Legal Question in Consumer Law in New Jersey

Re: Leased Vehicle to Purchase

You should act immediately! This situation occurs when vendors such as this dealer become short on cash. They "kite" receipts to pay current debts and hope to collect elswhere so that they pay what they owe. It is a very fragile business position and usually comes just before bankruptcy. The problem for you is that if the dealer files for bankruptcy, whatever payoff you have given them towards the lease becomes a general debt of the bankrupt estate and probably neither you nor the lessor will ever see any of it. That would leave you with both the new loan to pay and the lease payments to make. That doesn't sound fair to you but, trust me, it can happen. Of course, witout more facts no one can tell whether that is the situation, but, if it looks like a duck .... etc. it is prudent to treat it like a duck.

Get a lawyer to help you now. Sometimes a forceful demand from a customer's lawyer will get the dealer to adjust priorities for payment. All you want is to get the deal completed and get out from under the lease. It sounds as if some of the dealers customers are going to get burned. Don't be one of them if you can help it.

If I can help further, call or email.

See also: http://info.corbettlaw.net/lawguru.htm