Automakers Prevent Consumers from Selling Leased Cars to Third Parties During Car Lease Buyout
Policy changes suggest manufacturers are attempting to take advantage of higher market value
McCune Law Group, (MLG) is investigating the need to bring a lawsuit over newly implemented restrictions to a lessee’s right to buyout their car lease put forth by manufacturers like Honda, GM, and more. Lessees were previously able to sell to third parties and use the profits to pay off the buyout amount on their car lease. However, due to shortages in new vehicle parts and low stock on dealership lots, manufacturers are beginning to force lessees to buyout the lease directly or return the vehicle to the dealership. This prevents consumers from participating in the free market and receiving market value for their vehicles. If you are a lessee who wants to buyout your car lease but can only do so directly, contact MLG today!
Have you been prevented from selling your leased car to a third party?
Automakers Restrict Consumer Car Lease Buyout Options
McCune Law Group (MLG) is investigating the need to bring legal action over a movement across major auto manufacturers like Honda, GM, BMW, and others to prevent auto lessees from selling their car to third-parties when performing a lease buyout. Previously, at the end of a lease, a lessee could choose to return it to the original dealer, use it as a trade in with a different dealer, or buyout the car lease at its residual value. Most lease agreements allowed lessees to sell their vehicle to a third party and pass along the buyout amount to the manufacturer. However, with vehicle values shooting up, manufacturers have gone back on their years-long practices and are preventing consumers from getting their fair share.
Lessees Are No Longer Allowed to Participate in the Free Market
Due to the shortage of new car parts, the value of used vehicles has skyrocketed, placing lessees who wish to buyout their car lease in a favorable position. Lessees have been capitalizing on the scarce market by selling their car to car selling services, like Carvana or CarMax, or private buyers for market value which often is significantly more than the buyout amount. Lessees can then pay the manufacturer for the buyout and pocket the rest as profit, giving themselves a leg up on purchasing or leasing their next vehicle.
If you want to buyout your car lease but have been blocked from selling to Carvana or CarMax, contact us by filling out the form!
Auto Manufacturers Place Their Need for Stock and Profits Ahead of Consumers
In an apparent act of desperation, auto manufacturers are beginning to require lessees return the car to one of their certified dealerships or buyout the car lease directly. This is allegedly in an attempt to keep used vehicles which are now leasing and selling at much higher prices on their lots where they can reap the profits of increased values. Manufacturers also need more vehicles in stock to continuing making their bottom line. While rental car companies used to turn over older used models to dealerships once they received a new fleet, the shortage of new vehicles has prevented rental companies from letting go of their vehicles. Manufacturers’ desperation has led them to pursue new practices that infringe on a consumer’s right to sell to whomever they please. Policies like these seek to prevent consumers from engaging in the free market and force consumers to pass along profits to corporations.
If you have a car lease you wish to buyout and your auto manufacturer is preventing you from selling it for its market value, contact us by completing the form today!
Attorney Handling this Case
Joshua A. Genzuk specializes in Product Liability and catastrophic Personal Injury matters.
Prior to joining MLG, Joshua Genzuk worked as a trial attorney with a California law firm specializing in bad faith insurance claims, catastrophic personal injury, and product liability. In this role, Mr. Genzuk demonstrated great aptitude, boasting a history of successes with awards upwards of millions of dollars. Mr. Genzuk is a 2018 graduate of Loyola Law School in Los Angeles, CA where he received honors in negotiations and meditation advocacy. During his time at Loyola, he also was part of the International Chamber of Commerce Paris Mediation Competition, a prestigious competition pitting teams from law schools across the globe against each other. Following his graduation, Mr. Genzuk operated as an assistant trial attorney where he drafted motions, prepared trial witnesses, took expert testimonies, and managed his own caseload – a role which prepared him for his growing responsibility in the court room.
Mr. Genzuk has used his growing expertise during his school years to offer pro bono support for the Disability Legal Right Center where he ensured settlements and memoranda were in compliance with ADA requirements. This experience has shaped his practice and inspired his commitment to serving wronged consumers and underserved groups.