Michael A

[QUOTE]Originally posted by Humanatek
[B]

No, actually that is not true.

PLYRS 3

YES!!!!

this is what i was getting at.......you CAN'T cut out the dealer/leasing company from the transaction....they HAVE to be a party to it.......you can't just pay the leasing company "after the fact" or "after you've already sold it privately"

and yes, in canada, you have to buy the car out, and then obviously, you can re-sell it or do whatever you want with it.....

mind you, depending on your relationship with your dealer/leasing company, you bring the prospective buyer directly to them and hope that they will not make you buy the car "twice" (you and the buyer both)

this, i've done personally......they actually did all the paperwork on behalf of me and the buyer for a small admin fee.

anyways, all i was implying is the you can't cut out the dealer.........

JT-KGY

Friend of mine got out of her BMW lease (Z3) around 1.5 year early...

Basically... she has to pay the difference between the following...

1. Current Market value of the car (at the auctions)
2. Rest of the payments of her lease term + Residual value

turn out to be around $2k.... she paid for it... and got out of the
lease....

Humanatek

The dealer has no play in this whatsoever. The owner of the car is not the dealer, it is the leasing company. Often times the leasing company is a division of the automaker, but remember, in the US at-least, almost all dealerships are franchises and not actually owned by the automaker. Either way the deal is only between you, the leasing company and the buyer. If the leasing company is a division of the automaker, then you can take them to any dealership that is an authorized dealer for that automobile company and have their finance manager handle it for you, but you do not have to go to the dealer.

The transaction process of buying the car from the leasing company and then re-selling it to another buyer is essentially what I have been talking about. The only difference is that you do not have to do two transactions. Leasing companies will lead you to believe that you do, but you do not have to. I have done this very scenario once before and I am in the process of doing it again.

PLYRS 3

i meant dealer/leasing company.....in canada, most leases are done BY the dealer (obviously through a leasing co.)........

for example, if you get a BMW, you do all the paperwork at the DEALER....if you want tO buy it out, you have to do it through the DEALER, if you want to walk a way at the end of the term, you still have to sign something at the DEALER.......i'm sure you could walk in to the BMW Financial Services head office and do it there, but most people just do it at the DEALER.

jefff

I actually got out of my TypeR 15 months early. I was able to negotiate the value to $1500 over my buy out! My buy out was $18.5k, and I got $20k for it. I took that equity, and put it down on my S2k.

This scenario is pretty unheard of. Fortunately the used car manager was aware of the rarity and demand for the car. I doubt I could be that lucky with my s2k.

BlkMagic

Each state have different laws regarding this.

In CA, to my understanding, if you contact the leasing company ahead of time and the title transfer to the new owner occurs within 10 days you the Leasee (you) do not have to pay sales tax.
I could be wrong on this since I've never leased a vehicle myself and only heard this from a few former customers.

The total you owe right now is the Residual Value + number of month x (monthly payment - interest portion). Or you can simply call the leasing company and they can just give you a figure good for a specific number of days called a payoff.

suzukablueinnj

In New Jersey the way it works is you obtain a payoff from the leasing company. Ask if the payoff includes tax some do some don't. Then you try to either sell or trade the vehicle for the payoff amount. If you sell the new buyer is responsible for the tax and if you trade the dealer isn't required to pay tax since they resell it. One of the major factors is your original deal and condition of the vehicle. If it is a s2000 then you have a good shot of getting out without paying because since it has a good residual you might not be upside down. You might even make money back. Another factor is how much you put down. Good luck

Scot

I am sure different states have different ways of doing it (delaware has zero sales tax on anything)......That said..... I cannot imagine anyone handing over $26k to be sent to the leasing company and then having the title show up sometime down the road (hopefully). You just know that would get screwed up beyond the imagination and the buyer would be making payments on a car he doesn't own.

Scot

[QUOTE]Originally posted by Humanatek
[B]

No, actually that is not true.

Humanatek

Uhh...that is a contradiction. If you can do it at the financial services office then you do not HAVE to do it at the dealer. There could be a difference in the laws between Canada and the US, but in the US you do not have to have anything to do with the dealer. The dealer is like a cashier at a department store. When you want to return something, you do not have to go directly back to that cashier or even the retail location that you bought it at. All you have to do is return it to any of the retail location or office for that department store.