Selling a Lease in Ontario

Selling a Car with a Lease in Ontario

Auto leasing is becoming more and more popular with purchasers these days. It provides lower monthly payments than financing, its more attractive for self-employed individuals as they can claim more on expenses and if you want to get a car every 4 years, it’s easy to gauge what it will cost you.

The main issue with leasing a car is that a lot of people get into it without thinking it through. They jump at the fact that they can save some money upfront on payments and never consider whether they are a good candidate for it. They then find themselves 18 months into a 48 month lease and wanting to sell it and buy another car. Well guess what? You are likely going to lose a lot of money.

If you find a private buyer to take over your lease, then you will be in the best possible situation. Problem is, who wants to take over your lease when they can likely lease a brand new one for a cheaper payment? There are websites online that are great for matching people up, but you pay for a service whether or not you find a buyer. So let’s go over the other possibilities.

Option 1: Find a private buyer to buy your car.

If you find a private buyer to take your car off your hands, you will need to cover the negative equity between the amount you owe and the amount you sold the car for. Oh, and do not forget the taxes you have to pay when you buy out the vehicle.

Pros

  • Get out of your car easily

Cons

  • Pay taxes on the full buyout amount and you must pay the negative equity immediately before transferring ownership.
  • Dealerships will usually charge $300-400 fee to buy out your car as well.

Option 2: Sell your car to CarbonOak

When you sell your vehicle to CarbonOak, we can pay out your vehicle, claim the taxes back and earn you an extra 13% in your pocket (or an extra 13% thats not out of your pocket).

This is what CarbonOak specializes in. We take your leased vehicle and offer you the absolute maximum for your vehicle that the market will allow. Not to mention CarbonOak will pay the lease buyout fee for you. The end result is less money out of your pocket

Pros

  • Get out of your car easily and for less.
  • Escape having to pay taxes.
  • We will pay your lease buyout fee.

Cons

  • You could still possibly have to payout the negative equity on your lease. (if you have negative equity)

The bottom line is that you should think about whether you will be satisfied with this car for the entire term of your lease. If yes, then go ahead with it, but know that you will lose a considerable amount of money if you decide to break the lease early. This comes as a surprise to many individuals, who think they can get out of their lease without paying any money.

Selling a Car with a Lien

Learn how to sell a car that you still owe money on.

Learn More

Selling a Car Privately

Learn what you legally need to know.

Learn More
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