Consider selling your car before lease ends

Edmunds.comEdmunds.com Member, Administrator, Moderator Posts: 10,315
edited October 2020 in General
Undefined discussion subject.

Read the full story here

Comments

  • TVTomTTVTomT Member Posts: 1
    Unfortunately, Ford Finance has told me that I cannot sell it to just anyone...in fact only the owner can buy the car outright. They are not allowing dealers or private party's to purchase the vehicle. I have to buy the car before I can sell it. I don't know if that's legal but that's what they tell me. I need to go to the dealer that I purchased the car who will control the sale. Sounds like they want to have control because if they like the car, they might want it.
  • kyfdxkyfdx Moderator Posts: 233,663
    TVTomT said:

    Unfortunately, Ford Finance has told me that I cannot sell it to just anyone...in fact only the owner can buy the car outright. They are not allowing dealers or private party's to purchase the vehicle. I have to buy the car before I can sell it. I don't know if that's legal but that's what they tell me. I need to go to the dealer that I purchased the car who will control the sale. Sounds like they want to have control because if they like the car, they might want it.

    Almost no bank will let you sell your car directly to a private party, without you purchasing it first.

    It's unusual for a captive finance company to restrict a sale to a dealer, though (even a different make or an independent). How to find out for sure: Take your car to Carmax, and ask them for a bid. They'll check with Ford Credit for a payoff. If they say they can't buy it, then you'll know.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • Matthew522Matthew522 Member Posts: 2
    Edmunds doesn't explain in their inforgraphic ("Make Money Off Your Expiring Lease") how the process works making money by selling your car coming off lease to a 3rd party e.g. dealer, private party, etc. When you find a buyer how does the transaction work? The buyer you find pays the leasing company the residual value and how does the seller collect the equity (profit) above what's being paid to the leasing company? What about sales taxes?
  • Matthew522Matthew522 Member Posts: 2
    If almost no bank will let you sell your car directly to a private party, without you purchasing it first, then how would that transaction work? If lease holder purchases car I assume they have to pay sales tax. Now purchaser sells car to a private party and has to recover the sales tax plus price paid to leasing company plus profit. The private party has to pay sales tax again. Is this correct? Also, I assume car registration, insurance etc has to transfer from leasing company, to purchaser and then to private party. Sounds like a lot of paperwork, is the correct? Missing anything else?
  • kyfdxkyfdx Moderator Posts: 233,663

    If almost no bank will let you sell your car directly to a private party, without you purchasing it first, then how would that transaction work? If lease holder purchases car I assume they have to pay sales tax. Now purchaser sells car to a private party and has to recover the sales tax plus price paid to leasing company plus profit. The private party has to pay sales tax again. Is this correct? Also, I assume car registration, insurance etc has to transfer from leasing company, to purchaser and then to private party. Sounds like a lot of paperwork, is the correct? Missing anything else?

    It doesn't work with a private party.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

Sign In or Register to comment.