Just had my car repossessed by US Bank. I'm in PA and I was wondering what the chance was that they would actually let me reinstate my lease. My lease is due to expire in June 2004, so technically the amount that I owe until the remainder of the lease is about $3800. I was reading the net and it looks like in PA they have to give me 15 days before they sell off the car. I'm sure I could get some of the cash but not all of it. I wanted to buy out the lease but got turned down because of a few recent charge offs...one which wasnt even mine. Do you think anyone would ever write me a loan to pay off the balance and but out the car at its residual value? Please give me some good news.
Banks usually start calling you after you are 30 days late with your lease payment, after all they own the car, it is totally different from a finance. It's usually 90 days or more till the actual repossession call is made. It would seem to me that you were not communicating with US Bank at all. They have several special programs where they can extend your lease if you simply pay the interest charge on the lease payment on month and then pay the next month payment on time, so on and so forth until you are caught up. The last thing a bank wants to do is repossess the vehicle, they are obviously at a loss no matter what, and the chances of you paying after the repo are slim to none. It seems your only chance now is to come up with the past due payments, and the repo fee, and the next months payment, then contact US Bank with a valid reason why you got behind, and you might get lucky and get your leased car back. Just be forwarned 90 percent of lease repos don't ever get returned, where as 70 percent of financed cars get returned. You might be better off if you can get approved for a car loan now with the rebates, you could incorporate the balance of your lease payments into the new loan, providing that US Bank has not reported a repo on your credit reports yet, and still be ahead of the game, or if you are really playing a game, and think that banks are going to be nice to you, you are terribly mistaken.
You should double check your repo statutes to be sure that the redemption period allows you to simply pay the arrearage and not the balance of the lease. If you don't have it--and US Bank probably has a pretty good idea that you don't--they won't be interested in hearing anything other than "here's what I owe you". Your best bet, as was just mentioned, would probably be to let them sell the car so that their loss and your deficiency will be minimized. They're still going to come after you for the difference. They'll report it on your CR, and they'll most likely hire an attorney near you to sue for the deficiency. My advice--since I've been through this part--don't try to play hardball here unless you have evidence that the repo was unlawful or have good evidence that they offered to work with you while simultaneously repossessing the car. Instead, be up front with their attorney and tell them that you're in a tight one right now; you don't know when you can get above water; and if they try to break you on payments, that they'll end up getting nothing for their client.
