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Lease contract termination due to insurance policy?

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enharu
Super Contributor

Re: Lease contract termination due to insurance policy?


@Anonymous wrote:

"And of course she didn't read the contract and see that spelled out.  Nobody does."

 

Relly? Noone does? Mod cut. She entered a legal contract.  Who signs a legal contract without reading it?  Especially because you can ask for the lease contract in advance and take it home to read it over everal days. And you can sit with the finance guy and ask for every line item to be explained. It isn't anybody's job to make sure your sister know what she is signing -- it is her job to read what she is signing. Lease contracts are not even that long!

 


 

Let's remember to be respectful in your comments, as to not violate myfico's TOS and User Guidelines.

 

 

Lexie, myFICO Moderator

 


most people do not read what they sign. This isn't just for auto leases. It applies to credit cards, mortgages, car loans, personal loans, and even investments! Kinda shocking since one should be concerned where his money is being invested into.

 

Some are too excited over getting a car / house / money that they cant even be bothered about the boring walls of text. 

 

However, some people do not read not because they do not care, but simply because they wouldnt have understood it anyhow even if they tried. There's so many legal jargon in many contracts that it makes it impossible for the uneducated or elderly to understand. 

 

The job of the finance manager is to sell you the car, and possibly bundle more crap while he's at it. You can ask him to explain, but he may not explain it well, because he may not know it himself, or that he wants you to drive the car out the lot after all so he isnt going to say anything bad.

 

That being said, i'm not saying it's ok to not read any contracts. Do read them. However it's not as easy as it may seem to be for everyone, especially older people.

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 11 of 30
Anonymous
Not applicable

Re: Lease contract termination due to insurance policy?

"most people do not read what they sign. This isn't just for auto leases. It applies to credit cards, mortgages, car loans, personal loans, and even investments! Kinda shocking since one should be concerned where his money is being invested into."

 

Most people do not read what they sign but ALL people SHOULD read what they sign. It should be unacceptable for people to give the excuse of I didn't read.

 

"Some are too excited over getting a car / house / money that they cant even be bothered about the boring walls of text. "

 

This i a behaviour of a child. Part of being an adult is developing your pre-frontal cortex to be able to reign in your emotions and impulses and think about your actions. 

 

"However, some people do not read not because they do not care, but simply because they wouldnt have understood it anyhow even if they tried. There's so many legal jargon in many contracts that it makes it impossible for the uneducated or elderly to understand."

 

This is a load of excuses. Noone is born knowing how to read these contracts. Everyone practices by trying. I am not saying that the person here should have been able to understand the interaction of article 5 with say article 300 in a 1000 page contract. The lease contract is ~4-5 pages. The insurance part of it is article 5 or 6. It is also capitalized and bolded.  It is written in very very plain language (if you want me to i can pull up my recent contract and quote it word for word). 

 

In this day and age in the US it is inexcusable to remain this uneducated. There are a lot of resources to read up on on how to lease a car and what the contract requires. These are available online and online access exist for free from your local library. And if you are poor, you can take the lease contract to the local legal aid clinic and have it explained to you. There is no indication that the person in question is severely mentally deficient or elderly. 

 

"The job of the finance manager is to sell you the car, and possibly bundle more crap while he's at it. You can ask him to explain, but he may not explain it well, because he may not know it himself, or that he wants you to drive the car out the lot after all so he isnt going to say anything bad."

 

Noone elses's job is to make sure you are making the right decisions. Once an adult, it is one's sole responsibility to do so. That means asking questions. Demanding that things are explained to you and when they are not, demand that they find a person to explain it to you. None is putting a gun to your head making you sing a lease contract.

