RHS7787

Hello,

Does anyone know how the procedure goes for selling a leased vehicle? My mom's 06 GX is up at the end of 08 and it seems like we could actually make some money off of it instead of turning it in. The buyout is like $29000 at the end of the lease and I blue booked some 05's and even on trade in with the same options they are going for $33k good condition and thats with 45000 miles. She prob wont have that much.

This car has excellent resale value so I was just wondering how taxes and stuff work when you do something like this. I remember the dealer saying something like you dont have to buy it out first, you can just sell it and pay the taxes on the difference or something. I live in CA by the way. Thanks for all the help and Happy New Year.

kphu

iTrader: (8)

I'd sell it instead of trading it in. I don't know what the rules are in CA but in MA it's pretty straight forward. You have 2 options: 1) pony up the $29K get the title and then sell it on your own (in MA you'll have to pay tax on buying the car) option 2) find a buyer and have them cut 2 checks, 1 for the dealer in the amount you owe the dealer and the other amt the difference between the sale price and the buyout price. Option 2 you'll make more because you wouldn't have to pay the tax for buying the vehicle first.

Just my $2ct

RHS7787

Yea I think thats what I am going to do. Why let money go down the drain? I will research the rules some more. Option 2 would be nice if it applies in CA. I know they have something similar to that.

kphu

iTrader: (8)

exactly! no point in letting the dealer make the $$$. A little work will bring in some extra $$$.

I would advise that you start 2 months before your lease is up because it might be hard to find someone who can dish out $35K without getting a loan.