Voluntary Lease Repo & Sold at Auction?

Question

We voluntarily returned our lease.

The car when we got it was 38K - $5,500 down payment & deposit.

They sold it at auction for $25K.

They are saying I owe 13K which adds up from 25K at 38K.

I do not understand why they want me to pay 13K when I paid my down payment/deposit at 5,550 which made my balance on the car 32K. So 32K - 25K = 7K balance. Why are they making me pay that much??

Help!!

Answer 1

I would imagine the difference is the legal fees and all of the lease termination fees that you would have ended up paying if you turned the car in at the end of the lease.

Not only have you lost the car but you also lost $13k in cash along with it.

That $13k would have paid a lot of payments while you figured out how to sell that car to avoid the repo.

Answer 2

Something's not adding up.

Although you put down $5,500 you might have had negative equity in the car you traded in (I'm assuming you did, if you did not trade anything please forgive the assumption). That would've negated your down payment.

Check your contract, as you'll find that you will indeed be responsible for tow fees, interests accrued, etc.

Not fun.

Answer 3

It could be a bunch of things.  Forget about how much the car was, look on your contract for the amount financed.  If that's correct, read the rest of the contract, there may be repo fees, interest lost, etc.  Just another reason why you should never give up your car, now you are really screwed.

Answer 4

There would be auction fees, sale fees, transportation fees, Repo fees, storage fees, interest.  You probably did not figure in sales tax, legal fees, detailing the car an so on.

Also add in ealry return penality.

Mile chargers

They sold a car for $25,000 that agreed to pay on. They had a $13,000 loser, don't they need to keep something from you?????

Ask for the written breakdown of the expenses, they must provide this by law.