 

Until about a month ago I knew nothign about leases otuside of -- it is liek renting a car for a set period of time unders et conditions.  It turned out that as I was in the market for a new car I found out it  is cheaper for me to lease and then buy the car than to outright buy the car right now. I was considering two cars out of two different dealerships. I had already been in 3 times to test drive the cars, ask questions about some things I had not thought to ask etc. I walked in  a 4th time and asked for a sample lease contract. They were suprised, had to find a finance guy, who simply pulled one out of his drawer. Took the contracts home (and yes they were the same), asked questions again, learned some new things throughout so i had to go home and read some more things. I even factored int eh cost to isnure the new car in comparing the two cars. When I finally made my choice, I still had some minor point I had questions on. we were sitting there with the filled in contract (unsigned) going through the numbers and making sure I knew where the numbers come from, and asking all those little questions. When questions were dismissed as this is standard contract no big deal no need to understand I offered to walk away from the deal. All in all I ended up talking to 3 finance people, multiple trips and walking away from the deal table on several occassions.

 

Did i want to walk away with a nice car from day 1? You bet!  There truely is something intoxicating about a new car smell. But being an adult is asking the hard questions and doing the hard work because it is noone elses job to do so for you. Now I am enjoying the new car smell, and several thousand dollars in my pockets.

 

"That being said, i'm not saying it's ok to not read any contracts. Do read them. However it's not as easy as it may seem to be for everyone, especially older people."

 

I never said it was easy.  It sure is nice when life is easy but in general for the average person life is hard. However stuff being hard is no excuses to not even try to do the right thing. There is simply no way one can try to read the lease contract and fail to see the insurance provision. It really is the one thing on the terms and conditions that is capitalized and bolded. 

Message 12 of 30
enharu
Super Contributor

Re: Lease contract termination due to insurance policy?

I'm not defending people who do not read their contracts. It's wrong, but it happens.

 

Older people are especially vulnerable to this. When your eyesight is failing, it's just not as easy to read. I'm not talking about auto leases contracts only. A lot of the elderly are also born in an era where a lot of these financial products and laws didn't exist. They don't know what laws protect them and what their rights are.

 

It's not acceptable to be uneducated at this age, but education wasn't made compulsory back in the day. It was legal for kids to be working in factories then. When you don't have an education foundation, it's even harder to build anything on top of it.

 

Thus, laws are implemented against predatory lending. However, it still happens.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 13 of 30
StartingOver10
Moderator Emerita

Re: Lease contract termination due to insurance policy?


@enharu wrote:

I'm not defending people who do not read their contracts. It's wrong, but it happens.

 

Older people are especially vulnerable to this. When your eyesight is failing, it's just not as easy to read. I'm not talking about auto leases contracts only. A lot of the elderly are also born in an era where a lot of these financial products and laws didn't exist. They don't know what laws protect them and what their rights are.

 

It's not acceptable to be uneducated at this age, but education wasn't made compulsory back in the day. It was legal for kids to be working in factories then. When you don't have an education foundation, it's even harder to build anything on top of it.

 

Thus, laws are implemented against predatory lending. However, it still happens.

 


I think the post above by adeli your post is awsome. 

We have to stop making excuses for not behaving responsibly.

 

And if one's eyesight is so bad that reading a contract is hard, then that person ought not to be buying and driving a vehicle anyway!

 

 

Message 14 of 30
Creditaddict
Legendary Contributor

Re: Lease contract termination due to insurance policy?

I think all these excuses about contracts would be possibly fitting if it wasn't for the fact that we are talking about INSURANCE requirements for a car loan/lease and this is not built into the contract where you might miss it... it is actually an entire single page all by itself that says you understand/agree to carry xx coverages on your auto insurance during the duration of the lease or purchase!

EVEN if the finance manager is trying to brush past things and not explain things well... it's the simplest form you are signing and says insurance something rather right on the top!!

I have bought cars in at least 4 states and EVERY state had a very similar form as part of the doc signing processes and it's always been on it's own single piece of paper.

There are a few states that allow you to leave with the car with your current insurance with the agreement that you are going to add the new car to the policy and get the coverages but many states require you to get the insurance before you leave the dealership.

