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#906 of 967 Re: Dealer sold leased vehicle before I was allowed to buy it at the end of lea [pontoonwoman]
Sep 23, 2011 (3:14 pm)
If you "turned it in" then it belongs to the lease bank (as it always has) and at that point and they can do with it what they want to. They will send you a bill for any excess miles and any damage over what is allowed in your lease contract. That is just how it is.
After the inspection was done you should have known how much you were going to owe for damage and miles, you should have made your choice to buy it out for the residual price written in the contract (plus possibly some fees).
Sounds like the dealership did not treat you fairly, but nothing they did sounds legally wrong - you turned it in and they sent it to the auction or bought it from the lease bank and resold it.
#907 of 967 Re: Scammed by Stonecrest Toyota [lucia38]
Sep 23, 2011 (5:19 pm)
At least you got your $1,000 back, that's a good thing! It sucks that you had such a hassle, but it could have been even worse.
Take a look at your loan agreement to see if there is any sort of penalty or fee for early pay-off. If not, start shopping around for another loan at a lower rate. Most major banks and finance companies offer auto "refi" loans at decent rates. If you have access to a credit union (or can join one), explore that option for a loan as well.
#908 of 967 Re: Scammed by Stonecrest Toyota [igozoomzoom]
Oct 09, 2011 (5:37 pm)
The listed end of lease buy-out is often quite a reasonable number, so if possible, it is never a bad idea to do that and then re-sell. I'm currently looking for anyone what has a 3 year lease on a Murano in Calgary, AB, so I can offer 5% more than the end-of-lease buy out to the person and take the vehicle.
#909 of 967 Should I buy out my lease and resell?
Oct 18, 2011 (7:55 am)
Nearly 3 years ago I leased a brand new 2009 Audi A4 convertible. Thinking that I would drive the car more than I actually did, I opted for 15K miles per year. I am now 5 months away from the end of the lease and I only have 20K on the odometer. The car is in excellent condition, has never been in an accident and has been garaged kept and only driven on weekends.
The residual price is approximately $24K and looking online I should be able to sell the car for $28K-$29K without much hassle. Should I do it? Are there any other costs that I should consider that will eat into my profit (i.e. taxes, fees, etc)? Am I better off trying to turn the lease in early and negotiating with the dealer since the car is clearly undervalued for the mileage? Also, is the residual price negotiable?
Thanks in advance for your advice.
#910 of 967 Re: Should I buy out my lease and resell? [dbarton7]
Oct 18, 2011 (8:14 am)
The biggest issue is that you'll probably have to title it in your name first and then resell it. That will probably involve paying sales taxes on it.
Further, unless you are in a warm locale selling a convertible when winter is around the corner might prove difficult.
#911 of 967 Re: Should I buy out my lease and resell? [dbarton7]
Oct 18, 2011 (11:29 am)
You don't state your location here or in your profile, but in most places sales tax would be due if you buy the car yourself. Here in high tax land it would be 7% of the $24k buyout price or $1,680 for a total of $25,680. Some states allow you to get a tax refund if you resell the car in xx days, others do not charge for private sales (from you to the new buyer) and every place has different tax rates. You can avoid the tax by selling the car to or through a dealer.
Carmax shows 2 09 A4 drop tops right now, one in b'ham has 19k and is $28,147 the other in GA has 10k and is $31,998, Both are 2.0T automatics.
If yours is similar to the one in b'ham then I would say $27k or less. You would still net a profit, but after taxes not as much as you would like. More for a quattro model (depends on the location) and more for a 3.2 model.
I would take the car to Carmax now (if you have one around) and see what they will offer for it and compare to the current buy out price. No need to wait for the lease to end (and colder weather) unless you want to drive it the last months yourself. By avoiding the last 4 or 5 payments of $xxx you save and they may offer you $25k for it now (2.0t). If you don't like the offer, keep the car and try again at lease end. Also try the autotrader dealer buying thing online or see if the used car manager at various Audi dealerships has any interest.
#912 of 967 Re: Should I buy out my lease and resell? [dwynne]
Oct 18, 2011 (11:46 am)
Thanks so Dwynne..very helpful
I live in NJ and the car is in fact a Quattro Sport model with basically every option but nav.
#913 of 967 Re: Should I buy out my lease and resell? [dbarton7]
Oct 18, 2011 (4:06 pm)
Oh, you shouldn't have said you live in NJ...... That car sounds sweet.
It's always my theory that you should buy a car at the end of someone else's lease.....
#914 of 967 Re: Should I buy out my lease and resell? [dbarton7]
Oct 19, 2011 (6:05 am)
AFAIK NJj requires sales tax to be paid to transfer the title, so you would have to pay then your buyer would have to pay. NJ DOES collect the lease sales tax up front, so if you end the lease early you would be due a tax refund. You paid ((tax rate * base payment) * 36 payments) up front - either rolled into the lease or out of pocket. If you end 5 months early you should get credit for ((tax rate * base payment) * 5). May not be much, but worth considering.
Even though you have a Quattro, probably better to sell the drop top before the really cold weather hits or hang onto it until it warms back up.
Don't forget tags and personal property tax if they apply in NJ. Owning the car to resell it may mean you have to tag or pay property tax on it.
#915 of 967 Re: Should I buy out my lease and resell? [dwynne]
Oct 19, 2011 (8:32 am)
If you're friendly with any dealers they can help out a lot in this case. Especially if you're thinking of buying a new car. If you have a potential buyer, take them with you to the new car dealer and work out where you trade the car and they sell to your buyer for a set price. They make a few easy bucks ($500 would be fair and common), you save on tax and headache/paperwork.