NFT: Selling your leased car to a dealership

selling it to carvana or carmax. They will buy your leased car from the bank and potentially(probably) give you money on top of it. Go to their websites and put in your car info(you may need to call the bank for buyout info) and they will give you a quote right away. Carvana will come to your house and pick up the car and give you a check(if there's equity).

But I extended my M3 lease last year and got 1000 additional miles for every month I extended. Originally was a 3 year 36K lease and turned in to a 40 month 40K lease.

In comment 15414502 Kmed6000 said:

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selling it to carvana or carmax. They will buy your leased car from the bank and potentially(probably) give you money on top of it. Go to their websites and put in your car info(you may need to call the bank for buyout info) and they will give you a quote right away. Carvana will come to your house and pick up the car and give you a check(if there's equity).

Great suggestion! I’ll check it out. Thanks!

In comment 15414506 BlueHurricane said:

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But I extended my M3 lease last year and got 1000 additional miles for every month I extended. Originally was a 3 year 36K lease and turned in to a 40 month 40K lease.

That’s what I assumed too, especially since my wife is also through GM Financial and was also prorated mileage. However, she stayed with GM and I didn’t. That was the problem.

Given pandemic, my 39 mo lease is coming to end on a Jeep. I only have 19k miles after paying down nearly 3 years of payments and up front payment/trade-in. There's definite residual value and low mileage in vehicle so I'm torn between just buying out the car (via short loan) to keep or just bargain with new dealer on taking the car as part of a new lease/purchase.

From my valuation, the residual cost left on car is 15k, and KBB and other car valuation put the market value around 24-26k based on condition. I've heard despite the new car crunch/inflation in prices, some folks getting good buy-in/trade in valuation on their lease end with dealers and new car leases or purchases.

In comment 15414502 Kmed6000 said:

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selling it to carvana or carmax. They will buy your leased car from the bank and potentially(probably) give you money on top of it. Go to their websites and put in your car info(you may need to call the bank for buyout info) and they will give you a quote right away. Carvana will come to your house and pick up the car and give you a check(if there's equity).

Very interesting... I just so happen to be looking at a used Touareg on Carvana right now, and I'd strongly consider getting out of my Audi lease for it since it can tow. I'll have to see what they can do.

In comment 15414903 santacruzom said:

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In comment 15414502 Kmed6000 said: Quote: selling it to carvana or carmax. They will buy your leased car from the bank and potentially(probably) give you money on top of it. Go to their websites and put in your car info(you may need to call the bank for buyout info) and they will give you a quote right away. Carvana will come to your house and pick up the car and give you a check(if there's equity). Very interesting... I just so happen to be looking at a used Touareg on Carvana right now, and I'd strongly consider getting out of my Audi lease for it since it can tow. I'll have to see what they can do.

I just bought a car from Carvana. Delivered it to my house yesterday. Carvana does not take leased vehicles on a trade. I suppose you could sell it to them and then purchase afterwards. I turned in a leased vehicle following a 3 year lease. So I didn’t have a trade.

I ran into an issue where they allegedly couldn't negotiate the lease buyout on my behalf so they were making me buy it out and get the title. If the bank's name is on the lease, you'll have to go to DMV and get a new title which means you get hit with the sales tax on the buyout.

I would try the dealer route first as you don't have to worry about the title issue with them.

I'd recommend mycarauction.com if dealer option falls through. They don't need a new title and give you a check on the spot after inspection.

(and by extension all of the online sites):

The dealerships don't actually own the leased cars (at least Jeep works this way), when you surrender a lease it goes back to corporate. Corporate will move the cars around to get the best price. If the dealer can make money on your car, they will want to buy it from you to bypass it going to corporate. In order for a dealer to buy the car, you need to purchase it outright to get the title and then you can sell it to the dealer at an agreed upon price.

Usually when you get the title it has the banks name on it AND your name. That means you need both parties present to sell the vehicle. BUT if you buy out a Jeep and sell it to a Jeep dealership, it's not an issue because they are the financer. Very simple.

Vroom/Carmax is a different story. They will also make you buy out the lease. BUT if the title has, for example BMW Financial AND your name on the title, they can't buy it from you without getting the title changed. You get hit with the sales tax on the purchase price for the vehicle when you get a new title from DMV.

Mycaruaction does NOT need a new title, for some reason they can take a car with the title as is. I didn't ask questions why but my guess is because they take the cars they buy to a car auction it's probably easier for them to do salvage titles or something.

they give you a 7 day guarantee on the price. Then go to the dealership. This way you will know if you are getting a good price or not. Then just take the best price. All three will take it.

Ford and Nissan amongst a few others. With those brands, you'll have to buy the car out and then sell it, but most carvana and carmax will buy. They will buy it directly from the bank(lienholder) and give you a check for any equity.

I am in the business, I see these things all day. Carmax and carvana are offering more than any dealership or buyer that I've seen 90% of the time.

You can call your bank and ask them if they allow 3rd party buyers.

In comment 15415286 Kmed6000 said:

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Ford and Nissan amongst a few others. With those brands, you'll have to buy the car out and then sell it, but most carvana and carmax will buy. They will buy it directly from the bank(lienholder) and give you a check for any equity. I am in the business, I see these things all day. Carmax and carvana are offering more than any dealership or buyer that I've seen 90% of the time. You can call your bank and ask them if they allow 3rd party buyers.

I've gotten conflicting info regarding this where the bank said we have no issues with a third party buyout and then Carvana/Vroom said they couldn't. I believe the bank over them so I am calling shenanigans on Carvana and Vroom. Their response times were also awful. I would not deal with them again.

On the other hand, no issues whatsoever with mycarauction. com

from the banks(lienholders). Again though, not all manufacturers allow it anymore. For example, Fords can only be purchased by the leasee. Not even the dealerships can buy leases anymore. Nissans can only be purchased by the dealerships(as opposed to 3rd parties).

I def would trust the banks over carvana, so thats where i would start for sure.

of people begging me to buy out leases. I'm a lease broker and I deal with clients coming out of leases all the time. I have a bunch of buyers(used car lots, dealerships, etc..) that call me all the time asking to buy out my clients leases. In this current environment, its rare that I don't see leases with equity which is the opposite from before this crisis.

I'm also constantly having conversations on when this disaster is going to end. There are a few issues here...this chip issue which is made in Taiwan and built in malaysia. There is a supply chain issue to build cars, shipping issue to ship cars and trucking issue to transport once here. I'm hearing that this disaster should continue through December and get a little better in the new year. If that's the case, I'd expect it to be close to normal by mid year 2022.

That's if the head of transportation in the US is back from his freaking paternity leave by then. Unreal.