Message 15 of 30
RushXTC
Established Contributor

Re: Lease contract termination due to insurance policy?

My sister ended up trading for negative equity, She bought a 2015 Honda Civic, Rolled over about $15,000 into the new loan, She can indeed afford the higher car note + highest coverage, But does she want to? No.

 

Same with me, I can afford to have the highest coverage for my 2013 Mustang Convertible, But I choose the minimum for full coverage and use the rest of my free money on modifying my vehicle. ($15,000 into it). I know 90% of the users here make more than us together, But my point is, Just because we can afford it, Doesn't mean we HAVE to.

 

So go for it, bash me. Smiley Wink

Message 16 of 30
RushXTC
Established Contributor

Re: Lease contract termination due to insurance policy?


@Creditaddict wrote:

I think all these excuses about contracts would be possibly fitting if it wasn't for the fact that we are talking about INSURANCE requirements for a car loan/lease and this is not built into the contract where you might miss it... it is actually an entire single page all by itself that says you understand/agree to carry xx coverages on your auto insurance during the duration of the lease or purchase!

EVEN if the finance manager is trying to brush past things and not explain things well... it's the simplest form you are signing and says insurance something rather right on the top!!

I have bought cars in at least 4 states and EVERY state had a very similar form as part of the doc signing processes and it's always been on it's own single piece of paper.

There are a few states that allow you to leave with the car with your current insurance with the agreement that you are going to add the new car to the policy and get the coverages but many states require you to get the insurance before you leave the dealership.


 

I read the contract, The coverage was a small portion of the back page, Mixed in with a bunch of more stuff. So not really.

Message 17 of 30
Creditaddict
Legendary Contributor

Re: Lease contract termination due to insurance policy?


@RushXTC wrote:

My sister ended up trading for negative equity, She bought a 2015 Honda Civic, Rolled over about $15,000 into the new loan, She can indeed afford the higher car note + highest coverage, But does she want to? No.

 

Same with me, I can afford to have the highest coverage for my 2013 Mustang Convertible, But I choose the minimum for full coverage and use the rest of my free money on modifying my vehicle. ($15,000 into it). I know 90% of the users here make more than us together, But my point is, Just because we can afford it, Doesn't mean we HAVE to.

 

So go for it, bash me. Smiley Wink


im out on this post.... it's worse than politics.

Message 18 of 30
RushXTC
Established Contributor

Re: Lease contract termination due to insurance policy?


@Creditaddict wrote:

@RushXTC wrote:

My sister ended up trading for negative equity, She bought a 2015 Honda Civic, Rolled over about $15,000 into the new loan, She can indeed afford the higher car note + highest coverage, But does she want to? No.

 

Same with me, I can afford to have the highest coverage for my 2013 Mustang Convertible, But I choose the minimum for full coverage and use the rest of my free money on modifying my vehicle. ($15,000 into it). I know 90% of the users here make more than us together, But my point is, Just because we can afford it, Doesn't mean we HAVE to.

 

So go for it, bash me. Smiley Wink


im out on this post.... it's worse than politics.


Definitely! =P

Message 19 of 30
Anonymous
Not applicable

Re: Lease contract termination due to insurance policy?


@RushXTC wrote:

My sister ended up trading for negative equity, She bought a 2015 Honda Civic, Rolled over about $15,000 into the new loan, She can indeed afford the higher car note + highest coverage, But does she want to? No.

 

Same with me, I can afford to have the highest coverage for my 2013 Mustang Convertible, But I choose the minimum for full coverage and use the rest of my free money on modifying my vehicle. ($15,000 into it). I know 90% of the users here make more than us together, But my point is, Just because we can afford it, Doesn't mean we HAVE to.

 

So go for it, bash me. Smiley Wink


Yikes. So how much are her monthly payments now? She preferred adding 15k in negative equity than increasing her coverage?

 

If she did increase her coverage, how much exta would that have cost her per year?

Message 20 of 30
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