I e recently heard that many car manufacturers in order Stop people selling to other 3rd party dealers are stopping people from selling there leased vehicles to others ie carvana carmax even other dealerships. Infiniti, gm, and bmw are 3 that I know of. So much for customer relations. Why would anyone put up with this?
Do we know if these policies are here to stay? They want their cars back on their lots because of the shortages. Once there’s no shortage, what’s the incentive?
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My thought also but not a great way to treat your customers. If I can sell my lease to Carvana for 5k profit and now can’t now way am I ever dealing again with one of these manufacturers. When my friend called Infiniti Dealer about this she was treated so rudely by them she’ll never buy again and she’s owned 4 up to this point. She had three payments left and was quoted 5k above payoff because she only had 10k miles on it by Carvana. Now she has to make the 3 payments and the disposition fee and walk away with nothing. So in all it’s over 7k in loss.
It depends. Are you buying the vehicle to enjoy for three years and turn in for a new one, or are you expecting to have positive equity at the end? I don’t know of many people that plan for the latter. What probably happened is that finance companies realized they could be the ones to profit in that case.
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Wasn’t that the original agreement? Pay rent charges and depreciation, followed by disposition fee then walk away with nothing? There is still the option to buy the car out, and leave with something. Then a buyer can resell the car.
The changes certainly suck, however is it still worth leasing? That depends on if you lease cars just to resell for positive equity or you lease cars to drive, return and get into a new one. If I was in the market for a néw car, I would still lease one.
Hopefully banks do not delay the release of titles and sellers can sell hassle free to third party dealerships.
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Doesn’t make any sense to buy it out here in AZ you’d need to pay the state tax which is 9 percent the lease payments and the register it again for another year. I had no problem selling my lease with Toyota twice but that’s why I buy They know something about long term thinking and owner loyalty rather than a quick buck.
I’ve been leasing since 2004, of my 7 leases:
- 3 were with Chase (no transfers)
- 5 were grounded at disposition (including 1 lemon), 2 had early outs (a defective car I couldn’t lemon and traded, and a buy-back)
Every lease I signed, my intention was to drive to disposition. I have never understood swaps (except in concept), and good leases should never have equity. Anomalous markets have no influence over that perspective: yay your lease has equity (always a possibility), if I ever need to exercise that I can buy it out myself, first.
No person I know will rent me a $51k XC60 for 36 months at 0.74% interest, for $17.7k all-in, return my MSDs, and gladly take the keys and their upside-down XC60 at the end. I wish all my relationships ended like that. 
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Your friend can purchase the vehicle from Infiniti, per the original terms of her lease, and resell if she’d like to capture the equity in the vehicle.
Out of curiosity, of her 4 previous Infinitis, how many if those leases was she able to sell for positive equity?
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Technically, it’s not your car to sell, unless you buy it outright yourself. You were given a pass in the past to do so, simply because the bank wanted their money, and didn’t care how they got it, rightfully so. Now, they KNOW they can get their money, so there’s no incentive for them to do so.
NOBODY complains when they hand the keys back and the bank gets stuck eating a loss, nor does anyone complain when they have the option to sell a leased car that is upside down, knowing they have the choice just to hand the keys back. Funny how this is a problem when it’s not your car to sell, yet you THINK you should be entitled to do so.
Any of you complaining about this fact, and that you would not do the exact same thing if you were in the bank’s shoes are kidding yourselves after taking loss after loss in the past when your cars were returned valued less than the residual value.
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guarantee an infiniti dealer will take her out clean. also - no consumer has the right to complain about not being able to sell a CAR THAT ISN’T THEIRS TO BEGIN WITH!
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I can’t believe how many people on here are defending the greedy banks. Nobody is selling their leased car because they don’t own it. What they are doing is buying it out at a previously agreed upon price or transferring that right to a third party dealership. I can understand not feeling sorry for folks who have taken risks to lease cars just to flip, but most of the people adversely affected will be ones who had the best intentions to keep the car but also were aware that they could always trade out of it at any time and just pay the difference. Moreover, the banks still haven’t stopped you from “selling” your car, just limited who you can “sell” or more accurately trade it in to so they control who profits. I for one don’t like it anytime a large corporation changes the rules of engagement in the midst of battle to ensure they win at the expense of the little guy. I for one will keep rooting for the underdog.
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they can still buy their cars and then sell them. that’s not being stopped.
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I can’t believe how many people don’t understand the concepts of property ownership or contract law.
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Lets use stocks as an analogy. Buying a car is like buying a stock, you own it and can sell it when you want. Leasing a car is like buying a stock option. You don’t own it but you retain the right to sell it at an agreed upon price. My problem with what the banks are doing is that they are doing it in the middle of peoples contracts, without giving them any warning or notification. There is nothing in the contracts that state they can or can’t do what they are doing. My argument is that although not stated the fact that you could always trade in your chevy or nissan implied you could continue to do so. I lease a hyundai kona ev so I can still trade out easily if I want so I haven’t be adversely affected by this yet. Anyways I don’t like that the banks have done this. I don’t think people on here should be so quick to dismiss others misgivings about being hard done by by the banks. The bank defenders here remind me of the old guy hanging in his cell in the dungeon in The Life of Brian celebrating how great the Romans have been to him. Its sad as a society we are so used to being taken advantage of contractually by large, heavily protected industries that we don’t even bat an eyelid at it anymore.
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Unless your a lawyer you don’t understand contract law.
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The point isn’t that out of her 5 leases prior she could have made money or not she could have sold the vehicle Or traded it in at any time to say Toyota and had a few thousand in negative equity. She could have rolled it over to buy a truck because her life circumstances changed. Infiniti changed the deal that you have to go to Infiniti same with gm and same with bmw. I’m even hearing that even Infiniti dealers can’t buy it early on a trade in after 05/10/2021
So maybe you shouldn’t go with a captive lender since they can basically do this at anytime.
Again - they’re not limiting a lessee’s right to sell their car. They are limiting the right of a THIRD PARTY (i.e. someone not on the lease agreement) from purchasing their asset, which they are absolutely allowed to do. A lessee is still able to buy out their lease and then sell it to whomever they want.
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This gives the rest of your comments a lot more context.
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Exactly. For those who would like to sell to Vroom/Carvana/etc it simply adds an additional step to the process. You can still buy your own lease out, then sell to Carvana. This change in rules will only stop lazy folks, and/or folks that can’t get a quick loan to buy the car. My credit union will process a used vehicle loan the same day, and hand you a check the same day, with no early payment penalties.
They are not even doing that, they are limiting which 3rd party can buy the car. It prevents competition and controls who profits from an unforeseen change in the market. I don’t think they should be allowed to make this kind of change so I disagree that they have every right to do it.