I bought a leased car, what should I do?

How to sell a leased car

Leasing is the rental of a car with subsequent purchase. This purchase option is especially convenient for those who do not have enough money to become the owner of an expensive car. However, lessees often need to sell the car after leasing. Autocode will tell you about the intricacies of implementing such cars.

Is it possible to sell a car on lease?

It all depends on the terms of the contract. Most often, leasing companies include a clause in the document that prohibits the sale of the vehicle to a third party until the lessee pays all the money for the car. Otherwise, the new owner will not be able to go through the registration procedure with the traffic police.

But even under such conditions, there are several ways to sell a car to a legal entity or individual. The main condition of such a transaction is to pay off the remaining debt under the contract. Moreover, before selling the leased car, the lessee must pay at least 50 percent of its cost.

There are two ways to sell:

the lessee terminates the contract and then sells the vehicle on the secondary market (it must be remembered that almost every leasing agreement provides for monetary compensation for early termination of relations with the company that provided you with the car);

the lessee resells its obligations to a third party (as a result, the remaining funds are paid by the new owner of the vehicle).

How to sell a car on lease to a legal entity

On the Internet or print media it is easy to find advertisements for companies that buy out leasing cars. Buy-back companies promise up to 98 percent of the market value of a used car. In reality, everything is not as rosy as it might seem. The amount you can actually earn from selling a leased vehicle depends on:

the balance of payments to the lessor (it is clear that the smaller the amount that remains to be paid to the lessee, the larger the amount he will receive from the buyer);

the cost of work of company employees (on average it is equal to 5-7 percent of the price of the car);

condition of the vehicle.

Don't forget that no one wants to pay money just like that. Before the sale, you will need to provide company representatives with receipts and other papers confirming the amount you have already paid for leasing. In addition, technical specialists from the purchasing company will conduct a thorough inspection of the vehicle and take into account all shortcomings when assessing the condition. Therefore, before contacting a company that buys leased cars, it is important to conduct thorough pre-sale preparation.

How to sell a car after leasing to an individual

Many owners of leasing vehicles are interested in whether it is possible to sell such a vehicle to an individual. Selling is possible. And the procedure for conducting a transaction is, in principle, identical to that for a legal entity. To re-register the contract, the buyer will have to provide the lessor with:

passport;
documents confirming his solvency (salary certificate, bank statement, etc.).

Additionally, you may have to submit a third document (passport, driver's license, etc.).

It is more profitable to sell a leased car to an individual, since the owner negotiates with the buyer directly, without intermediaries. At the same time, finding a buyer can be quite difficult. Therefore, before selling a car, order a detailed report with the history of the car on the all-Russian Internet service “Autocode”. To do this, go to the main page of the website avtocod.ru and enter the state registration plate or VIN code of the vehicle. The full report will contain the most current and detailed information about the vehicle:

year of issue;
number of hosts;
mileage;
number of accidents;
traffic police restrictions.

It will also contain information about whether the car is leased or not.

If you find someone to sell the car to, show the report from the Autocode Internet portal. This will serve as proof of honesty, and the buyer, trusting you, will agree to the purchase much faster.

The procedure for selling a car after leasing: nuances for determining the residual value and paying taxes

In this article we will deal with the sale of cars after redemption from leasing. Let's find out whether a leased car can be sold at its residual value and what nuances the transaction will have if the buyer is an individual.

Who can sell a car to whom after leasing?

Leasing is a type of rental relationship. According to the leasing agreement, the lessee receives from the leasing company a car, machinery or equipment for temporary possession and use. The agreement stipulates that after leasing the car will be purchased by the lessee at its residual value or returned to the leasing company. In the latter case, selling the car after leasing becomes the concern of the lessor.

Important! While the leasing agreement is in force, neither the lessee nor the lessor can sell the car.

It is worth mentioning the situation when the lessee does not fulfill his obligations under the contract. In this case, the lessor can withdraw the leased item (car). The sale of the car after withdrawal or voluntary return is handled by the leasing company.

