Edmunds Answers

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  • knowledgepower 02/19/12 1:06 pm PST

    It should have been stated on your buyers order of the new vehicles you were buying of the amount you'd assume on your new lease that would pay off the previous one. The figure should of been high and the Finance Manager is required under Regulation M to disclose ALL figures in the leasing process and if any prior amount owed from a lease was included in your new contract it would have stated that. No dealership and a leasing company GIVES you anything, when you turn in a leased vehicle with 12 payments left the remaining payments are added to the new contract. Any rebates or dealer cash used to assist you in getting the cap cost down is shown on your contact and explained, by law! If it is not explained that means it never happened, the dealership never intended to assist you in paying off your lease or whatever goofy idea they had didn't work and they never bothered to tell you and you never asked. I've been involved in many deals where customers had the reamainder of a lease paid off either through dealer cash or rebates and sometimes customer participation meaning cash. The knuckleheads who sold you the vehicles also should have had some contact with the Hyundai dealer and informed them of when you were turning it in but the clowns knew you weren't doing that based upon something they prearranged. This is not the first time I've heard of this happening where a customer is left with his vehicle after leasing another.

  • Stever@Edmunds 02/19/12 1:14 pm PST

    Who enforces Regulation M? Does Jdr30 need to get a lawyer or contact the feds (or threaten the dealer that she will if they don't unwind the deal?).

    Source: 

  • knowledgepower 02/19/12 1:44 pm PST

    The Federal Reserve enforces Regulation M and this customer should contact his state Attorney General Office for assistance, I will post two government agency numbers for assistance also. It is shameful that a few dealers still resort to these shortcuts and deceits to sell a car not keeping in mind that this is a person who's life has been shattered by these events. It is one of the reasons I no longer sell vehicles but am happy to always assist others in purchasing vehicles and not get ripped off.

    Federal Reserve Consumer Help
    PO Box 1200
    Minneapolis, MN 55480
    888-851-1920 (Phone)
    877-766-8533 (TTY)
    877-888-2520 (Fax)
    Email: ConsumerHelp@FederalReserve.gov
    www.FederalReserveConsumerHelp.gov
    or
    Federal Trade Commission
    Consumer Response Center - 240
    600 Pennsylvania Ave., NW
    Washington, DC 20580
    (877) FTC-HELP (877-382-4357)
    (866) 653-4261 (TTY)
    www.ftc.gov

  • knowledgepower 02/19/12 2:10 pm PST

    Getting an attorney is not out the question but first the customer needs to do some leg work or provide his attorney with some info. The attorney will need to contact Hyundai Motor Finance and the actual lease contract is needed from the customer. The attorney can find out who actually approved the deal and why did he or she allow a second lease to be added if in fact Hyandai did a second lease. If in fact Hyandai did approve a second lease what was said to convince the person on the other end to okay the deal. Anything other than Hyandai including the remaining 12 payments in the new lease means something had to be said on the customers behalf such as "he's going to keep the other vehicle"or he'll just pay off the other lease. To me if this is true why would they okay the deal unless the customer qualified for another lease due to strength of credit or income but either way that's not what the customer said. Somewhere in this deal there's muddy water and I don't think the customer's feet are the dirty ones, he had to be misrepresented in some way. Yes, an attorney is needed because the customer has been misrepresented in some way and regardless of the dealer falling back on the "he said defense" somebody said something and the something was wrong. I would be surprised if a Finance Manager would be stupid enough to violate Regulation M and risk a fine or a prison sentence for outright falsifying a document but you'll never know.

  • Stever@Edmunds 02/19/12 3:04 pm PST

    "I would be surprised if a Finance Manager would be stupid enough to violate Regulation M"

    Me too, and the OP did say that the AG was contacted and didn't want to do anything, so maybe there's no issue there.

    Another link:

    Unwinding the Deal — What Are Your Rights?

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