Below is a comprehensive break-down similar to what you provided and, although you were a bit off on the unearned rent charge credit, it didn’t matter in terms of the final result as your standard early term liability is still $0…
Apparently, PA levies tax on MSD’s as evidenced by the 360 sales tax under the itemization of the gross cap. Is that true? At any rate, you are owed the 4000 sec. deposit which is completely separate from the early termination liability determination as it did not, in any way, factor into their early term determination. As other posters have suggested, I would wait 30 days or so to receive your refund which is more than enough time IMO.
@EC99 – confirmed that they are using 38a (Standard early termination) based on the wording in the letter. Also, reading through the differences, it would benefit me further to go this path versus 38b (voluntary early termination), which is more of a safety net vs negative equity and you more or less pay the remaining payments. Since my wholesale value is greater, it makes more sense to pursue standard option.
I am awaiting one more response for them on the full breakdown, and even if they don’t provide it or still tell me they won’t give MSD back, I’ll likely still return it by the due date and then fight it in the event they don’t send it, based on the outline of the contract.
Exactly! And that’s exactly what they’re supposed to do as it serves the best interests of the OP. 38(b) would be much costlier while 38(a) results in $0 early term liability. This does not happen all the time and often depends on the realized wholesale value.
Now that OP has posted the early lease return letter from a few days ago this makes complete sense. It is clear the $0 in liability is from the realized wholesale value for the vehicle. Before I was not sure if Volvo was using this provision to keep the MSDs and make the number $0.
Thanks! Accountability and transparency mean everything. I certainly agree with you… they owe you a detailed accounting. Merely stating that your early term liability is $0 without any explanation is pure garbage. While true, it does not capture your MSD’s. The beauty is that it can be mathematically proven which I’ve already done. There are multiple methods of determining the standard early term liability. They all arrive at the same answer. I can do them all as I have done so many times in the past.
Actually, both the OP and I posted how the $0 early term liability is determined well before OP posted the letter. See my earlier post as well as OP’s initial post. We give a line-by-line accounting that precisely follows Section 38(a) which, BTW, makes no mention of security deposits and so, it is silent in this regard.
Not sure what you’re getting at, relax. Any advice i’ve been given in this thread has happened within the last 24 hours. I’ve already stated, based on folks here confirming my suspicion (i.e. VCFS is wrong), that I will proceed with returning the vehicle.
I was simply responding back to folks. You can move on with your life.
My point was simple: @aronchi and @delta737h gave you the roadmap for the answer to your questions almost immediately, yet a day later you are still debating issues to “confirm” what you “already” knew.
Lol, what? I’m not sure you and I have the same definition of debating, care to point out an example? Sorry if this timeline dragged on way too long for your liking, but FWIW the bulk of the responses in this thread happened starting this morning in a few hour span only, and immediately after @delta737h confirmed the math midday, I responded indicating my plan to return the vehicle.
From there, I simply responded to other folks who had other thoughts or comments, some of which needed clarification for accuracy. The community benefits from some of the discussion.
Yes, I had suspected that VCFS was wrong, but the point of my post was a sanity check from the community 1) Based on others actual experience (which Aronchi provided), and 2) confirming I understood the math (which delta provided).
Thanks all for the input. Will follow up if things don’t go according to plan.
All numbers remain as before… just added a little more detail. Anyone looking at this with a weak pulse would immediately know that your early term liability is indeed $0 and that your 10 MSD’s never factored into this calculation. Per your lease agreement, you are due an MSD refund which again, is a separate and distinct transaction from the Early termination liability transaction. One has nothing to do with the other. If the two transactions were coupled or merged together, then your early termination liability letter from Volvo would clearly show that you are due the MSD’s amounting to $4000.
Update: VCFS has finally clarified that I will get MSDs back. Wonder if the 4 customer care reps and 2 managers I had talked to previously will actually try to update their internal processes / knowledge moving forward.
Not sure if timelines differ, but if its similar timeline to closing of the account due to pull ahead or dealer buying your vehicle toward another deal, usually 4-6 weeks in my experience.
