Terminating car lease

[galirisxxx]

Hi Everyone,

I'm looking for some help.

In Jan 2018 I signed a lease with Volkswagen Credit in CA for 48 months. Because I was an international student and I can only stay in US for couple years if I don't get a working Visa. I told my agent that I might need to get out of my lease early. He told me that there's a 'buy-in program' so they will take my car back. He said that there would be a little fee charged and it would be very easy to transfer/end the lease.

Because of my Visa, I had to exit US before Sep 2018. I went to my dealer in July before I left and they asked me for 8k for the 'buy-in program'. I couldn't afford it and wanted to terminate the contract. So they helped me listing my car in the market. I have been waited for more than 3 months but no one is taking over my lease. And I'm paying the monthly payment still. I cannot afford the payment and the insurance anymore.

The car is no longer beging used anymore since July and it has been parked in my friend's parking lot. I left US and my driver licence is expired already as I'm not able to renew it legally.

I just wanted some help. How should I get out of my lease quickly? Is that legal for the dealer to continue the lease contract with me (I'm no longer legally live or drive in US)? Is that possible for them to ternimate the lease in this case?

Also can someone advise on what will happen if I ask my friend to return the car to the dealer and I stop the payments?

I was so anxious. I didn't have any credit when I first entered US and I got a really good score after 4 years. I don't know how this will impact my score and my future life. Any suggestion/ advise would be appreciated at this point.

Thank you!

 

[justalayman]

You entered into a 4 year long contract. Of course it’s proper for the lessor to continue too expect their money. There is very little way out of a lease without serious harm to your credit score.

Why would you think the lessor would simply have to terminate the contract you agreed to at a considerable loss to them?

If you stop payments they will repossess the vehicle (a huge ding on your credit report). They will then sell it, possibly at an auction. You are likely to owe a considerable amount of money after that.


Are you intending on returning to the US and if so, how soon?

 

[galirisxxx]

You entered into a 4 year long contract. Of course it’s proper for the lessor to continue too expect their money. There is very little way out of a lease without serious harm to your credit score.

Why would you think the lessor would simply have to terminate the contract you agreed to at a considerable loss to them?

If you stop payments they will repossess the vehicle (a huge ding on your credit report). They will then sell it, possibly at an auction. You are likely to owe a considerable amount of money after that.


Are you intending on returning to the US and if so, how soon?

Hi there, thank you for your reply.

I'll visit the US for sure but may not return for living in 10 or 20 years.

I understand that the lessor would like to collect the money in any case but is it possile to negotiate a settlement? I was cheated by the info provided by my agent. I wouldn't sign this contract if he told me the truth.

Their buy-in program costs 8k but you are saying if I return the car and just stop the payment, I will owe them more than this amount?

What's your suggestions? I really want to settle this the max i could afford is 2k at this time. Can I call them to make a deal?

 

[justalayman]

You had an opportunity to read the contract? That is where you do just thst and do not sign it if you don’t understand it or don’t agree to it.

I could only guess how much you could owe. I have no information to even guess. Cars depreciate very quickly so unless you put down a huge amount of money, it’s likely you will owe a considerable amount of miney

I doubt $2000 is even close to what you might owe. I don’t know if you would owe more than $8000 because, again, I don’t have any of the information regarding your situation. Even if I did it would only be a guess. I suggest you get out your copy of the contract and read it so you are familiar with what it says in the event of a default. Yes you should contact the lessor and see where everything stands.