Everything has been resolved, fairly. No more issue.
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Remember, US Bank owns the vehicle. You don’t. You have to comply with the lease agreement and pay what is owed under the lease whether you terminate early and return the vehicle or terminate early and purchase it. If US Bank can sell the vehicle for more than you owe, you’re not entitled to receive the difference. However, in this instance, you should owe nothing. On the other hand, if you owe more than the realized value, then you’re only liable for the difference. Once you turn it in, US Bank is entitled to do whatever they want… it’s their vehicle.
Below is an excerpt from a US Bank Lease Agreement referenced in the following post…
IONIQ5 Lease numbers - Ask the Hackrs - FORUM | LEASEHACKR
What you see below is US Bank’s Early Termination language or the equivalent thereof, found in every lease agreement that I’ve seen, captive or otherwise. Mathematically, your ETL amounts to:
Early Term Fee + Unpaid amounts due/past due + Official&Taxes + Prep fees + Lease Bal. - RV
Makes perfect sense to me. You may want to re-read the early termination criteria very carefully because, IMO, you don’t have a leg to stand on. Questions? Let me know. If you like, I can calculate your most of your early term charges, including lease balance, so you can compare them with those of US Bank. Just PM me. Hope this helps.
- EARLY TERMINATION
LESSEE’S RIGHT TO TERMINATE EARLY. You may terminate to« Lease before the end of the Lease Term. If you do not exercise your purchase option, the charge for such Early Termination Is the Early Termination Liability defined below. You must send us written notice of your early termination by registered mail 30 days before the date of termination.
LESSOR S RIGHT TO TERMINATE EARLY. We may terminate this Lease before the end of the Lease Term if you are in Default. If you do not exercise your purchase option, upon such termination we shall be entitled to the Early Termination Liability defined below.
EARLY TERMINATION LIABILITY . The Early Termination Uablity is calculated as foflows:
1 The Termination Fee; plus
All unpaid amounts that are due or past due under this Lease; plus
Any official fees, taxes and other charges related to early termination; plus
All expenses related to recovering, obtaining, storing, preparing for sale and selling the Vehicle, including reasonable attorneys’ fees to the extent not prohibited by law, plus
The Lease Balance; plus
The Residual Value of the Vehicle; minus
The Realized Value of the Vehicle.
D LEASE BALANCE. The Lease Balance is equal to:
(1 ) The Base Monthly Payment times the number of Monthly Payments not yet due; minus
(2) Unearned Rent Charges included In the Base Monthly Payments not yet due calculated according to the Actuarial Method.
The term "Actuarial Method’ means the method of allocating Base Monthly Payments between, (i) the reduction of the Adjusted Capitalized Cost to the Residual Value over the Lease Term; and (*) Rent Charges. Under this method, a Base Monthly Payment Is applied first to the accumulated Rent Charges and any remainder is subtracted from, or any deficiency is added to the balance of the Adjusted Capitalized Cost.
NOTE: The early term fee is generally the same as the disposal fee. The lease balance is just the sum of the remaining depreciation payments (sum of the unpaid principal). Adding this sum to the residual value (RV) gives the adjusted lease balance.
A trade in isnt an early termination.
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As you well know, in order to trade, either the dealer purchases or, the lessee purchases then trades. In most, if not all cases, it’s best for the lessee to allow the dealer to purchase (i.e., payoff the lease).
FYI-
18. PURCHASE OPTION
A. END OF LEASE TERM. At scheduled Lease termination, you have an option to purchase the Vehicle AS IS as set forth in Section 10 of this Lease.
B. PRIOR TO END OF LEASE TERM. At any time prior to scheduled Lease termination, you have an option to purchase the Vehicle AS IS. The Purchase Option Price will be a sum equal to: (1) the amount set forth in Section 10: plus (2) the Early Termination Liability set forth in Section 22(C). excluding the items set forth in Sections 22(0(1). (0(4). (C)(6) and (0(7).
C. TRUE LEASE. This is a true lease and you will not own or have any equity in the Vehicle or its replacement parts unless you exercise the option to purchase the Vehicle.
Cash is the king. Buy your lease at pay off amount and do with the car what you will. I still think the terms are sketchy, designed to put you in no win situation unless you have the cash to buy it. But you have to read fine line and exercise your right not to sign a lease if it comes with unfavorable terms. I assume part of the reason anyone goes with US Bank is that it offers lower payments and better financing options at inception. They insert fine print to make up for it in case you want to get out of lease early and don’t have a cash to buy off your own lease. I might be wrong, my concussion is based on what I have read above and not on analyzing actual lease contract with US Bank.
Trading in your lease and turning your lease in early are two distinctly different things
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Everything has been resolved, fairly. No more issue.
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Everything has been resolved, fairly. No more issue.
I think you have a much stronger leg to stand on with regards to the third party appraisal request being ignored.
Everything has been resolved, fairly. No more issue.
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Everything has been resolved, fairly. No more issue.
No where in your lease does it say you have any option to sell it to a 3rd party entity/trade it in either. You have an early termination option, which involves returning it to the owner, and you have an early buyout option, which you chose not to execute. Neither of those are selling your interest to a 3rd party. Most lease contracts actually specifically state that you do not have a right to sell your interest at will.
Trade ins/dealer buyouts have always been more of a courtesy offering than a contractual obligation. Thats why banks have had no legal issue changing 3rd party buyout terms at will.
Everything has been resolved, fairly. No more issue.
Everything has been resolved, fairly. No more issue.
Your contract answers this question.
You do not have a contractual right to sell to a 3rd party, period.
It is a courtesy as theyre extending an option beyond the contractually stipulated options. They may be doing it for their benefit, but they have no obligation to do it at all.
Everything has been resolved, fairly. No more issue.
There are law firms that sue over stuff all the time. That doesn’t mean they’re right (nor does it mean they’re wrong).
Until there is actual case law saying otherwise, a law firm suing is irrelevant.
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It absolutely does.
And youre asking for that. That is what a trade in is. Selling to a 3rd party dealer.
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