Leased Vehicle Purchase
 

Need Advice!


My current leased vehicle is at the end of contract. Market conditions indicate a shortage of New Vehicles available to lease at a reasonable price point.

My current dealer has indicated many leasee are purchasing the vehicles as a possible solution.

I have been to three different dealerships (GM) and over and above the payment of Florida sales taxes, each dealer wants to mark up the sale contract by approx. $600-$800 to handle the paperwork. They disguise this paperwork fee as (Administration fee) (Florida Fees) (Paperwork settlement) etc.

While I do not mind paying a small/reasonable charge to complete a minimal computer generated paperwork situation, I think the mark up of $600-$800 is exorbitant and greedy. GM Financial (current lease holder) indicate they do not have any involvement in my purchase of the vehicle and dealers can charge whatever they want.

So, open for suggestions or if someone know a GM Dealer willing negotiate the paperwork price so that I may purchase the vehicle.????:pray:

Thank You :pray:

As an alternative:
A friend got a quote from Carvana, bought out the leased car from the dealership, and sold it to Carvana for a profit. Depends on what kind of offer you can get from Carvana.

I do want sell car to Carvana for a profit. I plan to drive car for my personal use!.

See if they will be open for a counteroffer telling them you have three offers.

The one time we leased a vehicle we wanted to purchase the car at the end of the lease. We skipped the dealership and went directly to the leasing company to negotiate the purchase price. Wound up considerably less than the amount stated on the contract! Have you tried negotiating with your leasing company yet?

You can also extend your lease by simply calling the leasing company.

Call the leasing company directly ( who you make your payment to )and do the buy out directly through them….buy out price is on your original lease agreement

rental
 

Enterprise Quad Cities booked a car at 2 places no car when we got there called 2 more no cars

In Florida, you typically can't buy the vehicle direct from the Lessor. FL requires the Seller be a Licensed Automobile Dealer (I suspect GM Financial has a license in FL, but that may be difficult to find out).

The terms of your buyout should be specific in your original lease. It is likely that there is some nebulous reference to "usual fees" or something like that. The average "Administration Fee" FL dealers are charging right now, is around $500. It's not limited by law in FL, as it is in many states. It's merely another profit center for FL dealers, when selling you a vehicle.

In the case of a Lease Buyout, the dealer isn't making any "profit" on the sale. In my opinion, he's entitled to get paid for his expertise, time, and associated liability that goes with a sale.

I doubt you'll find a dealer who'll cut his Admin Fee below $500 or so, it's just not worth the aggravation to sell a vehicle for any less than that. In which case, you might just as well deal with your original dealer.

I think you are right those fees are just a profit for the dealer ,the actual costs of the “paperwork” is negligible ,merely typing in the forms ,all title work is electronic also . Compares in my opinion to closing costs on mortgages. Having been a car dealer for 22 years in Ohio ,the costs to transfer or purchase a vehicle legally are very slight less than $50.00

I just went through this last November while waiting for my Tesla delivery.

I bought out my 2018 Honda Pilot Lease directly from HONDA FINANCING and NOT the dealer .

My buyout was $21,400 and some change.

I got quotes from Carvana (worst offer) , CarMax and We Buy Any Car .

We Buy Any Car in Leesburg cut me a check for $29,000. This is no BS or exaggeration! Tesla wanted to give me $24,400 on a trade .

It was two weeks from the time I bought out the lease until I sold the Pilot to We Buy Any Car .

Two weeks after that , the Tesla was delivered ! :)

Call the leasing company. Know for next time everything is negotiable at the beginning

Our buyout was $7000.00 below the current KBB market trade in value. We bought our Genesis out and are glad we did. We can’t find anything we want for sale.

First off, should I assume you are ending a 3 year lease?? Second if so, depending on how much money you put down, the mileage on your car, and the condition of your car you must know the car prices skyrocketed since the start of your lease so now your car most likely is worth more than your buy back price. Do you know your buy back price? My wife turned in her lease car to lease a new car. The dealer purchased her rights to buy back her car and wrote it up as a trade. She received with sales tax credit on her "trade" about $4200.00 that she was able to put down on a new car. In addition, they took off $500 off the sticker price of the car. The lease car she turned in was a 2018 Subaru Forester and leased a new 2021 Subaru forester. This all happened in August of 2021. Don't let the car dealership BS you. Look up your cars value on Kelly's Blue Book and other sites on the internet Good Luck.

