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How do I go about selling my lease car?

576 Views 4 Replies 4 Participants Last post by  SupafreekVDubber
I'm leasing a 2001 GTI GLS 1.8t. I'm planning on posting it "for sale" so I can concentrate on saving for a house. I've sold cars before, but I've never sold a lease car. I know that it can be done, but how? I've sold cars for up to $4000 and I normally ask for cash, but $17,900 is a lot to ask for in cash. What is a safe way to receive payment? Also, how do I handle signing the title over to the new buyer and paying off the lein to Volkswagen Credit? Could someone who has sold their lease car please tell me how it works. Thanks.
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Re: How do I go about selling my lease car? (VeeDubGuy)

First you need to find out what your payoff amount is. You can do this by simply calling the leasing company (VW Credit for example) and ask them for a 30 day payoff amount. This payoff amount will include the residual value of your car (determined when you first leased it), state sales tax on that residual and the total of any remaining payments.
Once you have this amount, you will know what to ask for the car. Once you have a buyer, you need to draw up a bill of sale. Included with this bill of sale should be the vehicle identification number (VIN), the amount you are selling the vehicle for, driver's license and insurance information for both you and the buyer and the understanding of how the transaction will take place.
This understanding will be as follows: The buyer will get a cashier's check for the amount of the payoff. This amount will be either brought to the finance company's local office or you should FedEx it to their mailing address. Once the payment has either been delivered or FedExed, you can turn the keys over to the new owner. At that point, the finance company will go through their process of issuing the title to you. This usually takes less than two weeks. Once they mail the title to you, you will then sign the title over to the new owner.
This may sound complicated, but it is the way it usually works. The buyer should feel confident because once the payment is mailed off, they will take possession of the car.
I would call your finance company and go over what you plan to do and make sure this is the way that they handle it, just to be sure.
Something else you might want to look into is seeing what a dealer will give you for the car. If you "sell" the car to a dealer, you will not have to pay the sales tax because the dealer is going to turn around and either sell it or wholesale it. You might find that the amount you save in sales tax is quite a lot. Your finance company can tell you how much of the payoff amount is sales tax. Depending on the options and mileage, your car could be worth $15K-$16K.
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Re: How do I go about selling my lease car? (VeeDubDriver)

quote:[HR][/HR]Something else you might want to look into is seeing what a dealer will give you for the car. If you "sell" the car to a dealer, you will not have to pay the sales tax because the dealer is going to turn around and either sell it or wholesale it. You might find that the amount you save in sales tax is quite a lot. Your finance company can tell you how much of the payoff amount is sales tax. Depending on the options and mileage, your car could be worth $15K-$16K.[HR][/HR]​
Well, typically, selling a car to a dealership is not a good idea. It's bad enough when you are trading one in, but to just sell it, they won't give you anything close to what it's worth. In addition, the sales tax isn't an issue for the seller, it is for the buyer. If you are asking $20,000 for your car, and someone agrees to pay $20,000, it's not like the seller has to take the sales tax out of the $20,000 he gets. The buyer has to pay the sales tax ON the $20,000.
I know that here in PA, when you sell a car, when you're transfering the title, that's when they ask you what you paid for the car, and you pay the sales tax on that amount.
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Re: How do I go about selling my lease car? (pdoel)

The sales tax is an issue for the seller when it comes to selling your lease car. If you sell it to an individual then you must pay the sales tax on the remaining payments and residual value. If you trade it into a dealer then you don't have to.
Selling to a dealership will get you what it is worth wholesale. If you think you are getting more for your car if you trade and then buy another one from them, then you are fooling yourself. You are not going to get more than wholesale either way. If a dealer gives you more than wholesale for your trade when you buy a car, it simply means you are paying to much for the car you are buying.
Re: How do I go about selling my lease car? (VeeDubDriver)

Don't sell it. Just drive it down a boat ramp and watch it go **Glub Glub**

Teehee
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