Sell leased car privately or wait till lease term is over?

[mmhassa2]

Guys wondering if you guys can suggest the best route for us to take in regards to our leased vehicle. Here are the info that might be helpful in your suggestion:

2007 Dodge Charger SE RWD
Lease expiring Oct 29, 2009 (it was a 24 month low Km lease)
Allowed lease KM 40K for the 24 month but we’re upto 42K as of now
Price for extra Km is $0.15/KM
Monthly payment is around $225
Buy Back price: $15 584.00 (can anyone advise us as to how are the taxes charged on this amount)

Now I would like to know is considering our buyback price isn’t very high compared to this car listed on autotrader.ca for around $15-17K could we just sell the car privately now keep paying the monthly payment until the lease expires and then pay the dealership in cash? I guess the advantage I see in doing this is then we don’t pay the extra $$ for the KM and can get into a new car right now instead of waiting till fall. Do you guys think it’ll be wiser to just sell the car privately now? What price should we list it for? (LOL I know all you RDF’ers will lowball the price, but still wanted to get a feel) I have sold a older car of hubby’s before and am quite familiar with the process but how does it work when it comes to leased vehicles? Thanks

[QTheNukes]

Guys wondering if you guys can suggest the best route for us to take in regards to our leased vehicle. Here are the info that might be helpful in your suggestion:

2007 Dodge Charger SE RWD
Lease expiring Oct 29, 2009 (it was a 24 month low Km lease)
Allowed lease KM 40K for the 24 month but we’re upto 42K as of now
Price for extra Km is $0.15/KM
Monthly payment is around $225
Buy Back price: $15 584.00 (can anyone advise us as to how are the taxes charged on this amount)

Now I would like to know is considering our buyback price isn’t very high compared to this car listed on autotrader.ca for around $15-17K could we just sell the car privately now keep paying the monthly payment until the lease expires and then pay the dealership in cash? I guess the advantage I see in doing this is then we don’t pay the extra $$ for the KM and can get into a new car right now instead of waiting till fall. Do you guys think it’ll be wiser to just sell the car privately now? What price should we list it for? (LOL I know all you RDF’ers will lowball the price, but still wanted to get a feel) I have sold a older car of hubby’s before and am quite familiar with the process but how does it work when it comes to leased vehicles? Thanks

Last I checked you could get a new 2009 model for a little under $20,000.00 before taxes. Clearly your buyout price is completely junk, standard taxes apply. You might be advised to park the car at this point and pick up a new one on 0% financing and avoid the 2g+ charge for going way over on km's.

Correct me if I am wrong but in a lease situation you don't own the car, so clearly you can't sell the car.

[QTheNukes]

Further to my last post....
You currently owe about $1500.00 on the car if you stop driving it today.

New car, 2009 with lots of incentives would run you around $380.00 a month for similar features......works out to a little over $2000.00 (buy Oct. 2009) or what you are looking at paying in fees to go over in km's (and keep driving the same car).

Why not park this car and go get something else, don't lease if you can avoid it, lots of cars are 0% financing right now. $380 a month sell it in 2-3 years and make enough to pay off the balance owing, that way you come out ahead.....well more so then in this case.

[mmhassa2]

Well there's 10 cars currently listed within that price range so I'm sure there is some re-sale value. Wondering is it the full 13% taxed on the $15K?

[scouzer]

Well there's 10 cars currently listed within that price range so I'm sure there is some re-sale value. Wondering is it the full 13% taxed on the $15K?

Trust me, listed with prices is completely meaningless. I've had my car listed off and on for over 2 years ALWAYS at the absolute lowest listed price (not by far, but still) and guess how many inquiries I've had on my car?

Wait for it... one, and he was just a tire kicker.

The only number you can count on is dealer trade in.

[QTheNukes]

Well there's 10 cars currently listed within that price range so I'm sure there is some re-sale value. Wondering is it the full 13% taxed on the $15K?

Ah dear, yes it is.....listen to the other poster if not me, it is not worth anywhere near that much money.

[VivienM]

Now I would like to know is considering our buyback price isn’t very high compared to this car listed on autotrader.ca for around $15-17K could we just sell the car privately now keep paying the monthly payment until the lease expires and then pay the dealership in cash?

Uhh, no. How can you sell something that isn't yours, exactly?

[tbagg]

It's not worth the hassle...

No one will pay that residual. If you sell for less than the residual you lose money.

