Jmc1975 From Israel, joined Sep 2000, 3332 posts, RR: 15 Posted (8 years 2 months 1 week 1 day 4 hours ago) and read 4185 times:
Has anyone had any experience in purchasing a lease return car? I have had my sights on my neighbor's car which will be coming off lease next month, she said she didn't plan on buying it. Can anyone shed any light on the mechanics of doing such a transaction? I would like to purchase it for the residual price in her contract. PHLBOS, Superfly or any other car enthusiasts out there that have any helpful tips, they'd be much appreciated!
Go3Team From United States of America, joined Mar 2004, 3268 posts, RR: 15
Reply 1, posted (8 years 2 months 1 week 1 day 2 hours ago) and read 4176 times:
I imagine, if the lessee is not the one buying the car, they would have to turn it back in to the lessor at the end of the contract, The lessor has to review the car, making sure the contract mileage hasn't been exceeded, and no damage exists on the vehicle. If the lessor is a manufacturer, they would put the car one one of the dealer lots, or sell it at auction. If the lessor is not a manufacturer, then it would probably be sold at auction. You would have to find out who the lessor is from the lessee, and contact them to see if they could sell you the car. The price offered to you is not necessarily the price offered to the lessee.
Then again, you could find out the purchase price that the lessor has offered to the lessee, give her the money, and wait for her to sign the title over to you.
WildcatYXU From Canada, joined May 2006, 2730 posts, RR: 5
Reply 3, posted (8 years 2 months 1 week 1 day 1 hour ago) and read 4159 times:
GMAC in Canada allows anybody to buy the car for the residual price. Even the balance of factory warranty is transferred to the buyer. It saves them a whole lot of work with the car. The only small complication is that the leasee has to pay for the safety and emissions check. So up here you could definitely do it.
UPS707 From United States of America, joined Sep 2004, 361 posts, RR: 0
Reply 4, posted (8 years 2 months 1 week 18 hours ago) and read 4120 times:
Shouldn't be a problem. My brother-in-law always sells off his cars at the end of the lease. The banks could typically care less who gets the car as long as they get their money. If your neighbor is willing to sell it for the residual value, then that is probably a good deal since they are normally worth more than that at the end of a lease. Just don't let the neighbor buy it from the lease company, then buy it from the neighbor or you may end up paying sales tax twice on the car depending on your state's laws. If you want it, have your neighbor call his lease company and see how they process this kind of deal and go from there.
N1120A From United States of America, joined Dec 2003, 27530 posts, RR: 74
Reply 6, posted (8 years 2 months 1 week 7 hours ago) and read 4059 times:
First, a substantial number of the vehicles you see on the front lines of a new car dealer's used inventory as well as at nicer used car lots will be lease returns. Aside from that, if you talk to the leasing company, they will likely sell you the car for the right price and the price may well be better than what they are trying to extract from your neighbor. You will have an even better chance at getting a good price if you find a friend who has a dealer license who can call up the leasing company and buy direct wholesale from them.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
Asuflyer05 From United States of America, joined Feb 2004, 2373 posts, RR: 3
Reply 7, posted (8 years 2 months 6 days 19 hours ago) and read 4025 times:
Most leasing companies will allow you to purchase someone else's car for the residual value.
If you are paying cash for the car, you send the leasing company a check, they send the title to the original owner, who in turn flips it to you.
If you want to finance the car, you can go to a dealer of the same brand, and they will arrange the financing. A dealer can also give you an idea on what it would cost to extend the warranty which is something to consider. Most banks require the dealer to compelte the state registration to ensure the vehicle is titled properly with the bank listed as a leinholder.
Tips: Make sure the lease-end value is close to the true value of the car. Many times the bank will inflate the residual to help sell the car at the beginning of the car, they then write down the depreciation hit they take at the end of the lease.
I am a Finance Manager for a Honda dealership and do 'lease buyouts' frequently. Feel free to PM with any questions.
Jetstar From United States of America, joined May 2003, 1695 posts, RR: 11
Reply 9, posted (8 years 2 months 6 days 17 hours ago) and read 4003 times:
I just recently purchased our car when our lease expired. The dealer told me that when a car is returned off of lease, they have 3 days to decide if they want to keep the car or return it to the leasing company. He said that it costs the leasing company money to have the car picked up at the dealer and transported to the auction site where it is often sold at a lower cost than they would get if the car was bought off of the lease, so there is an added incentive to have the dealer sell the car instead so you might be able to negotiate a lower price
If you want to buy this particular car, make arrangements with the dealer where the car is being returned to and sometimes if the car’s mileage is low enough, they can certify it pre-owned and give you an extended warranty.
Last year I also bought a 3 year old certified pre-owned car with 30,000 miles on it from the same dealer, by being certified the car came with an extended warranty going out to 6 years from original purchased date and 100,000 total miles and the dealer threw in another 2 year so I actually got 5 years and 70,000 miles warranty, which is better than the new warranty of 4 years and 50,000 miles, although the warranty is not a true bumper to bumper as the original warranty is, but almost as good.