Legal Question in Credit and Debt Law in California

Re: voluntarily turning in a car/loan

You must read the lease agreement you signed. It will define your rights in this transaction. Usually the leasing company will accept the car back, and not require additional payment, if the car returns more than their reserve (your deficiency). Or, your can try to sell it, rather than return it, and see if you can exceed your reserve. You will try harder than the dealer, inasmuch as they always have you to make up the difference. But, all of this is dependent on your leasing agreement, which you should have carefully reviewed at the time of your lease of the vehicle.

Re: voluntarily turning in a car/loan

You are screwed. Leases are the most disadvantageous types of automotive contracts to enter into. To start off, most leases blatantly violate numerous comsumer protection laws, which for some incomprehensible reason courts usually ignore. The general position of trial courts is that if you are in breach, you desrerve to be punished--"don't confuse me with the law"--(A judge actually said that to me once). Regardless, you need to know that the lease company will play dirty--I guarantee it. I know that you think I am probably a nut, but you will come back to me crying and saying "you were right!" My advice to you is to play just as dirty as they do. The way they gain their biggest advantage over you is by making you think that they are really nice guys who would not do anything unfair or illegal. They will act this way until they get possession of the car, then they will say, "Welcome to the world of corporate greed". This is the place where finance companies make all their money--on deficiency judgdments, if they did not get deficiency judgments they would go broke. My recommendation to you is to hold on to that car as long as you possibly can. Hide it, lock it in your storage, give it to your aunt in Ureka to drive. The last thing you want to do is give them the car--if you do this, you might as well save yourself some time and hand them $10,000 as well, because that is at least what they will get from you in a deficiency judgment. As long as you have the car you have leverage--You can say, "Gee you want the car, hmm that is very interesting because I do not want to be sued by you after you get the car from me. I wonder what could be done, in writing, to ensure that you get the car and I don't get sued? Can you think of anything? Can't, Oh well, guess I will just keep holding onto the car until you come up with an idea. Goodbye." Of course, your other option is bankruptcy. Still think I am a nut? You'll see.

Re: voluntarily turning in a car/loan

Whether it is a turn in or repo you have to pay the full contract price less what they sell the car for at fire sale prices