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Why do banks have drive in windows?... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Wed, 14 May 2003 11:20:54
In Reply to: Re: So don't hand it in, sell it....., Roger, Tue, 13 May 2003 18:21:57 Members do not see ads below this line. - Help Keep This Site Online - Signup |
So cars can visit their owners. Just like financing, for the same reason that you can sell a car that the bank has the title for you can also sell a leased car that the lessor has title to. After the lease termination date, or roughly 30 days after you've made your last payment, then the car reverts to the lease company. Before then your leased vehicle has a payoff just like a financed car. Usually that payoff is equal to the residual value plus any remaining payments. Leases are written so that lessees are given the option to purchase the vehicle upon termination. This can be a remedy for excess mileage charges. You can pay the excess mileage charges or buy or sell the vehicle for the residual value stated in the lease. You need to look at that on a case by case basis. Sometimes the mileage penalty is cheaper, sometimes the difference in values is cheaper. You used to be able to negotiate with the lease company a lower buyout, but lately lease companies have wised up and purchase residual insurance. The insurance company will pay the lessor the difference between the auction value and the residual value so there's no pressure for the lessor to sell the car for less of a value than the residual.
To sell your lease car have your buyer or your buyer's lender send a cashiers check to the lessor in the amount of the payoff, any difference or deficiency you can collect or pay yourself. Go to the DMV and transfer the car. When the new buyer or the new buyer's lender receives the title they can turn it into the DMV to complete the re-titling and registration. Do remember to "release your liability", usually a seperate form that tells the DMV that your no longer responsible for the car while the transaction is in progress. The bill of sale you give your new buyer will establish the date of the transfer.
After the lease only the lessee may purchase the car, technically. In California there's a loophole so that if the lessee purchases the vehicle from the lease company on which sales tax will be charged, then if you resell the car to a private party withing 10 days the subsequent buyer won't have to pay sales tax again. If it's before termination than anybody can buy the car from you and the lease company, but after termination only the lessee can purchase the car, no third party transactions. So do it before terminantion.
posted by 207.158.49...
, Tue, 13 May 2003 10:58:27, Tue, 13 May 2003 12:00:30, Wed, 14 May 2003 11:20:54 <-- Viewing This Message
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