Sale of a car after leasing to an individual

A legal entity can sell a car after redemption from a lease to both an individual and a legal entity. There are no restrictions in Russian legislation on this matter.

Sales of cars for individuals face includes features:

Sometimes an independent examination is required. The procedure will prevent risks in a transaction between related parties.
To sell a car, the consent of the founders may be required if such requirements are provided for in the organization’s Charter.
If the machine was accounted for as fixed assets, the manager must issue an order to sell it. When selling a vehicle after buying it back as a product, an order is not needed.

The car buyer needs to make sure that the seller’s actions are legal.

You should be wary of contracts that are concluded on the basis of a power of attorney. If information about the current head of the legal entity. It is easy to find out the person on the website of the tax service from the Unified State Register of Legal Entities extract, but it is more difficult to check whether the power of attorney has been revoked or not.

Car sales agreement

The contract for the sale of a car after leasing is no different from a regular agreement. The transaction is drawn up in writing without a notary.

The papers may not indicate that the car was the subject of leasing.

The sales agreement sometimes includes the seller's responsibilities to resolve registration restrictions. This is convenient for the buyer, especially when selling the car after repossession or return. This clause in the contract does not guarantee that there will be no problems with registering the car, but you can demand that the seller solve the problem.

At what price can you sell a car?

The residual value of the car after leasing is usually small, it can even be 1,000 rubles. Of course, you can’t sell the car at that price. If the seller is a private person, he sets the price himself or agrees it with the buyer.

It is more difficult for an organization to determine at what price to sell a car purchased after leasing. It is impossible to find the same car with the same mileage and operating mode, and this makes it difficult to determine the market value of the vehicle. In this case, companies sell the car at the price for which buyers are willing to purchase it. An independent examination also helps determine the cost of the car.

If a car is sold to the founder of a company or other related party, the tax service may have questions. During leasing, the legal entity received a VAT refund and enjoyed accelerated depreciation, so in such a transaction the Federal Tax Service will try to charge taxes.

Taxation when selling a leased car

After redemption, the leased car is no longer considered by the organization as leased property. The legal entity records the car in the list of its own assets. The initial cost of transport in this case is equal to the redemption price excluding VAT. Income tax is reduced by the amount of the initial cost of the property (the redemption price of the car).

If the organization has already included the initial cost of the machine as an expense, this cannot be done again. Otherwise, you will have to pay not only income tax, but also VAT at a rate of 18%.

For those who buy a car after leasing: the advantages of purchasing

The main advantage of buying a car after leasing is the opportunity to get a car in good technical condition for little money. Leasing companies are demanding when it comes to vehicle maintenance, and lessees are required to regularly check the technical condition of vehicles at official service centers. Leasing companies limit the possible mileage of the car in the contract.

After several years of use, the machine may be in good condition, and its price will be below the market price.

Details that are important when buying a car after leasing:

Price in the sales contract. The heads of companies that sell leased cars indicate in the documents only the redemption price of the vehicle. The company asks to transfer the rest of the amount in cash. This scheme is a violation of tax laws.
Additional checks. A leased car may be subject to prohibitions and encumbrances. Before purchasing, obtain a certificate from the lessor stating that the lessee has made all payments. Check the car against the register of pledges, and the seller - for the presence of penalties from the bailiffs.
Features of the agreement. Typically, cars are sold by legal entities after leasing. You need to understand that the presence of a seal in a contract does not guarantee the legality of the transaction. Request an extract from the Unified State Register of Legal Entities on the tax website and compare the seller’s data with it. If the contract is concluded by power of attorney, you need to check its authenticity.

I bought a leased car, what should I do?

Post by BlackDJ » 01 Jul 2014, 09:43

How to get rid of it? Sell/break for insurance/donate.

Maybe I could ask the leasing company itself?

