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Guide to Selling your Leased Car at the End of your Lease
Posted on 9/14/17 at 9:30 pm
Posted on 9/14/17 at 9:30 pm
For those so critical of the OP below, I thought I would educate you in a separate thread. Yes, you can sell a leased car at the end of the lease. If you have low mileage and the value of the car exceeds the residual, a dealer will purchase the car from you.
Cars coming off lease in South Texas right now are bringing huge money due to the hurricane (assuming your lease car was not flooded). There will be a ton of leases ending there soon with equity. Discontinued cars will not often provide equity, and convertibles in the dead of winter probably will not have equity. Every case is different.
Here is a great article from the Car Pro Show guy: Easy To Follow Guide at the End of your Auto Lease
Now, apologize to ThuperThumpin below. Some of you have no financial sense at all.
Cars coming off lease in South Texas right now are bringing huge money due to the hurricane (assuming your lease car was not flooded). There will be a ton of leases ending there soon with equity. Discontinued cars will not often provide equity, and convertibles in the dead of winter probably will not have equity. Every case is different.
Here is a great article from the Car Pro Show guy: Easy To Follow Guide at the End of your Auto Lease
Now, apologize to ThuperThumpin below. Some of you have no financial sense at all.
This post was edited on 9/14/17 at 9:33 pm
3
Posted on 9/14/17 at 9:33 pm to WacoTiger
quote:I thought a leased car meant you don't own it.
l, a dealer will purchase the car from you.
Posted on 9/14/17 at 9:36 pm to airfernando
*
This post was edited on 9/14/17 at 9:37 pm
Posted on 9/14/17 at 9:36 pm to airfernando
You thought wrong. Leasing is glorified financing. There is a payoff on the lease. At the end of the lease, the payoff is the residual. You can always walk away from the lease at the end, if you haven't exceeded the mileage allowance. If you want out of a lease before it ends, you will need to pay the remaining lease payments in addition to the residual amount.
Posted on 9/14/17 at 9:37 pm to WacoTiger
This thread is pathetic!
Posted on 9/14/17 at 9:42 pm to rebeloke
Why, because you wrote below, "
You were mostly wrong. Correct, a lease is pretty air tight. Wrong, you can sell the car. Wrong, you can return it early, but the payoff will be equal to the remaining lease payments plus the residual. You could call that a "penalty", so you are partly correct.
quote:.
A lease is one of the most airtight rock solid agreements known in the civilized world. Not only can you not sell it but you can't return it early without penalty.
You were mostly wrong. Correct, a lease is pretty air tight. Wrong, you can sell the car. Wrong, you can return it early, but the payoff will be equal to the remaining lease payments plus the residual. You could call that a "penalty", so you are partly correct.
Posted on 9/14/17 at 9:48 pm to WacoTiger
You are a bad attorney for giving the impression that a lease is a good idea. I used to be an F&I manager for a Toyota dealership. Leasing is a good way to lose your arse! You put down big money. Next you have to meet the terms of the lease which are extremely favorable toward the dealer.
A lease is good for buyers who buy a new car every year or two and drive low miles or for business use, as it is deductible.
You are obviously bought and paid for by a dealer or own a dealership. You are a whore!
A lease is good for buyers who buy a new car every year or two and drive low miles or for business use, as it is deductible.
You are obviously bought and paid for by a dealer or own a dealership. You are a whore!
This post was edited on 9/14/17 at 9:49 pm
Posted on 9/14/17 at 9:57 pm to rebeloke
This escalated quickly.
Posted on 9/14/17 at 10:42 pm to rebeloke
quote:
I used to be an F&I manager for a Toyota dealership. Leasing is a good way to lose your arse! You put down big money. Next you have to meet the terms of the lease which are extremely favorable toward the dealer.
Toyotas are typically terrible lease candidates. They have low residual values (even though they maintain their value), poor manufacturer support in terms of money factor, and they do not residualize options like other manufacturers.
You should also never put down "big money" on a lease.
There is no blanket statement regarding leases. It's a balloon form of financing. Just like a 5/1 ARM makes sense for some people, so does a lease. Most people are just simply uninformed, as indicated by the OP.
Posted on 9/14/17 at 10:51 pm to LSUtigerME
I disagree that it is just another form of financing. Do you risk huge penalties in traditional financing? Folks don't let these silver tongued devils fool you. Buying a car outright is the simplest and easiest way to own a car. But you need to own a car for 10 years to make it work in your favor. Otherwise buy a good used car, that way someone else takes the hit on depreciation.
Posted on 9/14/17 at 10:56 pm to LSUtigerME
quote:
It's a balloon form of financing.
A friend leased a car that had a payoff (think of it as an option to buy at the end of the lease) that was quite a good deal. The blue book on the car was considerably higher, but he had no interest in the car and was just going to turn it in and go get something else.
I stepped into his shoes for $100 of paperwork at the dealer, paid the residual, and drove away in a sweet ride.
That said, I would never lease one myself. Too many pitfalls.
This post was edited on 9/14/17 at 10:57 pm
Posted on 9/14/17 at 11:38 pm to rebeloke
quote:
disagree that it is just another form of financing. Do you risk huge penalties in traditional financing?
What "huge penalties" are there? You simply sign agreement to pay X amount for 36-48 months, plus a residual payment at the end OR return the vehicle subject to an inspection. It's the exact same as traditional financing. The only difference is you sign an agreement with your buyer at the end of ownership in advance that you will sell it to them for a set price, assuming it meets condition requirements.
