February 22, 2006

Hi There Sir!

My car's lease will end in about one and a half months. I really think I can sell the car and make some money on it i.e., the value of the car is higher than the buy-out amount. How can I do this?

First, I don't have the cash to buy the car out and get the title. Secondly, if the buyer does have the cash, do I let him drive off with my car?

Also, would I accept cash, check, or cashiers check? Obviously I have a lot of questions, so please help if you can!

Sincerely,

Jorge

Answer:

Hi Jorge,

If you find a buyer he can write a check to your leasing company for the amount of the payoff and a separate check to you for the difference. Once the lease company releases the title to you, you will have to transfer it to the new owner.

If the buyer is financing the purchase his bank can arrange to pay the lease company direct.

You should contact your local title and licensing agency and ask them the best way to handle the title transfer and licensing for the new owner.

Don't give the car to the new buyer until he makes arrangements to get it licensed in his name and has his own insurance on the car, and of course, not until you have the money.

Don't worry, the hardest part will be to find a serious buyer. Once you do that the other stuff will fall into place easy enough.

Good luck!

All my very best...

Tony Iorio