Auto Lease Contract

[arelliott]

What is the name of your state?What is the name of your state? Indiana

My husband and I recently signed a contract for a 63 month lease on a motor vehicle. Our credit application was accepted without any problems. We both went in and signed the lease at different times. We then recieved confirmation from the lease company that are application and lease were accepted. 2 months later we recieve a phone call from the car dealership that a mistake was made on the lease agreement for a substantial monthly amount difference and length of lease. They are saying that we must come in a sign a new lease with a more expensive payment and shorter duration or we have to give the vehicle back and they cannot guarentee that we can get our old vehicle back. Can they change the terms of a lease after it has been signed??

[shortbus]

No, they can't. Ignore them. If they persist, tell them you plan to call your state consumer protection bureau and ask if their request is legitimate. That will change their tune.

[cjbrown929]

Originally Posted by arelliott

What is the name of your state?What is the name of your state? Indiana

My husband and I recently signed a contract for a 63 month lease on a motor vehicle. Our credit application was accepted without any problems. We both went in and signed the lease at different times. We then recieved confirmation from the lease company that are application and lease were accepted. 2 months later we recieve a phone call from the car dealership that a mistake was made on the lease agreement for a substantial monthly amount difference and length of lease. They are saying that we must come in a sign a new lease with a more expensive payment and shorter duration or we have to give the vehicle back and they cannot guarentee that we can get our old vehicle back. Can they change the terms of a lease after it has been signed??

I'd like to first point out that ANY credit application will be "accepted". This is a standard bit of verbiage used in car ads. The BIG issue is whether your application is "approved" by the leasing company or loan agency for the vehicle you contracted for.

Question: Did they explain why you needed to resign?

Now, to your rights. You do not have to resign the lease unless YOU WANT TO. If they made a mistake, that's their problem. You can simply return the vehicle and get back ALL of your money AND your trade in. If they sold, lost, or damaged your trade, they have to make it right.

This is a major mess for any dealer, and, while a hassle for you, you are in the driver's seat so to speak. If they insist that you either resign, or "unwind" the deal, tell 'em you want to "unwind", or cancel the contract.

THAT'S when you'll find out any options OR they might present a MUCH improved offer. The ball is in your court; it's important to play it right.

As I have said in other posts, your leverage is the fact that the dealer (especially in a lease deal) ABSOLUTELY does NOT want to cancel this deal. They would be forced to take back the car and sell it as used and add probably $1,000 to its cost. Bummer! Who's going to pay $1,000 more for a USED car?