Why do they owe money at the end of the lease? I thought that only happened if a person leasing a car put too many miles on it, more than the agreed upon mileage per the lease.

Anonymous wrote:I would confirm if that car is actually a good deal. I know when I wanted to buy my leased car at the end of the lease the residual/book value they offered me to sell it to me was about $6k more than fair market value.

It’s a really good deal. We have been looking at used cars for months and we haven’t found anything this new or with anywhere near this low a mileage for this price.

I would confirm if that car is actually a good deal. I know when I wanted to buy my leased car at the end of the lease the residual/book value they offered me to sell it to me was about $6k more than fair market value.

You are on the right track. Your friend's parents need to purchase the car from the dealer, obtain the title (this will not be immediate), and then sell it to you for whatever amount you've agreed on. At that point they sign over the title to you. It would probably be helpful to draw up a sales contract so that when you pay tax in MD you have proof of what you paid, especially if it's less than average market value.

To register the car in MD you will have to pay to title the car, register it for plates, and pay sales tax on your purchase.

The way you are using the term "payoff" is confusing, though. To me that sounds like a term used to end the lease early (not to buy the car). So be sure to clarify that.

I have bought used cars before but always from dealers. Now I’ve been looking at used cars for my daughter. A good friend’s parents have a leased car that they need to turn in as they’re in their 80s and have stopped driving, and have offered it to us for the payoff amount. The car is only a few years old and has super low mileage. So the parents need to exercise their option to buy the car out of the lease (sorry if this terminology is wrong, I have never leased) and then I pay them that payoff amount. Then what? Car is registered in DC and I am in Maryland. Thanks for any advice!