Entering into new lease before end of existing lease

[samvic]

City: Miami
State: Florida

One of my co-worker encountering this situation. I am not sure whether this legal.

He leased a car and it is near the end of the term ( still 4 more months on it). The dealership said he can turn in the existing lease and enter into new lease. He returned the car and leased a new one. The Dealer is saying he still has to pay 4 more months on the old car which he does not even own. The Dealer even sold his old car already.

Let us know what legal option we have here.

 

[army judge]

Your friend leased a car for a period of time.

For illustrative purposes, let us say that it was 24 months.

In this case, he turned the car in after 20 months.

He still owes 4 months on the original lease, even though he leased another car.

He should have made sure that the dealer waived the remaining 4 months, before entering into a new lease.

It seems as if he didn't secure the waiver before entering into a new lease.

He might inquire about the waiver, or some forbearance on the remaining 4 months of the previous lease.

The dealer might accede to his request and waive 2 or 3 months of the old lease.

In fact, upon your friend's inquiry, it might be discovered that it is all a mistake.
Good luck...

 

[samvic]

Thank you for your quick reply. If he is responsible for paying another 4 months, he can keep the car right? So he asked his car back, but the dealer said it is sold already and he will not get his car back forcing him to pay. How can one make payment on a car that he doesn't even own any more? is it legal?

 

[army judge]

Thank you for your quick reply. If he is responsible for paying another 4 months, he can keep the car right? So he asked his car back, but the dealer said it is sold already and he will not get his car back forcing him to pay. How can one make payment on a car that he doesn't even own any more? is it legal?

He never owned the car.
He signed a lease to use the car for "X" months.
He returned the car 4 months before the expiration of the lease.
He is still LEGALLY obligated to pay for "X" months, even though he returned said car 4 months early.
His legal obligation did not end 4 months early.
The fact that the dealer has sold the car and can't return it to him works to his advantage.
He can do as I indicated in my prior post.
He can ask for forbearance on the 4 months he didn't use the car, especially since the dealer has mitigated their damages by selling the car!
You might inquire as to the specifics of Florida law on car leases.
The advice I gave you is based on common law.
Florida might have statutes that prohibit the dealer profiting as you describe.
It isn't equitable what happened to your friend.
It is legal, if no specific Florida statute doesn't speak to the contrary.