Vehicle loan or lease -- Problems at the end of the loan or lease -- Complaint #7587373
Complaint Overview
Complaint ID: 7587373
Company: Toyota Motor Credit Corporation
Product: Vehicle loan or lease
Sub-Product: Lease
Issue: Problems at the end of the loan or lease
Sub-Issue: Problem when attempting to purchase vehicle at the end of the lease
State: North Carolina
ZIP Code: 28227
Date Received: 2023-09-21T12:00:00-05:00
Date Sent to Company: 2023-09-21T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
My lease is financed through Mazda Financial Services ( MFS ) and the maturity date is in approximately XXXX days ( XX/XX/2023 ). As with many leases, per the contract, I have the option to purchase the vehicle at lease end for the amount specified on the contract ( plus applicable taxes ). On XX/XX/2023, I attempted to arrange the purchase of my lease on the maturity date directly through Mazda Financial Services. However, because my vehicle 's garaging address is in North Carolina ( based on my home address ), Mazda Financial will not allow me to purchase my lease through MFS and instead requires me to purchase my lease through a dealership. On XX/XX/2023, I contacted XXXX local dealerships ( one of which is where I initiated my lease ). I am not stating the names of the dealerships in this complaint for fear that they will refuse to allow me to buy out my lease. I will provide this information if I am reassured that the dealers can not retaliate. Dealership # XXXX will only facilitate a lease buyout if the lessee agrees to a vehicle certification, which costs {$2400.00}. This is in addition to a {$990.00} administrative fee. If I elect to not certify my vehicle, Dealership # XXXX will not facilitate the buyout. Dealership # XXXX charges a {$750.00} origination fee and does not require vehicle certification to facilitate a lease buyout. However, they do require customers to finance the lease buyout via the dealership, who will select the lender and initiate the loan origination process. If I want to pay in cash or obtain my own financing, Dealership # XXXX will not facilitate the lease buyout. As is evident from above, Mazda Financial 's requirement for dealers to facilitate all lease buyouts in North Carolina leads to additional fees above the agreed-upon contract price and is based entirely on dealer discretion ( i.e., no dealership is obligated to facilitate my buyout, and I must agree to one dealer 's terms if I want to buy out my lease ). Dealers are not financially motivated to dedicate time and effort to lease buyouts. Consequently, they resort to predatory behaviors, such as those listed above. I should be able to purchase my vehicle for the amount outlined in the contract.
Frequently Asked Questions
What is Complaint #7587373 about?
Complaint #7587373 was filed against Toyota Motor Credit Corporation regarding Vehicle loan or lease specifically about Problems at the end of the loan or lease. It was received by the CFPB on 2023-09-21T12:00:00-05:00.
How did Toyota Motor Credit Corporation respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Vehicle loan or lease) and describe your issue in detail.
Can I see other complaints against Toyota Motor Credit Corporation?
Yes, visit the Toyota Motor Credit Corporation company profile at readthecomplaint.com/company/toyota-motor-credit-corporation to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.