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How to sell a leased car?

719 69 May 31, 2011 at 07:51 AM
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Short version: I have a leased Honda Insight with a "payoff amount" of $17k and I think I could sell it for more than that. How would I go about doing this?

Currently I am leasing a 2011 Honda Insight base model with 3k miles that I got 2.5 months ago as a commuter car (I have another vehicle).

I got this car right before the tsunami, when Insights were a dime a dozen.

Now short Japanese supplies are making them very difficult to price, and on top of that high gas prices have increased demand for Honda Insights a lot! I was checking inventories from dealerships, and new models are very hard to come by.

Anyhow, my payoff amount is $17000 or so, but I think I could sell the car for more than that for sure. How would I go about doing this? I think it's a misconception that you cannot sell a lease car. I would think that you would just need to have the buyer pay Honda Finance to release the title and then it could be transferred to the new buyer. Does anyone know any of the details?

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#2
Why not call the bank/dealer and ask?
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#3
the sticky part is that you aren't technically the owner. I'd think it'd be no different than selling a car that still has a lien on it. You'd need a buyer that'd be willing to go through the BS. If they're paying in cash, great (unlikely for that amount). Otherwise they'd need to finance, and list the leasing co as a lienholder. The two banks (their financing and your leasing) will work things out such that the lienholder is paid off and you get the rest. As I said, it's a PITA because rather than just involving you and a buyer, you'll have 2 banks involved and they don't move quickly.
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#4
I have heard that some lease companies do not directly sell to individuals and that you have to take it to the dealership and they will "work everything out" for you. What happens in reality is they know they have a hot buyer, so they end up selling them a different car for less money and steal your business.

I want to look at my lease before I call Honda Financial Services. Maybe it would just be easier for me to trade in at a dealership? I wonder what CarMax would give me! I might break even with them!
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#5
Best case scenario:
You: "Sorry guys lost my car. Here's $17,000" *runs*
Dealer: *WhooHoo!!*

But yea with not technically being the owner of the car there would be some paperwork shuffling administration fees that would ruin the deal.

Talk to your area dealers though. If it is in hot demand they *may* give you more than the other guy is offering.
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#6
I don't really see a good way of doing this short of you buying the car first with your own money, and then selling it as your own
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#7
Quote from slapshot136
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I don't really see a good way of doing this short of you buying the car first with your own money, and then selling it as your own
Me neither. It would be simple enough if the buyer was buyer with cash, but if third party buyer is trying to finance, that's going to suck!

Oh well, thought I'd try to make a quick $1000. Big Grin
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#8
Would it be possible to find somebody who will take over the lease and give you extra cash?
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#9
Seriously? It's just like selling any other car you have a loan on. If you have a payoff and can sell it for more then sell it. If they're getting a loan for it, their institution will send a check for the payoff amount to your leasing company and then they will release the title to the other institution. I'm surprised by these answers since it's actually pretty easy to do.
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#10
I have traded in my vehicle that was a lease and used the equity in it for a down payment on a newer car. You can purchase any lease for the pay off amount at any time but you just need to be able to front the cash or work out a contract with a person buying the car.

I sold a quad i had that i owed roughly 1500 and sold it for 2500. I wrote up a contract with the buyer and we both signed 2 copies and as soon as the title came in he came and met me and picked it up. So if you find someone that wants the car bad enough they might do that as well.
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#11
Correct me if I'm wrong, but isnt the "payoff amount" what you would pay if you bought the car at the END of the lease?

I know with leases, if you want to buy out early, you'll have to cough up the 17k payoff amount PLUS the remaining lease payments. I could be wrong however.
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#12
Quote from MISHNAH
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Correct me if I'm wrong, but isnt the "payoff amount" what you would pay if you bought the car at the END of the lease?

I know with leases, if you want to buy out early, you'll have to cough up the 17k payoff amount PLUS the remaining lease payments. I could be wrong however.

This isn't true at all. That is more with apartment or housing leases.

That value you're talking about is called the residual value that is determined at the start of your lease. At anytime during your lease you can always ask the lender what the payoff amount would be. You always have the option to buy the car outright for the amount they provide you.
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#14
Izzle Schnizzles mon
1. Call the leasing company and ask for current payoff (Your residual is calculated based on all payments you would have made at the end of the lease. It is NOT 17K @ 3months into your lease.)
2. Find a buyer with the available funds by any means.
3. Make the certified check out to the leasing co. for quoted payoff amount.
4. Write a sales contract to new owner and some forms from your local DMV to allow them to insure and register the car in their name. (yes, can be done but varies by state).
5. Within 30 days, you should receive title under your name.
6. Sign title over to new owner.

I have done ths twice already in NYS
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#15
Quote from rebat
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http://www.swapalease.com/ ?
The only problem with swapalease is your name/credit info remains along with the new owner until the maturity date. I'm in this process right now with Infiniti. I took over a lease @3rd month of a 39m lease and now has 6m left. Both our names are listed on the contract.
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