Lease Question
Thread Starter
Burning Brakes
Joined: Mar 2010
Posts: 921
Likes: 134
From: Chicago Illinois
Lease Question
Hey Guys,
Didn't know where to post this but here goes...
I just started looking to buy a convertible. Planning on dropping the hammer in August. I found a 2005 Convertible that the guy is looking to buy out his lease. Should I move on or is this legit?
Not sure how it would work. Has anyone here bought a car from a private party that was still under lease?
Thanks,
Les
Didn't know where to post this but here goes...
I just started looking to buy a convertible. Planning on dropping the hammer in August. I found a 2005 Convertible that the guy is looking to buy out his lease. Should I move on or is this legit?
Not sure how it would work. Has anyone here bought a car from a private party that was still under lease?
Thanks,
Les
Safety Car
Joined: Aug 2007
Posts: 4,506
Likes: 0
From: This is not a Song, It's an Outburst: Or, The Establishment Blues; Sixto Diaz Rodriguez
Sure, it can be done, may not be cheap depending on what yearly mileage he was authorized, and how many actual miles are on the car, but, you'd do better getting legal advice on this someplace else besides here. 
Le Mans Master
Joined: May 2005
Posts: 6,366
Likes: 249
From: Fort Lauderdale, Florida
If you find a deal, I would contact the lessee's lease company. The owner might want to do this but some lease companies won't let you do that. Also, don't forget to check on what fees there will be when the lease ends and what it will cost to keep it (the residual value), it could be more than the car is worth. Consider just buying used instead.
Melting Slicks
Joined: Sep 2006
Posts: 2,736
Likes: 7
From: Redding CA
There's 3 ways out of a lease.
1)give car back...as long as car is within agreed upon mileage at the beginning of the lease term. 15k per year, 4 year lease...60K or less and your good.
2)re lease another car, again...as long as you're within the mileage there will be no extra fees involved(you pay the lease aquisition fee up front). if you're over your mileage allowance in this case, sometimes they can just roll it over into your new lease with money down, rebates..etc
3)buy the car. in this case..what you're doing...nothing matters. there is an amount owed to the bank and that's what he has to pay(finance).
This is where you're probably NOT getting a good deal though, usually this is why it's best to walk away from a lease or re lease..whether you're over/under the miles...you usually owe more than the car is worth. This is due to the fact that most times when people lease, the don't get as good of a deal on the car plain and simple.(they don't understand that they're paying MSRP for example because for one the payment is so low and two they don't "have" to pay the full price of the car anyway).
1)give car back...as long as car is within agreed upon mileage at the beginning of the lease term. 15k per year, 4 year lease...60K or less and your good.
2)re lease another car, again...as long as you're within the mileage there will be no extra fees involved(you pay the lease aquisition fee up front). if you're over your mileage allowance in this case, sometimes they can just roll it over into your new lease with money down, rebates..etc
3)buy the car. in this case..what you're doing...nothing matters. there is an amount owed to the bank and that's what he has to pay(finance).
This is where you're probably NOT getting a good deal though, usually this is why it's best to walk away from a lease or re lease..whether you're over/under the miles...you usually owe more than the car is worth. This is due to the fact that most times when people lease, the don't get as good of a deal on the car plain and simple.(they don't understand that they're paying MSRP for example because for one the payment is so low and two they don't "have" to pay the full price of the car anyway).
Advanced
Joined: Jul 2010
Posts: 83
Likes: 5
From: Indianapolis IN
There are many variables involved here as previously stated. If you can find out what the buyout amount is we can look at where that stands relative to true market value as well as the book values. I have easy access to all of that, so if you can find out what the buyout is, it will be easy to determine if the car is a good buy for you or not.
Melting Slicks
Joined: Jan 2004
Posts: 2,158
Likes: 4
From: Henderson Nevada
Too many variables. If he does 'buy out' his lease, i.e., he then owns the car, there is no problem. You and he agree on a price and go from there. Don't do anything in this regard until he has the title.
If, on the other hand, he is depending on getting money from you to get out of the lease, run away. At the minimum, you'd need an attorney to represent your interests with the leasing company to ensure the money gets to them and title is released. You'd never be able to get a loan to buy a car that is still on lease.
If he's asking you to assume his lease, don't do it. Once again, you would need to review the actual lease to determine if it is even allowed. Don't try that without an attorney.
If, on the other hand, he is depending on getting money from you to get out of the lease, run away. At the minimum, you'd need an attorney to represent your interests with the leasing company to ensure the money gets to them and title is released. You'd never be able to get a loan to buy a car that is still on lease.
If he's asking you to assume his lease, don't do it. Once again, you would need to review the actual lease to determine if it is even allowed. Don't try that without an attorney.