Post by vulkan » 01 Jul 2014, 09:52

Post by moto72rus » 01 Jul 2014, 09:57

border guard, decided to sell without asking and cheat the leasing company into using her own car?! No need, it smells like an article.

It is legal to find a buyer for a loan/leasing car, he will pay off the remaining amount and take the car

Post by border guard » 01 Jul 2014, 09:57

vulkan, as an option. He also offered.

Added after 1 minute 18 seconds:

moto72rus, Turma is wow. But the contract doesn’t say anything about what happens if they don’t pay the lease.

Post by Maxx » 01 Jul 2014, 10:09

border guard, in leasing a car is the property of the bank.. Essentially, you are renting it..
You may not pay, but then the bank has the right to take the car, because you use it, but do not pay for use.. In addition, they will charge for use under the contract..

Paying off the debt is also not easy. You need to look at the terms of the contract. There, after all, the residual value at the end of the contract is taken into account based on the depreciation of the vehicle. Having paid earlier, the residual value may well be more agreed upon at the end of the contract. Essentially, you'll be overpaying for depreciation.

In general, it’s easier to resolve this issue with the bank itself.. Or who issued the leasing there.

Post by Nikka » 01 Jul 2014, 10:09

Post by oleg-19792008 » 01 Jul 2014, 10:27

Read the general terms and conditions of the contract.

2.2.9. If the Lessee has a delay of 15 (fifteen) and (or) more calendar days in payment of one and (or) more lease payments, the Lessor has the right, at the expense of the Lessee at any time in any possible way (including without the consent of the Lessee), to deprive the Lessee the possibility of operating the Lease Item until the Lessee fully repays the resulting debt, including the Lessor has the right to install wheel locks on the Lease Item (other technical means that block the possibility of operating the Lease Item). The Lessor has the right to independently, without the consent of the Lessee, take possession of the Leased Subject, transport the Leased Subject to any place convenient for the Lessor, including with the help of special technical means, a tow truck and (or) any other technical device and (or) hold the Leased Subject until complete repayment of debt by the Lessee. All actions specified in this paragraph are carried out by the Lessor at the expense of the Lessee. The Lessee is obliged to reimburse all expenses incurred by the Lessor related to the Lessee's deprivation of the opportunity to operate the Leased Subject no later than 10 (ten) days from the date the Lessor sends to the address specified in the Lease Agreement the corresponding claim for the need to repay the Lessor's expenses.

Car after leasing: is it worth buying and what to be wary of?

But first, let’s remember what leasing is. And this, to put it simply, is just a long-term car rental. In this case, a private person or organization can rent a car.

WHO BENEFIT?

Leasing helps individuals when there is not enough money for the car they like, but the terms of the loan offered by the dealer are not satisfactory - the interest rates are too high. Then the car enthusiast turns to a leasing company. The latter buys the car that the client likes, enters into a leasing agreement with him and leases the car to him.

But in Russia, organizations most often use leasing to rent a car for commercial purposes. For example, a taxi company wants to add business class cars to its fleet in order to increase the number of customers. The company is not able to buy the vehicle at full price - there are not enough funds. Then she turns to the leasing company. The latter reviews the application, buys the cars and enters into an agreement with the taxi. Also, companies that need cars for transportation of senior management, courier delivery or cargo transportation resort to the services of leasing organizations.

TERMS OF A TRANSACTION

An agreement with a private person or organization is concluded on the condition that the car is rented for at least a year, and the leasing company remains the owner. That is, a car “bought” in this way cannot be sold or registered in one’s name. In addition, it is prohibited to travel abroad with a leased car, and repairs can only be made at a dealer service recommended by the leasing company. Finally, the lessee cannot tune or repaint the car.

Every month while the contract is valid, the client makes a leasing payment. If funds are not received, a delay occurs. In this case, the lessor can repossess the car and “sell” it to another buyer.

