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Purchasing at the End of Your Lease



  • czar4czar4 Posts: 33
    I understand in some states there is dealer pass-through when you want to sell a car privately but recoup sales tax paid against the purchase of a new car. Is this true in CT? I am trying to get out of a lease, and I can sell my leased car (leased through Toyota) for about $3k more than the dealer is offering; however, I would have to pay$1700 in sales tax based on the current balance owed. It seems crazy to me (although I understadn the mechanics behind it) to pay $1700 in tax for a car that will be immediately passed to a new owner.

    If I can sell it privately and NOT pay tax, I would be close to what I owe, so the thought of eating $1700 is tough to swallow - although I understand I would have swalloed that had I purchased the car originally. Thanks for any help!
  • mrsuribemrsuribe Posts: 4
    Our lease is up in July & our residual for our 2010 exl is 15,525. We've had some late payments with Honda so they've told us they will not be able to provide a loan for the lease buyout.

    The KBB value is well over the residual & it feels like they'd rather get the car back & resale & make the profit. Any idea who to apply for a loan with for this situation? Our score is approx 630. We live in CA. Let me know if you have additional questions.
  • kyfdxkyfdx Posts: 64,772
    Try your local bank or credit union..


    Prices Paid, Lease Questions, SUVs

  • sandman_6472sandman_6472 Coral Springs, FLPosts: 4,177
    In the future, don't have any late payments...or maybe y'all are leasing more vehicle than can be afforded. Many folks seem to do that and buy/lease something way too expensive. Better to have a less expensive model that is affordable since you are dinging your credit scores which is just plain dumb! We can afford any vehicle we want but we're smart enough to only purchase affordable one's that we can pay for all at once. We only finance if the rate is 0% or very very low. We also keep them for a long time, our Mazda is over 118k, an '05 and my '06 Civic is at the 40k point so it'll be here for a few more years, until at least 2016. Got my credit score last week and it's at 800.

    The Sandman :) :sick: :shades:

    2015 Audi A3 (wife) / 2015 Golf TSI (me) / 2009 Nissan Versa SL Hatch (daughter #1) / 2008 Hyundai Accent GLS (daughter #2)

  • I see someone mentioned "dealer pass through" above - can someone expound on this?
    I am in VA and have a leased 2011 Camry LE coming up in July. I have a friend who wants to buy the car - ideally he would just buy the car from us through Toyota at the residual + taxes (~14.5k i believe) but I'm not sure what the best process is to accomplish this.
    In addition - do I have to wait until the lease is over or could I just finish out my last payment and do it before then?
  • qbrozenqbrozen Posts: 22,100
    edited June 2013
    Unfortunately, YOU would have to buy the car from Toyota and then your friend buys it from you, ensuring that you both pay taxes and transfer costs both times.

    Doing it through a dealer avoids the double taxes and double fees. However, dealers won't necessarily do this, at least not with some fee involved, and rightly so because it puts them on the hook for the car. They are responsible if something goes wrong and, of course, it costs them time and money to do the paperwork. They are obviously much more willing to if you are buying a car from them and your request is part of the necessary details to get the deal done.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • billy3554billy3554 Posts: 148
    A credit score of 800 really does not get a person any more than a credit score of 720 or so. Either will usually get the top tier financing rates.

    Many of us prefer not to spend the limited time we have driving an eight year old Mazda with 100K miles or a seven year old Civic when we can afford more. For us, getting there with some style while enjoying the drive is important. We only live once so why settle for less?

    Different strokes for different folks.

    Anyone can encounter financial difficulties which ding the credit score. Those difficulties do not mean a person is dumb.
  • sebring95sebring95 Posts: 3,238
    As qbrozen mentioned, there may be some dealers not interested in this. I have a couple friends in the biz that did it for me, but they have also done it for other people for a small fee ($400 give or take). A smaller used dealership would likely be more interested in making a few bucks for pushing some paperwork.

