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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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