A New York City woman who just finished 36 monthly payments on a Jeep lease says the bank told her she could still owe thousands of dollars after she hands back the keys. The bank explained that it would send the vehicle to auction after her lease expires, and if the car sells for less than its projected value, she is on the hook for the difference.<\/p>\n
Commenters with industry experience say the claim doesn\u2019t match how a standard consumer lease works, and several urged her to get a lawyer.<\/p>\n
Carmela (@carmelaa666), a hair stylist in New York City, posted the one-minute, 21-second TikTok with on-screen text reading,\u00a0 \u201cCar leasing IM CONFUSED.\u201d The video has drawn thousands of views and a flood of replies from self-identified car salespeople, lease brokers and former Jeep employees, nearly all of whom told her something is wrong.<\/p>\n
\u201cThe Bank Can\u2019t Lose Out On Money\u201d<\/p>\n
Carmela says she leased a brand-new Jeep with zero miles from a dealership on a 36-month term through Stellantis<\/a>, the parent company\u2019s financial services arm. Her lease matures on June 6 and she has made all her payments. She also says the bank actually charged her for 37 months rather than 36.<\/p>\n She says a representative told her that after the lease ends, the bank will take the car to auction.<\/p>\n \u201cIf the bank values the car at $35,000, and we bring it to auction, once I\u2019m done with my contract, with my lease, and they only sell it for $30,000, you owe that $5,000, because the bank can\u2019t lose out on money,\u201d she says, relaying the example she was given. \u201cWhat are we talking about? I\u2019ve never heard that in my life.\u201d<\/p>\n Carmela says she understands she owes for excess mileage and wear and tear, and is willing to pay those. She also mentions a fee for not re-leasing with Jeep<\/a>. What she disputes is the idea that she bears the risk of the vehicle not selling for its projected value at auction after her contract ends.<\/p>\n Open-End vs Closed-End Leases<\/p>\n The distinction viewers kept circling back to is whether Carmela signed an open-end or a closed-end lease. The two types work very differently when you turn in the vehicle.<\/p>\n In a closed-end lease<\/a>, the standard arrangement for consumer car leases in the US, the leasing company bears the depreciation risk. You return the car, pay for excess mileage and wear, and walk away. The residual value is the lessor\u2019s problem.<\/p>\n In an open-end lease, the lessee is responsible for any gap between the vehicle\u2019s projected residual value and what it actually fetches when sold. Open-end leases are more common<\/a> in commercial fleet arrangements than in consumer deals. They do exist for individual customers, but several commenters with dealership experience said they would be unusual<\/a> on a standard Jeep retail lease.<\/p>\n