Question from a reader:
I have a 5-year contract for a Toyota car lease, and this month, two leases are expiring. When I applied for the next lease vehicle six months ago, I was informed that there was an outstanding balance of about 520,000 yen for both vehicles combined. I was told that I could not proceed with a new lease
under these circumstances, so I reluctantly decided to pay the outstanding balance by the expiration date. As a result, I ended up re-leasing my current vehicle. Upon checking my bank statement for the withdrawals since the lease began, I discovered that there had been no withdrawals for about four months. During that time, I received no reminders about the outstanding balance. I heard that the person in charge had left the company a few years ago and that there had been some scandals during that time. Since the beginning of this year, sales have been tough, and I haven’t had the means to pay the outstanding balance. I suggested a payment plan, but my supervisor did not approve it. In the end, I had to borrow money from my eldest son to pay the outstanding balance. I will pay what I owe, but I feel very down about having to borrow money from my son. Without a car, I cannot work or live, and I have a vehicle inspection coming up next week. What do you all think about this situation?

Issues with Car Lease Contracts and Outstanding Balances

Recently, a reader sent in a question regarding Toyota’s car lease. The content revealed that they discovered an outstanding balance just before the lease contract was set to end and were struggling to address it. While a lease agreement may appear to be a straightforward transaction, it often involves complex issues intertwined with legal aspects and psychological stress. This time, I would like to consider this case from both legal and psychological perspectives.

Understanding the Basics of Car Lease Contracts

First, let’s clarify what a car lease contract is. A car lease is an agreement to rent a vehicle for a specified period, typically paid for through monthly lease payments. When the contract period ends, you have the option to return the vehicle or re-lease it. The main appeal of a lease contract is that it requires a low initial investment, and the total costs, including vehicle maintenance and insurance, are clear. However, there are many points to be cautious about in a lease contract. In particular, if there are outstanding balances or if payments are delayed, it can affect the renewal of the contract or the establishment of a new contract. This is the issue the reader is currently facing.

The Impact of Outstanding Balances

The reader was informed of the outstanding balance and ultimately had no choice but to pay it in order to enter into a new lease agreement. What is crucial here is the timeline of events following the emergence of the outstanding balance. It is highly unusual that there were no reminders for four months despite the lack of withdrawals. Typically, financial institutions and leasing companies will issue reminders promptly when an outstanding balance occurs. This is because ignoring outstanding balances poses a risk to the company, and addressing the issue quickly can minimize problems. However, it is also possible that the company’s internal structure and scandals that occurred after the representative left have impacted this situation.

Legal Perspective Analysis

Now, let’s consider this from a legal perspective. While the reader does indeed have an obligation to pay the outstanding balance, if there was a lack of transparency and proper management of the contract, issues should be raised from a consumer protection standpoint. For instance, being forced to enter into a new lease agreement without being informed of the outstanding balance could be seen as undue pressure. Additionally, the rejection of the proposed payment plan is concerning. Legally, leasing companies are obligated to consider the customer’s situation and respond flexibly. Especially in cases where payment is difficult due to economic reasons, offering a payment plan can help the customer continue making payments.

Psychological Aspects and Stress Management

Next, let’s touch on the psychological aspects. It is natural for anyone facing this situation to experience increased stress and anxiety. It is understandable that the reader feels down about having to borrow money from their son to pay the outstanding balance. Financial issues can sometimes create rifts in relationships. Feeling guilty or self-loathing for placing a burden on family is unavoidable. However, what is important is how to rebuild oneself through this experience. To alleviate psychological burdens, discussing the situation with trusted friends or family can be effective.

Future Measures and Suggestions

Now, let’s consider future measures. First, if there are any uncertainties or concerns regarding the lease contract, it is essential to confirm them with the representative as soon as possible. Keeping records of any issues can help protect your position. Next, it is also necessary to reassess future payments. Depending on the industry, it may be possible to review or renegotiate the lease contract, so it is important to find an appropriate payment plan without overextending oneself. Finally, if the current car lease feels financially burdensome, considering alternative means of transportation can be a viable option. Public transportation, car sharing, and taxis are all surprisingly abundant choices. Finding a method that suits your lifestyle may help alleviate some of the burden.

Conclusion

Car lease contracts are convenient, but they can sometimes lead to trouble. When outstanding balances arise, appropriate responses are required from both legal and consumer protection perspectives. Additionally, support from those around you and self-care for your mental health are crucial in managing psychological stress. I sincerely hope that the reader’s future life becomes a little easier. You surely have the strength to overcome difficult situations.