Lease turn in question?

[buttersgt350]

My lease is up on my truck in March. I was going to turn it in but a guy i work with wants to buy it. So i thought i would buy it out from the lease so he doesnt have to pay the extra the dealer would charge when they throw it on the lot. Obviously we could give em cash but could he write a check for it? I would put it in my name and as soon as we left the lot i would give the truck to him and then sign the title over to him when i get that.

[davidrab]

My lease is up on my truck in March. I was going to turn it in but a guy i work with wants to buy it. So i thought i would buy it out from the lease so he doesnt have to pay the extra the dealer would charge when they throw it on the lot. Obviously we could give em cash but could he write a check for it? I would put it in my name and as soon as we left the lot i would give the truck to him and then sign the title over to him when i get that.

You could have him buy it right now. It would be just like a car with a loan.
I've sold a lease to a private person like that before.

I don't think you buying and then him buying it would be good because you
would have to pay taxes on the residual and then he would have to pay taxes
when he registers it.

If I can get a better price than trading in my leased WRX, I'm planning on "selling" it this way.

[Waver]

The problem is, the vehicle is not his to sell. It is the lease company's vehicle. He has to buy the vehicle from the lease company before he can sell it. You need to contact the lease company to find out if they will accept a check from a third party or not.

[JC70SS]

Yep, you will have to buy it from lease co and pay full sale price tax then the buyer will have to pay full taxes too. Usually the residual is not a very favorable number to buy a car at the end of a lease.

[davidrab]

The problem is, the vehicle is not his to sell. It is the lease company's vehicle. He has to buy the vehicle from the lease company before he can sell it. You need to contact the lease company to find out if they will accept a check from a third party or not.

Not the way it happened when to me in the past.

When I sold the one to the private person they just took the check to M&I
and M&I gave me the difference between the buyout and what the person
had paid.

Traded one in and they just sent the payment to the lease company. Same
way it happened when CarMax bought one, they sent the check to FMC.

The way I figure it, lease company only cares that they get the current
buyout price. Whether that buyout price comes from me or someone else, I
don't think they care.

I never did check with the lease company about the third party, so that
probably would be the best way to do it.

Also, JC70SS is right about the residual price. The leases that I've turned in
could have been gotten for less than residual. In the case of the TBSS,
MUCH less.

The other thing that could be tried is to transfer the lease now and let them
buy it at the end of the lease.

[SSLEVO]

With my honda lease they do not allow third party buyouts. Some companies do, some don't. You have to talk to the financial institution that holds your lease. My residual will be 2-3k less than what it's worth so i may buy the car and try to resell it. Problem is i have to pay tax on 14k so that will eat into the profits quite a bit. Then the person that buys it 2 days later has to pay tax again, what a crock of shit.

[Waver]

Every bank is different, like SSLEVO said, and you were both dealing with entirely different banks. That is why it is important to find out what the lease company says regarding third parties buying out the lease.
Trading in a lease into a dealership is different than you selling the vehicle your self.

[buttersgt350]

I didnt want to buy it and have to dick around with getting a loan just to pay it off right away. Maybe i will have him cut me a check and once it clears the bank i will cut a check to the dealer.

[SSLEVO]

I didnt want to buy it and have to dick around with getting a loan just to pay it off right away. Maybe i will have him cut me a check and once it clears the bank i will cut a check to the dealer.

You both will have to pay the tax that way. Check with the company to see if they allow a third party buyout. You won't have to pay tax then.

[buttersgt350]

Yeah i will check on that first. Thanks everyone for your help.