You need to do what people are suggesting and just get a new car. perhaps the honda insight since you rack up so many kilometres. Or maybe try buying a 2007 charger and offering someone on auto trader 10k

-TP



Guys wondering if you guys can suggest the best route for us to take in regards to our leased vehicle. Here are the info that might be helpful in your suggestion:

2007 Dodge Charger SE RWD
Lease expiring Oct 29, 2009 (it was a 24 month low Km lease)
Allowed lease KM 40K for the 24 month but we’re upto 42K as of now
Price for extra Km is $0.15/KM
Monthly payment is around $225
Buy Back price: $15 584.00 (can anyone advise us as to how are the taxes charged on this amount)

Now I would like to know is considering our buyback price isn’t very high compared to this car listed on autotrader.ca for around $15-17K could we just sell the car privately now keep paying the monthly payment until the lease expires and then pay the dealership in cash? I guess the advantage I see in doing this is then we don’t pay the extra $$ for the KM and can get into a new car right now instead of waiting till fall. Do you guys think it’ll be wiser to just sell the car privately now? What price should we list it for? (LOL I know all you RDF’ers will lowball the price, but still wanted to get a feel) I have sold a older car of hubby’s before and am quite familiar with the process but how does it work when it comes to leased vehicles? Thanks

[AGR-1]

There are 6 months remaining at 225 / mth = 1,350 and you are 2,000 klms over = 300 for a total 1,650.

There are many dealers that will gladly get you out of your present vehicle (pay the 1,650), to put you into a new vehicle.

Where is the problem?? Go do a deal and get out of your present car!

[Pete_Coach]

There are 6 months remaining at 225 / mth = 1,350 and you are 2,000 klms over = 300 for a total 1,650.

There are many dealers that will gladly get you out of your present vehicle (pay the 1,650), to put you into a new vehicle.

Where is the problem?? Go do a deal and get out of your present car!
This is good advice, you are racking up charges every time you drive and the car is worth less every day. You need to act very soon or the additional charges will be so high that you will have almost no options but to buy the car.
You are not getting anything for free here though, don't forget that. The additional mileage chargers, the transfer fees and the buy out fees will just be added to the price of the new car.
This is one of the problems with leases, you need to pay attention to the mileage and if you don't, it will cost you big bucks.

[mmhassa2]

There are 6 months remaining at 225 / mth = 1,350 and you are 2,000 klms over = 300 for a total 1,650.

There are many dealers that will gladly get you out of your present vehicle (pay the 1,650), to put you into a new vehicle.

Where is the problem?? Go do a deal and get out of your present car!

This is good advice, you are racking up charges every time you drive and the car is worth less every day. You need to act very soon or the additional charges will be so high that you will have almost no options but to buy the car.
You are not getting anything for free here though, don't forget that. The additional mileage chargers, the transfer fees and the buy out fees will just be added to the price of the new car.
This is one of the problems with leases, you need to pay attention to the mileage and if you don't, it will cost you big bucks.


Thanks guys, it looks like getting a new car now instead of a few months later is the best option. Since we’re not looking to get a Dodge/Chrysler car this time around, I doubt we have any chance of having the new dealership pay off our remaining $1600? We’re looking at the 09 Lexus rx350 or 10 Mercedes GLK 350, can anyone suggest a dealership who is friendly to work with and are easily matched by Car cost Canada?

[aleks]

Uhh, no. How can you sell something that isn't yours, exactly?

I've sold a leased car before before the term was up. Leasing is no different than financing as you don't really own the financed car either until it's completely paid off.

In both cases you can put your car up for sale, once you agree on a price tell the buyer to write the cheque to your lease/finance institution. If you sold for less than you owe (lease buyout + remaining payments + fees), you have to write another cheque out of your own pocket to cover the rest.

[ES_Revenge]

Uhh, no. How can you sell something that isn't yours, exactly?

x2

OP you cannot sell something that doesn't belong to you. All you can do is transfer the lease and have the "buyer" buyout the car themselves, from the leasing company.

You cannot post the car "for sale" as you don't own the car...

You're already over the number of kms allowed for the lease so you are screwing yourself. No one would even take over that lease from you without a big financial incentive that would take care of both a reasonable number of kms a prospective transferee would put on it, and additional incentive over that.

Either way if you keep driving it or try to get someone to take over the lease, you're going to have to outlay thousands to get this vehicle off your hands.

Try what AGR-1 said, and next time don't lease a vehicle with a km allowance that low. As for getting a dealership to "pay off" your $1600 and mentioning Car Cost Canada--LOL. That's like asking for a free lunch (or actually a lot of free lunches). You aren't going to get a big discount on MSRP and have them pay off the lease. It's one or the other, take it or leave it. Given your current situation, you don't really have anything to bargain with. You have a car that's a lease term that's not up yet (again you do not own this car nor have any equity on it) that is only a further liability due to the fact it's already over-mileage, and it's only costing you more and more everyday.

In short you're almost totally screwed. I would kiss the salesperson that gets you out of this one.

[mmhassa2]

Thanks guys, it looks like getting a new car now instead of a few months later is the best option. Since we’re not looking to get a Dodge/Chrysler car this time around, I doubt we have any chance of having the new dealership pay off our remaining $1600? We’re looking at the 09 Lexus rx350 or 10 Mercedes GLK 350, can anyone suggest a dealership who is friendly to work with and are easily matched by Car cost Canada?

x2

OP you cannot sell something that doesn't belong to you. All you can do is transfer the lease and have the "buyer" buyout the car themselves, from the leasing company.

You cannot post the car "for sale" as you don't own the car...

