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Old 01-18-2010, 11:07 AM   #1
Glight
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Can I sell my leased vehicle to someone else?

My wife's lease will be up in August and miraculously I think it is worth more than her buyout amount.

I want to try to sell it, but I don't want to take the risk that I might not be able to get the buyout amount for it.

Can I put it up for sale a few months before the lease is up and have the buyer buy it directly from GM, or would I have to buy it and then immediately sell it to them. I am hoping to avoid purchasing it as I would like to avoid paying $1,200 in sales tax on a car I own for 1 day.

Anyone have any experience with this?
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Old 01-18-2010, 11:12 AM   #2
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Wouldnt make sense for you to tell them to buy it from the dealer because you wont get a deal. You will just walk away.

You said you could make money off of it due to its condition? So, start advertising the car for sale as if you own it. Then if someone wants it, you tell them to give you the money when the lease is up.
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Old 01-18-2010, 12:25 PM   #3
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Wouldnt make sense for you to tell them to buy it from the dealer because you wont get a deal. You will just walk away.

You said you could make money off of it due to its condition? So, start advertising the car for sale as if you own it. Then if someone wants it, you tell them to give you the money when the lease is up.
What I meant was assume the buyout is $18k right now. I sell it to someone for $22k. Do I need to buy it for $18k, pay $1,200 sales tax and then sell it to them for $22k for a net profit of $2,800 or can I have them buy it directly from GM Financial for $18k and give me $4k for a net profit of $4k. Basically just avoid the taxes.

I know the standard way to do it is to buy it at lease and and then sell it, but I'd rather do it before the lease is up and not take the risk of buying it in case I can't sell it.
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Old 01-18-2010, 12:32 PM   #4
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Leasing you technically don't own your car. You are renting it. I pretty sure you can't sell it until you actually buy it.

Why would they give 4k when they can buy it from GM Financial?
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Old 01-18-2010, 01:07 PM   #5
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Leasing you technically don't own your car. You are renting it. I pretty sure you can't sell it until you actually buy it.

Why would they give 4k when they can buy it from GM Financial?
Because they couldn't buy it from GM financial for that price. Since I am leasing the vehicle I have the option of buying it at that price. If I turn in my lease they will turn around and sell it for quite a bit more. This is one of the main reasons that some of these automakers made a surprise profit recently. Residuals went way up versus what they had been expected to be.

They would still be "buying the car for $22k" its just only $18k of it would go to GM. The more I type the more I think I will have to buy it, pay the tax, and then sell it though.
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Old 01-18-2010, 01:24 PM   #6
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Yes you have to buy it and pay the taxes on it.
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Old 01-18-2010, 01:30 PM   #7
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Yes you have to buy it and pay the taxes on it.
Thanks.
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Old 01-18-2010, 03:19 PM   #8
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Have a buyer assume the lease from you for a sum of $3-4k and then they can buy it from GM for $18k in a few months when the lease ends.

Good luck convincing someone to do that, but it could work.
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Old 01-18-2010, 03:21 PM   #9
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You can't sell what you don't own. Leasing
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Old 01-18-2010, 03:25 PM   #10
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Have a buyer assume the lease from you for a sum of $3-4k and then they can buy it from GM for $18k in a few months when the lease ends.

Good luck convincing someone to do that, but it could work.
I think there is a stipulation that there are no lease transfers in the last year (could be six months) of a lease... and then there is a lease transfer fee as well. I will just try to sell it and then if I find a buyer I will pay the tax and sell it.
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Old 01-18-2010, 03:35 PM   #11
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You can't sell what you don't own. Leasing
Thank you captain obvious. What you can sell however is an option to purchase something.

Comments like this are so ridiculous. Why do people have such a hard time understanding that leasing is essentially the same as buying, just with a guaranteed buyer at the end at a guaranteed price.

New I probably could have bought the car for $30,000. Now I can sell it for ~23,000. If I'd bought the car it would have cost me $7k to drive it for 3 years assuming I wanted to sell it now (which I do). This doesnt even take into account the interest I would have paid on a loan to purchase.

