Has anyone ever terminated a car lease?

Ibby114 · ‎03-10-2010

My father passed away last year - with 22 months left on his car lease. I went to the dealership and advised them - they didn't know how to address the issue of a deceased customer so they got the lease division on the speaker phone. With witnesses hearing [including family members], we were advised 'that for deceased customers all we were responsible for is the remaining lease payments". They would pick up the car and auction it, and anything received above that would be considered 'a wash'. The car sold for well over the remaining lease payments, but now it's a different story $$ wise. They did a calculation based on the residual value rather than remining lease payments - and they claim the estate owes over $5,000 I filed a complaint with consumer protection, talked with a lawyer, etc. Has anyone ever experienced this problem?

lulu2 · ‎03-09-2010

I am sorry for your loss.

If your father left an estate, his estate is responsible for the remaining payments as well as any early termination fees spelled out in the contract. If there is not enough money in his estate, unless you co-sugned the lease, you are not responsible.

It seems odd the dealership did not know what to do. People terminate leases early for any number of reasons. I'm betting they've had other customers die before the lease was complete.

esmeraldagooch · ‎03-10-2010

So, what did the lawyer tell you? And what did your complaint with consumer protection contain?

January121 · ‎03-21-2010

I am not a lawyer but, I think that because your father (and not any family member) signed the lease he was the only one responsible for the payments and once he died the lease is terminated & the car goes back to the company/bank...I would not deal with the dealership .. I would deal directly with the car manufacturer and advise them what the dealership told you ... it sounds like they are "taking you for a ride" .... under normal circumstances once a lease is over and the car is returned to the dealership they check out the car for damages ... if there are damages they charge for the repairs and also tap on an end of lease charge which is around $600.00

You stated you spoke to a lawyer .... what did he tell you?

151949 · ‎03-09-2010

It would depend on what was on the individual lease agreements. I would think Toyota may be different than Ford or Chrysler etc. and also, esp. in the case of a spouse, was just the deceased name on the lease or was the spouse on it as well. You would need an attorney to go through the lease agreement for you.

Ibby114 · ‎03-10-2010

@esmeraldagooch wrote:
So, what did the lawyer tell you? And what did your complaint with consumer protection contain?

The lawyer reviewed the lease contract and told me they covered their bases to legally milk the estate!!! She advised that it didn't matter what they told my family members ... it's absolutely disgusting that they can get away with blatantly misguiding (I'm being gentle so this doesn't get poofed!) consumers like this. The collection agency they send probate issues to actually told me they hear this from hyundai lease customers all the time. She tried to take the words back- but I told her it was too late becasue her statement became part of their recorded conversation.

That's when i started investigating places to forward my case to- the consumer protection complaint contained everything in my original post. The agencyis communicating with Hyundai corporate at this point.

Ibby114 · ‎03-10-2010

@151949 wrote:
It would depend on what was on the individual lease agreements. I would think Toyota may be different than Ford or Chrysler etc. and also, esp. in the case of a spouse, was just the deceased name on the lease or was the spouse on it as well. You would need an attorney to go through the lease agreement for you.

It also varies by state- this whole thing has become a HUGE learning experience. I had a attorney review the contract - it wasn't even signed by the dealership (I thought that would have been an 'out'!) but it seems Hyundai covered their bases. Even though we were told something completely different after his dealth.

The lease was jsut under my Dad's name- my stepmom has dementia. She could have 'legally' taken possession of the car if she was still driving! There's an additional disability insurance with leasing companies that would have helped in this situation, he didn't have that.

I know it's the estate that would take care of the $$ issues and his estate is plentiful. To me, it's just a matter of ethics- what's right and wrong...

KYToby · ‎02-19-2012

I am sorry for the loss of your father, but ultimately the estate is responsible for the agreemdnt he made in regards to the lease.

While the dealership or lease agency may have provided you with some information verbally (I see no reason to believe they were intentionally misleading you), the contract itself ultimately dictates what happens. The lawyer has indicated they are within their rights. Complaining to cosumer protection seems a waste at this point as your father willingly entered into the contract.

debic · ‎09-02-2010

@Ibby114 wrote:
@151949 wrote:
It would depend on what was on the individual lease agreements. I would think Toyota may be different than Ford or Chrysler etc. and also, esp. in the case of a spouse, was just the deceased name on the lease or was the spouse on it as well. You would need an attorney to go through the lease agreement for you.
It also varies by state- this whole thing has become a HUGE learning experience. I had a attorney review the contract - it wasn't even signed by the dealership (I thought that would have been an 'out'!) but it seems Hyundai covered their bases. Even though we were told something completely different after his dealth.

The lease was jsut under my Dad's name- my stepmom has dementia. She could have 'legally' taken possession of the car if she was still driving! There's an additional disability insurance with leasing companies that would have helped in this situation, he didn't have that.

I know it's the estate that would take care of the $$ issues and his estate is plentiful. To me, it's just a matter of ethics- what's right and wrong...

...

I'd let the estate pay it. I know when my parents died they had an alarm system and contract that had been over as far as I could see. Somewhere in the fine print it said they could extend the contract any time they wanted. The heartache and hassle of it was a lot more trouble than it was worth, and I still had to pay.

~~
*Off The Deep End~A very short trip for some!*

stazgirl · ‎06-11-2014

You are only LEGALLY oblicated to pay a contract off if you were on it also. The estate takes care of everything else, Companies will try to tell you, that you as family have to pay up, but as I found out through a lawyer when my adult son passed, we were NOT legally liable for any of his credit card bill or his car loan. He was an adult and we didn't co sign. His estate (he was 21!, not much of an estate) took care of what it could and the rest was written off. (we did keep paying his beloved motorcylce payments, that was his baby)