Hey guys. Ever heard of a dealership wanting you to resign a leasing contract because they set the residual value too low?
Dealer wants me to resign lease contract.
- Thread starter sabre24667
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I would think that would only be problematic for them if you decide to buy the vehicle at the end of the lease
Think I have any legal obligation to resign?
I doubt it. You've got a signed contract already. I'd go compare terms on your current contract with the new one and refuse to sign unless the new one is clearly in your favor. It's not your problem that they don't know how to write the lease contract correctly the first time. It's actually their business to know.
You have a contract right? Not sure how you could be obligated to resign the lease if your fulfilling your obligations by the contact stipulations. I could be wrong but I really dont see how they could make you do it legally. Just don't miss a payment or be late otherwise im sure they will come after the car first chance they get.
I wouldn't do it
Thanks guys. That's what I figured.
Don't listen to them, they are wrong.
If the residual is set different than what the manufacturer assigns to the vehicle, then it is not a cashable contract, therefore it's non-binding.
You can either re-sign at the corrected residual, or return the car. It's still their vehicle until there is a cashable contract.
If the residual is set different than what the manufacturer assigns to the vehicle, then it is not a cashable contract, therefore it's non-binding.
You can either re-sign at the corrected residual, or return the car. It's still their vehicle until there is a cashable contract.
Does that mean he currently can drive it for free?
I mean, techincally, no....but it could play out that way for a minute.
The dealership can come pick it up at any time, as it is their vehicle.
That article is about 80% accurate.
Consumers sign a notice that more or less says "if for whatever reason this contract is non-cashable, then both parties agree to correct the contract or terminate it."
I had called the leasing company to see what their take on it was and they didn't seem to shed much light on the situation. They did say it's possible the dealer would be responsible for the difference in residual value and that may be why they want me to resign.
Is this a new, or pre-owned car? I assumed it was new.
New.
If he chose not to agree to the new terms he could basically return the car get his money back if he put any down or trade in and be out of pocket nothing because the contract would not be valid contract. Would this be correct?
Then the residual has no bearing on the dealership, it's setup through the leasing company and the manufacturer. The only way it effects the dealership is that they do not have a cashable contract.
So they still own the car.
Correct. As long as only a short period of time has passed and has not done any damage, or racked up a substantial amount of miles. At that point the dealership will charge him some amount.
Some advice from Florida attorneys in the below links.
https://www.avvo.com/legal-answers/dealer-wants-me-to-sign-new-contract-with-all-new--753003.html
https://www.avvo.com/legal-answers/car-dealer-wants-to-rewrite-signed-lease-agreement-2251999.html
I'd speak to an attorney.
Second link...1st response. Point proven.
Dealerships have consumers sign spot delivery forms for these exact circumstances.
Ok so I'm thinking I have them send a copy of the new contract via certified mail and have them highlight any errors they are claiming. I can then compare to my current contract to see how I proceed. Wow this is frustrating.
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