Leasing/Legal Question

"Party-vi" (party-vi)
11/17/2014 at 14:56 • Filed to: None

Firstly, a Carrera for your time.

My future brother-in-law (my fiancee's brother) previously leased a vehicle in TX with his then-fiancee (you can probably see where this is going). They split and he moved to MD. After being told by her parents that they would keep up the payments, it appears as if they have not, and it has gone unpaid since July (the last payment he made before they split.

My question is, how bad is his credit going to get hit if he pays the outstanding balance (missed payments) and the dealer performs a voluntary repossession of the vehicle? His only other option would be to have an acquaintance with an extra key pick up the vehicle with possibly some local PD help and drive it back to MD.

Does anyone have any insight on this situation?

Edit: His sister is my fiancee. He is the primary name on the lease with his ex as co-leasee. The lease occurred earlier this year. It is about 4 months behind in payments.

DISCUSSION (28)

505Turbeaux > Party-vi
11/17/2014 at 15:01

what is the paper trail on it? Does he have it in writing that the parents are going to satisfy the lease payments? Did they co sign, does it belong to both of them or just him?

MontegoMan562 is a Capri RS Owner > Party-vi
11/17/2014 at 15:02

your story is very confusing.

your future brother in law, so his fiance is your sister? are the parents in question your parents?

Also who's name is the truck in, that's the part that really truly matters in this ordeal.

If he paid off the lease and turned it back in I doubt his credit would be hit., but i'm kind of piecing this together.

RamblinRover Luxury-Yacht > MontegoMan562 is a Capri RS Owner
11/17/2014 at 15:05

His sister is PartyVI's squeeze, I think.

MontegoMan562 is a Capri RS Owner > RamblinRover Luxury-Yacht
11/17/2014 at 15:07

but

he said future brother in law, not my girlfriend's ex fiance

Party-vi > MontegoMan562 is a Capri RS Owner
11/17/2014 at 15:09

Future BIL as-in his sister is my fiancee, so once I marry her he will then become my BIL.

The truck is in His name first, she was a co-signer (intent was to have her drive it since she needed a vehicle).

He would pay the previously unpaid late invoices (4 months, around $1,200) and have the dealer voluntarily repossess it.

Party-vi > 505Turbeaux
11/17/2014 at 15:11

No paper trail as-far-as who is picking up the lease. Long story short she's a big ol' cunt. He is primary signatory, she is co-signer on the lease. It technically belongs to the leasing company.

Steve in Manhattan > Party-vi
11/17/2014 at 15:12

I had this precise problem with an ex. Camry wagon. She claimed she needed a wagon, so I let her drive that - I had intended to sell my car and drive it. She didn't make the payments. I think even if I'd gotten it in writing it still would have tanked my credit. I had to go to her house and 'repossess' the car myself. Cut a deal with the bank that had both car loans (fortunately) - sold my Mercedes at a slight loss, tacked that onto the Camry loan, caught the payments up, and just drove it.

RamblinRover Luxury-Yacht > MontegoMan562 is a Capri RS Owner
11/17/2014 at 15:12

Girlfriend's *brother's* ex-fiance.

Party-vi > Steve in Manhattan
11/17/2014 at 15:16

He's speaking with the dealership about it now but I think this is the direction he might go in.

MontegoMan562 is a Capri RS Owner > RamblinRover Luxury-Yacht
11/17/2014 at 15:17

they update helped a lot to following what's happening

E92M3 > Party-vi
11/17/2014 at 15:18

It's likely going to show as late payments since hes is more than 2 months behind.Which is much better than failure to pay, and repossession. This will affect both of their credit. Her parents were probably going to pay had she been able to still use the car. Since he took it with him, theres no incentive for them to pay besides saving her credit.

MontegoMan562 is a Capri RS Owner > Party-vi
11/17/2014 at 15:18

I getcha now!

So is there no way he could pay the back payments and get the vehicle back for himself?

