Owners who lease a six-figure car usually assume they are stuck with the lease until the last payment, or that the only way out is to drive it to the dealer that wrote it. Neither is true. A leased car can be sold the same week the owner decides to be done with it, from anywhere in the country, as long as the number works against the lender's buyout.
Here is how J&S Autohaus handles a lease buyout from one building on North Olden Avenue in Ewing, New Jersey.
The lease buyout is the only number that matters for the lender
A lease is not a loan payoff. The owner does not owe a declining principal. The owner owes the leasing company a specific dollar amount to purchase the car outright. That number is on the contract and the leasing company confirms it on request.
The owner calls the leasing company and asks for a buyout quote, usually called a "payoff" or "purchase option" on the statement. J&S can request it directly with the owner's permission. The quote has three parts that matter.
- The purchase price, which is the residual the contract set at signing plus any remaining payments and fees.
- The sales tax the leasing company will collect from the buyer in the state where the lease is being purchased out. On a dealer buyout, most leasing companies waive the lessee's state tax and charge only the dealer's resale tax exemption.
- A good-through date, usually 10 to 15 days. The owner has that window to close the sale before the quote has to be redone.
Three outcomes on the first call
J&S appraises the car the same way whether it is leased, financed, or owned outright: year, model, spec, miles, condition, service history, and what the store can retail it for out of Ewing. The lease buyout is a line item on the paperwork, not the appraisal.
- Offer is higher than the buyout. J&S wires the leasing company the buyout and wires the owner the difference. On a Porsche, a Lamborghini, or a Mercedes-AMG that has gained in resale since the lease was written, this is a common outcome.
- Offer equals the buyout. J&S pays the leasing company and the owner walks away clean with no check and no bill. The remaining lease payments disappear.
- Offer is lower than the buyout. The owner brings the difference to closing. J&S says so up front, before anything is signed, and the owner decides whether that works.
The owner can also decide to buy the car out personally first and then sell it to J&S. On most leases that is more expensive because the state collects sales tax on the personal purchase. A dealer buyout is almost always the better path.
Which leasing companies J&S handles routinely
Porsche Financial Services, Mercedes-Benz Financial, BMW Financial, Audi Financial, Ferrari Financial Services, Lamborghini Financial, Rolls-Royce Motor Cars Financial Services, Bentley Financial, Chase, Ally, US Bank, Alliant, Pinnacle, Woodside, and the credit unions that write exotic paper. Each has its own buyout form, its own wire window, and its own rule about third-party dealer purchases. A few leases, mostly older BMW and Mercedes contracts, restrict third-party buyouts. J&S checks that on the first call and tells the owner before anyone signs.
The paperwork
The owner signs a bill of sale, a power of attorney for the title transfer, and an odometer statement. J&S handles the lease purchase paperwork with the leasing company, the title release in the state the lease was written, and the New Jersey registration on the back end. The owner does not drive to Ewing and does not deal with the leasing company's title department.
Pickup and payment
Enclosed transport comes to the owner. The buyout wire to the leasing company and the difference wire to the owner go out when the car is inspected on pickup and the paperwork is signed. On a lease sold out of New York, Pennsylvania, Florida, Texas, or California, the title release from the leasing company takes a few business days to post, but that happens after the owner is already paid and the car is already gone.
What to have ready
- The lease account number and the leasing company name, or a photo of the lease statement
- A photo of the registration and the VIN plate
- Mileage and a short list of service history
- Photos: four corners, interior, engine bay, odometer
What J&S will not do
- Ask the owner to buy the car out personally first
- Let the owner hand over the car before the lease buyout is confirmed in writing
- Change the number after the car arrives, unless the car is not what was described
Selling a leased exotic is not harder than selling a paid-off one. It is one buyout quote and one extra wire. Owners can start at jsautohaus.com/sell-my-exotic-car or call (609) 245-6634. J&S Autohaus, 1723 N. Olden Ave., Ewing, New Jersey. In Ewing since 1995, buying nationwide.