Razor1973

Say I have a lease and I call Audi Financial to get my buyout amount. The recording clearly states this amount is available only for me, the lease holder.

What would I have to do if I want to sell my car to someone, but don't want to buy it myself first and then sell it? I don't want to get stuck with the money if the person changes his/her mind at the last minute. Can they somehow pay AFS and have the title changed in their name?

Not too familiar with how these things work. Please advise.

WindyCityS4

You can't sell what you don't own. Sorry. You need to buy it before you can sell it.

Razor1973

I mean, somebody must do something like that instead of having to buy the car and get stuck with it. In fact, many people advertise their cars for more than the buyout in order to make money. If someone offers to buy it, I doubt these people will trust the buyer will go through with the deal and buy the car before having something set in stone. A payment would be something set in stone, but the seller also wouldn't pay before knowing the transaction with the leasing company went through.

There must be a way and people must be using it.

JasonS4+Festicle

you want.

The only way I would think you could avoid being screwed is if you find a buyer and meet them at your bank.

At that point, you could take their money and give them a promissary note that says you promise to give them the property.

You'd then cut a check to AOA (or whoever your leasing company is) - - wait for the title, then transfer it over to the person.

The big issue here would be the taxes. Depending on which state you live in, you might need to pay sales tax on the purchase price. Then, when the person goes to register the car, they would have to potentially pay tax again.

MarkFank

This was a few years ago. Basically I had the person make out 2 checks- one to AFS for the payoff and one to me for the difference. AFS sent the title to me to sign I signed it and forwarded to the buyer. Pretty easy transaction other than it took about 30 days for AFS to get me the title.

Razor1973

But you might be right in that that may be the only way to avoid being screwed and getting stuck with the car.

The taxes are indeed a problem in this case.

My car specs are in my signature/avatar. Car's stock, in perfect condition, both visually and mechanically. Buyout is $19K. Warranty will be over very soon. You think it's a good idea to buy it if all I want to do is sell it?

JasonS4+Festicle

over to your buyer, you "gave" it to him.

As far as Audi Financial thought, you just paid off the car with someone else check - there was nothing official at all about your sale since the title was transferred from Audi to you.

JasonS4+Festicle

is really worth, is you can trade it in as if it was yours.

What basically happens (again, depends on the state you live in) is you go to get a new car. You then have your trade (your leased car) valued. If the new car is $30,000 and your trade is worth the same $19,000 buy-out, you would only pay tax on the difference of $11,000. This is how it works in IL at least. At that point, your total tax would have been $880 (let's say 8% sales tax).

You would have paid $2400 of tax on the $30,000 car if you did not have a "trade-in". Basically, you end up buying the car out and then immediately trading it in. The dealer will do all the paperwork for you.

I think it really depends on where you live.

I can tell you, this won't work if the car isn't worth very close to buy out price - - I have no idea what it's worth but the dealer will offer you wholesale for the trade and it probably won't be $19,000.

I'd just turn the thing in if you don't want it anymore.

MarkFank

I guess technically I bought the car from AFS, then sold it (not gave) to someone else. It really isn't that difficult. I didn't have to pay any taxes nor license the car in my name.

JasonS4+Festicle

what state do you live in? Just asking because I think it might be different depending on state.