If you’re leasing a car, what should you do if that lease is about to end? Maybe you’re a few months away from your lease termination, maybe have a few payments left, or maybe it’s pretty much done. You have three options for disposing of that vehicle, in most cases. Every lease is a little different but this is how most lease contracts have been created over the years.
Option number one is you can bring the car back to the dealer, drop off the keys, and walk away. As long as you are under the maximum mileage and you have no major wear and tear or damage, you’re off the hook. You bring in the car, drop off the keys, and walk away. However, keep in mind if you do that, you might be walking away from hundreds or thousands of dollars in equity that you didn’t even know you had. The dealer is not going to tell you that though.
Option number two is you can trade it in for a new vehicle. Now, be very careful if you’re trading it in that you understand the difference between a trade-in and a turn-in. Here’s why– with automotive leases, the way it works is you have a guaranteed buyout at the end of your lease. You have a fixed price that you’re allowed to buy that car for at the end of your lease. That price served a few purposes. First of all, it was used to reduce the amount you had to finance. For example, say you bought a $30,000 car and the dealer figured in three years that car is going to be worth $12,000. What they would do is they would take that $12,000 and take it off of your financing right off the bat. They would basically give you a $12,000 down payment so you only had to pay the $18,000 difference between what you’re paying for it and what it’s worth in three years.
So you make payments on that $18,000. At the end of that term, if you wanted to pay the amount you could pay it and you’d own it, or you could just give it back to them and they use that value to pay the money that they reduced your price from the beginning. Now, how did they figure that value? What they did was they based it on what they thought the vehicle was going to be worth in three years and they’ve got to be pretty close. If they guessed too high, now they’re stuck with the vehicle. If they guessed too low, your payments are going to be too high and you won’t buy the car. So they have to be pretty accurate and they use historical records, book values, projected depreciation, and all kinds of factors. For the most part, they’re pretty good at this. However, in the last two years, vehicle prices and used car vehicle prices have skyrocketed. Many cars are actually worth more now than they were when they were brand new. We see cars selling all the time as used cars two or three years old with 20,000 miles for more than the original sticker price.
So if you have a vehicle that was leased, let’s say that $30,000 vehicle and they projected the value was only going to be $12,000. What happens now if the market has changed in your vehicles worth $20,000 instead of $12,000? Well, guess what? You still have the option to buy it for $12,000. Meaning that if it’s worth $20,000, you can buy it for $12,000 and either sell it for $20,000 and pocket $8,000 in profit. Or you can trade it in for $20,000 minus the $12,000, that would put $8,000 towards your next car, but don’t let the dealer swallow up that equity. If you just turn in and buy a new vehicle, they’re going to keep that $8,000, and they’re going to buy it for $12,000, let you buy the new vehicle just for whatever the price was, and not apply that equity toward your new car. Unless you really pay attention to the paperwork, you may not even know that even happened.
What happens if you want to keep your car? Well, that’s good because now you’re buying a car for $12,000 that if you went somewhere else to buy it is worth $20,000 in today’s market. So pay very close attention to your lease. Look at your contract. More than likely you have a firm option fixed price to buy that car at the end of your lease that was in your contract. Can’t change it. It doesn’t matter the mileage condition if you’re buying it because it’s your car. Now the other advantage of buying that car is you’re buying a used car that you know the history you know the prior owner, you know everything about it. How lucky is that? Most times you buy a used car you’re buying a pig in a poke. You don’t know where that car’s been. This car you know where it’s been, plus if for some reason you are over on mileage or there’s damage, you buy it that doesn’t come into play. You don’t have to pay a penalty if you’re buying the car. Now, there may be a couple of things to keep in mind.
First, some leases require that if you’re selling it at the end of the lease you have to buy it. You can’t sell it to somebody else right away. You have to buy it first and then resell it. You know, that’s a little bit scammy but if that’s in the contract that’s what it is. You may also have what’s called a disposition fee meaning that you have to pay $200 or $300 to dispose of the car to buy it. Your contract will determine that, if it’s not in your original lease contract a dealer can’t add it later. So make sure that if the dealer is adding fees for you to buy your own car that they were in the original contract. If they’re not in there they can’t add fees. Some dealers even will go and say they have to certify your car because you’re buying it from them. They claim they have to make sure it’s safe for the road so you end up paying them $1,000 to give you a certification. Check with your local statutes to find out what the laws are in your state. There have been many dealers who have tried to mark up cars for people to buy their own cars and found out you can’t do that. But once you do it, you’ve agreed to it, you may not be able to get that money back. So check your contract.
