North Hollywood, CA asked in Banking and Contracts for California

Q: Hello I returned a car lease and am being charged for the car being sold for less it’s value

I returned a lease and took another one from the same dealership when they returned the car to the finance co the car was sold for less then the car is worth and now I am being charged for the difference the dealership is saying it’s not their problem am I responsible for the difference

Related Topics:
1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
  • Newport Beach, CA
  • Licensed in California

A: You need to review the terms of your original lease and/or financing agreement. When you return a car at the end of he lease you are at the mercy of the dealer/financing agent, who sell the car at the easiest price to obtain, usually at a dealer's auction where the cars go for a fraction of retail value. You are possibly responsible for the difference. IMO car leases are the biggest scam in the industry. The only benefit is that you usually don't have to put up a down payment for a lease, but at the end you have nothing, but a bill. You never gain any equity in the vehicle while you are paying principal and interest charges. When you turn it in, they charge you to take it back even if you deliver it to their door, freshly washed and detailed. In addition the vehicles have the same kind of immediate depreciation when you drive away as would a purchased vehicle. Some people love leases, Corporations love leases, they don't have to pay inventory taxes on the vehicles because they don't own them but they pay much more just to use them. Just one person's opinion.

Justia disclaimers below, incorporated herein.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.