Le Mans Master
Joined: Sep 2004
Posts: 5,116
Likes: 5
From: Livonia MI
Hard to believe an 05' still being on lease, but best to see the cash buy out at this very moment, as seem's to change daily. Went through this several year's back on a daily car I was leasing, and decided to keep. Was quoted a buy out price over the phone, and showed up at the finance place with a certified check a few day's later. They wouldn't accept it, and wanted thousand's more. I made quite a stir with the manager until he went with the deal and signed off on the title. Just so you know.
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Safety Car
Joined: Dec 2007
Posts: 4,070
Likes: 162
From: Coralville Iowa
Hard to believe an 05' still being on lease, but best to see the cash buy out at this very moment, as seem's to change daily. Went through this several year's back on a daily car I was leasing, and decided to keep. Was quoted a buy out price over the phone, and showed up at the finance place with a certified check a few day's later. They wouldn't accept it, and wanted thousand's more. I made quite a stir with the manager until he went with the deal and signed off on the title. Just so you know.
Safety Car
Joined: Dec 2007
Posts: 4,070
Likes: 162
From: Coralville Iowa
There's 3 ways out of a lease.
1)give car back...as long as car is within agreed upon mileage at the beginning of the lease term. 15k per year, 4 year lease...60K or less and your good.
2)re lease another car, again...as long as you're within the mileage there will be no extra fees involved(you pay the lease aquisition fee up front). if you're over your mileage allowance in this case, sometimes they can just roll it over into your new lease with money down, rebates..etc
3)buy the car. in this case..what you're doing...nothing matters. there is an amount owed to the bank and that's what he has to pay(finance).
This is where you're probably NOT getting a good deal though, usually this is why it's best to walk away from a lease or re lease..whether you're over/under the miles...you usually owe more than the car is worth. This is due to the fact that most times when people lease, the don't get as good of a deal on the car plain and simple.(they don't understand that they're paying MSRP for example because for one the payment is so low and two they don't "have" to pay the full price of the car anyway).
1)give car back...as long as car is within agreed upon mileage at the beginning of the lease term. 15k per year, 4 year lease...60K or less and your good.
2)re lease another car, again...as long as you're within the mileage there will be no extra fees involved(you pay the lease aquisition fee up front). if you're over your mileage allowance in this case, sometimes they can just roll it over into your new lease with money down, rebates..etc
3)buy the car. in this case..what you're doing...nothing matters. there is an amount owed to the bank and that's what he has to pay(finance).
This is where you're probably NOT getting a good deal though, usually this is why it's best to walk away from a lease or re lease..whether you're over/under the miles...you usually owe more than the car is worth. This is due to the fact that most times when people lease, the don't get as good of a deal on the car plain and simple.(they don't understand that they're paying MSRP for example because for one the payment is so low and two they don't "have" to pay the full price of the car anyway).
Last edited by mksz51; Jul 23, 2010 at 04:41 PM.
Le Mans Master
Joined: Sep 2004
Posts: 5,116
Likes: 5
From: Livonia MI
When you iniated the lease you signed a piece of paper called a CONTRACT that spelled out all the terms including residual value, fees at the end of the lease, etc. The lease buyout would NEVER be higher than those terms. You might be able to negotiate it lower but again, that should be presented in writing. Leases are actually quite simple in you read the paperwork and understand what you are getting in to.
Advanced
Joined: May 2010
Posts: 96
Likes: 0
From: Richmond Tx
I sold my 04 at the end of the lease but my residual was $22k with all fees. The car had 15500 miles at the end of the 5 yr lease. I actually traded it in to save on taxes on the 09 and had someone sitting there ready to buy it. I sold it to him for more than $22k, so basically he paid dealer $22k and me the rest.
Advanced
Joined: May 2011
Posts: 92
Likes: 23
OP question
The OP's question is did anyone buy a vette from someone who was leasing their vette not all the details about leasing. To answer that question it comes down to one main question. How will the leasee buy out the residual? Does he expect to use the new buyers money (which is usally the case) or does he have the money to buy out himself and get the title clear prior to selling. So this is a touchy situation if the seller needs the buyers money to buy out the lease as he will not get the title until the the buy out is made. So there will be a couple of weeks where the new buyer has given the seller the money but hasn't recieved the title. I have been leasing for over 15 years and find it the best way to finance cars. In the case of a vette with the car not having great residual value the payments are higher than say a Lexus or other high resale car. But this means that the residual is low and that makes it attractive to buy out the car and resell it.
The seller may actually make money on this deal depending on how well he took care of the car.
The seller may actually make money on this deal depending on how well he took care of the car.
