By – Melissa Sauer, Director of Production at Hometown Insurance Agency
The general how-to on buying out a lease:
Gather Lease Information: Collect all the relevant information about your leased car, including the lease agreement, account number, and contact information for the leasing company. This will help streamline the process.
Obtain Lease Payoff Quote: Contact your leasing company and request a lease payoff quote. This quote will state the total amount required to terminate the lease early and purchase the vehicle from the leasing company. Make sure to request a quote valid for a specific timeframe, as these quotes are time-sensitive
Contact Carvana/ KBB used car sales (I used a KBB buyer in St. James): Reach out to buyer through their website or customer service hotline to initiate the selling process. Provide them with the necessary details about your leased vehicle, such as make, model, year, and any other requested information.
Review buyers Offer: After providing with your vehicle details, they will assess the value of your car and provide you with an offer. Carefully review the offer to determine if it meets your expectations and compare it to your lease payoff quote.
Contact Leasing Company: Inform your leasing company that you intend to sell the vehicle to Carvana. Provide them with the necessary details, including the buyer’s information and the purchase price. Request the necessary paperwork for the lease termination process.
Payoff Lease: Coordinate with Carvana and your leasing company to complete the lease payoff. Mailing funds to company, for title that will have a lien holder. This takes about 2 weeks for the documents to arrive back
Receive Title: Bring it to Department of Motor Vehicles (DMV) and apply for a clear/clean/new title, this takes about 2 to 4 weeks.
Schedule Vehicle Inspection: They will typically require an inspection of the leased vehicle. They may send an inspector to your location or direct you to an onsite inspection center. The inspection is to assess the vehicle’s condition and ensure it matches the information provided during the initial offer.
Accept Offer: If you are satisfied with buyer’s offer, accept it. This acceptance indicates your willingness to proceed with the sale. Sign over the new clear title to the buyer and accept payment.
Transfer Plates to New Car: Once you have finalized the sale, you can transfer the license plates from the leased vehicle to your new car. Obtain the necessary paperwork from your local Department of Motor Vehicles (DMV) office to transfer the plates. This may include completing a transfer application, providing proof of insurance, and paying any applicable fees.
Remember, the specific process and requirements may vary depending on your lease agreement, the leasing company, and the policies of Carvana or the buyer. It is always advisable to consult with the leasing company, the buyer, and the DMV for the most accurate and up-to-date information tailored to your situation. For me, the entire process including waiting for the buyout and clear title to arrive from DMV took about 6 weeks.
Call our Hometown Insurance Agency experienced team of licensed agents today at 1-800-568-SAVE (7283) or contact us by email at: firstname.lastname@example.org for helpful auto insurance policy information or a no obligation review of your current policy.
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