lease.
The car was sold for $36k in the lease contract and probably overpaid.
Auction price reflected the then current overall market and any vehicle specifics such as poor condition, mileage, need to replace any consumables such as tires/brakes, etc.
Is this just a collection letter, or has she been served again? Do you have an attorney involved?
Asking because the statute of limitations starts on the date of first delinquency (most recent date the account went delinquent [30 days late] but was never brought current.)
What is the SOL in Iowa on a car lease obligation?
Yes,she got served. Iowa has a ten year SOL for written contracts. A reset can occur when she made a payment a six months later.
I live in Texas and it has only a 4 year limit for breaching contracts!
Looks like they rolled a bunch of negative equity into the lease and tried to get rid of it by turning car in while having no idea what they were really doingâŚor they kinda knew what doing and just hoped MB âforgotâ about it somehow.
It definitely sounds like she rolled in a ton of negative equity, then tried to walk away from it all. Itâs convenient she neglected to send the contract page that shows what she did. $18k to make this go away sounds far, far too kind.
Well MB has a couple people to go after in this case with co signerâŚone of them has to have some money or holdingsâŚI think MB gets their money hopefully with interest too! Either way credit is getting ruined here on both sides.
