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Author Topic: Buying a car from someone at end of lease  (Read 340 times)

Offline slybry

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Buying a car from someone at end of lease
« on: July 16, 2011, 02:10:59 pm »
This is related to my other post about looking for a BMW 328.

Instead of buying new I was thinking about buying one 2nd hand in a private sale. It seems very few recent model BMW's are being sold private.

I was thinking about trying to find a person you has a 328 coming to end of lease. I would tell them to take the "By-Back" but have the car sold to me. I would offer to pay the by-back price and give seller some money to make it worth their while.

I think this can be done. I the dealer can sell be the car directly for Buy-back value.

This way I get to meet the owner of car and see it without all the dealer`s cosmetic fix-up, tricks and profit mark-up. I might also get a good price.

Is this possible?
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Offline Jaeger

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Re: Buying a car from someone at end of lease
« Reply #1 on: July 16, 2011, 02:29:12 pm »
With a willing buyer and a willing seller, no reason it shouldn't be possible.  The question is how much money it would take to make it "worth their while" to go through an additional purchase AND sale, versus just handing the car and keys back to the dealer.

You could also go through leasebusters and assume a nearly-completed lease and buy it back yourself.

Jaeger
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Offline tpl

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Re: Buying a car from someone at end of lease
« Reply #2 on: July 16, 2011, 04:33:29 pm »
It should work in Ontario...I don't know about any other province. It requires the dealer/lessor to agree to do the transaction that way.    If done right the HST is only  paid once, get it wrong and the person who buys out the lease pays it and then you pay it again.  I'm am pretty sure it is quite legal as the lessor gets their money, the Gov gets their HST  but I'll bet you that some dealers will tell you it is not legal.
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Offline rsxca

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Re: Buying a car from someone at end of lease
« Reply #3 on: July 16, 2011, 08:45:55 pm »
I think you can just transfer the lease onto your name before the lease ends and then you can buy it out.  I think htere is a lease transfer fee.
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Offline Julie

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Re: Buying a car from someone at end of lease
« Reply #4 on: July 16, 2011, 10:31:49 pm »
Quote from: rsxca on July 16, 2011, 08:45:55 pm
I think you can just transfer the lease onto your name before the lease ends and then you can buy it out.  I think htere is a lease transfer fee.

This sounds like the simplest method.  In Ontario, if someone were to buy out their car, they'd have to pay to have it safe-tied and pass an emissions test because of the change in ownership.  I assume that, if this person were to then sell it to you, you'd have to have it safe-tied and pass an emissions test again.

Check the rules for the Ministry of Transportation in your Province to be sure.
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