Dealer trying to rescind an automobile lease

[NegPerSe]

What is the name of your state (only U.S. law)? California

A friend of mine recently leased a new jaguar. He signed the lease on the October 17. Last week (around Nov.4) he received a letter from the dealer that they are rescinding the lease BECAUSE my friend did not qualify for financing. This letter was convenietly back dated October 27, BUT the post date mark on the envelope was October 30 (which to me means they never sent the notification or rescission until Oct 30). The dealer is now threatening to repo the car.

Here are my questions:

(1) Did the dealer rescind the lease on time if they back dated the letter to Oct 27 (which is within the 10 day) BUT did not send the letter out until Oct 30 (outside the 10 day period)?

(2) Can the dealer rescind the lease outside the 10 day period due to my
friend "not qualifying for financing"

(3) What law should we look into regarding this topic?


Any helpful discussion is appreciated.What is the name of your state (only U.S. law)?

 

[justalayman]

did your friend not qualify for the financing that was part of the contract? If so, your friend can either find financing on his own, pay with cash, or return the car.

Your friend is not going to be able to keep the car and not pay for it any way you look at it.

 

[NegPerSe]

did your friend not qualify for the financing that was part of the contract? If so, your friend can either find financing on his own, pay with cash, or return the car.

Your friend is not going to be able to keep the car and not pay for it any way you look at it.

Thank you for the reply. He can and is willing to pay for the agreed upon monthly payments. But the dealer said he did not qualify therefore they want the car back.my friend probably "did not qualify" bacause he does not have a history of making payments to anything as he never bought anything with payments before. He has a job so he can pay for the car payments. He wants to keep the car and pay the monthly payments.

 

[justalayman]

I didn't ask if he could afford the payments. I said if the financing was part of the contract and he did not qualify for the specified financing, he either:

needs to pay the lease in full

find his own financing

return the car.


If he is not qualified for the financing, the dealer cannot magically make him qualified and if the financing was part of the deal, then there is no deal and he has one of the 3 options noted above.

 

[NegPerSe]

I didn't ask if he could afford the payments. I said if the financing was part of the contract and he did not qualify for the specified financing, he either:

needs to pay the lease in full

find his own financing

return the car.


If he is not qualified for the financing, the dealer cannot magically make him qualified and if the financing was part of the deal, then there is no deal and he has one of the 3 options noted above.

Sorry to keep asking questions, but we are a bit confused. Does it matter that the dealer notified us outside the 10 day rescission period?

 

[Some Random Guy]

Read the lease agreement. Based on the dealer's actions, I am betting that it contains a clause that the contract is subject to financing approval.

The 10 day period is for the person leasing the car to back out. But if the financing is not obtained, and the financing clause of the contract does not specify a date, then any date is fine.

 

[NegPerSe]

Read the lease agreement. Based on the dealer's actions, I am betting that it contains a clause that the contract is subject to financing approval.

The 10 day period is for the person leasing the car to back out. But if the financing is not obtained, and the financing clause of the contract does not specify a date, then any date is fine.

Thanks for the reply. My friend and I read the lease agreement (the long yellow paper) each two times, and there is no clause stating that the contract is subject to financing approval.

The "recission letter" that was sent stated that "in accordance with the terms of the agreement, it provides that we notify you of our recission of the contract within ten (10) days from the contract date, if we have been unsuccessful in assigning the contract with a financial institution. We hereby excercise our right to rescind the contract."

Again this was not sent by the dealer until after the 10 day period.

What do you all think?

 

[justalayman]

NegPerSe;2411075]Thanks for the reply. My friend and I read the lease agreement (the long yellow paper) each two times, and there is no clause stating that the contract is subject to financing approval.

that's what I asked long ago that you refused to answer.

The "recission letter" that was sent stated that "in accordance with the terms of the agreement, it provides that we notify you of our recission of the contract within ten (10) days from the contract date, if we have been unsuccessful in assigning the contract with a financial institution. We hereby excercise our right to rescind the contract."

the letter is meaningless to a person that has not read the contract.

Again this was not sent by the dealer until after the 10 day period.

then I would guess that they could not force the rescission of the contract based on that.

What do you all think?

that you friend still has those 3 options unless your contract is that loose so as to not require some sort of financing contingency be met. Unusual if it is.

 

[NegPerSe]

that's what I asked long ago that you refused to answer.

the letter is meaningless to a person that has not read the contract.

then I would guess that they could not force the rescission of the contract based on that.

that you friend still has those 3 options unless your contract is that loose so as to not require some sort of financing contingency be met. Unusual if it is.

Thanks for the discussion on this.