Let me clarify my question - has anybody in California dealt with this? Does state law stipulate who gets the overage, or does it depend on what your contract says?
Fwiw, my contract seems to suggest they get to keep the overage, which is infuriating.
There have been plenty of reports of people having the overage sent to them from the lessor in cases where the contract says they get the overage. If your contract says you get it, then call up the bank and ask them when they’ll be sending it.
‘If the money we get from your insurance is more than the Unamortized Capitalized Cost, we will not give you any excess.’
They define the UCC as ‘the base monthly payment times the number of payments not yet due, minus any unearned rent charge figured by the Acturial Method based on the number of monthly periods between early end and scheduled end, plus residual value.’
Actuarial Method and Residual Value are defined in other sections of the lease.
Not sure I understand what UCC is.
What’s happened is they want the full market value of the car rather than the buyout amount plus remaining payments (only three).
As @EC99 has previously stated, there is a lot of boilerplate language in contracts that gets used over and over again, without someone properly checking whether it’s allowed by the law in your state or not.
If you’re sufficiently invested (due to either the amount of money at stake and/or due to the principle), talk to a lawyer about whether this is allowed in your state.
Definitely do let us know. Not that there’s a big risk of total loss in general, but things like this did help me to decide to payoff my wife’s Tiguan even though I still have 8 months left on the lease.