Selling a car - ebay?

[surfergirl602]

We lease a car. The lease is up next month. We know we can probably get more money from it if we sell it ourselves rather than trade it in.

They are going for what we are looking to get for it on ebay motors.

We don't have the title to the car. We are looking to sell it to pay what is left on the loan and to have a little extra for a down payment on a van.

The car doesn't fit our family - we've grown out of it. How do I go about selling it? We've sold a truck on ebay once many years ago and it worked out fine. But we owned that.

Any ideas?

 

[DisneyObsession]

I didn't think you could sell a leased vehicle since you don't own it.?.

 

[princessnoelly]

In NM- a lease is NOT your car. It belongs to the Bank or the financial system your lease is with. So you can't sell it because you don't own it.
You can buy out your lease and then sell the car once the title has been sent to you.

I have yet to meet anyone who will pay money for a car without being given the title.

Contact the dealer you leased the car from or the leasing company to find out the amount of the lease buy out.

The beauty of a lease is that at the end of the lease term you can walk away and do what you want.

 

[surfergirl602]

double post

 

[surfergirl602]

Sorry, I reread that and see that I didn't make myself clear.

We would choose the option to buy instead of turn the car back in. The person that bought it would send the check directly to the bank (from their bank, so the title could be transfered to them) I googled it. lol

We would get around 3 thousand less if we used it as a trade in. We are looking at a completely different company. We may just turn it in and be done with it, but its 20 thousand miles under the allowed limit and worth a lot right now.

We don't know what to do.

 

[prncess674]

Quit leasing cars.

 

[jgreco]

Do you live near a Carmax? I have found them to be very fair on both the sales prices of their vehicles and the trade in values they give for your car. At our Carmax they will cut you a check on the spot even if you don't buy a car from them.

Also-
Take into account the sales tax you will save if you trade in your car,

Here is a scenario at 6% sales tax (in Florida):

You buy a $20k car = you owe $1200 in tax.

You trade in a car, they give you $18k for your trade. You only pay sales tax on the $2k = $120.

=$1080 Savings

Loosing a little $ may be worth not having to deal with the hassle of selling the car yourself and getting someone to agree to waiting for the title. They will not be able to register the car without it and can take several weeks- not an easy sell.

 

[tlbwriter]

Also-
Take into account the sales tax you will save if you trade in your car,

Here is a scenario at 6% sales tax (in Florida):

You buy a $20k car = you owe $1200 in tax.

You trade in a car, they give you $18k for your trade. You only pay sales tax on the $2k = $120.

=$1080 Savings

This is not true in every state. In my state, the tax is based on the price you paid for the car you bought, and your trade-in is irrelevant.

 

[surfergirl602]

Quit leasing cars.

Why??

 

[surfergirl602]

We do have a carmax about an hour and a half away. I think I'm just going to save myself the hassle and tell my husband to just turn the car in. We get our dispotion fee and deposit back anyway.

 

[prncess674]

Why??

Well if you lease it you are putting a guaranteed amount down the drain and getting no value at the end. Since you state it is 20K under the mileage limit you are giving them a cherry of a car for the dealer to resell to smart consumers. If you aren't using the car very much you would be better off negotiating a decent price, using the car for whatever period you enjoy the car and then reselling on the open market. Leasing is a bad investment. Also the "sale" price they give you if you buy out your lease is the full retail sticker price minus your lease payments. You are giving them a big fat commission since you did nothing to negotiate the beginning price.

Also with leasing you never own anything. Leasing is the equivalent to renting. Do you think renting a home is a good deal?

It's easy to wave your hands and point to things like repairs and maintenance as justification when you don't use real numbers. Here is an example using Edmund's True Cost to Own data for a 2008 Toyota Sequoia.

Assuming a 60 month lease vs a 60 month loan. Payment for the lease is $403 a month, for the loan it's $569. Assume you pay $29500 for the car and put 10% down ($2950), and it's worth $15000 after 5 years.

During the 5 years, you will have the following expenses on the leased vehicle:
$403 payment * 60 payments = $24180

During the same 5 years, if you bought the car instead:
Depreciation: $14500
Financing: $5000
Maintenance & Repairs: $5100
Total=$24600

So the cost over those 5 years is almost identical. However, in the case of the purchased vehicle, at 5 years you now OWN the vehicle. So even if you decide to get rid of it, you can still pocket the $15000 value of the vehicle towards the purchase of your next car. If you choose to keep driving it you are going to be even more ahead with the purchased vehicle.

 

[surfergirl602]

Well, yeah, I do think renting a home is a good idea. We move every two years. The Army gives us housing allowance. I get a new house every time I move. Right now we hve a 5 bedroom/3 bath that the army pays for. Why would I want to deal with selling it, renting it out, covering damages, have it sitting unrented, paying the taxes, and paying a rental place to take care of it for me? its just not practical for us.

Leasing works for us. We get a brand new vehicle every three years. We aren't stuck with something that doesn't meet our family's needs. If we had bought the car we have right now, we'd be stuck with a 5 passenger car that the entire family doesn't fit in. We did back "then", but we don't "now". Now I can trade it in and get a 7 passenger van instead. You can only lease for up to 3 years. Then you have the option to buy it. And if I want to buy it, I just saved myself a heck of a lot in interest over the past three years.

 

[Frannie115]

Not sure if this is possible in your situation, but we found the best place to sell a car (or anything) is Craigslist. Sold three cars this way. Last weekend, we sold a bb-q grill in less than two hours from putting it on the site.

 

[DawnM]

Most new cars are very low interest right now, many are 0%.

We haven't had a car payment in over 5 years now....

Leasing is never the most economical way to go and you posted on the budget board, so it stands to good reason that this is the advice given.

Dawn

Leasing works for us. We get a brand new vehicle every three years. We aren't stuck with something that doesn't meet our family's needs. If we had bought the car we have right now, we'd be stuck with a 5 passenger car that the entire family doesn't fit in. We did back "then", but we don't "now". Now I can trade it in and get a 7 passenger van instead. You can only lease for up to 3 years. Then you have the option to buy it. And if I want to buy it, I just saved myself a heck of a lot in interest over the past three years.

 

[surfergirl602]

Most new cars are very low interest right now, many are 0%.

We haven't had a car payment in over 5 years now....

Leasing is never the most economical way to go and you posted on the budget board, so it stands to good reason that this is the advice given.

Dawn

I posted it on the budget board because that is where I assumed money related posts belonged. Perhaps I should have posted on the CB.

Thanks for the advice. If the numbers work out to buy, we will probably go with that.

 

[SandrA9810]

Craig's list might be your best bet, if your neighborhood is in that kind of market for new cars. You're open for negotiation to get the best deal, and you don't have to worry about paypal fees, ebay listing fees, and all that other nonsense. You've got to look at how much you'd be loosing in that as well.