Imagine how much the captives and dealers are losing because they’re not getting a number of lease returns they usually get.
Just because it’s not working in your favor doesn’t mean the banks, or anyone for that matter, are doing anything wrong.
It’s their car. You’re renting it. They can do whatever they want.
Yeah…but we still dont like it! LoL.
In seriousness, if these leasing companies were not doing what they could to maximize their profits in a reasonable and legal manner, it would almost be considered malfeasance.
Yesterday, I secured a 6-month lease extension agreement from TFS for my 2019 Tacoma, but haven’t signed it because of the open ended wording below. I take this to mean return to Toyota or else.
Early Termination. You may have to pay a substantial charge if you end this Lease early. The charge may be up to several thousand dollars. The actual charge will depend on when the Lease is terminated. The earlier you end the Lease, the greater this charge is likely to be.
That verbiage sounds like just turning the lease in and walking away. Not sure as it doesn’t say anything about buying the lease yourself or trying to sell to a 3rd party. Is there another clause about buyouts?
While I do not have access to my TFS lease agreement at the moment, I’m pretty sure the exact same clause is in your initial lease agreement and is boiler plate language.
I extended mine a few weeks ago - I don’t see any fees or anything in my TFS account - the lease purchase option is still there and has actually gone down a few hundred dollars since I made an additional payment.
But you signed the original lease with that verbiage
You’re correct lol but remember just a few months ago some dealers were telling people they can’t accept lease returns and adding to their distress lol. Just funny how the tables have turned. Anyhow I do get it that people are becoming too entitled…
Correct, this verbiage is also in the original lease. There have been many sold to CarMax so it’s still worth investigating.
I would love a lawyer to explain this process to me. Looking at my recent lease paperwork, I don’t see anything clear about third party buy outs. Is the default that third party buy outs have always been done at the lessers discretion but they reserved the right to withhold that option.
People signed leases with Toyota three years ago when they were allowing third party buy outs and now they may not be. So either this is not clearly set out in the lease agreement or Toyota was not enforcing it’s contractual rights.
Yeah looks like that is standard lease contract language. Even my Mercedes lease I signed a week ago has that exact paragraph.
202020202020202020
sub for TFS shutting down our equity recapture.
so, my cousins lexus lease is due back on the 21st. Vroom has not gotten back to her, do we try to extend for a month and see if lexus allows the 3rd party, or just chalk it up to bad timing? I assume Lexus financial is the same as Toyota financial. This sucks because she was going to give me a small finders fee, and she doesn’t have the 28k to buy it out herself
All of the contracts that I have seen basically say “you may not sell the vehicle or transfer the vehicle unless we agree to it.”
Only 7 days. I had one call from Shift with Toyota on the line. The Shift caller explained that sometimes the deal may take up to 10 days and Toyota said there is a grace period so they worked it out on the phone.
Edit to add: Shift had to conference call me bc Toyota wouldn’t give them the info without my verbal authorization. I just had to confirm some basic info and answered yes to all the questions, then the two of them talked it out.
That’s makes sense. That language is broad enough to cover selling the lease end purchase option.
If this goes on long enough I wonder if CarMax doesn’t decide to implement a work around for states where taxes wouldn’t be an issue - in VA and MD there is no tax due on lease buy out and in OR, NH and DE there are no car sales taxes.
I imagine carmax guarantees you a price and then original lessee exercise lease purchase option. CarMax serves as bank giving you a loan for purchase. Carmax then holds your car until they get Title. Once they receive title, you can sell them the car at agreed to price.
Okay so let me clear this up. If you sign a contract up front it protects you and the financial institution by setting the ground rules.
Here is what I’m hearing. I literally have Toyota Financial Services on the phone saying yes Carmax, Carvana, Vroom or whoever can buy this car.
Vroom is telling me Toyota Financial’s Lease agreement is keeping them from buying ANY and ALL Toyota leases. Meanwhile TFS is just like get them to reach out to us they can do it today or whenever. Two totally different answers.
I paid into this specific car knowing it was a good investment either way. Not salty about that. Just really pissed off I’m getting no transparency between the two. They are pointing fingers at each other.
Just taking it to carmax or my local stealership. Cannot recommend Vroom to anyone. They changed their offer multiple times, took money off, sent a bad packing label and then another. Promised they would keep the offer open and closed it.
The last gal Kaylah at Vroom was very nice and got me some real answers but even she thought this was weird.
Honestly, take a few hundred less and walk away with your time. If I can figure out how to share my info on here to show how terrible the process was I will. I’ve sold 3 cars to Carmax (in the past not all TFS) and had a great and fair experience.
I’m not upset about the money or time. I just want transparency and someone is not telling the truth. Absolutely 100% I feel like Vroom didn’t stand by their standing offer and wasted my time.
TFS may be changing that policy and closed the loop. But there were problems on the Vroom side even without TFS. Terrible experience. 100% would tell you Vroom is not worth your time.
Sounds like the issue is entirely with Vroom. Maybe they are having trouble profitably unloading all that inventory they overpaid for, and now they are trying to weasel out of honoring offers in process.
I can officially debunk the claim that TFS doesn’t allow 3rd party buyouts right now. Just sold my Tacoma to Carmax for $8100, check in hand. Not quite the $11k that Vroom offered but I’m not sure they ever had any intention of paying that much. Entire Carmax process took about 2 hours start to finish, no issues at all.