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Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 12:34 am
by Baltneu
I have 6 months left on my lease. CarMax and Carvana will give me more than the payoff amount.

I read that Carvana does not buy Nissan leases out.

I spoke to the CarMax people twice in East Haven, CT and they assure me that they can do it.

Spoke to the Nissan dealer, they say I cannot only buy from them, I don’t totally trust their answer.

Question: Anyone have real life experience selling NISSAN leased vehicle to CarMax (not Carvana)?

Thanks.

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:00 am
by voltamps
Bottom line: The Lease Company, not the dealership, holds the Title to your leased Leaf. Therefore, as long as the Lease Company gets their money's worth out of the transaction, according to agreed upon lease-return payoff amount or the car turned in to them, that is all you have to worry about. Dealership is not a player here. Not in the game!

Since the dealership the Leaf came from actually sold the new car to an agency (the lessor who owns the title all along), the Leaf technically has nothing to do with the dealership once it was sold to the title holder. You can return a leased Nissan to any Nissan dealership as a customer convenience, nothing more, and the lessor (title holder) has to come and claim the car after it's turned in. Or, the payoff amount $$ must be in the Lessor's pocket, not the dealership. Lessor owns the car after all. Simple as that. Dealership does not own the car.


I've sold to CarMax 2 years ago. I sold a '15 Ford C-Max Hybrid to carMax. Not a lease. They gave me slightly better than a trade-in value. I did lose a bit, but it saved me time, very quick and easy, professional operation. I'm having a hard time believing that CarMax can beat the payoff amount on a used Leaf lease-return. Used Leafs are cheap these days due to advancing battery tech and cheap new Leafs.

CarMax gets you a check quick, and I think they can cut 2 checks to you: One to pay off the Lease, and one to you for the residual. Sounds like a good deal Ask CarMax about the 2 checks thing. In reality, they are transferring ownership from the Lease Company (Nissan or a surrogate here) to CarMax. You never appear on any title. It's a little strange because you are getting a bonus but never own the car, I guess kind of like a broker's sales commission in a way.

Call one CarMax, and if you don't get a clear answer or they put you on hold forever, then call another location in your same state, somebody can figure it out there. They are Experts in this, they do it all the time.

Write back here and let me know how it went. I just turned in an '18 Equinox on a 3 year lease late in '20, and now I wonder if I should have attempted something like you are doing. I seem to remember the payoff (really used-car purchase amount) was higher than I thought the car was worth on the open market, so I doubt it would have worked for me.

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:08 am
by SageBrush
Question out of curiosity:

How are outstanding lease payments dealt with if a customer wants to buy the car from the leasing company ?
Always included, always excluded, or a matter for negotiation ?

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:25 am
by Baltneu
Carmax say they can do it.
Have appt on 4/1
Will report back

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:31 am
by voltamps
SageBrush wrote:
Fri Mar 26, 2021 7:08 am
Question out of curiosity:

How are outstanding lease payments dealt with if a customer wants to buy the car from the leasing company ?
Always included, always excluded, or a matter for negotiation ?
A lease is really a car loan in disguise. The lease company owns the car. They let you borrow it according to the contract.
Outstanding lease payments don't matter as long as the Lease Company gets their car back plus expenses & profit. They can and usually do calculate at any time what the Leasee (driver) can pay them to buy the car from them, or return the car plus "fees".
The driver can take the deal or keep making lease payments.

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:31 am
by rpiotro
SageBrush wrote:
Fri Mar 26, 2021 7:08 am
Question out of curiosity:

How are outstanding lease payments dealt with if a customer wants to buy the car from the leasing company ?
Always included, always excluded, or a matter for negotiation ?
Always included. You signed a commitment to make those payments. An early termination would require residual value plus outstanding payments. Minus any interest on the balance. However, There may be some room to negotiate if the car has a value lower than the residual value. If the lessor finds they may be upside down in the car at the end of the lease there is your opening.

On the flip side if the car is a desirable model they may feel they can do better to let the lease run out and sell the car for additional profit.

No simple answer to your question. Best course of action is to continue making the lease payments till the end, then negotiate. Look carefully at your lease. There may be a provision for a fixed buyout at the end.

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:42 am
by Baltneu
You can always buyout lease on the Nissan.
You go to NissanFinance website and it gives you buyout price and you can print a letter with details.
Buyout price is $15,568
Carmax offering $17,400 (22,500 miles on 2018 SL)
Called them twice and they say they buyout Nissan leases all the time.
I was told they payoff lease and you walk out with difference in a check.
Have appt with Carmax on 4/1 to do deal.
Will report back.

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 7:53 am
by voltamps
My point is the Lease Company doesn't car what happens, really, as long as they can show a profit. Period.
Also, they know many drivers of their cars lost their job or went to jail or something else even worse, which means they default on the loan and you will drop the Leaf or car in their lap and run away (with bad credit, but that part doesn't matter to the lease co.)

They don't want you to run away!

They want to talk about it, and maybe get you to pay them a little plus turn the car in early for them to sell, because they are afraid you're about to abandon the lease & they would lose money on their whole deal.

------- You paying them a little when turning the car in early is really in exchange for you keeping your good credit.

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 9:58 am
by SageBrush
Baltneu wrote:
Fri Mar 26, 2021 7:42 am
You can always buyout lease on the Nissan.

Buyout price is $15,568
Carmax offering $17,400 (22,500 miles on 2018 SL)
Interesting, thanks.

How much is your residual, and your monthly payment ?

I'm presuming these numbers add up, but perhaps not ?

Re: Leased Car, selling to CarMax

Posted: Fri Mar 26, 2021 10:23 am
by Baltneu
SageBrush wrote:
Fri Mar 26, 2021 9:58 am
Baltneu wrote:
Fri Mar 26, 2021 7:42 am
You can always buyout lease on the Nissan.

Buyout price is $15,568
Carmax offering $17,400 (22,500 miles on 2018 SL)
Interesting, thanks.

How much is your residual, and your monthly payment ?

I'm presuming these numbers add up, but perhaps not ?
6 payments left on lease
I pay $447 per month.
That includes $8 per month for the extended warranty on the tires.
The residual is what ever it is at a particular time, payment in full by 4/14 is as stated above, $15,568