Contact the original finance company
 

I recently had the same issue. I purchased my lease. Contact the original finance comapny and get them to send you the payoff amount. Take to the bank to get financed. As you said when I went to the dealerships they added almost $2000 to the payoff balance and also added extra fees as you described. In the end it was almost $4500.00 I saved by calling the Honda directly getting the payoff amount and financing elsewhere. Hope this helps !


My current leased vehicle is at the end of contract. Market conditions indicate a shortage of New Vehicles available to lease at a reasonable price point.

My current dealer has indicated many leasee are purchasing the vehicles as a possible solution.

I have been to three different dealerships (GM) and over and above the payment of Florida sales taxes, each dealer wants to mark up the sale contract by approx. $600-$800 to handle the paperwork. They disguise this paperwork fee as (Administration fee) (Florida Fees) (Paperwork settlement) etc.

While I do not mind paying a small/reasonable charge to complete a minimal computer generated paperwork situation, I think the mark up of $600-$800 is exorbitant and greedy. GM Financial (current lease holder) indicate they do not have any involvement in my purchase of the vehicle and dealers can charge whatever they want.

So, open for suggestions or if someone know a GM Dealer willing negotiate the paperwork price so that I may purchase the vehicle.????:pray:

Thank You :pray:[/QUOTE]

Right, this is the way to go, we did the same. If your car is in good shape and has low milage you can get a lot more than you may have paid for it. Forget the dealer. They will always pay you less so they can get the profit on the re-sale. We did this with Honda, you can call them to get the payout for the lease. Then you buy the car, get the title and sell it to Carvana, Carmax or any other place that buys used cars. The only problem with buying the car off the lease is you will need to pay the sales tax but it's worth it given how much money you will make on the car. You can also call Doug Thomas on 321-303-9672. He buys cars for a dealership and will come to your home and do the whole transaction including picking up the car. We used him. No hassel, honest and very easy to do the whole transaction. Just get your quotes ahead of time so you know what the vehical is worth.

I never care what the dealer is trying to add on to the cost. What do YOU want to pay is the only thing that matters. Do your math, including what the State tax will be, and tell them your OTD- Out The Door Price price and negotiate from that point. When you calculate the OTD price either leave out the dealers greedy fees or add in what you feel is reasonable.

Always negotiate the purchase price at the beginning of your lease. You lose any/all leverage by negotiating at the lease expiration.

Try contacting GM Financial directly. You may be able to extend your lease for up to six months at the same payment and arrange a different buyout.

We just went through this process one week ago at VannGanaway Chevrolet in Eustis. We purchased our car at the end of the lease and payed the payoff amount specified on our original lease ($16,411) plus the following: sales tax ($1,037) a filing fee($47) and a tag fee/registration ($305) to make it happen. Wrote a check for $17,800 and walked out the door. We were told that they are not allowed to charge dealership fees in the course of this process. They do the paperwork as a courtesy. We were also told that any Chevrolet dealership could have done it for us. We simply chose to go back to them since that is where we leased from and they are great to work with. There were no dealer fees!

Also, I spoke directly with GM Financial in an attempt to pay off our vehicle. I was told that it had to be done through a dealership.

You might want to try calling GM Financial again and asking to speak with the lease termination department. Their response of "having no involvement" when they are the lease holder seems odd. I just bought out my lease from Nissan Financial last month. I didn't really want to, but could not find a suitable replacement vehicle at an acceptable cost right now with market conditions. The first time I called Nissan Financial, I was told go to any Nissan dealer and ask for the finance manager and they can help you complete the transaction. I tried that, and got a similar run around that you did. After waiting almost two hours at TERRIBLE JENKINS NISSAN, I walked out when they too started taking about "processing fees". I called back Nissan Financial and asked if there is any other way to go about buying out the lease and received a cheerful response of "no problem, we can do it by mail" followed by "and we can report this dealership for their inappropriate business practice". The process could not have been easier. They emailed me the payoff statement and an odometer certification certificate. I got a certified check from the bank, completed the odometer certification, and sent it all back overnight USPS Priority Mail. About 10 days later, I received a bill of sale and clean title on the vehicle in the mail. My only expense was the cost of the Priority Mail envelope.

