Hi Guys, I’m in Northern NJ and just have a quick question.
I have a Nissan Altima with the lease ending in September. I’m running into the issue of trying to use the equity in my current lease towards a new one, and am finding out about Nissan’s new policy of not selling to 3rd parties or other dealers.
I got an offer on my car from Carvana for $18,600, which is way over my payoff price of around $13,350. When I spoke with Carvana, the woman suggested converting my lease into a loan based on the payoff price, and they can then purchase the loan from me, and cut me a check for the roughly $5,000 in equity I have in my lease.
I just wanted to get people’s opinions on this option, what does converting a lease to a loan entail? I’m not the most experienced with this stuff, so some advice would be appreciated.
Has the same issue. I sold it to a Nissan dealer , offer was way less than others but still above payoff and eliminated any disposition fees. May be hard to find one willing to do it however.
Another option is to payoff yourself then sell it to carvana. But that scenario takes longer and if values plummet before you complete you’d be in a tough spot. Idk if that is what she means by converting lease into a loan.
It’s not quite that simple. You can’t just “convert” your lease to a loan. You have to apply for a loan just as if you were buying a car on the lot. If you do it through NMAC, you might have to go to a dealership as well, which will include paying their doc fee. You’d likely also have to wait for the title to be submitted to your name, since it’s currently titled to NMAC. This could take a few weeks. Then, you’d be able to flip it to carvana. Just hope offers don’t plummet before the new loan and title work get completed.
Edit…forgot about TTL you’ll be responsible for mentioned by Max below
I mean, you and I know you have to apply for financing to buy out a lease. OPs description from Carvana made it sound like you just call NMAC, tell them to change the lease to a loan, and all is well in the world. I’m willing to bet someone’s going to come along and think it’s just that simple, then get burned.
What does it matter if you’re paying it upfront or rolled into the lease? Tax is tax and should be considered when buying out to flip for the overall cost vs the offer provided by the third party interested in purchasing the car, no matter how that tax is paid.
If Nissan lost you as a customer, you may want to search around to see how many other financial institutions have also limited third party sales. Don’t forget, the bank has an obligation to it’s shareholders to NOT sell assets under FMV. You may feel like you ‘own’ the car and can sell to whomever you choose, but the lease states differently.
nissan lost you as a customer b/c they dont allow you to sell something that you don’t own? seriously? take a step back and think about how off that looks…
I’m telling everyone below 18 never to go to college or grad school. The value of those buildings keeps increasing and the bastard trustees won’t let the students sell them.
Not sure why you think “true car value” should be determined by Carvana? Is it because they offered the highest price for your particular car? KBB’s offers are based on Manheim auction data along with transaction data. Carvana’s offers are driven by their own inventory needs and are rarely reflective of the true market.
I am currently working a fee Dealerships, but since they know I have to come to them to sell it they’re offering significantly less.
To those who are clearly car sales people who have no supportive information, kindly I don’t care! I’d say more but don’t want to get banned.
Yes it’s lease not my car, but very few brands are invoking this, I see why there doing it, makes excellent business decision and lot of money on the table. But only Nissan and Subaru is actively blocking 3rd party sales. Meanwhile the entire industry could follow suit but have not. For this, they have loss my business.
I’m sure Nissan will be very disappointed to lose your business on a leased car that’s worth more today than they anticipated. I’d stick it to them and hand them the keys with a note stating they lost you as a customer.
Moral of the story is it is still possible to buy out your lease and sell it, but it’s going to be more difficult than it has been with the car buying places being blocked from buying leases. You have to consider the taxes, fees and time it will take to buy out your car along with the risk of the anticipated selling price of the car changing.
Glad I was able to sell my two Honda leases in the last month before they change their policy.