    I had a Toyota once and the lease required I complete the buy-out at a Toyota dealer. I think they charged me $500 to process the paperwork.....but that's a little bit different since it was my lease and I was the one buying it out.
  • Thanks for the insight.
    However what do you mean by some dealers not necessarily wanting to do this - why wouldn't it be in their best interest to turn around and sell the car when I turn it in?
  • qbrozenqbrozen Posts: 22,100
    edited June 2013
    well, sure, if you are willing to pay a normal markup. I was referring to the "in and out," or "dealer pass through" as you called it, where the parties expect a dealer to do the paperwork for free or nearly free.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • Right, gotcha. Sebring mentioned ~$500 to do the paperwork for the passthrough - is that a reasonable fee in your opinion?
  • qbrozenqbrozen Posts: 22,100
    I honestly couldn't tell you what a dealer would feel is adequate. Frankly, if I owned a dealership and I was going to get NOTHING out of a deal other than $500 (meaning the other party isn't buying a replacement vehicle from me), I wouldn't do it. Its just not worth the liability.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • michaelm6michaelm6 Posts: 1
    I dont understand the Sandman's motive for his post other than to brag about his 800 credit score. People buy what they can afford at the time, then People lose jobs, finances can change sometimes without a persons control.this happened to my parents , when my father got sick years ago. the original poster was asking a question about their options,not to be reprimanded. what it necessary to scold them for having late payment? I think not, if you don't have something productive to say, then why join the conversation? It cost nothing to be kind
  • ckrayckray Posts: 1
    I think we'd like to buy out our 2010 Forester. It's in good shape, rear bumper was replaced after I got gently rear-ended, but other than that, it's good. But I don't even know where to start this process. I called the dealer we leased it from, and they want me to come in and have an inspection; they warned me that they would like to buy the car and talk us into another used car (I guess the Subarus have good resale value), but I'm always wary of what's good for the dealer. Do I even need to go to the dealer? Can I just call the leasing company and arrange a loan from our credit union? TIA!
  • sebring95sebring95 Posts: 3,238
    This should be outlined in your lease contract. I've never seen an inspection required for a buy-out...sounds like dealer nonsense to me. Call whomever you leased it from. A used vehicle you have experience with is always better than risking someone else's headache.
  • We have 2 leased 2011 Chevrolet Equinox's that will be up next year, one in May and one in June. One vehicle has 13000 miles on it and the other has 10000. The vehicles are in immaculate condition.

    When we turn these in next year what fees might we encounter? We're thinking of possibly purchasing one of them and turning in the other. We have never had a late payment on either vehicle and they were financed through Ally Financial. Thank you.
  • kanchiskanchis Posts: 33
    Need some advice on what I should do at the lease end for my 2011 335d BMW. My residual is $32,396 and I'm right at the 44.5k Miles (allowed 45k miles). After talking with my dealer they said they can purchase my car from BMWFS and turn it around as a CPO and sell it for 34650 and give 0.9% for 48 months which is a good term at the current finance rates. There is not going to be a lease disposition fee ($350 or 450) but there is going to be a dealer fee of 599 that is non negotiable+$45 title tag fee. So with tax and everything out the door its going to cost me 37,634 with CPO (6Yr 100,000 Mile) warranty. Does this sound good?

    The tax rate here in GA is 6.5% of what a valuation that DMV suggests (which happens to be 50 bucks below the residual so no harm done). I got 2 days left to decide so any info is much appreciated. Thanks!
  • igozoomzoomigozoomzoom Waleska, GeorgiaPosts: 801
    edited August 2013
    I ran the number (about 18 times because I had my two evening Valium BEFORE my two (or five) evening beers...and MATH IS HARD right now for me....

    Seriously, (there was no beer, just two Valium and9% some round pill I found on the bathroom floor)...

    According to, Bank of America has a 48-month Used Car Loan available at only 2.09% interest. If that is correct and you qualify for that rate, buying the CPO at 0.9% will cost about $1750 more when all is said and done. That includes an assumed $350 Lease Disposition Fee if you buy it at the Residual Value...if that's not the case, then it could be more like $2100 more overall.

    I am leery of BMWs out-of-warranty, so even though is normally not a move I would recommend on most regular makes, this could be worth it. But the question that we don't really have much inforamation to answer is how reliable and durable will that BMW TurboDiesell be over the next 3yrs and 55k miles? Most diesels would just be getting broken in at 100k...but BMWs can be, how do I put this, delicate...fragile best friend's 2005 330i started leaking oil and the transmission started acting up within 4 weeks of the warranty expiring....

    I'm curious- what color is your 335d and what options and/or Packages does it have?

    The reason i ask is because I did some searching for CPO 2011 335d models located in the Southeast and the CPO price they're quoting you seems a bit high.

    The first one has me ready to drive up to Winston-Salem NC tomorrow and buy it myself! (BTW, I'm located on northern edge of metro Atlanta area)

    This one would have stickered for $54,710 when new.
    2011 BMW 335d, CPO, 48,200mi- $32,449
    Space Gray Met w/ Black Dakota Leather
    Heated Steering Wheel
    Harmon Kardon Surround Sound Audio
    SIRIUS sat radio w/ 1yr subscrip
    @ Flow BMW in Winston Salem NC

    2011 BMW 335d, CPO, 19,380mi - $33,488
    Alpine White w/ Beige Dakota Leather
    SIRIUS Sat radio w/ 1-year subscrip
    iPod & USB Adapter
    @ BMW of South Atlanta

