Selling a leased car

[paulde]

Hey folks

I'm selling my leased car and would like to know what's the process involved with MTO? I know I've to get the car under my name and then transfer it to the new owner. Can this be done at the same time i.e. walk into a MTO office and then the car company signs it over to me and then right away I sign it to the new owner? The prospective buyer is also willing to pay the car company directly instead of me paying the car company and then the new owner paying me. In this process is the tax paid twice? Any suggestions or short cuts are appreciated.

thanks

[blue mountain raider]

your best bet is to call MTO, dealer, and insurance to get most accurate answers.

[Pete_Coach]

You cannot sell a leased car because it does not belong to you. You need to transfer the lease first and every leasing company has different rules. So, the first thing you have to do is find out how your leasing company wants to deal with this. They may just allow you to transfer the lease (for a fee) to the prospective buyer and at the end of the lease the new owner can buy out the car.
The other way is to get the prospective buyer to just give you the money to buy out the car and you make another transaction to put it in their name. Either way, it requires two transactions and additional funds for the safety check etc.

[3weddings]

We've always sold our off lease vehicles. We advertised the vehicle ourselves, met the potential buyers, and when it came time to make the transaction, the dealer did the rest. We do have a personal relationship with the owner and that could be helping us. But it doesn't hurt to ask your dealer/leasing company if they will do it.

[Pete_Coach]

We've always sold our off lease vehicles. We advertised the vehicle ourselves, met the potential buyers, and when it came time to make the transaction, the dealer did the rest. We do have a personal relationship with the owner and that could be helping us. But it doesn't hurt to ask your dealer/leasing company if they will do it.

So did this preclude you from having to pay the transfer fees or the dealer admin fees? Or do you lease another vehicle from that same dealer and the dealer absorbs the transfer (and other) fees? (or tacks it onto your new lease)
I found when I did this, the dealer wanted an additional admin fee for doing the work on my behalf. I told them I would do the transfer with the leasing company on my own and save me from having to pay them.
I was just trying to inform the OP what they may encounter.

[bembem]

I think paulde might be referring the buyout at the end of the lease.

'selling a leased car' instead of 'transferring a lease'

[paulde]

I am selling the car not transferring the lease i.e. buying out the car first then selling it. On a side note anyone interested in transferring leases, I've found out that even when a lease is transferred, the first leasee is still responsible if the subsequent leasees cannot be held responsible.
Anyways I've called up MTO, so there is tax paid twice as there are two purchases involved but they can be done concurrently i.e. one after the other at the licensing office unless the car finance company transfers the ownership to the new owner.

[rays101]

I wanted to buy out a car at the end of a friend's lease a few years ago. The dealer did not want to allow me to buy it out as the buyout price was low (i.e. they can make a profit if you return the vehicle).

I called the dealer and told them that they won't get the vehicle anyways because the owner of the lease was willing to buy out the car and resell it to me but as mentioned you then have to pay taxes twice.

I negotiated and paid a few hundred dollars to the dealer to let me buy the car at the end of the lease which was cheaper then paying taxes twice, so if you already have a buyer in line, try negotiating with the dealer to let the buyer buy directly from them as it is cheaper and easier.

[Jeff-TheBiz]

We've always sold our off lease vehicles. We advertised the vehicle ourselves, met the potential buyers, and when it came time to make the transaction, the dealer did the rest. We do have a personal relationship with the owner and that could be helping us. But it doesn't hurt to ask your dealer/leasing company if they will do it.

So did this preclude you from having to pay the transfer fees or the dealer admin fees? Or do you lease another vehicle from that same dealer and the dealer absorbs the transfer (and other) fees? (or tacks it onto your new lease)
I found when I did this, the dealer wanted an additional admin fee for doing the work on my behalf. I told them I would do the transfer with the leasing company on my own and save me from having to pay them.
I was just trying to inform the OP what they may encounter.

Having a relationship with the owner is often a stretch but being nice to your salesguy can help as well. :) It is amazing how much they can help you in service or yrs later when you want to do something like this...

You cannot sell the car yourself.

I has to got through the a dealership. The vehicle belongs to the leasing company and they do not have a retail location, meaning they do not process the paperwork themselves. When you buyout a lease, it is not considered a private sale, it is considered a used car owned by a company therefore both taxes must be paid.

The vehicle can be sold 3rd party to another person, eliminating you needing to pay both taxes as well as who you sell it to paying tax at the mto.

Every dealer will charge an admin fee to perform the transaction.

Only time doing this will even be an option is when the vehicle has very low kms and the car is worth more than the buyback (+taxes +emissions test + safety + admin fee) or when the car has ridiculously high km and the difference between what you sell it for and the total buyback is less than paying for the excess kms and wear & tear.

I expect that this is going to happen less and less in the coming years only because of a recent drop in used vehicles