madbrain
Well-known member
I have a 2012 Leaf SL due for return in Jan 2016, with an NMAC lease. I want to return it early, as I have another car now (a Volt).
If I keep it, I will have to continue to insure it, which will cost about $500, as well as renew the DMV stickers in October for about $300, since it's a 39 months lease. I would like to avoid those costs, since I do not plan to continue to drive the Leaf .
My inspection is scheduled for tomorrow.
I have called NMAC to get a quote for the cost to terminate the lease. They tell me they can't provide it because the car will have to go to auction first and be sold before the quote can be provided. He said that is the law in California.
I'm very concerned because of the legalese in the lease contract and early termination fees, specifically about what it says section 14 "early termination". First, it says I need to give 30 days written notice.
Then, 14 c) lists the items I will owe if the lease is terminated before the end of the lease term, which are .
I) the amounts disclosed in section 13 other than excessive wear and mileage charge; plus
II) an early termination charge equal to the difference, if any, between the Adjusted lease balance and this vehicle's realized value.
Adjusted lease balance is a charge in today's dollars ("today being the date the Lease is terminated) for Base monthly payments not yet due and the Residual Value of the vehicle.
"Realized value" is the wholesale value assigned by us in a commercially reasonable manner in accordance with accepted practices in the automobile industry for valuation of used vehicles as allowed by applicable state law, or by a written agreement as to the Vehicle's value signed by you and us.If you disagree with the value we assign to the Vehicle, you may obtain, at your own expense, a professional appraisal of this Vehicle's wholesale value or comparable value made by an independent third party agreeable to both you and us .
I don't know if I really understand this fully, but I think it means NMAC will sell the car wholesale, and if it sells for less than the very optimistic $18,160 residual value in my contract, I will be responsible for the difference, and not just for the remaining 5 monthly payments and the $395 lease return fee.
As I understand, the Leaf would probably only fetch around $8,000 at auction. So is NMAC really going to ask me to pony up an extra $10,160 to return the car 5 months early, on top of the 5 remaining monthly payments of $249 and $395 lease return fee ?
Has anyone gone through the process of returning their Leaf early to NMAC in California, and can they please report on what they were actually charged ?
If I keep it, I will have to continue to insure it, which will cost about $500, as well as renew the DMV stickers in October for about $300, since it's a 39 months lease. I would like to avoid those costs, since I do not plan to continue to drive the Leaf .
My inspection is scheduled for tomorrow.
I have called NMAC to get a quote for the cost to terminate the lease. They tell me they can't provide it because the car will have to go to auction first and be sold before the quote can be provided. He said that is the law in California.
I'm very concerned because of the legalese in the lease contract and early termination fees, specifically about what it says section 14 "early termination". First, it says I need to give 30 days written notice.
Then, 14 c) lists the items I will owe if the lease is terminated before the end of the lease term, which are .
I) the amounts disclosed in section 13 other than excessive wear and mileage charge; plus
II) an early termination charge equal to the difference, if any, between the Adjusted lease balance and this vehicle's realized value.
Adjusted lease balance is a charge in today's dollars ("today being the date the Lease is terminated) for Base monthly payments not yet due and the Residual Value of the vehicle.
"Realized value" is the wholesale value assigned by us in a commercially reasonable manner in accordance with accepted practices in the automobile industry for valuation of used vehicles as allowed by applicable state law, or by a written agreement as to the Vehicle's value signed by you and us.If you disagree with the value we assign to the Vehicle, you may obtain, at your own expense, a professional appraisal of this Vehicle's wholesale value or comparable value made by an independent third party agreeable to both you and us .
I don't know if I really understand this fully, but I think it means NMAC will sell the car wholesale, and if it sells for less than the very optimistic $18,160 residual value in my contract, I will be responsible for the difference, and not just for the remaining 5 monthly payments and the $395 lease return fee.
As I understand, the Leaf would probably only fetch around $8,000 at auction. So is NMAC really going to ask me to pony up an extra $10,160 to return the car 5 months early, on top of the 5 remaining monthly payments of $249 and $395 lease return fee ?
Has anyone gone through the process of returning their Leaf early to NMAC in California, and can they please report on what they were actually charged ?