"Early Termination of Lease" What the hell?

The lease on my 2011 Leaf is up on May 1 of this year, and I decided to turn in the Leaf and walk away. (FYI, I loved the Leaf but the loss of battery capacity made keeping/purchasing it impossible) So I contacted Nissan, got an appointment for the end-of-lease inspection, and planned on turning the vehicle in before May 1. Fortunately, we found a 2012 Prius-C in immaculate condition, which we purchased for just over 20K. So instead of waiting, I turned in the Leaf a week ago, and made my final lease payment on-line. Now I'm waiting for the final wrap-up invoice from Nissan, including the $395 Disposition fee, and $60 the inspector said I would be charged for cleaning up an abrasion on one of the Leaf wheels.

So, what arrives today by certified mail from Nissan? "Early Termination of Lease, Notice of Intent to Sell Vehicle" legal paper which states in very bold caps that the "GROSS EARLY TERMINATION AMOUNT AS OF THE DATE OF THIS NOTICE: $16,353.87" which includes the aforementioned fees.

I am assuming that this document is some sort of legalese that they are required to send by law. Indeed, the first sentence below the title states: "This is not an invoice. This notice is for informational purposes consistent with California law."

Well, you could have fooled me. It sure got my attention. And of course I couldn't reach their offices as they were closed for the day by the time I received the notice.

I am wondering if anyone in the forum can speak to this matter so that I may sleep soundly tonight.

BTW, I loved my Leaf, which we called "Edison" or ED for short. And I confess to a bit of guilt when I brought my Prius into the gas station for the first time in almost three years. It was a great adventure, and I wish all of you the very best.

I just "early terminated" myself, although in anticipation of the void I leased another LEAF (MY 2013 SV Premium + QC) near the end of January. My 2011 lease isn't scheduled to end until 4/18, so I was going to keep it until then and use it as the "beater" since I still had plenty of contract miles left.

However, in February I received a flyer from NMAC that stated if I leased or purchased a new NISSAN by 3/31, they would waive (4) payments, the disposition fee, and up to $500 damage from the inspection.

I expect a little over $1800 in my pocket when all is said and done.

sounds like dealer did not process your paperwork correctly. you did make your final payment, correct? if the payment was made to NMAC, its possible the dealer did not know this and that is who you should have made the payment to.

CA loves scaring the bejeezus out of you with inscrutable documents "for information only". I remember the first year after we bought our house, a big tax bill comes in the mail. I'd thought that was being handled by the mortgage. Double-checked with the bank and it was. Doesn't stop CA from sending me the ominous-looking bill every year that looks anything but "informational only".

I went through the same thing. As explained to me by NMAC, CA requires that if a lease is turned in more than 30 days early, they have to first sell the car at auction, then apply the amount they sold the car for to the cost of ending the lease. If the amount they get for the car is GREATER than the lease termination, they then credit the extra to you as part of ending the lease. The paper you got is the required notice of this. You will get get another mailing showing the results of the sale.

In short, if the car is worth more than the lease buyout, the lessee gets the difference. In no case can you end up owing more than the contracted amount owed on the lease. Of course, with LEAF values, I don't expect a windfall...After all, if there had been a chance of having equity in the car, I would have traded it in, or bought it for the residual.

It scared the bejebus out of me until I talked to NMAC.

Dave has it exactly right. I spoke with NMAC and indeed the notice was merely a legal requirement per Ca law for consumer protection. A momentary annoyance, but good to know we have such such laws in place for our protection.

Short and "old" thread, but I was recently taken aback by this exact same letter. Something in the process should really change here, lest someone with a weak heart be injured*. The way it is being done is inappropriate and disrespectful. I suggest that one or both of the following needs to be done:

• In the renewal process, the dealer should bring the letter up and reassure the lessee that it is just a formality and required by law, and that there is nothing to be concerned about.
• In the letter itself, Nissan should include wording that explains the situation, and that if the lease was terminated early in order to re-lease a newer LEAF (vehicle), that there will be no penalty.

* half-joking, but half not.