I leased an Xb. Typical experience, I had a monthly cost limit, as the car is a company car. In order to reduce monthly payments, I traded in my old car and used that value a a cap reduction to bring the monthly payments down to where I needed them to be. Also, because I drive quite alot, I purchase extra miles on the lease deal.

I signed the contract, so did the dealer, and, I thought it was a done deal!!

TWO months later (today), I get a call from the dealer saying Toytoa financial won't do the deal because the residual value was too high and the dealer waved the security deposit, which Toyota financial wasn't willing to go along with. Basicly, the problems seems to come down to the fact that the dealer miscalculated the extra miles and didn't charge enough for them....the way to fix that is to lower the resid and increase the monthly payments. They now want me to give them $450 for security depo and increase the monthly payments by $45 to cover the lowered residual...OR, they say, I can give them the car back.

Of course they no longer have my tradein vehicle, and I have 4,000 miles on the Xb, so, How would the giving the car back work, exactly????

The dealer said they tried to just "write a check" for the difference, but Toyota finacial wouldn't accept that because it would screw up the "fixed- price" concept of Scion.

I'm looking for advise, from those who know more about this than I. Can I (should I) say "up yours, your mistake, figure it out" or what?

For now, my dealer shall remain "nameless" at least until such time as I get angry enough to start a payback campaign (if it comes to that)

Any suggestions? (Oh,...and sorry for the loooooonnnng post)
Thanks.

Wow. When I used to sell cars the dealership was given a specific set of criteria to adhere to when issuing credit in case the banks were unreachable, like on holidays and late hours. Because of this they usually have something in the contract that lets them 'cancel' the deal within a set period of time from the purchase date in case the bank does not issue credit. The person that bought the car in that case has no option but to return the car. I think in Virginia, where I live, it is 10 days. Your dealership has had 2 months to figure this out and is just now contacting you. You REALLY need to read EVERY line of your contract to see how much time was built into the contract for them to do this. If they contacted you after that time then the dealer is SOL. If for some reason you are still within the 'grace period' then I would contact a lawyer.

The dealership may very well have made a mistake, but the mistake was theirs, not yours. They may be doing nothing more than trying a little gentle persuasion. Call some other car dealers in your state and find out what the 'dealer cancellation' period is for leases and find out what the laws are in your state. Post what you find.

Good luck

OMAC

tell them you want your old car and bring the xb back, make sure you get trade in value for whatever you traded in as they probably do not have it now obviously.

yeah 2 months is way long.. it should be that they are sol. but if not do like oki said and say that no matter what you are only giving them the car back if they give u yer old car back or the amount that they gave you for trade on it. no less. sounds like they made a big boo boo

Wow. $15k over 5 years at the market low finance rates is a low monthly payment. I don't know what limit you have, but wow.

Anyhow, that sounds like a total dealer scam. As other posters said check the contract, and ask other dealers about that just to confirm. Sounds similar to this (tho details are obviously different):
Dealer scam linky (http://www.carbuyingtips.com/scams.htm?x=0tekxgl_eoyyqkz_ttky3&y=0x40#Scam2)

it amazes me how dealers try to pull this crap. if it was their mistake, they should pay for it. dont let them push you around.

Okay I have been thinking about this a little more and would like to add something. I can understand the clause in a contract that stipulates you must return a vehicle because you cannot be financed, but as you describe the problem, Toyota Financial is saying they are not going to honor the contract because they are not making enough money, or are losing money, on the deal. That is a pretty $h!tty reason to come back to you two months later and try to renegotiate. Believe me, when you sit down and sign the paperwork they run EVERYTHING through a computer, and they take the time to point out to YOU how much finance charges you are paying over the life of the vehicle and what the total payments are. The same computer also tells the dealer how much money they are making on the deal, but they don't tell you that.

Have you heard from Toyota Financial on this or just the dealer?

Have you gotten any kind of lease payment book from Toyota Financial OR have you made any payments on the lease yet?

It sounds like the dealer is trying to renegotitate the deal. Any contract can be cancelled and another one worked out if BOTH parties agree to it, but for them to approach you two months after the deal has been inked trying to get you to agree to a down payment AND a higher monthly payment is no reason to redo this contract. They made this problem let them sort it out. Whatever you do DO NOT let this dealer scam you into another contract.

And don't be afraid to post the name of the dealer here to warn potential buyers about this problem.