Instead, I leased the car for $350 a month and drove it for 3 years for $12,600. The buyout is $18,000. I can buy the car and sell it for the same $23,000 I mentioned above bringing my cost of ownership for the same three years down to $7,600.

In essence what I have done is paid $600 for an option to sell the car at $18,000 which is easily worth it to me. What if the car were worth $15,000 now? If I'd bought it my cost of ownership would have risen to $15,000. With leasing my cost of ownership would still be $12,600.

And that is why I will never buy a new car. I will lease new or buy used. Buying a new car is a no-win situation unless you're getting a demo, a ridiculous deal, or want some custom options.
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Old 01-18-2010, 03:54 PM   #12
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This thread is filled with horribly inaccurate information. I've "sold" leased vehicles 3 times in the 5-6 years. The process is simple and people do it all the time. The idea that you can't sell a leased vehicle is a total myth.

1. find out the full buyout price. Let's say it's $10,000
2. advertise your car for $10,000 or more (or less if you are willing to make up the difference yourself)
3. tell buyer that this is a leased vehicle. Buyer goes to bank, cuts a cashier's check made out to your auto finance company for the full buyout price.
4. you overnight cashier's check and required forms to financing company.
5. buyer takes car from you at the time he/she furnishes a cashier's check to you. Better make sure the check is legit!
6. finance company overnights pink slip to you
7. you send pink slip to buyer
8. Buyer takes pink slip, goes to dmv and registers said vehicle, pays fees/taxes
9. Done deal.
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Old 01-18-2010, 04:48 PM   #13
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This thread is filled with horribly inaccurate information. I've "sold" leased vehicles 3 times in the 5-6 years. The process is simple and people do it all the time. The idea that you can't sell a leased vehicle is a total myth.

1. find out the full buyout price. Let's say it's $10,000
2. advertise your car for $10,000 or more (or less if you are willing to make up the difference yourself)
3. tell buyer that this is a leased vehicle. Buyer goes to bank, cuts a cashier's check made out to your auto finance company for the full buyout price.
4. you overnight cashier's check and required forms to financing company.
5. buyer takes car from you at the time he/she furnishes a cashier's check to you. Better make sure the check is legit!
6. finance company overnights pink slip to you
7. you send pink slip to buyer
8. Buyer takes pink slip, goes to dmv and registers said vehicle, pays fees/taxes
9. Done deal.
Thanks for the info!
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Old 02-13-2010, 07:00 PM   #14
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i wanna piggyback this thread.

two prong question. if someone rear ends my leased car,
1. can i pocket the check and have a private mechanic restore it to OEM condition?
2. and i feel unsafe in the rebuilt car, do i have legal grounds to return the car to bmw financial services (or whatever financing company)?
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Old 02-13-2010, 07:06 PM   #15
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a lease is the same as finance, the bank holds the title regardless. pay them off and you can have the title period
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Old 02-13-2010, 09:03 PM   #16
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A lot of misinformation in this thread. YOU CAN sell your car even though you are currently leasing it. When you sell the car, you can have the guy pay you the difference between the sale price and the buyout as a deposit, and the buyer will pay the buyout directly to the company. There are some forms you have to fill out (you and the buyer), but its relatively easy. The title will go directly to the buyer, so you do not have to pay sales tax. The buyer does, though. It is a relatively quick process as well. You don't have to wait until the end of the lease term, you can buy the car out at any time, but the buyout will obviously be higher than at the end of the lease term.
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Old 02-13-2010, 11:19 PM   #17
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why doesnt bmw allow lease transfers in the final 6 months?

http://www.leasetrader.com/2008_BMW_550i_145086.xhtml

Cannot transfer in the final 6 months of lease.
If the lease is in the first 6 months must get approval from BMW Financial Services.

The average time it takes BMW USA to complete the paperwork is 1 to 2 weeks.
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