Ford Sold Me My Leased Car - Now They Want it Back

[Aim9000]

My daughter leased a car then decided she wanted a different car. I happened to need a new car at the time, so I took over the lease (not officially), I just made all the payments and drove the car for three years. At lease end I decided to buy the car. The mileage was under the limit and it was in perfect condition. I went into the Ford Dealership, they ran my credit/employment, etc. I signed papers, got a temporary license plate, etc., etc. and walked out the new owner of a Ford Focus.

About two weeks later I was contacted by Ford. They said they shouldn't have sold me the car -- only the person on the lease can buy the car. And now they want it back -- or they want my daughter to be on the loan. But she is trying to buy a house and doesn't want to be financially responsible (for the loan). Am I screwed? Are they screwed? Just wondering what can legally be done. It seems like they made a big mistake, but ... I don't know the law. I'm in Ohio.

 

[adjusterjack]

The "law" is simple.

You have a contract with your name on it and the dealer's name on it. And the lender was willing to loan you money personally.

Hold them to it.

 

[FlyingRon]

The question is whehter he actually has the loan or whether they just let him have the car pending its execution.

 

[adjusterjack]

You're right. We don't know that for sure yet.

 

[bcr229]

Is the car registered to you or are you still driving around on a temporary tag? If it's still on a temporary tag do you have the documents you need to register it?

Have you received anything from the lender regarding where to send payments?

 

[zddoodah]

My daughter leased a car then decided she wanted a different car. I happened to need a new car at the time, so I took over the lease (not officially), I just made all the payments and drove the car for three years.

When you say you "took over the lease," what you really mean is that you, not your daughter, drove the car and made all relevant payments. Correct? If so, that is, in no way, "[taking] over the lease."

About two weeks later I was contacted by Ford. They said they shouldn't have sold me the car -- only the person on the lease can buy the car.

Contacted by "Ford"? As in the manufacturer? Or was it someone at the dealership that contacted you? Or maybe someone with the leasing company? How did this person contact you (letter, phone, etc.)? What legal and factual basis did this person provide to you to support the assertions that "they shouldn't have sold [you] the car" and that "only the person on the lease can buy the car"?

Am I screwed? Are they screwed?

I can't conceive that any reasonable person would believe either you or the leasing company is "screwed." The worst case scenario for you is that the sale might get rescinded, and that's hardly getting "screwed."

Just wondering what can legally be done. It seems like they made a big mistake, but ... I don't know the law.

This isn't a matter of law; it's a matter of contract. One would need to review the contract that was signed when you bought the car to comment intelligently about this situation.

 

[quincy]

It is not only the purchase contract that needs to be reviewed but also the terms of the daughter’s lease agreement that needs to be reviewed. Usually a lease allows for a purchase of the leased vehicle at a discount that would not be available to anyone but the one who leased the vehicle.

 

[not2cleverRed]

I suppose you could have your daughter "buy" the car and then have her "sell" it to you.

 

[LdiJ]

It is not only the purchase contract that needs to be reviewed but also the terms of the daughter’s lease agreement that needs to be reviewed. Usually a lease allows for a purchase of the leased vehicle at a discount that would not be available to anyone but the one who leased the vehicle.

I disagree that there is any "discount" involved in purchasing a vehicle that you formerly leased. The purchase value at the end of the lease is calculated on what would be fair market value if the conditions of the lease are met. Most of the time, someone who opts to purchase the car does so because they cannot meet the conditions of the lease. In that case, they end up paying MORE than fair market value.

 

[bcr229]

I suppose you could have your daughter "buy" the car and then have her "sell" it to you.

Which would work if the daughter weren't in the process of buying a house, though we don't know where in the process she is. If she goes to closing soon then she probably doesn't want to do anything to mess with her credit right now. If she's still looking at potential purchases and hasn't put a contract on anything yet then buying the car and flipping it to dad is certainly an option.

 

[quincy]

I disagree that there is any "discount" involved in purchasing a vehicle that you formerly leased. The purchase value at the end of the lease is calculated on what would be fair market value if the conditions of the lease are met. Most of the time, someone who opts to purchase the car does so because they cannot meet the conditions of the lease. In that case, they end up paying MORE than fair market value.

On the vehicles I used to lease (through Ford), a discounted price was always offered if I exercised the option to purchase.

 

[LdiJ]

On the vehicles I used to lease (through Ford), a discounted price was always offered if I exercised the option to purchase.

That is not the way that it works now. I ended up being required to buy the car I am driving now because I could not honor the terms of the lease as far as mileage is concerned. I ended up paying significantly more than the car was worth on a far market basis, because the predetermined price was based on considerably lower mileage.

 

[quincy]

That is not the way that it works now. I ended up being required to buy the car I am driving now because I could not honor the terms of the lease as far as mileage is concerned. I ended up paying significantly more than the car was worth on a far market basis, because the predetermined price was based on considerably lower mileage.

“Required to buy the car?”

If you exceeded the mileage limit, yes, you would pay more. That is a condition that is written in the lease.

 

[LdiJ]

“Required to buy the car?”

If you exceeded the mileage limit, yes, you would pay more. That is a condition that is written in the lease.

I was required to buy the car because the miles were high enough that it would have cost me more to simply return the car. However the bottom line is that there was no "discount" to convince someone to buy the car at the end of the lease. The buy out price was based on FMV determined at the time of the lease. The higher the FMV the lower the lease amount.

 

[quincy]

I was required to buy the car because the miles were high enough that it would have cost me more to simply return the car. However the bottom line is that there was no "discount" to convince someone to buy the car at the end of the lease. The buy out price was based on FMV determined at the time of the lease. The higher the FMV the lower the lease amount.

Interesting.

You could not be forced to buy the car, by the way - although you might have felt financial pressure to purchase it.