Quote:
Originally Posted by The HACK
I took their advice and read the contract, and noticed a small clause on the back side that says "Death Clause." That upon death GM Financial can terminate the contract if there are no other signees on the contract.
It doesn't say "will." It says "can." They make it easy for the dealership, if they so chose, to collect a termination fee. If no one reads the contract, then yeah, the dealership stands to make $$$.
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I'm still not sure why everyone thinks the dealership is making out on these transactions. In our case, we had no option to buy the car from the client's estate beyond paying the same amount they would have to. Even on a repossession BMW has to sell the car at auction to determine fair value and then deduct that from what the owner owed. BMW was making that offer to the estates in our cases, that they'd appraise the car and then auction it. I'm confident even the Chevy dealer doesn't control who can take advantage of the death clause. How do you think they profit if the deceased's family doesn't read the contract? The car belongs to GM, not the dealership.
In no case does the dealership profit from such transactions. And, yes, I personally checked the BMW contracts for the daughter of my last deceased customer as I sent a copy to their attorney. There was no death clause. If you total the leased car, the included GAP coverage pays off the lease. If you die, your estate remains responsible for the unpaid balance. The dealership has nothing to do with the transaction.