Party-vi > E92M3
11/17/2014 at 15:22

He stated the grace period (hell of a grace period!) ends this Friday for the late payments. Also, the car is still in TX, as she has been driving it since they split.

505Turbeaux > Party-vi
11/17/2014 at 15:22

of course it does, I was wondering who was on the lease mainly. Sucks to be him, it is always on him unless he had some sort of formal agreement with the people who were supposed to pay for it. He probably has already taken a hit to his credit for it.

Party-vi > MontegoMan562 is a Capri RS Owner
11/17/2014 at 15:25

He could, but he's already paying on a 2013 Sonic and would probably rather not have another vehicle (already has a '05 Mustang GT his dad gave him). Like I said, it's probably going to be up to him to have a friend or transport company pick up the vehicle at her place and drive it up to MD.

Steve in Manhattan > Party-vi
11/17/2014 at 15:26

If I remember correctly, the bank called and said the loan was behind, and I paid it for two months before I finally went and got the thing.

Party-vi > 505Turbeaux
11/17/2014 at 15:27

It's a crap situation all-around for sure.

505Turbeaux > Party-vi
11/17/2014 at 15:28

totally, sucks for real.

JGrabowMSt > Party-vi
11/17/2014 at 15:30

Meh, rent a truck, rent a trailer, road trip. Take the damn car. Arrive with police.

Party-vi > JGrabowMSt
11/17/2014 at 15:36

Hrm. This might be an option.

JGrabowMSt > Party-vi
11/17/2014 at 15:40

Because they co-signed, it affects his credit a lot being that far behind. Their agreement for who pays what on the lease means nothing unless it was a legal contract. Verbal = irrelephant.

He should discuss what it would take to remove a co-signer from the lease, work out the payments, and potentially discuss returning the car early. If the car can't be returned early, he should talk to someone at either a dealer or a lawyers office about removing his name from the lease, and letting it be said ex-fiancee's problem.

I understand feelings change and whatnot, but he should have known better. Steve Lehto might have some insight, but it's not anything to do with Lemon Law, so his advice may be limited.

Party-vi > JGrabowMSt
11/17/2014 at 15:45

Don't I fucking know it. I would have never co-signed a car with his ex, but love makes people do stupid things.

JGrabowMSt > Party-vi
11/17/2014 at 15:55

I would have no problem buying something for my girlfriend, but I love her enough to know better than to cosign anything. I'd rather fight with a beater in the driveway every weekend than have the potential of falling behind on payments.

E92M3 > Party-vi
11/17/2014 at 16:23

My bad i thought I read he took it with him. I guess there's no chance she's going to assume the lease?

Party-vi > E92M3
11/17/2014 at 16:24

Eff-no she's an all-around terrible human being and waste of carbon.

jariten1781 > Party-vi
11/17/2014 at 16:33

The late payments won't effect his credit too bad once the situation is rectified (assuming it's either paid through the lease or turned in with penalty) however right now they will tank it since it's an outstanding delinquency. An involuntary repossession is a serious negative mark. If he's got enough liquidity, the best bet is to buy out the lease and sell the car privately, otherwise it's turn it in and eat the penalties.

In most states co-leasees have equal rights to possess the car. That means he can just go take it and she can just go take it back...cycling forever. There's no real way to just get out of it one sided...he'll have to contact her and work something out at obnoxious as that may be. It doesn't matter if he's paid every single cent, she'll retain the ability to just come randomly take it at any time. Also, if he takes it from a garage or private driveway he'll be guilty of trespassing (though not theft...weird how that works) and she could get the police involved. They won't do anything about the car, since they both have equal rights to it, but they can do something about them entering the property.

E92M3 > Party-vi
11/17/2014 at 16:36

In that case i would definitely have a friend jack it with the other set of keys.

Party-vi > jariten1781
11/17/2014 at 16:47

Thanks for the advice.