Hi,
I am not familiar with the process of getting out of a lease early. So my current car lease is $600/mo and I have paid 16 mo of it, so 20 more months remaining, which I still owe $12000 to the dealer.
Carvarna offers $50000 - 12000 (lease payoff amount) = $38000 would be the payment to me.
Kelly Blue Book Instant Cash offer is $49500 because it didn’t ask me if my car was own or lease.
Let’s say the residual value of the leased car is $32000, plus $12000 I still owe, I would have to pay the current dealer $47000 to buyout. I could accept Kelly’s offer, take the $49500, they get the car. I pay back the current dealer and make $2500.
But I don’t understand why Carvarna deducts the $12000, that they would take over the lease? All i need to do is to take their $38000 net offer, pay the current dealer the residual value of the car, and make $6000? i am so confused. Any idea?
You have a $12,000 lease payoff, Plus the $47,000 cash buyout = $59,000 still owed on the car.
You take Kelly’s cash offer of $49,500, you still owe the dealer $9,500.
You loose $9,500 and have no car.
Carvana pays you $38,000 and pays the dealer $12,000 lease payoff.
You take the $38,000 from Carvana, and pay that to the dealer.
From other forums it appears that if you take the Carvana offer they would need the exact payoff amount and would then cut you a check for the difference. At least that’s what’s happened in the past.
Because when you signed the lease you agreed to pay the leasing company $600/month for 36 months and a total of $12,000 in lease payments hasn’t yet been paid.
Thanks everyone’s response. Sorry, i made a mistake in my original post, it would be $44000.
But anyways, I just found my lease agreement. It shows that the purchase option at the end of the lease will be $36000. As of today, I still have 20 payments or $12000 remaining. So $12000 payoff + the purchase option price $36000, the total cash buyout price should be $48000, right? I am confused why you added the $12000 payoff to the total $47000 ($48000 actually).
Thank you
This part I understand. I was confused why they would deduct it if they are not going to take over the lease. If the car they think would be worth $50000, that’s how much it’s worth right? So it looks like it would make more sense to just enter $0 as the payout amount, treat it as I own the car. Take their offer, they get the car after I use their offer to pay off the payoff+buyout amount to the dealer. that’s it right? Thanks
You do not own this vehicle what ever it is . They will not give you money to payoff anything . They will send it to the leasing company and there might be some left over for you but I doubt it. I say again , you need to contact the leasing company to see what your options really are . People on a forum can make all kinds of suggestions but it will mean nothing if that is not what your leasing company wants.
It’s an easy process. Find out what your lease buyout is for today. It doesn’t matter what payments are left. You get to keep the difference between what you offered and your buyout. Many people are making a huge profit by selling their leased vehicles currently.
I’m with @TXdealer - if the OP can sell his car for more than the lease company would require, today, to buy out the lease, then that’s what I would do.
Normally that would be good advice, however used cars have gone up dramatically in value and are currently worth substantially more then residual/buyout values. The only way to capture this is to sell/trade the vehicle outside of the normal lease turn in process.
Most all clean late model cars are ‘real desirable’ right now, there’s a shortage of new cars and car rental companies have resorted to buying used cars to restock their fleets. So prices are UP.
As Volvo-V70 pointed out, you don’t own the car, you’re just renting it, and at the end of the lease you have the option to buy it at the agreed price.
Before you can sell the car you have to own it, which means completing your lease obligation of $12,000 and buying it from the lease company for the agreed price.
So if Carvana is offering you $50,000 for the car, they would pay the lease company the $12,000 remaining on the lease, the agreed end of lease purchase price and deduct these amounts from the $50,000 offer, giving you only what remains.
But the best advice is to carefully review your lease documents and discuss any plans with your leasing company before making any further plans.
You do not have the right to sell the car until the lien is paid off.Carvanna’s offer includes them paying off the lien. Nobody is going to give you 50,000 dollars and trust you to pay off the lien. Don;t forget that offer is based on the cars condition being exactly as described and they mave disagree with your opinion of the condition when they examine the car.