Lots of smart people here on this board and perhaps some with experience with this situation. Thank you in advance

What happens when a person leases a car and dies. The contract is under the person's name and because of death, payments are no longer being made.

Is the person or the estate responsible for the remaining payments?

What happens if the estate is dispersed prior to the car company making the claim? For example the automatic payment continues for a few months so the lease is still in good standing, but by the time the leasing company comes after the the lessor, there is really "nothing" to go after because payments were still made......

 

i'd look for some fine print on the lease, maybe there is a clause.

As with any debt though, the estate is responsible for the debt. Or the co-signer.

 

Need to file a death certificate. The executor/rix may be on the hook in some fashion.

 

Good question and I think the results might vary by state and/or lease agency. Here in FL when a friend died his wife simply called up the leasing agency. They took the truck back with no further obligations but it was in his name only. When I lease I make sure I am the only signee for that reason whether it holds up in the long haul or not. Wish I could provide a more secure answer but you probably have to check the above sources for GA info. Maybe somebody from there with the knowledge will chime in.

 

Creepy. You plan on killing your spouse or something? You know they can track all your shit on-line...

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ive always though they just repo the car.. after all it is a lease.. and your payments are up to date.

 

My condolences

 

Under the circumstance of death on a leased vehicle or any other property that has a lien here is how it goes from experience. Any debt is still debt until it is released by its lien holder. This means the bill must be paid. The executor of the estate has the responsibility of settling these debts either paid right out, through the courts or negotiations with the lien holder/lender. The debt won't just go away in most cases. If you let the lien holder/lender know asap that the borrower has died they will either set payment terms and/or abolish the debt as long as the property is in good shape and the borrower is in good standing. Sorry for your loss. This is a good thread because it could help others put things in order for a loved one and not feel the burden of their debt. Hope this helps.

 

I would imagine that Acura would just take the car back. They seem to have some pretty practical policies. For instance, I discovered that if I'm deployed overseas, I can just hand my car over to them without any penalty.

 

I would agree with others....I think that no further payments would be required once they are provided proof that the person leasing the vehicle has passed away. The only time I would think the estate would be responsible if if there is a delay from the time the person passes away and they get notified...say for example 2 months. Those 2 months where the vehicle would not be returned back to Acura, they could ask the estate to settle that amount, otherwise I would think they would not charge a penalty with the exception listed above and for any damage as a result of the lease.

As someone said...let me also extend my condolences as you are obviously dealing with someone close to you who is no longer with us....

 

You really should obtain a copy of the leasing contract and read the terms and conditions of the agreement when it was made.

 

Is you don't have anything smart to add, why even try.

This is for my mom who is in Florida and not doing well. Thank you to all of you for responding. This is something we will have to deal with. She leased a 2013 Hyundai Sonata back in November of last year. She's only put 2500 miles. Wish my kids were old enough to drive in order to assume the lease........

 

I was just thinking...if for sake of argument the person who leased the car passes, the lease can be assumed by another person (I think that's true).

My condolences to the OP

 

When a relative of mine passed away, his Honda lease was terminated, and the car was returned. The contract is between the lessor and lessee. If the lessee dies, the contract is voided. I checked with Acura and discovered that they have the same policy. It should be addressed somewhere in your contract. Best wishes to you and your family...

 

Thank you for all of your help..............and for your well wishes...

 

Best of luck to you and your mother for getting through a very difficult time.

 

yup.. predicted that.

 

OP -

Here is hoping things go well with your Mom. If you can get a copy of your Mom's lease, I'm pretty sure it will spell out what happens in case of death. I would like to think the lease terminates and the car is turned in, but the terms of lease will (should) spelll that out.

 

Hey OP, I wish your mom nothing but the best..

Try to stay strong..

 

Thank you for your well wishes........... Sad to see a love one in this position....

 

Hyundai takes such advantage of families in vulnerable situations and I've been fighting with them for months now.


My father (deceased in Sept 2014) leased a Hyundai in August 2013- $241 month. Being he was 85 at the time and in failing health he rarely drove the car.. When he passed away my sister and I went to the dealership and advised them - they didn't know how to address the issue of a deceased customer so they got the lease division on the speaker phone. We were advised 'that for deceased customers' (their exact words) all we were responsible for is the remaining lease payments (241/mo x 22 months = $5,302). They would pick up the car and auction it, and anything received above that would be considered 'a wash'. Fast forward to December 2014 - I received a statement from a collection agency that $5,573.24 is due!! They did a calculation based on the residual value of the car - rather than the remaining lease payments.

 

So did you or did you not pay the $5,302? Could you not keep the car until the lease expired?

 

My Dad's estate technically paid the $5302 when the car was auctioned - but now they're saying it's the residual value that's used in the calculation with the auction price- not the remaining lease payments. HUGE difference- the residual values was close to $18,000! If Hyundai had been honest after my fathers death I would have kept the car and paid the lease each month. But I'm certain Hyundai wanted to make the most money off the terminated lease. Never deal with Hyundai!!!!!!!!!!