Date: Mon, 13 Sep 1999 19:37:22 GMT
From: johnmorgannopsameja.com
Subject: Re: Liquidating a Lease: used to be 1999 9-3 lease question


Thanks for the advice. I was wondering how to structure this. I thought I would call Subaru Credit Corp. and ask them but I think I will try your approach first. Have you had any resistance from a buyer who wants the title papers in hand? I would wonder about that. Thanks! In article <37DAEBEA.FDCDD30Enopsamdnet.att.net>, Gerard <g.kielynopsamdnet.att.net> wrote > John, > > One bit of advice. I typically try to sell my cars when they come off > lease if I think I can come out ahead. If you sell your Subaru, you need > to think about how you are actually going to do the deal. What I've done > is require a certified check for the full amount. As a receipt for the > check, I give the buyer the car. I then overnight a check for the residual > to the lease company along with a request for them to transfer title to the > buyer (I've done this with Subaru of America). That way I pocket the > difference between the selling price and the residual and, at least in New > Jersey, I escape the 6% sales tax on the residual, since I never owned the > car. I merely sold the option to buy. It works great. > > If one understands how to properly construct and manage a lease, it makes > the most sense. Never own a depreciating asset. > > gerard > > johnmorgannopsameja.com wrote: > > > In article <uBGc7V7##GA.307nopsamnbbsa05>, > > "Kenneth H. Yoon" <kenyoonnopsaml.msn.com> wrote: > > > I don't understand. If the actual market value of the car at lease- > > end > > > doesn't equal or exceed the vehicle's residual value, then the lessee > > needs > > > to make up the difference? > > > > > > This doesn't seem to make any sense, except as a good way for GM/SAAB > > to get > > > itself sued in a huge class-action. > > > > > You are absolutly right. At the end of the lease, you turn the car in > > paying for any excess milage and damage beyond normal wear and tear. > > Period! The lease has a guarenteed residual value which is the price > > used in computing the lease payment based on a prediction of actual > > market value at that time, and it is also the price at which you can > > buy the car regardless of that market value. > > > > For instance, I just got a new 9-3 on the lease deal, but I also have a > > Subaru Outback a lease on which expires November 2. The residual on > > the Outback is approximately $18,000, which is the price I can buy it > > for up until November 2, the day I must return it to the Subaru > > dealer. But the Blue Book retail value is about $21,500. So between > > now and November 2 I am going to try to sell it taking whatever I can > > get over $18K, which is money in my pocket. If I don't sell it, I will > > just turn it in. > > > > Any takers? > > > > Sent via Deja.com http://www.deja.com/ > > Share what you know. Learn what you don't. > > Sent via Deja.com http://www.deja.com/ Share what you know. Learn what you don't.

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