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Questions on buying out a buddies leased truck

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A buddy is going to be turning in his leased truck in a couple months. The lease buyout in his contract is considerably less than the market value. If he doesn't buy it, I am considering purchasing it, but have never been through this before.

Its a 2013 GMC crewcab 4x4 with the 6.2 liter and 45,000 miles. Market value in my area is about $30k. Lease buyout in the contract is $22k.

What should I expect for fees and such if I want to buy it? Does he need to buy it and then resell to me? Or can I just go in with him to buy it?

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A buddy is going to be turning in his leased truck in a couple months. The lease buyout in his contract is considerably less than the market value. If he doesn't buy it, I am considering purchasing it, but have never been through this before.

Its a 2013 GMC crewcab 4x4 with the 6.2 liter and 45,000 miles. Market value in my area is about $30k. Lease buyout in the contract is $22k.

What should I expect for fees and such if I want to buy it? Does he need to buy it and then resell to me? Or can I just go in with him to buy it?

He would have to buy it out, then sell it to you. Very unlikely the dealer is going to sell it to you for less then what they could sell it to someone else for. Especially if it's worth more.

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so basically I would have to figure on paying double sales tax?

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when buying out a lease, are there fees other than sales tax? or are those typically taken care of at the start of a lease?

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when buying out a lease, are there fees other than sales tax? or are those typically taken care of at the start of a lease?

It's spelled out in his contract he signed. Have him check with the leasing company for any further discounts. Probably not if the value is worth that much more.

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when buying out a lease, are there fees other than sales tax? or are those typically taken care of at the start of a lease?

Generally yes. Stuff like tires, windshield additional mileage, damage, etc etc are all taken into account when the vehicle is returned. The dealer technically "loaned" the vehicle and it has to be returned in equal condition less wear and tear.

Depending on the lease, some fees like additional mileage can be bought up front for a cheaper price then paid for afterwards (10c a mile vs 20c a mile).

As for taxes, that's not the dealers fault, it's the government...

Either way, this $22k truck is a $28k truck by the time you get your hands on it... Which is still cheaper then a $30k truck will all the fees and taxes tacked on...

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He would have to buy it out, then sell it to you. Very unlikely the dealer is going to sell it to you for less then what they could sell it to someone else for. Especially if it's worth more.

The dealer has no interest in the vehicle only the leasing company does. The dealer can buy it from the leasing company usually at a higher price than the leasee can buy it for.

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A buddy is going to be turning in his leased truck in a couple months. The lease buyout in his contract is considerably less than the market value. If he doesn't buy it, I am considering purchasing it, but have never been through this before.

Its a 2013 GMC crewcab 4x4 with the 6.2 liter and 45,000 miles. Market value in my area is about $30k. Lease buyout in the contract is $22k.

What should I expect for fees and such if I want to buy it? Does he need to buy it and then resell to me? Or can I just go in with him to buy it?

He does have to buy it, and then sell it to you. There are some other fees that are involved in the acquisition of the vehicle if he decides to buy it. And, they are all spelled out in his lease. I just bought my 2014 SUV that came off lease.

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The dealer has no interest in the vehicle only the leasing company does. The dealer can buy it from the leasing company usually at a higher price than the leasee can buy it for.

I'm not sure how it works south of the border, but I do know in Canada that GM is the only in house leasing company amongst the big 3...

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I'm not sure how it works south of the border, but I do know in Canada that GM is the only in house leasing company amongst the big 3...

Dealer and leasing company are two different entities (whether it's GM or a third party leasing company). The dealer has the opportunity to purchase a turned in lease vehicle from the leasing company if it is of value to the dealer (meaning that if they can buy it at wholesale value or lower, they will do it). The leasing company will sometimes give them an additional discount over the lease end value set in the contract. This way they don't have to pay to get it picked up or any other reasons. A lot of this has changed due to online wholesale auctions. Edited by BlueHeart

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Dealer and leasing company are two different entities (whether it's GM or a third party leasing company). The dealer has the opportunity to purchase a turned in lease vehicle from the leasing company if it is of value to the dealer (meaning that if they can buy it at wholesale value or lower, they will do it). The leasing company will sometimes give them an additional discount over the lease end value set in the contract. This way they don't have to pay to get it picked up or any other reasons. A lot of this has changed due to online wholesale auctions.

Our dealers ARE the leasing companies...

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Our dealers ARE the leasing companies...

So they operate as a leasing company? ABC motors has ABC motors leasing company?

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As a finance manager in my previous screwed up life, I facilitated leases for the lease company or bank/credit union.

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Yup. Happened right after GMs big shit storm in 08...

That storm hasn't ended IMO.

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