This has been discussed many times on the Money Talk board. Leasing is not for everyone, but it's certainly not the evil thing implied. If you drive a car for 10 years, or prefer used cars (both of which are financially advantageous to a lease), then leasing is not a good option. But if you're going to purchase a new car every 3-5 years, maintain them well, and drive reasonable mileage, leasing is a very feasible option.
Posted on 9/14/17 at 11:45 pm to LSUtigerME
What huge penalty? Idiot! Folks these guys are industry reps.
Posted on 9/15/17 at 7:36 am to rebeloke
You obviously have no idea what you are talking and your only retort is to call people names. You would never win an argument in Court.
I never said leasing an auto was a good idea. I merely said that you could sell a leased car. I've seen several people merely turn in their leased car at the end of the lease without determining if they have equity in the vehicle. It would be similar to trading in a financed car without knowing the payoff.
No, I don't represent auto dealers. Sorry your reading comprehension is so deficient.
I never said leasing an auto was a good idea. I merely said that you could sell a leased car. I've seen several people merely turn in their leased car at the end of the lease without determining if they have equity in the vehicle. It would be similar to trading in a financed car without knowing the payoff.
No, I don't represent auto dealers. Sorry your reading comprehension is so deficient.
Posted on 9/15/17 at 7:40 am to airfernando
quote:
I thought a leased car meant you don't own it.
Think loan with a huge balloon payment at the end that you don't have to pay if you surrender the car.
Posted on 9/15/17 at 7:46 am to LSUtigerME
quote:
Toyotas are typically terrible lease candidates. They have low residual values (even though they maintain their value), poor manufacturer support in terms of money factor, and they do not residualize options like other manufacturers.
I found the opposite to be true. I had to find a vehicle to lease as a company vehicle a couple of years ago. Toyota was the best deal I could find. Their residuals were higher and the mileage fees were the lowest of the brands I looked at.
I ended up with a Toyota 4Runner.
Posted on 9/15/17 at 7:55 am to WacoTiger
I'm sorry, I got you wrong. You're just a dude who thinks it's cute making a point. Lawyers are more than half of what is wrong with this country. You guys don't have a grasp of the obvious. You don't seem to understand how utterly stupid you sound. No one in their right mind, would turn in a lease by paying the entirety of the lease and isn't what people are asking. The car loan industry used to be the same way. Now more loans are structured for early payoff without penalty. And you guys need to quit comparing car loans to mortgage loans. Does a house depreciate at the rate of a car? You guys are pathetic if you think lease purchases are just another way of buying a car. Go back to your books and advise people on something you know about.
Posted on 9/15/17 at 8:44 am to WacoTiger
quote:
Now, apologize to ThuperThumpin below. Some of you have no financial sense at all.
Posted on 9/15/17 at 9:02 am to rebeloke
quote:
Leasing is a good way to lose your arse! You put down big money. Next you have to meet the terms of the lease which are extremely favorable toward the dealer.
This really was not my experience at all. My downpayment was a 15 year old car that was on its last leg. The terms were very reasonable for me as I knew I would only put about 3000 miles a year on the car and was pretty certain that the car would be worth more at the end than the residual estimate. I looked a used model at another dealership that was two years older and ran the numbers and the lease note was less. I dont think leasing is for everyone but in my case it worked out pretty well.
This post was edited on 9/15/17 at 9:07 am
Posted on 9/15/17 at 9:09 am to rebeloke
Boy, you just keep digging a bigger hole. No, the original OP (ThuperThumpin) asked:
So, he wasn't going to make the rest of the monthly payments, he had already made all of the required payments and now was asking (1) do I buy the car; (2) do I just turn in the car and walk away; or (3) is there another option?
I was just pointing out there was another option. I wasn't commenting whether leasing a car makes sense or not. I personally buy my cars outright for cash and hold them for over 10 years. If you are low mileage driver and want to get a new car every 3 - 4 years and you don't have a large down payment, leasing may be for you. However, it depends upon one's personal financial situation and driving habits.
I wasn't commenting on that aspect, but don't close your mind on a subject you obviously know nothing about. Sorry, you didn't make it to law school and have such a bad opinion of lawyers. My clients who I have represented over the past 32 years appreciate what I do for them (no, I am not a plaintiff's or litigation attorney, they aren't all bad either). Enjoy life more, read and educate yourself. It makes the stress of the day a whole lot better.
quote:
Lets say Im at the end of a 3 year 30000 mile lease
So, he wasn't going to make the rest of the monthly payments, he had already made all of the required payments and now was asking (1) do I buy the car; (2) do I just turn in the car and walk away; or (3) is there another option?
I was just pointing out there was another option. I wasn't commenting whether leasing a car makes sense or not. I personally buy my cars outright for cash and hold them for over 10 years. If you are low mileage driver and want to get a new car every 3 - 4 years and you don't have a large down payment, leasing may be for you. However, it depends upon one's personal financial situation and driving habits.
I wasn't commenting on that aspect, but don't close your mind on a subject you obviously know nothing about. Sorry, you didn't make it to law school and have such a bad opinion of lawyers. My clients who I have represented over the past 32 years appreciate what I do for them (no, I am not a plaintiff's or litigation attorney, they aren't all bad either). Enjoy life more, read and educate yourself. It makes the stress of the day a whole lot better.
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