Ride-through lease millage charges??

[SleepWellNow]

OK...now that you're talking plowin' snow...we're difinitely NOT in the same state! It could be different states handle auto leases differently in BK.

I doubt we will buy the car at the end unless they accept less than the price stated in the lease agreement AND finance it. It may cost us approximately $1,500 for over-milage charges but that's better than over-paying thousands for a 3-year-old car (out of warranty and probably needing new tires!).

[ska]

I am debating on if I should reaffirm this lease. Granted they will take the car back, but I could probably go buy a truck right away and therefore have it for the winter and not get stuck into buying a car for 12K with 120K miles on it at the end of the lease period.

The paperwork I was sent does say "reaffirmation of lease" on it.

Being as I am still in the 60 day period waiting for discharge, I am kinda stuck not knowing if I would qualify for a decent truck to purchase. I don't think I can apply during this period. So it is a catch-22 situation. I paid 1300 last winter to plow my driveway, but with a truck I could do it myself and not pay that extra money.

I hate not knowing the right thing to do.

Oh, I know exactly how you feel!!! How far are you in the 60-day period? I waited until the last day to change my Statement of Intentions. I am now not assuming the lease. I changed this because I found out I could not get financed for the purchase of the vehicle. But, I can buy a used vehicle once my BK is discharged. Hopefully this week.

Take a little bit of time to consider your options, you can still change your Statement of Intentions up to the 120-day mark of filing.

[biotechsolution]

Thanks for the info My attorney mentioned that Ford and Chrysler tend to be VERY agrressive when it comes to car loans, they DO NOT allow "ride-thrus" and will reposses vehicles that are current if not reaffirmed. It was no suprise to read this petition and to find out it was FORD... I wonder if the other big lenders will follow suit and NOT allow ride-thrus? How does play out for those that are already discharged and didn't sign a reaffirmation agreement?

If you have a Ford loan I would contact Ford directly about 'ride-thru'.
I had a 60 months 0% interest loan 3 years into my BK. never reaffirmed, Ford said just keep paying.

Bonus was after the last payment they changed the loan from IIB to paid as agreed.

[MakinMeCrazy]

I'm sorry to ask this on someoneles' post BUT...we leased a mazda BUT we paid our lease in full at signing.....when we return it in APRIL it will be well over the mileage limit, this is my question...we plan to file in the end of MARCH 2010,,, the car is to be returned in APRIL 2010........does it seem possible that we could return it early in MARCH, get the bill for mileage and any wear and tear and then include that in our bankruptcy? we will not be driving in the winter at all........so the mileage that is on will be close to our ending mileage, I plan an oil change tune up next week so the mileage will show on the bill........I'm hoping the dealership will see that all extra miles were NOT put on right before we filed. I'm certain they will hit us up for not only mileage but new tires. everything else is like new.Is it possible to turn it in before our bankruptcy and claim the over mileage and "other" things they may charge us for?

[FreshStart01]

NoMoreCards,

The way you get around paying overage miles on a leased car is to trade the car in for another new or used car when you get to within a month or two of the end of your lease.This way hopefully you won't be upside down or at least close enough to your payoff amount.You can trade-in a leased car just like one you had purchased at any auto dealer or manufacturer (You don't have to wait till the end of your lease to trade it in.).I've done this numerous times.

[UpsideDown99]

NoMoreCards,

The way you get around paying overage miles on a leased car is to trade the car in for another new or used car when you get to within a month or two of the end of your lease.This way hopefully you won't be upside down or at least close enough to your payoff amount.You can trade-in a leased car just like one you had purchased at any auto dealer or manufacturer (You don't have to wait till the end of your lease to trade it in.).I've done this numerous times.

I think NMC issue is that they are not thinking they'll qualify for fiancing at the end of the term...with that new shiny BK verbage on their credit report.

NMC I say to follow the earlier advice, change your intent RIGHT AT THE END that way you will have your car long enough to get that truck after you're done. The truck is a better choice(climate wise) and It'll be cheaper in the long run. You'll be FORCED to buy the honda(if your milage is what you thought it would be in the OP), if you reaffirm it. Just my thoughts....

[NoMoreCards]

Thank you all for your replies. You have all given me things to consider.

I emailed my attorney last night, his response is as follows...
_______________
In my opinion, the decision isn't a difficult one. You should turn in the car and find a new one. You can legally incur more debt, and I think it's in your best interest to do so.
_______________
So it seems that I will be spending the weekend looking at vehicle options available.

So how long does it take (without a reaffirmation of a lease) for them to want it back? I am wondering how much time I might have to put this all together.

[UpsideDown99]

Working WITH them, it only took ours a couple of weeks to come get the trucks... If you simply ignore the reaffirmation and change your intent...then it could take months...

(If I were you, I'd simply ignore it for now... get the approval in the bag on the new vehicle....and THEN call Honda(or have your lawyer do it) to speed up the re-po as you will be legally liable to keep full coverage insurance on the Honda until its no longer in your possession. )