Lease

[Hornet]

I've been extending the lease on my Explorer - Bronco build was July now Aug. currently with the strong market for used cars it appears my payoff to buy the Explorer is thousands $$$ less than Kelley blue book trade in value. Anyone buy their Lease vehicle then trade it it?

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[JeebusCripes]

Yep! I’d check out sale prices vs what you would owe if you took ownership. Don’t forget to take into consideration taxes. But based on used car prices now I’d consider it for sure!!

 

[bdub2you]

I've been extending the lease on my Explorer - Bronco build was July now Aug. currently with the strong market for used cars it appears my payoff to buy the Explorer is thousands $$$ less than Kelley blue book trade in value. Anyone buy their Lease vehicle then trade it it?

Almost everyone that has a lease expiring right now has positive equity in their vehicle and would be crazy to not buy out the lease and then sell the vehicle (get quotes from carvana, vroom, and carmax because they're going to offer more than your dealership).

If you simply turn it in you're likely giving up thousands of dollars in equity.

 

[Monster1926]

I've been extending the lease on my Explorer - Bronco build was July now Aug. currently with the strong market for used cars it appears my payoff to buy the Explorer is thousands $$$ less than Kelley blue book trade in value. Anyone buy their Lease vehicle then trade it it?

See what givemethevin will give you. You might be able to straight sell it to them then you’ll get a check back.

 

[Myrandar]

I've been extending the lease on my Explorer - Bronco build was July now Aug. currently with the strong market for used cars it appears my payoff to buy the Explorer is thousands $$$ less than Kelley blue book trade in value. Anyone buy their Lease vehicle then trade it it?

yep. I bought my lease out for about 15500 and the carmax offered me 18000 for it. ended up trading it in to the dealer for the tax credit so ended up getting about 18400 for it.

 

[CMBRONC]

High used car values are great for lease returns. This topic was on Autoblog recently. Manufactures are attempting to limit your options when returning a leased vehicle.


https://www.autoblog.com/2021/07/26/gm-honda-lease-return-policy/

 

[CTS-V]

You don’t have to buy the lease out. Just trade it in and the dealer or carmax or vroom will pay off the lease company. You will avoid paying tax on the lease buyout.

I just got done doing this with my CTSV lease. With the crazy used car values I ended up with $20K equity, so I dumped that equity into a new car purchase.

 

[Hornet]

You don’t have to buy the lease out. Just trade it in and the dealer or carmax or vroom will pay off the lease company. You will avoid paying tax on the lease buyout.

I just got done doing this with my CTSV lease. With the crazy used car values I ended up with $20K equity, so I dumped that equity into a new car purchase.

I won't need to buy lease out its expiring. But it's my understanding I need to exercise the option to buy it in order to sell it.

 

[Big Boss]

I won't need to buy lease out its expiring. But it's my understanding I need to exercise the option to buy it in order to sell it.

I believe a place like carmax will handle all of that. They will buy it out from the leasing company and then cut you a check for any equity you have in it. But I'm not 100% sure. I'm in the same boat and going to look into it as well

 

[CTS-V]

I won't need to buy lease out its expiring. But it's my understanding I need to exercise the option to buy it in order to sell it.

You Do not need to exercise the option to buy it in order to sell it. Like I said, any other dealership or online car buying service will give you an offer, if it’s above your lease buyout then you are in an equity position. The other dealership or online car buying service will cut you a check for the difference between their offer and your lease buyout. They will be responsible for paying off the lease buyout.

For example, and I just did this this week. My CTSV lease was up this November. I have been tracking KBB values on my car for several months, watching the KBB values continue to go up. I knew I was in a substantial equity position because I knew what my lease buyout was from Cadillac. So, once I found my new car, I got appraisals from Carmax and Vroom, and an offer from the Mercedes dealership where I bought my car. The carmax and vroom offers were fairly close to KBB, the Mercedes dealership matched those offers, so I went with trading with Mercedes to get tax savings on the new purchase. So, essentially my offers from Carmax, vroom, and the dealership were $20K higher than my Cadillac lease buyout, so I came out with $20K to use for my new car.

You do not want to buy your leased vehicle and then turn around and sell it. You will pay sales tax to purchase your lease buyout. That’s money wasted.

 

[Boxer4]

You Do not need to exercise the option to buy it in order to sell it. Like I said, any other dealership or online car buying service will give you an offer, if it’s above your lease buyout then you are in an equity position. The other dealership or online car buying service will cut you a check for the difference between their offer and your lease buyout. They will be responsible for paying off the lease buyout.

For example, and I just did this this week. My CTSV lease was up this November. I have been tracking KBB values on my car for several months, watching the KBB values continue to go up. I knew I was in a substantial equity position because I knew what my lease buyout was from Cadillac. So, once I found my new car, I got appraisals from Carmax and Vroom, and an offer from the Mercedes dealership where I bought my car. The carmax and vroom offers were fairly close to KBB, the Mercedes dealership matched those offers, so I went with trading with Mercedes to get tax savings on the new purchase. So, essentially my offers from Carmax, vroom, and the dealership were $20K higher than my Cadillac lease buyout, so I came out with $20K to use for my new car.

You do not want to buy your leased vehicle and then turn around and sell it. You will pay sales tax to purchase your lease buyout. That’s money wasted.

A Forum member stated that Carvana, among others, required 60 days to a complete lease buyout. Did you come across any timeframe restrictions?

 

[Drex]

used prices are dropping like a rock and an article I read says it will be down to about a 10% premium (from a high of around 30%) in a month or so due to supply catching up. If you are going to do it, do it now.

 

[Hornet]

You Do not need to exercise the option to buy it in order to sell it. Like I said, any other dealership or online car buying service will give you an offer, if it’s above your lease buyout then you are in an equity position. The other dealership or online car buying service will cut you a check for the difference between their offer and your lease buyout. They will be responsible for paying off the lease buyout.

For example, and I just did this this week. My CTSV lease was up this November. I have been tracking KBB values on my car for several months, watching the KBB values continue to go up. I knew I was in a substantial equity position because I knew what my lease buyout was from Cadillac. So, once I found my new car, I got appraisals from Carmax and Vroom, and an offer from the Mercedes dealership where I bought my car. The carmax and vroom offers were fairly close to KBB, the Mercedes dealership matched those offers, so I went with trading with Mercedes to get tax savings on the new purchase. So, essentially my offers from Carmax, vroom, and the dealership were $20K higher than my Cadillac lease buyout, so I came out with $20K to use for my new car.

You do not want to buy your leased vehicle and then turn around and sell it. You will pay sales tax to purchase your lease buyout. That’s money wasted.

20k that'sAwesome!! My Ford dealer told me they are prohibited from buying the car from me - said it's outside their window to do so. I'll definitely look into vroom and caravana.
thank you.

 

[shimmy825]

I've been extending the lease on my Explorer - Bronco build was July now Aug. currently with the strong market for used cars it appears my payoff to buy the Explorer is thousands $$$ less than Kelley blue book trade in value. Anyone buy their Lease vehicle then trade it it?

We are literally in the process of doing this now. However, if the lease is through Ford Motor Credit (or whatever it's called) Carmax, Carvana, etc etc won't buy it out. We are having to pay cash for the vehicle (and fortunate enough to be able to do so) but then will turn around and sell it.

 

[Hornet]

We are literally in the process of doing this now. However, if the lease is through Ford Motor Credit (or whatever it's called) Carmax, Carvana, etc etc won't buy it out. We are having to pay cash for the vehicle (and fortunate enough to be able to do so) but then will turn around and sell it.

That's what I was told, would need to buy out lease. Which means paying the taxes.

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