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selling a leased car?

Discussion in 'Other Off Topic Forum' started by lukek, Jun 2, 2004.

  1. lukek

    lukek Formula 3

    May 2, 2003
    2,046
    San Francisco
    Full Name:
    LK
    I got a close to zero down lease on 2003 A4 1.8t Quattro (36 months). I am kind of bored with it after a year. I can sell it on the street for $26K and my payoff (purchase quote) is $21K. What I have spent so far in terms of my $299 payment is a fair price to pay for use of a new car. Can I just sell it to a private party, send a portion of the cash I get to VW/Audi credit, and pocket the differrence? Is that commonly done in taht sequence?
    Sorry, if this is a naiive question, I have always sold cars that were paid for and I had the title. This is in CA, if that matters.
    Or...should I go with leasetrader.com, and have someone take over my lease?

    And of course, what to get for a sub-30K daily driver. I test drove a Mini Copper and was not impressed, liked the WRX, but wife does not like the anime character styling. I do not need a lease, as 300 a month is a current comfort level and a psychological selling point for the change.

    Any feedback from fellow addicts is welcome.
     
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  3. LA Swede

    LA Swede Formula Junior

    Dec 5, 2003
    369
    SoCal
    never done this but my assumption is that you cannot sell the car without dealing with the finance company first, as it is the lien holder and title will not pass without their approval. you have to contact the finance co first to find out how to do it. or, you can just pay off the car first, own it free and clear and then sell it.



     
  4. Doody

    Doody F1 Veteran

    Nov 16, 2001
    6,099
    MA USA
    Full Name:
    Mr. Doody
    in most jurisdictions, selling a car you don't own is illegal :)

    i've bought out leases and sold cars before. it works in that order. buy out your lease, and then sell it. you need to get documentation that you've bought it out and then get the title back so you can transfer it to the buyer.

    if you don't have a spare $21K sitting around, dealers or brokers will be willing to work with you usually - though be careful - the car is YOUR responsibility until you have paperwork from the lease holder to say otherwise.

    the major leasing institutions are pretty good about fast turnaround on this stuff (ime - bmw, audi, chase, etc.).

    doody.
     
  5. dm_n_stuff

    dm_n_stuff Global Moderator
    Global Moderator Lifetime Rossa Owner

    Dec 10, 2003
    35,473
    The Sunshine State
    Full Name:
    Dave
    I'd double check with the leasing company what your current payoff number is. With two years left on the lease, I kinda doubt that there's only $21K left to pay unless you put a major down payment on the car. That $21K sounds like your end of lease payoff number, to me.

    Start there.

    IF that's really the number, then buy out the lease, borrow the money if you have to, and then sell the car outright. Pocket the $5K and use that as down money on the next leased car, 'cause that's found money.

    If you've already found a car you like, you could avoid some of the hassle by letting the dealer take the car from you in trade. Cost you a few $$ on the deal, probably $2K or so, because trade in on the car should still be over $23K, which still nets you $2K worth of down money.
     
  6. lukek

    lukek Formula 3

    May 2, 2003
    2,046
    San Francisco
    Full Name:
    LK
    I suspect that you are right...the numbers sound too good. They probably want 24X300 in addition to the 21K. Too good to be true.
    Now only if I had won that 360 Spider raffle...
     
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  8. lukek

    lukek Formula 3

    May 2, 2003
    2,046
    San Francisco
    Full Name:
    LK
    I think it is Xmas time.
    I just called and 21K is the actual payoff.
    Funny math....
    I gave them 2K at the outset, paid 12 payments X 300 = $5600
    Now, I can probably sell the car for 26K, which leaves me with 5K after I give them the 21K payoff. In the end, it cost me ~$600 to use a brand new car for a year. I guess I bought a loss leader on a subsidized lease and the credit company thought it was going to be worth less. I also put few miles on the car, so that might be to my advantage.
    Now I have to wash it to sell it...
     

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