We had a leased 2019 Honda CR-V that “sold” back to Honda for profit of $8,000 over what we owed on the lease. Now is the time to sell your used cars as long as you can negotiate a fair price for a newer vehicle. Our profit took care of the down payment, dealer fee, taxes, etc. plus lowered our month payments by a $100.

I just handled a similar transaction for my parents with Toyota. We paid Toyota corporate the payoff amount directly and eliminated the dealer altogether since the dealer was charging the fees you indicated.

If your smart; you should call the financial institution that you are leasing from and extend your lease. This chip shortage has changed the buying process in favor of the dealerships and to get a deal doesn't exist anymore.

Call them and extend it. The most you can do is a year. I would lock that in so that hopefully by the 2nd quarter the pricing has come back in line and you can then end your lease. There is not cost to do this and your payment stays the same along with extending your mileage charge. No fee.


My current leased vehicle is at the end of contract. Market conditions indicate a shortage of New Vehicles available to lease at a reasonable price point.

My current dealer has indicated many leasee are purchasing the vehicles as a possible solution.

I have been to three different dealerships (GM) and over and above the payment of Florida sales taxes, each dealer wants to mark up the sale contract by approx. $600-$800 to handle the paperwork. They disguise this paperwork fee as (Administration fee) (Florida Fees) (Paperwork settlement) etc.

While I do not mind paying a small/reasonable charge to complete a minimal computer generated paperwork situation, I think the mark up of $600-$800 is exorbitant and greedy. GM Financial (current lease holder) indicate they do not have any involvement in my purchase of the vehicle and dealers can charge whatever they want.

So, open for suggestions or if someone know a GM Dealer willing negotiate the paperwork price so that I may purchase the vehicle.????:pray:

Thank You :pray:[/QUOTE]

All good info as I was thinking about buying out my car due to no new cars that I'm interested in being available...
:bigbow:

Dealership that begins with J
 

I hope Villagers who get caught up in this recent fiasco leases coming to end remember how they may have been treated. But NO they forget easily. I have plenty of friends who are going through this same issue.

Jenkins Hyundai Lease Buy Out Issues
 

In August my Hyundai lease ends. After reading the experiences of others I thought I should see what options I have for a buy out. First I called Hyundai Finance and they told me I had to go through the dealer (Jenkins Hyundai in Leesburg) and that was the only way I could purchase the vehicle. So I called Jenkins only to find out their computer system was down and they could not give me a buyout quote. Question: Is there something unique to Florida that the Lessee has to buy from the dealer?

Welcome to most dealer in Florida - another way for dealer to get $$$

if the lease is with GM financial dealerships are not suppose to charge fees according to GM financial. You can contact them on your own and do the lease buyout

Just contact the lessee company directly. We’ve done it twice. It is a bit time consuming but easy enough.

The OP stated that he already contacted GM Financial and they referred him to the dealers.

Most finance companies do not allow you to buy directly from them. You have to go to an authorized dealer. I sold cars for many years in Michigan and the document fee was $210.00, this was reasonable. When shopping for a car down here in Florida every dealer had the fees between $600-$800 and there was no way to get around it. You will have to decide if buying the car is worth it with the added fees, compared to buying a new or preowned one. Your buy out is most likely a good and will be less expensive. They do not negotiate these fees, I tried. Good luck.

I never understood leasing. I paid 19,500 ( I didn’t pay sticker which was 23,900. ) price for my 12 year old car new. If I leased all those years the cost would be 55K plus. Not including down payments on leases. Now my car worth around 12K, so that’s about 7500 for 12 years deprecation. 12k form 55K heck lot money to me. For 12 years I have NO car payment. Again I just don’t understand leasing unless I would be totally clueless on how to take care of vehicle ������?

Leasing makes sense if you are the type who wants a new car every so often. Nobody in their right mind would lease a car for longer than three years.

Still cost the same. I think people that lease don’t understand how to take care of vehicle and figure it’s easier to just keep paying every month than take chance on full initial investment.

buy it.
 

Do a little shopping, but I expect you can buy "your" car at lease end for substantially less than you could but a similar car - make/ model/ mileage, etc.

off lease
 

Or perhaps off it for sale by owner before going to the dealership, you might have a neighbor looking to purchase one like it.

I leased plenty of cars and also knew how to maintain them. I had a job where I had to have a new car every year.

You’re right about the cost though. Getting a new lease every two or three years is the most expensive way to have a car. Makes sense for some though.