You're already over the number of kms allowed for the lease so you are screwing yourself. No one would even take over that lease from you without a big financial incentive that would take care of both a reasonable number of kms a prospective transferee would put on it, and additional incentive over that.

Either way if you keep driving it or try to get someone to take over the lease, you're going to have to outlay thousands to get this vehicle off your hands.

Try what AGR-1 said, and next time don't lease a vehicle with a km allowance that low. As for getting a dealership to "pay off" your $1600 and mentioning Car Cost Canada--LOL. That's like asking for a free lunch (or actually a lot of free lunches). You aren't going to get a big discount on MSRP and have them pay off the lease. It's one or the other, take it or leave it. Given your current situation, you don't really have anything to bargain with. You have a car that's a lease term that's not up yet (again you do not own this car nor have any equity on it) that is only a further liability due to the fact it's already over-mileage, and it's only costing you more and more everyday.

In short you're almost totally screwed. I would kiss the salesperson that gets you out of this one.

Stop getting so excited and re-read my post please. I don't think we're screwed at all, I guess your abilty to get out of small situations are different than mine. Anyways moving right along your "helpful" post :lol:

I've sold a leased car before before the term was up. Leasing is no different than financing as you don't really own the financed car either until it's completely paid off.

In both cases you can put your car up for sale, once you agree on a price tell the buyer to write the cheque to your lease/finance institution. If you sold for less than you owe (lease buyout + remaining payments + fees), you have to write another cheque out of your own pocket to cover the rest.

Thanks this is what I planned if we went through the route of privately selling, but it seems like it's just better to get a new car now without the hassle. But yes we when financed our previous car and later it was a written off due to an accident, the insurance company just made a cheque to the finance company and worked out fine.

[AGR-1]

Thanks guys, it looks like getting a new car now instead of a few months later is the best option. Since we’re not looking to get a Dodge/Chrysler car this time around, I doubt we have any chance of having the new dealership pay off our remaining $1600? We’re looking at the 09 Lexus rx350 or 10 Mercedes GLK 350, can anyone suggest a dealership who is friendly to work with and are easily matched by Car cost Canada?

Play one dealer against another, not a big deal to have them come up with 1,600 to do a deal...forget Car Cost Canada you are trying to do a deal and have someone get you out of your lease. "get me out of my vehicle and I will do business with you, and btw this is what so and so is prepared to do for me, what can you do?"

Take the MSRP of the vehicles you are considering and deduct 9% that will give you a close approximation of the cost.

[ES_Revenge]

Stop getting so excited and re-read my post please. I don't think we're screwed at all, I guess your abilty to get out of small situations are different than mine. Anyways moving right along your "helpful" post :lol:
:rolleyes: Actually it was helpful something you will soon find out when you have to face that thing called reality. Note that it's not just me telling you this stuff, if you actually read what others are telling you, it's essentially the same. And personally I'm not excited at all. Why would your situation make me "excited"? While I clearly think you got into the wrong lease, I find no excitement in telling you that, I assure you. It's unfortunate if anything.

I'm just the one and came out and said it matter-of-factly so you'd get the idea (which still seems to escape you :rolleyes: ).

Good luck getting a car dealer to bail you out of the lease and give you a great deal on the price of a car. (Or selling a car that isn't even yours, lol.) All I can tell you is that your use of the laughing smiley is fairly misplaced. You're not going to be laughing when you actually do get rid of this vehicle, I'll tell you that much.

You picked a lease poorly (way too little km allowance for the term) and you are now stuck with the vehicle. It's good that you are in a dreamland about the "easy out" of this, but let us know when you want to come back to reality (or when it smacks you in the face). You think you're the only one that got into a lease the way you did and are stuck with a car you can neither drive without penalty or get rid of otherwise? LOL.

Take a look on leasebusters. Ask some of the people with over km leases that are trying to get rid of them offering thousands of dollars for someone to take it off their hands, with no luck. Ask all of them how easy the outs are. Anyway I'm not wasting anymore time telling you about reality. I would hope that if you're old enough to lease a car you'd be old enough to have some sort of grasp on that by now. In closing I wish you the best of luck, but don't blame me when reality wipes the smile off your face.

[AGR-1]

Getting customers out of leases, or finance contracts is done on a regular basis by all dealers, especially if the vehicle is a competing make...

Is there a "free lunch" not at all, but getting folks out of their vehicles is a part of what all dealers do these days....if they advertise 72 months at 0% and with hardly any down payment that "deal" is "upside down" from the get go, the manufacturers know it, the dealers know it, the customers know it.

The question is: "get me out of my vehicle if you want me to do business with you"....

Everyone knows that if the customers is "right side up"(equity) in his vehicle be it a lease or finance he is "stealable" by the competition....much easier to have customers "upside down" and get the competition to work harder, and spend money to "steal" a customer.

A lease that has reached its klm limit is a liability to the lessee, the sooner he can get out of the lease the better it is for the lessee.

Why even bother trying to sell the vehicle, or going to lease busters, or transferring a lease...get the dealer that wants to lease you a vehicle to pay off the remaining payments on the lease, and the excess kilometers...