    2011 BMW 335d, CPO, 36,979mi - $32,307
    Black Sapphire Metallic w/ Gray Dakota Leather
    Heated Steering Wheel
    SIRIUS sat radio w/ 1yr subscrip
    iPod & USB Adapter
    @ Bluegrass BMW in Paducah KY

    This one causes me ‘visual nausea’ (I just coined that meaningless phrase)!
    It’s a 2011 BMW 335d but the color combination is, um, eww….
    I can’t fathom going to the BMW dealer and thinking, I really want to pay $50k for THAT one….this had to be a customer-order from the factory, right? I pray this poor soul has been introduced to a wonderful thing called a Color Wheel and it shows the range of colors that will ‘go’ with others…
    Tasman Green Metallic with Chesnut Brown Leather (and the Chestnut Brown has an orange-like glow… - b5cd85ca64ca3.htm
    2015.5 Volvo S60 T6 Drive-E Platinum, 2012 Mazda CX-9 GT
  • kanchiskanchis Posts: 33
    edited August 2013
    Thank you for the help! I actually pulled the trigger and bought it with the CPO warranty. My two options were;
    1. Buy the car at residual $32396, with BOA financing for 48months @ 2.04%.

    2. Give the car up to my dealer and pay no lease disposition fee of $350. The dealer certifies the car and makes it a CPO with 6Yr 100,000 Mile warranty and sell it back to me for $34650 AND give me 0.9% financing.

    So the net difference between the two scenarios at the end of the loan term was $1721, which was a reasonable price to pay for CPO I thought.

    So....a little bit info on my car.
    The MSRP on this was $57850
    It has Lemans blue exterior and Sandle brown interior leather.
    M Sport, Premium Pkg, Cold Weather Pkg, Convenience Pkg, HK upgraded sterior, Navigation, Ipod integration, Smart phone integration, ....The only option I didnt get was SAT radio, because I personally hate sat. This car was ordered by me so I pretty much over loaded it with options and picked it off at SC (good memories!!:::))))

    I also did some research to find any M Sports but there arnt any. The closest sport package CPO was 35-37k and it was not even close to my M sport (looks wise). Since I had owned this car from 0 miles on it I know the history and the way I've maintained it so there's a premium I was willing to pay for that I guess. Also the emotional attachment cost a few bucks too ;) I'm pretty anal when it comes to maintaining my car. I dont eat, drink, smoke inside the car and my wife hates me for that :) I know every small scratch on it inside and out and I pretty much lick the car clean every week my self. So ya I doubt that i'd be able to find a car that was babied like mine, or will never know at least.

    Here's a link for some pictures of the car

    I think I made the correct choice. Thanks for letting me vent.

    PS: Here's a M sport thats on sale on - listingId=123096552&paId=531153872&listingRecNum=1&criteria=fuelTypeId%3d31766%2- - 6sf1Dir%3dDESC%26mkId%3d20005%26stkTyp%3dU%26mdId%3d20445%26rd%3d100000%26crSrtF- - lds%3dstkTypId-feedSegId-mkId-mdId-yrId-fuelTypeId%26zc%3d30024%26rn%3d0%26PMmt%- - 3d1-1-0%26stkTypId%3d28881%26sf2Dir%3dASC%26sf1Nm%3dprice%26yrId%3d34923%26sf2Nm- - %3dmiles%26isDealerGrouping%3dfalse%26rpp%3d50%26feedSegId%3d28705&tracktype=use- - dcc&pageNumber=&numResultsPerPage=&largeNumResultsPerPage=0&sortorder=descending- - &sortfield=PRICE&certifiedOnly=false&&aff=national

    The difference is that its not a CPO, doesnt have conveniance pkg, and white color (which is 500 bucks less than a premium paint).

    Here's another one, thats more close to my car priced at 34880 with No CPO. gId=122059286&listingRecNum=23&criteria=fuelTypeId%3D31766%26sf1Dir%3DASC%26mkId- %3D20005%26stkTyp%3DU%26mdId%3D20445%26kwm%3DANY%26rd%3D100000%26crSrtFlds%3Dstk- TypId-feedSegId-mkId-mdId-yrId-fuelTypeId%26zc%3D30024%26rn%3D0%26PMmt%3D1-1-0%2- 6stkTypId%3D28881%26sf2Dir%3DASC%26sf1Nm%3Dprice%26yrId%3D34923%26requestorTrack- ingInfo%3DRTB_SEARCH%26kw%3Dm+sport%26sf2Nm%3Dmiles%26isDealerGrouping%3Dfalse%2- 6rpp%3D50%26feedSegId%3D28705&aff=national&listType=1
  • igozoomzoomigozoomzoom Waleska, GeorgiaPosts: 801
    Congrats! I had only seen LeMans Blue in photos until just a few months ago. The BMW dealership near my office had a new 135is in Lemans Blue and it looked amazing! I love it!

