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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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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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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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I hope buying back a leased has changed now, but let me tell you a little story. Years ago when leasing started becoming popular my Uncle's best friend leased a truck. He kept it spotless and waxed all the time. He was going to buy it back when the lease was over. The day came when the lease was up, he dropped off the truck in the morning to his dealer and told them he would come back that afternoon to buy it back. The dealer said OK. He had just cleaned up the truck looking like it was showroom new :). He went back to the dealer later that afternoon only to be told the truck had been shipped to Kentucky (we live in Tennessee) to be sold. He told the dealer to find the truck because he wants to buy it. The dealer found it two days later, it was sold to a dealer in Ohio and already SOLD to someone :(.

 

I hope buying back a lease has changed :)

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Had a call last week from Ford Credit to remind me that my lease expires April-27 and I told them that I plan to buy back my lease and I asked can I do this process with another dealer? They said is better to go to the same dealer otherwise the new dealer will have to get authorization from the original dealer.

Anyone knows why this authorization is required and what's about?

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I leased a 2012 Ford Edge Limited. At end of the lease, called the dealership and asked who I see there to buy the vehicle at the residual amount in the lease contract. They gave me the name of a salesman there that did that, I stopped by, wrote them a check, drove off, and some time later the title showed up in my mail box. Easy with no hassle. I like to lease, invest what I don't spend, then buy car at lease end. 

 

BTW....Still own that Edge....has been a great car. Only issue in almost 10 years has been the dash controller went out (or whatever you call it). 

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13 hours ago, RJG said:

I leased a 2012 Ford Edge Limited. At end of the lease, called the dealership and asked who I see there to buy the vehicle at the residual amount in the lease contract. They gave me the name of a salesman there that did that, I stopped by, wrote them a check, drove off, and some time later the title showed up in my mail box. Easy with no hassle. I like to lease, invest what I don't spend, then buy car at lease end. 

 

BTW....Still own that Edge....has been a great car. Only issue in almost 10 years has been the dash controller went out (or whatever you call it). 

My experience was the same but I also learned you must go to the same dealer you got the car leased to finalize the title transfer. I went to another Ford dealer and they wouldn’t touch it.

BTW.. my Edge also has been a great car

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Not true.  From the Ford Credit website::

 

*If you have moved and it is no longer convenient to return to your originating dealer (the dealership which originated your lease), you may return or purchase your lease vehicle through any participating Ford Dealer.

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Let me clarify

Perhaps its true if you move and go far away from the original dealer but in my case I was in the same town and I wanted to go to another dealer because I didn’t like to deal with the same salesman. Ford Credit told me that I must go to the same dealer and that’s what I did

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I believe we're talking about two different conditions. If you're just returning the car, you can do so to any Ford dealer. They will see that it gets back to the owningu dealer. If you're planing to buy the car off the lease, the original dealer is the owner (on floor plan). A different dealer would need to go through considerable paperwork to sell the car that he doesn't own. (Think this is correct, if anyone knows better, please correct me).

 

I had a co-worker who wanted to buy his Explorer at the end of lease. He ran into this same problem. (In the end he decided not to buy it and turned it back in. To a different dealer in the next city over as he was having a hissy). That dealer did a turn-in inspection and found several small dings and a wheel scrape. He charged him the cost of repair.

 

About a month later he got a bill from the company who did the loan, advising they did their inspection and found other problems. They required he pay for a new wheel as it had a scrape that could not be repaired. This was in his contract, but he thought the dealer had this all covered. Course he had a real hissy over this. Talked about it for a year. (Perhaps "talk" may not be the correct word, he was really pissed as it was several hundred dollars).

 

Anyway, your contract spells out how, where and what to expect when you turn it back in, or want to buy it off the contract, or buy it after the contract is complete.

Edited by enigma-2

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