Something a little similar happened to me several years ago. Got a lease on a new vehicle and traded in my old one. About a month later they call and asked me to come by. They told me they overvalued my trade in and needed another $4000!!! I already felt that I paid too much for the car and that they were typical shady car sales guys. So they treid to convince me that a little more a month wouldn't be bad. I just needed ot make a new contract. Luckily they still had my trade in. In the end, I gave back the car and told them to shove it. I drove a new car for a month for free. That's how I look at it. It was too much cost for me at the time. I had to learn a lot the hard way. It was a very humbling experince. And they really dragged it out after I got my trade in back. They wouldn't finance it again for me . So no car payments for about three months. Be careful and remember all car dealers are dirty crooks!!! With the exception of the wonderful Scion dealers that read this forum of course! ;)

just to let you know the dealers cannot do that it is illegal they tried to do that to me and i said no and no and no that was it.....i saw a story on it on tv on local fox channel this is just a way for them to get more out of you and make it seem you have no other options....i'd tell them to go stuff it somewhere before you start calling and complaining thats bad practice

A had a dealer in NJ Bob Ciaulli try this on me on a Avalon XLS. I had no trade put 2,000 miles on the car, returned it and bought another else where.......You have a contract if you have not breached it and they for which both parties have recieved consideration. If they did not notify within a reasonable time or in a time stated in the contract they have breached it. They are compeled to performance of the contract. Stand your ground

Thanks for all the really good advise, so far. I've been thinking about it more, too and I like the "contract" concept. (as it is a company lease car, I can't look at the contract until ,Monday, when our financial guy is in the office)

To give some answers to questions you have asked...I haven't heard from Toyota financial, only the "ASSISTANT sale manager" at the dealer. I asked if he had talked to his boss and got a pretty evasive answer.

I'm thinking this guy is just trying to save his job (if he really screwed up the way he says)

I haven't received a payment book, nor made any payments...which I was pretty curious about.....I guess this explains that!!!!

Monday, I'll check the lease contract, especially relative to dealer cancellation rights, and if they are whacked on that, I am going to tell them to forget it and to let me know who, and when, to make my "old" monthly payments to. (I'm guessing it may not be Toyota financial, but the the assistant sales manager himself,...LOL!!

One last thought....since the dealer told me they were willing to pay the difference to Toyota, but it they wouldn't allow that because of the fixed price Scion thing....why couldn't they just tell Toyota they gave me a larger allowance for my tradein and make it work that way???

Thanks, again for all the good advice...

I would contact a local TV Station that does consumer watch stories and see if they would help you out. It's funny how companies squirm when they have a camera in there face.

I have a similar story except the dealer told me that toyota wouldn't finalize the deal so they gave me an extra $1500 for my trade in which lowered my monthly payments by about $30.00. He didn't seem to happy when i went back in to sign the new papers, but that's thier own fault. ha ha.

Aaron :D

Same thing happen to me years back. I learned that in the state of Calif. a new car must be financed within 1 month of time of sale. If not, the contract becomes void and the car must be returned or a new contarct made up.

I reported my problem to the DMV to see what my rights were and they directed me to the right people. In the long run, the dealer only wanted to sell you the car. 98% of the people will end up keeping the car and the dealers know this. Return the car.

In my case, I was lucky and my credit union ended up giving me a loan right on the spot after I told them my story. In the end, I got even with the dealer. Being I paid the dealer in full with the Credit Union check, the dealer sent the pink slip to my home in error rather then to my credit union. My credit union was requesting the pink slip from the dealer. Dealer requested the pink slip from me. I said I never got it! he,he,he.
Besides, I wasn't going to hand over the pink slip to the dealer.

Good Luck!

Just a note, this is an old scam and has been shown on TV many, many, times.

I've seen it done, too. Lots of times they tell you they've sold your car and it's really sitting in the back of their lot.

Anyway, short version of the story is, contact the home office, toyota finance, everyone. Tape all calls, have all leters cetified, everything in writing and notorized.

Also inform them that your company is going to have a lawyer go over the paperwork and see who has liability on this.

They're trying to screw you and had this planned. It's almost as old as the bait-and-switch tactic and it's harder to get out of as you are afraid of not having a car when done.

IMO, I'd tell them that nothing is changing, at all. And they will need to take you to court for it. They are not getting the car back, they aren't getting any more money and if they put any marks on your credit you're going to sue them.

just go back to the dealer givem the keys tell them you want your deposit back beleve me they WILL find you a loan they
do not want your xb back and if they dont comply small claims court should clear anything up they will fold like a map if you show them that you are more than happy to bring
back a USED car he he he dont worry stay strong you will prevail in this sitiation

Coming from a dealer-the dealership should fix thier error-nuf said

marcelino

pure price is pretty staight forward-it seems that they were fudging some numbers and got caught.

in worst case scenarios the gm of the dealership will "co sign " the loan to get them out of the jam they ceated
if you tell this to the finiance guy or gal they will think you know what you are talking about and possibly soil themselves when they have to ask their gm to do this it happens all the time

btw if you have not complaned to the dealer yet first call toyota cust care explain your situation then wait for the dealer to call you by that time they will b kissing your a..