Believe it or not, common practice. Manufacturers used to look the other way, just take the car back. Perhaps at that time, using they're own $ to subvent the rates. Well it cost some manufactuers, (like Chrysler with their mid-nities bought up residuals and low rates) millions. So what happens? the banks stepped in to do it better. If you've leased I would recommend taking the vehicle into the dealer and asking for a lease-end assessment a few months before turning it in. If it comes out that your going to owe big $ maybe you can work out a deal with that dealership or another to take your car now. The negative equity can then be rolled into the next. Perhaps they're willing to give you some good coin on the trade to sell the new. Never know. See what they say and ask them to be honest. Find a dealer group that owns multipule stores including your brand. You can basically trade the car in at any of the dealers stores, and they will send it back to Hyundai, or buy it for the used car dept. Few months out and want to know your buyout? Grab your contract, take your residal and add the number of payments left and your there. Don't forget about your security if you put one. Every dealership has a template given to them by the finance company taking the car back. Your problem had nothing to do with Hyundai Canada, and everything to do with Financial Lynx. That Hyundai had the right price when you bought it. That "right price" has to come from somewhere. Many manufacturers use third party financing sources to provide subvented rates. Ie. Use a bank operating as "X" company to provide lease rates lower than prime to encourage customers to enter the buying cycle. The subvention $ is built into the price of the car you buy. It's basically advertising $ used to show you a low lease rate. That company makes the money interest that is being bought down. You ever hear the phrase "no such thing as a free lunch" well they're really isn't 0% financing. The consumer is paying for it. If the banks offered standard interest rates, and no subvented finance corp's existed, cars would be cheaper plain and simple. But, strong marketing creates strong markets so we have what we have. Have you ever heard of a bank in Canada losing $ lately? Well do you really think the captive finance company who owns the loan/lease on your car really gives a sh*t if you buy another Hyundai or do they care more about losing $1 at the auctions. I think we both know the answer. Caveat Emptor, and your Johnny H is at the bottom of the contract. Hyundai doesn't car either because of economies of scale. How much marketshare has Hyundai gained in the past 4 years? What should be mentioned is that what goes up must come down, and it looks like a bubble is about to burst. Leasing seems to have fallen out of favour with many people for exactly the same reason. So what's a manufacturer to do? Well, leasing rates go up, finance rates come down and the consumer buys their next car and swears never to lease again, but as the bull market turns bear and interest rates rise, consumer spending will decrease but the auto market soliders forth. We now are in a payment driven society, and if it's payments we need, the banks will find a way for us to buy. Oh and another thing, I made reference to the fact in another thread that the lease is still the sole resonsibility of the orginal leasee even if it is transfered to a new party and that party has done a credit ap. Well some places true, others no. Read your contract carefully, they're is a Caveat that asks you to get a written release. You are then absolved. Remember that the bank would prefer it if the paper trail was as long as possible. The original leasee is on the original document and without a waiver from the finance co. stating that your absolved, they will come after you first. On a side note, it would also not be wise to withhold paying lease-end charges when you get the letter. It may say Hyundai Canada Credit or Subaru Canada Credit at the top, but those are just operating co's. You are actually withholding payment on loan's due to a bank. No different from skipping mortgage payments/Visa bills because your mad at your bank. Bad Idea. They will send it to a collection agency, and they can place a lien on you. You may have the best credit in the world and believe you've been wronged, and decide to withhold payment until that company sorts it out, the bank won't and credit you've taken a lifetime to build will be destroyed. I have some friends in one of these captive finance co's and they have told me this is happening more and more (lease-end charges) and people with great credit and jobs ignore it, until they get an R9 on they're record. Would a bank care about this? Not really, why? Because now you don't qualify for 0%, only high interest loans. Vicious circle. Sorry to be so cynical, I would hate to see a good person's credit go down the tubes over this so I thought I would rant. Sorry
