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Discussion Starter · #1 ·
Years ago I had a Kia Optima. I loved it, but I had to satisfy a yearning for a Dodge Challenger. In 2018 I leased a 2018 AWD challenger. Fast forward 4 years and 10 months. I an in the process of buying out my 5 yr lease. I have secured a loan with an interest rate of 3.4 for 60 months. I bought new tires and a new battery. I am going to drive it another year or so, then try to sell it for a profit and buy myself a Kia Stinger. As fate would have it. With only 2 months left I was in a wreck. There was a truck broke down in the right lane of 4 lane road with no flashers on. By the time I realized it was not moving it was too late to stop. It was like hitting a brick wall. Both frame rails were bent in towards the engine. It was totaled. I got $26,000 from the insurance company. I owed $18,500 on the car. US Bank kept all the equity. So I had to $7000 of my savings to put down on a new car. I changed from a Stinger to a 2023 K5 so I could afford the payments. It's an adjustment from the Challenger but I am loving it.
 

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Why would the lender keep all your equity? Also, I had a vette totaled after Hurricane Harvey and my insurance cut 2 checks, one for the pay off to my lender sent directly to the lender and the balance was a check directly to me.
 

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Discussion Starter · #3 ·
Why would the lender keep all your equity? Also, I had a vette totaled after Hurricane Harvey and my insurance cut 2 checks, one for the pay off to my lender sent directly to the lender and the balance was a check directly to me.
They told me I was only renting the car, they were thr owner and all equity belonged to them. My insurance agent told me they may require me to pay off the last 2 payments and request that I pay them the $500 deductible they didn't get. I will probably totally lose it. They already came out $7,500 ahead. I have banked with them ever since I was 17. My first car loan with them. I am done, my whole family is dumping them like a hot potato.
 

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Yes, they hold the title to the car, but any equity is yours. We just recently traded out of a lease on my wife's car and we got the equity.

Equity - whether it's in a lease or a loan - is like over-payment, and that over-payment is your money. The main way they capture the equity is if you go to the end of the lease and hand the car back to them. And even then, some lessors will give you back your equity.

I'd give a call to your state's Consumer Affairs department and ask them if this is right.
 

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Discussion Starter · #8 ·
So it was a lease....Yes they own the car. Even with 2 payments left, you were to either give the car back, or come up with money to buy the car from them.
They wouldn't let me continue with the purchase. My insurance agent told me the reason they are doing this is because once Covid hit and all the prices of the cars went up, people were buying their leases out, and selling to the dealerships for a huge profit.
 

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Discussion Starter · #9 ·
Yes, they hold the title to the car, but any equity is yours. We just recently traded out of a lease on my wife's car and we got the equity.

Equity - whether it's in a lease or a loan - is like over-payment, and that over-payment is your money. The main way they capture the equity is if you go to the end of the lease and hand the car back to them. And even then, some lessors will give you back your equity.

I'd give a call to your state's Consumer Affairs department and ask them if this is right.
I might have to give that a try.
 

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I was leasing a 2019 Toyota Highlander. It was totaled in April of 2022 and the 3 year lease was up in July of 2022, so only a few more months for the end of lease.
the buyout was $22,000. the insurance said its worth $32,000.
insurance sent at check to Toyota for the $32,000
I then got a check of $10,000 from Toyota for over payment.
 

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Yes there was, but they told me that price was for the end of my lease. I still had one payment to go. They wouldn't let me buy our the lease.
someone is pulling a fast one.
when my car was totaled I had 3 more payments.
I called Toyota to notify them that the insurance company is going to total out the car, they told me to stop paying the lease payments.
 

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Discussion Starter · #16 ·
Yeah, I know, it really stinks. US Bank sent me a letter telling me I still needed to make my payment until they closed the account. I have not payed it. I called and found out they closed the lease on 2/1/23. I got the letter on 2/15/23. Greedy company.
 
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