Start doing this early start doing this month earlier than the lease ends because if you’re pressed for time in the end you may have to accept a contract that maybe you don’t have time to research. Also, look at financing. If you go to the dealer, they might hit you with higher financing than if you go to your own bank or credit union to buy your car and you might be able to do it that way. Make sure that if you do buy out of your own car, you get the title transferred because that lease car is not titled in your name. It’s titled in the name of the lease company. So once you buy the car you want the title to be transferred from the lease company to you as the owner, make sure you get that title in your hands. We get a lot of people that contact us that say, Hey I bought my vehicle and I never got the title from the lease company. Now it’s a hassle because what if the lease company is out of business three years later or they don’t know about it? You want to get that title transferred immediately into your name. Let us know your questions, and put your message in the comments, but this is a good way to get a great deal on a vehicle that you already know a lot about.
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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+
Are you faced with the challenge of a missing vehicle title certificate? Whether it’s lost, defaced, or you simply need a replacement, filing for a duplicate title is the solution. In this blog post, we’ll walk you through the process using an example from the state of Pennsylvania. Keep in mind that each state has its own specific form, but the principles discussed here can generally be applied nationwide.
Begin by obtaining the correct form for your state. In this example, we’ll be looking at Pennsylvania’s MV 380, which is their duplicate title form. Remember, every state will have a similar form, so you can adapt these guidelines accordingly.
Every DMV form includes a section labeled “Department use only.” This is where the DMV adds stamps and notes. Avoid placing anything in this section, as it may lead to form rejection.
Ensure that the form you’re using corresponds to the state where the vehicle was last titled, not necessarily where you’re currently located. Be aware of the fee associated with the duplicate title; in Pennsylvania, for instance, it’s $58, which is relatively high compared to other states.
Here’s a breakdown of crucial sections on the form:
When submitting the application, it’s advisable to mail it to the designated DMV headquarters rather than visiting a local branch. This ensures a smoother process as not all branches may have blank title certificates readily available.
In some cases, you can perform a vehicle transfer simultaneously when applying for a duplicate title. Check for a relevant section on the form.
Filing for a duplicate vehicle title requires careful attention to detail and adherence to specific guidelines. Any deviation from the process may result in rejection, leading to additional delays. If you have questions or need assistance, reach out to the DMV or consult our website for more information. Remember, a well-prepared and accurately filled-out form increases the likelihood of a swift and successful duplicate title issuance.
Many individuals encounter significant challenges with vehicle titles when opting for a lease buyout. While the following example is from Nebraska, this issue is widespread, and buyers often face title-related problems months or even years after completing a lease buyout.
While leasing companies generally aim to assist customers, the responsibility lies with the buyer to ensure a smooth title transfer after a lease buyout. Prompt follow-up, using official forms, and maintaining documentation can prevent potential title-related problems that may arise in the future. Buyers should be proactive in securing the title for the vehicle they rightfully own to avoid unnecessary legal and financial challenges.
If you find yourself in a situation where your vehicle’s original title is missing or damaged, filing for a duplicate title is crucial. In this comprehensive guide, we’ll walk you through the process using an example from the state of Pennsylvania (PA). Keep in mind that each state has its own specific form, but the general process remains similar.
Filing for a duplicate vehicle title might seem complex, but by carefully following the instructions on the form, ensuring accuracy, and submitting via mail, you increase the likelihood of a smooth process. Remember, patience and adherence to procedures are key. If you have questions, utilize resources like help desks provided by car title services to navigate any uncertainties.
Vehicle lease buyouts can turn into unexpected headaches, and a recent incident in Nebraska serves as a stark example. The process should be straightforward: you buy out the lease, pay the required amount, and the title is transferred to you. However, problems often arise when the leasing company fails to promptly handle the title transfer, leaving the vehicle owner in a precarious situation.
When you lease a vehicle, the leasing company is technically the owner, and you are the registrant. The title is in the name of the leasing company, distinguishing this arrangement from financing, where you are listed as the owner with a lien holder. At the end of the lease, if you decide to buy out the vehicle, you pay the lump sum, and the leasing company is supposed to transfer the title to you.
Despite the simplicity of the process, many individuals face issues when leasing companies fail to execute the title transfer promptly. The problem often emerges months or even years later, leaving the vehicle owner without legal title, even though they’ve paid a significant sum for the vehicle.
Leasing companies, whose primary focus is leasing new vehicles and collecting payments, might not prioritize the timely issuance of titles. The failure to transfer titles can stem from a lack of dedicated staff for this task, leading to oversights. It’s essential to recognize that this delay is typically unintentional, with leasing companies not attempting to harm or mislead vehicle owners.
To avoid being caught in a title limbo, there are proactive steps vehicle owners can take:
Leasing companies generally want to assist you in obtaining the title, but the process might not be seamless. By taking proactive steps and being persistent in your communications, you can significantly reduce the risk of facing title-related challenges down the road. Avoid finding yourself in a situation where you’ve paid off a lease, but the absence of a clear title path becomes a significant problem. Secure the title for the vehicle you rightfully own, making the ownership transition smooth and hassle-free.
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