Vehicle repossession on a lease

[hbutt]

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

I recently had a vehicle repossessed on a lease. I was two months behind on my payments when I got a letter from the dealership informing me that I was late. I made a partial payment of 400 (on a 798 dollar balance, no actual arrangement was made). The dealership then went ahead and repossessed my vehicle.

The dealership has now given me two avenues of correction in this matter:

The first is that I buy the car up front for the full retail value (minus what I've already paid on the lease), and the second is that they put the car up for auction and the amount owed on it is whatever the difference is after auction and the retail (28k).

I'm a little confused about all of this because I didn't finance the vehicle and it was placed on a three year lease. If anything I've read that the amount owed should reflect the remainder of the lease and not the full retail of the car. Secondly I've looked into consumer protection and came across articles stating that I should be entitled to at least one lease reinstatement.

Any help on this matter would be appreciated.
Thanks

 

[justalayman]

Have you even bothered to actually read the lease?

 

[FlyingRon]

As Justa aludes, you almost certainly agreed to this if you breached the lease. In the lease you agree to make the payments (all of them, not just the ones up until you decided you didn't want to honor the deal anymore) and provide them with a vehicle of a certain residual value. Option #2 is a gracious offer (typically they'd add in all the costs of the repo etc... as well). Option #1 is an alternative if you want to keep the car and you can find other financing.

To get a lease reinstatement you have to ask for it and essentially bring your payments up to date within 25 days. Can you do that?

 

[single317dad]

the second is that they put the car up for auction and the amount owed on it is whatever the difference is after auction and the retail (28k).

That sounds close, but not quite right. As Ron said, typically fees such as repo, late payment, transportation, any legal fees, and other paperwork fees will be added in as well. What's missing is your contribution thus far; while I wouldn't expect the entirety of the payments you've made to apply toward reducing your obligation (far from it), the fact is the dealer has been compensated somewhat for their car. You're responsible for making good on the value of the item you purchased (in this case, a car), plus agreed interest and fees. You have put some money toward that obligation, so that should be subtracted from the final tally after the auction proceeds.

If you haven't made a lot of lease payments, it's possible those fees may outweigh your contributions, in which case you're better off with their deal (as stated by you) than pushing the issue.

 

[hbutt]

That sounds close, but not quite right. As Ron said, typically fees such as repo, late payment, transportation, any legal fees, and other paperwork fees will be added in as well. What's missing is your contribution thus far; while I wouldn't expect the entirety of the payments you've made to apply toward reducing your obligation (far from it), the fact is the dealer has been compensated somewhat for their car. You're responsible for making good on the value of the item you purchased (in this case, a car), plus agreed interest and fees. You have put some money toward that obligation, so that should be subtracted from the final tally after the auction proceeds.

If you haven't made a lot of lease payments, it's possible those fees may outweigh your contributions, in which case you're better off with their deal (as stated by you) than pushing the issue.

Hey there, thanks for your help. While I don't doubt that I'm responsible for making good on the value of the item I purchased; I did not purchase the car. Rather, through a lease, I purchased what is essentially a 3 year rental on the car. The term of my lease is 36 months, at 350/month. The retail of the car is 28,000. Thus, as I never really was purchasing ownership of the vehicle, but simply the right to drive it, I'm confused as to how I'm responsible for the value of ownership outright.

Thanks so much

 

[justalayman]

Hey there, thanks for your help. While I don't doubt that I'm responsible for making good on the value of the item I purchased; I did not purchase the car. Rather, through a lease, I purchased what is essentially a 3 year rental on the car. The term of my lease is 36 months, at 350/month. The retail of the car is 28,000. Thus, as I never really was purchasing ownership of the vehicle, but simply the right to drive it, I'm confused as to how I'm responsible for the value of ownership outright.

Thanks so much

Read your contract

 

[David28]

Their trying to repo my car

I haven't paid the titling and registration tax fees on a vehicle and the company is trying to repo it what can I do if I don't have the money right now..

 

[justalayman]

So you have never put plates on the car?

You were given your options;

Buy the car

Let them have it (where they will auction it and you will owe a considerable amount of money)

Read your contract to see if there is any other possibility. (Which most likely will include paying money which you don't have)


Seems like what's behind door number 2 is your only option.

 

[David28]

Can they report it stolen is my honest question

 

[justalayman]

Can who report it stolen?

 

[David28]

Can the buy here pay here report the car stolen if I didn't pay the title and registration fee to them yet?only had temp tags in my name..but there threatening to report stolen

 

[quincy]

Can the buy here pay here report the car stolen if I didn't pay the title and registration fee to them yet?only had temp tags in my name..but there threatening to report stolen

David28, what is the name of your state?

I think justalayman, when he was responding to your questions, might have mistook you for the original creator of this thread (hbutt, who started his thread in July of 2015).

It is preferred on this forum that you start your own thread instead of tacking your legal questions onto an old thread belonging to someone else. This leaves the original thread for the original poster in case s/he decides to return with additional questions. It also helps the forum members distinguish your legal concerns from those of the original poster. You want your own legal concerns to be given the attention they need rather than have forum volunteers distracted by the other posts.

 

[Just Blue]

David28, what is the name of your state?

I think justalayman, when he was responding to your questions, might have mistook you for the original creator of this thread (hbutt, who started his thread in July of 2015).

It is preferred on this forum that you start your own thread instead of tacking your legal questions onto an old thread belonging to someone else. This leaves the original thread for the original poster in case s/he decides to return with additional questions. It also helps the forum members distinguish your legal concerns from those of the original poster. You want your own legal concerns to be given the attention they need rather than have forum volunteers distracted by the other posts.

Urghhhhhhhh!! I hate it when a hijack happens!!