Questionhello Mr.Alvey.. My wife and I have just leased our 5th Toyota in a row--- the old dealer closed so we had to go to a new dealer-- started off nice enough - and the price was better than the last lease- being the rates have dropped I guess- but here is the crazy part--- It seems that they did not "fill" in the disposition fee portion on the lease agreement that has been signed etc etc- Now the so called manager has called me twice to ask me to come in and REsign a new lease with the $350 disposition fee added in to the new lease paperwork. I refused - stating that I needed to understand what this fee was for and I would be back in a week or so.He has called me again- BUT here is the kicker- he states that this fee IS NOT a dealer or Toyota fee BUT a GOVERNMENT requested free?? And he stated in his exact words that the bank would NOT complete the paperwork until this new lease was signed- and therefore I am driving an ILLEGAL vehicle??? I am shocked-- there is nowhere on the web that I have seen where this is anything but a dealer or lessors fee--- and I was told by a different Toyota dealer by phone that if they mistakenly left off this fee- then tough on them--- there is nothing illegal about what has transpired... Can you help clarify this aggravating harassment I am going thru right now- and how should I respond to this managers constant phone calls???
I fear that he will do something "bad" being that he has my address etc etc-- and if my wife happens to bring this vehicle in for repair at this dealer or for the Totoya care-- checkups that they will do something to the car then as well--- What should I do about the future with them-- and what should I tell this person about this present situation on the "new" lease signing- which I do not feel I have to do!!
Answer
me
Hi Monte,
It's hard for me sitting here to imagine one of my Finance Managers signing you up for a lease that did not include the disposition fee or that the deal would have made it to him from the desk without this fee included because I don't know of any DMS systems that don't automatically add those fees into every lease automatically...tha said it appears in your case it did.
Here is the straight scoop ...from someone who knows what they are talking about ...
The disposition fee is a fee to offset the banks expense to sell the vehicle at the end of the lease. These expenses may include vehicle cleaning and reconditioning costs, vehicle inspection fees, transportation costs, storage fees, auction fees, administrative costs, and the funding costs until the vehicle is finally sold.
This fee is always outlined in the lease agreement and will never increase or decrease at the end of the lease. It is useless to try get dealer to waive or discount this fee. It is not a profit center for dealership and is put in place by the leasing company. As a rule, people considering a lease should always ask for the amount of the fee in advance of signing any paperwork.
Here is the bottom line: The dealer is NOT able to process your lease contract and get paid for the car you are driving until it is included ...he just can't because the bank will kick the contract back to him and tell him to send them a new one with the fee included (which is what I assume has already happened) Thi is NOT a case of the dealer trying to make another quick 4350-450 bucks on you ...he simply needs yu to sign the new contract with the fee included in order to get paid for the car ...plain and simple. That means your payments will go up ever so slightly ....it also gives you the chance to unwind the deal if you want too.
Here is what I would do if I were you because doing nothing at this point is NOT an option.
I would call another Toyota dealer and tell him that you have been quoted a (for example) 39 month lease on a new Camry LE ...Black ... with an MSRP (it's on your paperwork) of 26,459.00 and after rebate or down pmnt or you trading in or dropping off your last car (there may be a loyalty rebate you should ask about for people coming out of one lease and into another) and finally tell him what your payment is and ask him if he can beat that payment.(make sure it's a lease with the same mileage allowance etc) and make him commit to it then call back dealer A and tell him that you are more than happy to resign the new contract with the disposition fee included and while you know it isn't something that can be waived etc. you also don't expect your payments to increase 1 cent over what you agreed to ...it was his error and you are sympathetic to his situation you would expect him to offset that fee by lowering the price so that your payment doesn't change ... period ...tell him if he can't do that then you have found another dealer who can and you would be more than happy to drop of the car ...sign a rescission agreement (cancelling the old deal) taking your trade (or whatever you did) and taking your business down the street.
My private e-mail is roadloans@Gmail.com if you have any follow-up questions feel free to ask them and going direct to this e-mail will get a much faster response as it gets sent directly to my phone and I check it constantly throughout the day. Good luck.
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I hope this helps
Roger
The Car Guy
