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  1. #1
    Join Date
    May 2006
    Posts
    1

    Default Repo of a Leased vehicle

    First of all, I live in the state of Michigan. I had a LEASE through Chrysler Financial for
    385$ a month. I was behind by 3-4 months when they finally took it. So thats approx 1500$.
    There was only 4 months of remaining payments left in my lease , since the lease was over in July.
    Thats anoth 1500$. So thats 3,000$ correct and + im sure some taxes, fees, etc. Well they auction it off and I get zero info on how much they
    got for it or even my stuff back. Then I get this letter with "amount owed". Its 9,000$!!!!!! I wasnt buying the car. I was leasing it. So, how can they charge me 6,000$ more then what I would have
    owed if I payed off the debt? Should I get a lawyer or should I pay them 20$ a month till they take me to court, then just file the form where they can only charge me what I can afford? Since im going to school full-time and have
    low income. Are the repo laws different for buying a car different from leasing a car? Any advice would be greatly appreicated.

    Greg

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Repo of a Leased vehicle

    You were leasing the car, not buying it. They may be basing their claim upon the amount you agreed to pay for the vehicle at the concusion of the lease, or upon the blue book value of the car. The letter probably indicates the amount of the credit you received for the car when it was sold at auction, plus the charges associated with the repossession and sale.

    It does seem that they are getting a windfall by the fact that you defaulted so close to the end of your lease term, but by defaulting you opened the door to the greater potential liability.

  3. #3
    Join Date
    Feb 2007
    Posts
    1

    Default Re: Repo of a Leased vehicle

    I am having the same problem right now with a Leased auto. I had to give up my car back in June, 2006..I just got a letter today that they want $8,000 within 30 days. I am devastated, because if I had $8,000, I would have kept the car. No one contacted me that they were selling the car whether at sale or auction. Nissan would not lower my payments when I was having problems, yet they knew I was a caretaker for my mother, and could not meet their demands of monthly payments anymore. I just don't know what to do as I just can't pick up a very sickly mother and move out into the streets. Also, I had a previous Bankruptcy for Chapter 7 and need to know if I would have to wait a full 10 years before I can file again ... It would be no good if I were to get sick over this or have few things taken from me or even go to jail......What can I do, I need help!!!

    Also, if they sold or auctioned off the car, I never received any information about what they received for same or notifed that I could attend the sale.

    Is there any help out there for me?

  4. #4
    Join Date
    Sep 2006
    Posts
    211

    Default Re: Repo of a Leased vehicle

    Read your lease contract. What does it say about acceleration upon default? I am betting most of your answers are right there. Defaulting a lease is much like defaulting on a car loan, they want you to pay the rest of what is owed, as if you were buying the car after the lease ran. (most times this number is higher than the amount they can sell the car for, thus why you owe so much money.)

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