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Thread: Selling a leased vehicle

  1. #1
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    Default Selling a leased vehicle

    Previously on a few occasions I'd sold my leased vehicle a few months before the end date and paid off the balance. Because I don't put on many km I usually can pocket a thousand or two. I did also sold a financed BMW 1.5 years in and thankfully got some $ back. Now what if I am 1.5 years into my 4 year lease (17 Civic CVT 1.5T)? If I sell the car do I need to pay it off in a certain amount of time? We chose to lease as the rate was 0.9% vs 1.9% and the plan was to buy it out at lease end. However as mentioned I don't drive enough and we are thinking we might look into a 04-07 TL or TSX.

    We understand with an older vehicle there will be maintenance costs to factor in as well as higher gas consumptions on the two mentioned models. They also require premium gas and I am aware of the early Honda/Acura automatic transmission issues. Lease on our Honda is about $4000 a year. Trying to decide if it make sense to 'downsize' or stay put.

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    What's your goal here? Freeing up cash flow?

    Hopefully you'd be buying the new older car for straight cash, right?

    I don't know the ins and outs of breaking leases. I'm sure yiur lease company can help.
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    I may have an 06 tsx for you, depends what your after exactly I guess

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    Quote Originally Posted by Black Gts View Post
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    I may have an 06 tsx for you, depends what your after exactly I guess
    Can you PM me a link or info? Has to be auto though.

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    I don't think there's a difference between buying out your lease early whether you are12 months into your lease vs 42 months into your lease. You just pay all the same fees, including the early lease termination fee (it was $500 with my old Infiniti, not sure with Hondo).

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    It's 6 spd

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    Bump...

    If I buy a vehicle at the end of its lease, ...do I have to transfer ownership from the leasing company to myself before I sell again.

    Ie...Do I need to register the vehicle again in my name before I can sell to someone else ?

    Seems like a waste of a registration fee...
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    Quote Originally Posted by Nufy View Post
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    Bump...

    If I buy a vehicle at the end of its lease, ...do I have to transfer ownership from the leasing company to myself before I sell again.

    Ie...Do I need to register the vehicle again in my name before I can sell to someone else ?

    Seems like a waste of a registration fee...
    I don't see why you would need to. But I'm guessing you better keep the care in your garage.

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    Quote Originally Posted by Nufy View Post
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    Bump...

    If I buy a vehicle at the end of its lease, ...do I have to transfer ownership from the leasing company to myself before I sell again.

    Ie...Do I need to register the vehicle again in my name before I can sell to someone else ?

    Seems like a waste of a registration fee...
    I mean, you can always get registration fees refunded less a 10 dollar service fee.
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    guessing who I might be, psychologizing me with your non existent degree.

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    Subscribed. Always nice to learn.
    Quote Originally Posted by killramos View Post
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Quote Originally Posted by Nufy View Post
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    Bump...

    If I buy a vehicle at the end of its lease, ...do I have to transfer ownership from the leasing company to myself before I sell again.

    Ie...Do I need to register the vehicle again in my name before I can sell to someone else ?

    Seems like a waste of a registration fee...
    Technically Yes, otherwise they might not let the buyer register the car.

    but you can also provide the buyer your lien release and see if he can register the car with the bill of sale. I think it mostly depends on the registry agent

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    You will either need to register it without the leasing company in your name or provide a lease release letter to the new owner so they can have the leasing company removed when they register the vehicle.

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    Quote Originally Posted by Twin_Cam_Turbo View Post
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    You will either need to register it without the leasing company in your name or provide a lease release letter to the new owner so they can have the leasing company removed when they register the vehicle.
    This. I've done it a few times.

    And just recently purchased my FIL lease car - we went the release letter route, no registration from his end required.

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    The release letter comes from me or the leasing company ?
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    Quote Originally Posted by Nufy View Post
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    The release letter comes from me or the leasing company ?
    It will come from the leasing company and can take a few weeks to arrive.

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    edit: You can try selling while it's still a lease
    Last edited by yipb; 05-11-2021 at 07:37 PM.
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    Quote Originally Posted by Nufy View Post
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    Bump...

    If I buy a vehicle at the end of its lease, ...do I have to transfer ownership from the leasing company to myself before I sell again.

    Ie...Do I need to register the vehicle again in my name before I can sell to someone else ?

    Seems like a waste of a registration fee...
    I've been on both ends of these deals and I did this last Summer.

    If the vehicle isn't quite done the lease, you will also have to pay a lease break fee, usually around $500+. If the lease is completely done, you just pay the residual balance + GST (can also finance that amount, just make sure the terms allow you to pay back in full within a short period of time if you're just going to turn around and sell it).

    First step is to call the dealership and get them to tell you the exact amount to buy it out, then get a draft or whatever for that amount. The dealership will give you a bill of sale and lien release which you take to the registry and have the vehicle transferred into your name so that you can legally sell it privately. Transfer cost is $28 at the registry so it's not really a big deal, and then you'll have everything you need to prove to the buyer the lease is finished without a bunch of explaining. You don't own the car while it's being leased which is why you do this part. Both the registry and the dealership told me this is what I had to do and it all went smoothly.

    Now you own the vehicle as if you had bought it without a lease, and you are free to sell it privately. In my case there was ~$7K between the dealer's offer and the private market so it was a no-brainer to buy it out and sell privately.

    If the leasing company isn't an unrelated third party, you can do everything same day, you don't have to wait for anything in the mail. I did everything in the same afternoon and it was super easy.

    Another way to do this is to go to the dealership with the buyer, and they cut two checks - one to the dealership to buy out the lease, and another to you for the negotiated amount on top of the residual value.

    A third option is they take over the lease if it's not done, and there will just be a transfer fee you pay the dealership or whoever you leased it from + a check cut to you if there is value above residual.

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    Quote Originally Posted by Mitsu3000gt View Post
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    1. If the vehicle isn't quite done the lease, you will also have to pay a lease break fee, usually around $500+. If the lease is completely done, you just pay the residual balance + GST (can also finance that amount, just make sure the terms allow you to pay back in full within a short period of time if you're just going to turn around and sell it).
    Not true, depends on the manufacturer, there are no early lease break fees, there are , however, buyout fees that you'd have to pay regardless if you're in or at the end of the lease.


    First step is to call the dealership and get them to tell you the exact amount to buy it out, then get a draft or whatever for that amount.
    while that is true, not everyone has the money sitting around to pay out the lease in full.


    If the leasing company isn't an unrelated third party, you can do everything same day, you don't have to wait for anything in the mail. I did everything in the same afternoon and it was super easy.
    that's also only true on some occasions. Most manufacturers will need to process the payout and send you a release after.

    Another way to do this is to go to the dealership with the buyer, and they cut two checks - one to the dealership to buy out the lease, and another to you for the negotiated amount on top of the residual value.

    A third option is they take over the lease if it's not done, and there will just be a transfer fee you pay the dealership or whoever you leased it from + a check cut to you if there is value above residual.
    This is probably the best way to go about it. Without having to front the money for the payout and sit on the car till it sells.

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