How to Buy a Leased Car Second Hand

Leased cars sold by the lessee can be a good used-car value. After the lessee buys out the lease, you can buy the car from him. No leases or dealers are involved. Like any used car, the price needs to fit the mileage and condition.

Instructions

1

Check the car's mileage and condition. A leased car should be in good condition because the lessee drove the car under leasing rules.

2

Look at the lease to determine the residual value. Use the lease to determine the car's value after the leasing period. The leasing company uses a residual value when selling a car to the lessee. Know this value when assessing the lessee's sales price.

3

Compare the residual value to the price in Kelley Blue Book. Look up the price in Kelley Blue Book by model and year. Compare this listed price to the residual value from the lease. Close prices are good deals.

4

Ask the lessee to buy the car out from the leasing company. For the lessee to buy the car, she needs to have a buyout option in her lease, or negotiate an option with the company. The lessee pays off the leasing amounts and the residual value.

5

Negotiate the sales price with the lessee. Use the Kelley Blue Book price for a good estimate. After you agree to a price, you can take ownership by transferring title.

6

Transfer the title from the lessee to you. The lessee and you both sign the title. Submit the transferred title to your state's title office, typically at the motor vehicle department, to obtain your own title.

7

Register the vehicle with your state's motor vehicle department. Take the seller's registration to the department and fill out an application for your registration.

8

Register the ownership transfer with the state motor vehicle department. Take the title and registration certificates to the department and fill out a registration application for transfer of ownership. Make sure to get the registration sticker and license plates.