    Choosing an exterior color is usually the most difficult part of the buying process for me. I actually love the color blue, but rarely does an automaker offer a shade of blue that looks so amazing! Acura offers a color on the TSX called Vortex Blue Pearl that was my favorite blue until I saw LeMans Blue....Vortex Blue can't hold a candle to it!

    I also think the Saddle Brown interior is beautiful. It looks great with the LeMans Blue. If I had ordered it, I would've played it safe with Black interior. But the Saddle Brown really stands out and it's a stunning color combo. I'm far too conservative when it comes to colors, and I wish I was a little more adventurous. I actually have a rare type of color blindness and it sucks because I play it safe when it comes to choosing car color combinations, clothes (khakis go with everything, right?) and even paint color for my walls. I'm almost 39 and I still run color choices by my mom to make sure they actually appear the way I'm seeing them or if they clash and look horrible. On the upside, soldiers with the same type of color blindness that I have were part of a special group in the South Pacific during WW2. Apparently, people with this condition were able to detect the camo worn by the Japanese, even if they were hiden in thick island rain forests....

    The two white ones you posted the links for also look amazing! I love white cars if they are a pure, clean white and BMW's Alpine White is a perfect example of one. I don't get the appeal of Pearl White, but it's far more common than regular white on new cars!

    A lot of people dislike Jet Black and Alpine White models since they are the only two 'base' colors available at no charge instead of paying $550 for one of the Metallics. Whenever I used to see a White or Red previous-genereation 325i (esp. with the standard wheels) it makes me think "wannabe". I have a friendd who recently sold a 2008 Lexus IS250 without a single option. It didn't even have heated seats.

    But the M Sport Package in Alpine White- WOW!

    So back on the topic of your purcahse....

    I definitely think you made the best decision because you clearly love this car and I suspect you'll hang onto it for quite a while. So the CPO additional warranty coverage is well worth the peace of mind it affords you!

    Had I known that you spec'd this car down to the last detail and tookd delivery at the factory, I wouldn't have even mentioned any of the slightly lower priced examples of the 335D. Given the color combo and the number of options and options packages on your car, it might even ben one of a king....that would be very cool!

    What did you think of the delivery experience at the SC facility? There was a lot of debate about whether Americans would even accept the 3-series being built at as US factory. Then they were concerned about whether to offer the factory delivery option but I'm glad they did because everyone I know who has experienced it had a great experience!

    Back in 1998, my ex-wife and I used the Volvo Overseas Delivery program whe she ordered a new Volvo S70 T5 to replace her aging 1993 Volvo 850. We had an amazing day touring the Volvo facilities and got to spend an hour wth the guys in the safety center!

    I learned two VERY important lessons on or as a result of that trip-

    1- Don't try to drive in countries with road signs in a language you don't understand.

    2- The Swedes are some of the kindest and most friendly folks I've ever met. Everything in Gothenberg was in so clean and neat. We were tryign to drive to Oslo, Norway but ended up about 120 miles off course and too sleepy to drive. We had no cell receptioin (we were in the middle of nowhere, with one house and chimney smoke on one side and a cliff looking down over a fjord on the other. We went to the housee with the smoke and the familly insisted that we stay the night with them! It was one of the most touching acts of kindness and I still keep in touch with the couple to this day!!!

    Buddy, I am very happy for you! You just need to plan on keeping your 335d forever because it will be just as amazing in 20 years as it is now! =)

    Peace out.
    2015.5 Volvo S60 T6 Drive-E Platinum, 2012 Mazda CX-9 GT
  • Hi all,

    I hope someone might have some input. I'm coming off a lease on a Nissan Altima. I've decided to purchase the vehicle given the residual is competitive and the car has relatively low mileage. I called NMAC as I've previously done this over the phone with other leases but their rather unhelpful phone system suggested I needed to visit a dealer. Do I need to actually visit the dealer to complete the transaction? I wanted to hear what NMAC was offering in terms of rates before pursuing financing through my own bank. I'd rather not set foot in a dealership since this is a rather simple transaction and I assume the dealer will try to push through paperwork/'admin' fees since there is no other profit in it for them. Has anyone had success doing the transaction over the phone or obtaining financing through another financial institution and simply having NMAC mail the paperwork? When I requested a payoff quote, NMAC offered quotes for purchasing through a dealership and a quote for purchasing through a financial institution. The quote for purchasing through the financial institution was much higher so they're clearly trying to provide an incentive for me to go to the dealership. Has anyone gone through this with NMAC before? Can you comment on the experience and possible suggestions for getting this done quick and without headaches?

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