Lessee Beware Be Careful of Lease Return Practices
Omid Badie, Car Smart Eletter, 2022-03-19, 2022-03-19
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It seems that the low inventory of vehicles (both new and used) in the marketplace is creating unfavorable conditions for Lessees. These stories are becoming more and more frequent and are unbecoming of our country and worthy of a closer look by the Competition Bureau of the federal government, to whom Automall Network has lodged a formal complaint. Canadians deserve better protection from their authorities.
In December, our company was featured on CTV News regarding how we helped a client with her lease return and equity. Shortly thereafter, we heard from a BMW lessee – V.K. - who was nearing the end of his lease on a 2019 BMW model and tried to negotiate a buyout on his own. He took his car into a dealership of a different brand to get an idea of the market and his options at lease end.
V.K. was met with a very aggressive sales staff and was put in a very difficult pressure situation. He was offered $1300 in positive equity to sign his car over in a “take it or leave it, now or never” scenario. V.K. agreed and was instructed to cancel his insurance and contact his bank to stop payment on all remaining lease payments. V.K. signed the paperwork, did as instructed, and awaited his $1300 to come in the mail.
A short while later, the dealership contacted him and told him that BMW is charging them a buyout documentation fee of $1995 to transfer the lease that was not originally anticipated and that he now needs to pay that to the dealership. So instead of getting a cheque for $1300, V.K. would owe the dealership $695. Further, he was now being contacted by BMW regarding his missed payments!
So, in a matter of a few short weeks, after falling victim to a high-pressure sales technique, V.K. was left without a car, owing $695 and his credit rating lower.
Getting out of a lease is not a simple matter. If you have a lease coming to an end, call your leasing company first and investigate your options. Better yet, call Automall Network who are seasoned professionals with such matters. We, at Automall Network, will gladly review your situation, free of charge, and present you with your best options.
We will gladly review your situation, free of charge, and present you with your best options. But please ensure to do this BEFORE signing anything at a dealership.
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