How to Buy a Leased Car From an Owner

Purchasing a leased vehicle from a seller is very similar to purchasing a vehicle with a current loan. The lease buyout price must be paid to release the car's lien and title, which allows you to transfer ownership. Expect to work with the buyer and the bank to pay off the lease amount. Because you're not purchasing from a dealership, you'll have to pay taxes and register the vehicle on your own once you have the title.

Instructions

1

Get the lease buyout or sales price from the lessee. The original lessee can sell the vehicle for the amount he owes or more to make a profit. Check the vehicle's value at Edmunds.com and the Kelley Blue Book website to ensure you are paying a fair price.

2

Arrange to make payment to the leasing bank. Your seller should supply you with the bank's phone number and his account number or at least the vehicle's information, such as its year, make, model and vehicle identification number. The lessee should update her account with the bank to note that you'll be making a payment to satisfy the lease and purchase the car.

3

Call the bank and ask about the payoff process before providing your payment. Validate the buyout amount and determine how long you'll wait to receive the title or other necessary forms to transfer ownership. Unless the leasing bank is local, the process is not immediate.

4

Ask the bank where to make your payment or where to send it. Find out who to make the check payable to. Ensure the bank accepts your preferred method of payment or make other arrangements.

5

Wait to receive the vehicle's title. In most cases, the original lessee has to sign paperwork, as well. You should have a clear understanding of the process and the time required for processing the title paperwork. Contact the bank to follow up if you need to.

6

Call your state's motor vehicle department to determine the process for titling and registering your new vehicle. You likely need to show proof of insurance to register and title the car, so obtain proof of coverage. Go to your state's motor vehicle department with the car's title and lien release, if applicable.

7

Fill out all necessary motor vehicle forms. Pay for your registration, title and taxes; fees vary by state. Obtain your license plates and arrange for a ride to the vehicle you purchased. Attach your plates and registration to the vehicle before taking it.