Can I terminate a car lease?

[KevinNJ789]

To help a friend, we applied together and obtained a four-year car lease in September 2018. The car is used only by my friend with the understanding between the two of us that she would be responsible for the monthly lease payments. My friend ran into financial difficulties and I made a couple payments, but I will not continue paying the lease without investigating other options. I was under the impression that I was the co-lessee, but in fact I am the lessee and my friend the co-lessee. I realize that I am legally responsible for the payments, but I would like some opinions on how to minimize my financial obligations assuming my friend continues to have financial issues. For example, would the dealer would let us trade the lease for a lower lease? If so, what kind of penalties should I expect? Suggestions, advice appreciated!

 

[Zigner]

To help a friend, we applied together and obtained a four-year car lease in September 2018. The car is used only by my friend with the understanding between the two of us that she would be responsible for the monthly lease payments. My friend ran into financial difficulties and I made a couple payments, but I will not continue paying the lease without investigating other options. I was under the impression that I was the co-lessee, but in fact I am the lessee and my friend the co-lessee. I realize that I am legally responsible for the payments, but I would like some opinions on how to minimize my financial obligations assuming my friend continues to have financial issues. For example, would the dealer would let us trade the lease for a lower lease? If so, what kind of penalties should I expect? Suggestions, advice appreciated!

Yes, the two of you are free to negotiate with the dealer, but please realize that you're doing it from a position of no-power. The dealer is under no obligation to do anything to help you. Frankly, they snowed you once and they'll snow you again. You'll walk out of the dealership smiling while they laugh.

 

[PayrollHRGuy]

I also doubt very seriously that the dealer is who is actually leasing the car to you. They have no motivation or likely the power to do anything.

A lease is not much different than purchasing a car. The real difference is that the value of the car is set by contract and you aren't financing that residual value.

 

[adjusterjack]

I was under the impression that I was the co-lessee, but in fact I am the lessee and my friend the co-lessee.

What you call yourself or which name appears first is irrelevant. You are both equally bound by the terms of the contract.

If your friend doesn't pay, you pay or your credit gets trashed among other financial consequences.

There was a reason your friend couldn't get the lease by herself. She should have been just as poor a credit risk to you as she was to the leasing company.

That's what you didn't understand when you co-signed.

 

[PayrollHRGuy]

That's what you didn't understand when you co-signed.

I find it hard to believe @KevinNJ789 didn't understand that when he co-signed. I find that hard to believe in every post we have ever had here about the subject. Did he and others think the dealer wanted a copy of his autograph if he ever became famous?

 

[Taxing Matters]

I find it hard to believe @KevinNJ789 didn't understand that when he co-signed. I find that hard to believe in every post we have ever had here about the subject. Did he and others think the dealer wanted a copy of his autograph if he ever became famous?

Most understand they are taking on some kind of obligation, they just misunderstand what the extent of that obligation is. I've heard many guarantors say, for example, that they believed the creditor had to first go after the other party (the deadbeat), first to try to collect before coming after them. Unfortunately with the various misconceptions about guaranteeing/co-signing loans that people have they then end up shocked when the creditor calls upon them first to pay when the deadbeat doesn't pay.