I have seen car dealers advertise 39 month leases. Whats the deal?
Some Banks/Credit Unions allow dealers to advertise and write “Odd term Leases”, like 39 or 42 months. Although it allows for a slightly lower payment, the Banks/Credit Unions are counting on the customer, when they receive their bill for their license plates at the end of 36 months, not wanting to renew their plates and only get 3 months use of the renewal. If the customer terminates the lease early to avoid paying the license fees, this lets the bank off of the hook for guaranteeing the residual value. When the customer understands this before entering into the lease, they will rarely opt for an “Odd Term Lease”. Because we explain this to our clients, we write virtually no “Odd Term Leases”. Back to the Top…
