Automotive

Can dealer change lease rate on lease agreement?

  • Last Updated:
  • Feb 28th, 2018 9:29 am
[OP]
Member
User avatar
Nov 27, 2003
337 posts
9 upvotes
Richmond Hill

Can dealer change lease rate on lease agreement?

If I signed the motor vehicle lease agreement back on Nov. 2017, and now when the car is ready, can they increase the lease rate from 3.99% to 4.99%? And update other information on the lease agreement?

I signed the lease agreement for my Hyundai ioniq electric back in Nov. 2017 with a clause on subject to test drive. Finally the car arrived and I test drived it last Sat. I am happy to buy it and I asked them to check and see if there is anything changed on my agreement. They printed a page showing that everything's are roughly the same (rate changed from 3.99% to 3.98%, but they added the wheel lock so that the payment is still roughly the same. The ppsa increased $8.) and we arranged to pick up the car next Saturday.

However on Monday, the sale manager told me that they have to increase the rate from 3.99% to 4.99% (this is the new rate as posted on Hyundai web site), and they updated the residual value (from 30% to 33%) so that the payment will remain the same.

Are they allow to do that? I actually asked them when I sign the agreement and they told me that I could keep my rate even when the rate increase, but I didn't get that in writing and it was a different manager.

The same payment amount looks like there is no impact to me, until I actually want to buy it back at the end of the lease. I will be paying the difference.

They said they could only protect the rate if it is a finance instead of lease.. I started to have a feeling that they want to sell my car to other buyer with a higher profit instead..
3 replies
Deal Expert
Aug 22, 2011
30384 posts
16224 upvotes
Ottawa
I'm thinking yes.
Considering you as the buyer can take advantage of any new promos up to the date of delivery.
Sr. Member
User avatar
Jun 20, 2015
526 posts
131 upvotes
Place
I would read the lease agreement that you signed.
But at least your monthly payments are still the same and who knows, you may even just return the vehicle in the end rather than buying it.
Good luck!

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