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oskar27

Buying Back my Lease

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The lease on my 2016 Edge Titanium FWD expires April-2020 and among my options I consider to pay cash the residual value (CAD$17,000 + Tax) and keep the car. I only have 31,000km on it and I love my car which is in like new condition.

 

I never done this before so I wonder what the procedure is. I leased the car from a Ford dealer so I assume that I can go to any Ford dealer to complete the transaction.

 

Does it matter if I go to the same Ford dealer?

Would the dealer make all required paper work to transfer ownership?

Is there anything I should be aware?

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Go to your dealer and tell them that you want to keep the vehicle at the end of your lease and they will determine the amount left to pay and write a check it for the balance…Then you have to go to the "SAAQ" to have it transfered from Ford Motor Credit to your personal name.

Bonne chance! ;) 

 

Claude. :)

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You don't have to go to the dealer to do anything.  Just contact Ford Credit.  You may also be successful paying less than the residual, I've done it a few times, it's my experience that they really don't want the car back. 

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I had mine taken care of by my dealer in Ontario.  I did have to have a safety inspection done though because it technically is a transfer of ownership.  But once I brought them the safety report (from Canadian Tire), they took care of all the paperwork and I just wrote them a check.

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On 12/6/2019 at 8:45 AM, Waldo said:

I had mine taken care of by my dealer in Ontario.  I did have to have a safety inspection done though because it technically is a transfer of ownership.  But once I brought them the safety report (from Canadian Tire), they took care of all the paperwork and I just wrote them a check.

 

How about the vehicle registration to transfer the ownership from Ford credit to my name? Does the dealer takes care of that also?

 

I was told that I will have to go to a vehicle registration outlet to make the transfer and I may have to pay extra taxes like when you buy a used car

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24 minutes ago, oskar27 said:

I was told that I will have to go to a vehicle registration outlet to make the transfer and I may have to pay extra taxes like when you buy a used car

 

You are buying a used car.  It just so happens it's the one you've been driving for the last 3 years but it's still a used car purchase because Ford Credit owns it right now.

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I now understand akirby, thanks

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Yes, you will pay taxes on the residual value.  That's because when you were leasing, you were only paying taxes on the lease price, not the total price of the vehicle.  That's actually one of the significant advantages of leasing - that you are essentially deferring the tax charges instead of financing them.

 

I've never had to go to take care of registration myself anytime I've purchased from a dealer in Ontario, but maybe in Quebec they have different rules.  But basically the dealer had to send one of their employees to the "Service Ontario" office and had it done, then called me to come back and pick it up.  So if you're in a hurry you could do it yourself and save time.

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Thanks Waldo for taking the time, I understand

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One more question guys

 

When my lease expires and I buy back the lease, does the dealer get a commission from this transaction?

 

My thinking is that he probably got his money when I first leased the car and at the end when I buy the lease he would get nothing and maybe he has no interest to do any paper work.

 

If that’s the case, perhaps is better to arrange with Ford credit to pay them directly?

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