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Hyundai Lease-End Sales Higher Than Promised Class Action

Like many auto companies, Hyundai offers leases on its vehicles, and at the end of the lease term, it may allow the lessee to buy the vehicle. However, this class action alleges that lessees may be charged more for the vehicles than the amount specified in their lease contracts. It brings suit against Hyundai Capital America, which services leases, Hyundai Lease Titling Trust, which holds the leases, and Grieco Hyundai, LLC, which originated the lease and sometimes complete sales.

Five classes have been defined for this action, one for each of the counts of breach of contract, unfair and deceptive acts and practices, tortious interference with contract, unjust enrichment, and violations of the Consumer Leasing Act. Below is the class for breach of contract:

The class for this action is (1) all persons in the US (2) who leased vehicles (3) on a lease held by Hyundai Lease Titling Trust or serviced by Hyundai Capital America at its end (4) where the persons bought their vehicles at the end of the lease and (5) were charged more than the lease end purchase price, (6) where the lease ended on or after October 19, 2018.

See the complaint, linked below, for the definitions of the other classes.

Auto leases like the ones in this lawsuit are governed by the federal Consumer Leasing Act, the complaint claims, and sets forth some of the conditions and definitions for these leases. Under the Act, the complaint alleges, both Hyundai Capital America and Hyundai Lease Titling Trust are considered lessors.

The plaintiff in this case, Elsie Metcalfe, signed a lease for a 2019 Hyundai Elantra. It permitted her to buy the vehicle at the end for the vehicle’s “residual value” plus a “purchase option fee,” both of which were specified in the lease, along with any official fees, taxes, title fees, and registration fees.

As specified in the lease, Metcalfe’s vehicle’s residual value was $9,220.80 and the purchase option fee was $300, which adds up to $9,520.80.

At the end of the lease, Metcalfe decided to buy her vehicle, so she contacted Hyundai Capital, the complaint says, claiming that Hyundai Lease Titling Trust does not offer consumers a way to contact it. The complaint alleges Hyundai Capital America directed her to Grieco Hyundai. The complaint alleges that this direction to a dealer is normal for Hyundai Capital, which does not have facilities to handle off-lease vehicles. It also allows dealers to make money on things like extended warranties.

However, the complaint alleges that Grieco did not charge Metcalfe the amount specified in the lease agreement but $11,920, that is, an $11,520 purchase price and a $400 document fee.

The complaint alleges, “This type of markup is a common practice on the part of Hyundai Capital America, Hyundai Lease Titling Trust and Hyundai and Kia dealers.” It claims that consumers have made many complaints about the practice.

Article Type: Lawsuit
Topic: Contract

Most Recent Case Event

Hyundai Lease-End Sales Higher Than Promised Complaint

October 19, 2022

Like many auto companies, Hyundai offers leases on its vehicles, and at the end of the lease term, it may allow the lessee to buy the vehicle. However, this class action alleges that lessees may be charged more for the vehicles than the amount specified in their lease contracts. It brings suit against Hyundai Capital America, which services leases, Hyundai Lease Titling Trust, which holds the leases, and Grieco Hyundai, LLC, which originated the lease and sometimes complete sales.

Hyundai Lease-End Sales Higher Than Promised Complaint

Case Event History

Hyundai Lease-End Sales Higher Than Promised Complaint

October 19, 2022

Like many auto companies, Hyundai offers leases on its vehicles, and at the end of the lease term, it may allow the lessee to buy the vehicle. However, this class action alleges that lessees may be charged more for the vehicles than the amount specified in their lease contracts. It brings suit against Hyundai Capital America, which services leases, Hyundai Lease Titling Trust, which holds the leases, and Grieco Hyundai, LLC, which originated the lease and sometimes complete sales.

Hyundai Lease-End Sales Higher Than Promised Complaint
Tags: Additional charges in breach of contract, Breach of Contract, Leased Vehicles, Unjust Enrichment