Partner FAQs

Q. Is the deficiency balance recoverable by the original lender?
A. No. The assumed deficiency is built into the price paid by LEAP.

Q. Is the original lender required to issue a 1099 to the borrower?
A. Yes. If the deficiency is waived, then the borrower may have a tax consequence.

Q. Will there be any future recourse against the original lender for credit performance?
A. No. The vehicle is sold “as is”.

Q. Are there any fees charged to the borrower for the transaction?
A. No. However, the borrower must make a security deposit on the lease.

Q. Is the lease term extended?
A. It depends. Often the term will be extended by 6 to 12 months, but never more than 12 months.

Q. Will LEAP require license and registration fees to be current?
A. Yes. However, LEAP will advance the fees as part of the transaction if necessary.

Q. How long will it take to close the transaction?
A. The transaction can be closed within 5 business days once the lender agrees to settle. This will depend on how quickly the borrower returns the paperwork and how quickly employment can be verified.

Q. How will repo storage fees be paid?
A. LEAP will finance the payment of reasonable storage fees on the repo lot (generally less than $300).