QuestionHi Ray - my parents (age 80 and 87), leased a new car 3 months ago, for 36 months. (Ford Fusion). He has recently become ill, and may not be allowed to drive anymore (per his physician). What obligation does he have for the remaining lease payments (and buyout???) if he returns the car to the dealer? Is it correct that in a standard lease, even if he returns the car, he is still responsible for the remaining payments??
Is he allowed to sell the car privately? (I would assume not, as he doesn't have title to the car, does he?)
What advice can I give him and/or how can we help him? We're afraid he has gotten himself into quite a bind by leasing this car instead of buying it. Thanks, Linda
AnswerHi Linda,
First I would like to wish for your dad to recover fully, and I somehow get the feeling he will because anybody that can drive a car at that age is a very strong willed person.
I am not a fan of any type of lease and yes had he bought the car the solution would have been a simple one, here are some answers to your Q,,, should you not fully understand please feel free to do a follow up.
Yes it's correct that in a standard lease, even if he returns the car, he is still responsible for the remaining payments, being in a lease there is no escape without hurting the pocketbook but to what degree becomes the Q, having someone take over the lease will be you best option, it will take a little homework on your part to fully understand how it works, Google - words like - takeover car lease Virginia - you will discover there are many sites that specialize in this field, just to name one that come to mind - leasetrader.com.
Many buyers shop for lease takeover, the key is to make the listing attractive and that means how much are you willing to offer as an incentive " example " you got 32 payments left at $400. you offer 3 free payments $1200. and the buyer takes over the lease. Study how some other lease takeovers are structured to get an idea.
Your first step will be to contact the lease provider to find out what costs are involved from their end, in most cases they will let you sub lease to someone that qualify, also you must take into account what are the fees from the providing website that you choose,,, I can't recommend a provider because as I mentioned I just never have liked leasing, if you would have been able to study my website prior to the lease you would have been more informed. Here is a copy/paste from my website
LEASE - Don't Let Emotions Overide Your Signature
You must FULLY understand the contract when leasing a vehicle. Whatever terms you agree to and sign, be 100% sure you will want to keep it for that term and fully understand the fine print. If you went to jail for 3 or 4 years, you would most likely be released early based on good behavior. Not so with a lease! There is no parole without severely hurting your pocketbook.
Ray
http://www.usedcartips.org/