When the contractual obligations end, the car can be returned to the leasing company or purchased at the redemption price (assigned by the lessor). It is written down in the contract on a separate line and takes into account monthly lease payments - the buyer must pay the remaining amount of the debt after the end of time. Also, depending on the company, payments may not be taken into account, and the buyer, when redeeming the car, pays its initially fixed redemption price.

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The minimum leasing period for most companies is 1 year, the maximum is 5 years. Leasing is calculated taking into account depreciation - wear and tear of the car and its components, therefore most often leasing agreements are drawn up for a period of 3 years. During this time, the car has already worn out, but the resource has not yet been exhausted, which means it can be leased again or sold at a profit.

DANGEROUS TIES

However, buying such a car comes with a lot of risks. So, while the car is leased, it may have traffic police restrictions. Having purchased such a car, the new owner will not be able to register the vehicle with the traffic police. For example, we found this car on a bulletin board and since the license plate number was clearly legible, we decided to get it through the avtocod.ru application.

The total service life of the Lexus is 5 years 9 months. During all this time, the car was owned by a legal entity. The car is leased and has traffic police restrictions. We were unable to reach the seller. The car has probably already been sold.

LOSS OF RIGHTS

What could be the reason for the presence of restrictions? With non-payment of lease payments. If the owner is overdue for any regular payment for the use of the car, then traffic police restrictions are imposed on the car. And simply extinguishing them is not enough:

“Repaying the debt does not mean automatically lifting the restrictions,” explains the situation, the head of the Ural Center for Legal Assistance to Motorists, Ruslan Munirov. “Sometimes, to do this, you need to contact the authorities that imposed them and receive documents confirming the repayment of the debt. And this is all additional time, money and nerves. No oral agreements about the intention to repay a debt have legal significance and do not provide any guarantees. Therefore, while there are restrictions, I do not recommend buying such a car...

In addition, leased cars are often also pledged. For example, we found an advertisement for the sale of a 2017 BMW 7 Series and also found it on avtocod.ru.

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As you can see, the car is both leased and collateralized. In addition, there are unpaid fines. According to the owner, the car absolutely cannot be pledged. And even when we showed him the results of the inspection, he explained that this was a “lease deposit.” That is, until the car is purchased, it is pledged to the lessor. This seller is willing to make a lease assignment. And in this case, leasing payments will fall on your shoulders. Along with the deposit.

EXPERTS AGAINST

“The concept of “lease deposit” that the seller is talking about does not exist,” says car lawyer Maxim Edryshov. — The lessor cannot take cars as collateral. This is legally impossible. Leasing companies often buy cars from a dealer on credit against the condition of collateral. They then lease the cars and pay off the debt. This is normal practice. This is exactly the case in this situation. Until the company pays the dealer, the car is listed as collateral...

“A situation may arise when the leasing company ceases to fulfill its obligations to the bank,” Ruslan Munirov continues the topic, “And since the pledge is transferred by right of ownership, the lessee will be responsible for it. That is, if you purchase a pledged car from a leasing company, the bank may reclaim the car from you for debts. In this situation, you will have to return the car to the bank. You can only make demands against the seller himself - the leasing company. But it may happen that the leasing company becomes insolvent. And you will be left without money and without a car...

AND OTHER PROBLEMS

An individual or legal entity can sell a car after leasing only when the lease is closed, the car is purchased and is registered with the new owner. If the lease agreement for the purchased car is not closed, then the buyer has a high risk of encountering the following problems.

Firstly, you will not be able to register the car in your name, as there may be restrictions on it. Secondly, the car can be repossessed by the leasing company through the court if the former owner stops paying lease payments. Thirdly, the car may have legal problems. Since the car belonged to a leasing company, neither the lessee who bought the car nor the subsequent buyer know anything about the car. And he can be mortgaged, arrested, and so on. And this will be revealed much later after they buy the car.

DEMAND DOCUMENTS

Therefore, if you buy a car from a private person, be sure to request a certificate of closure of leasing and a document confirming the absence of restrictions. Also check the car for collateral and make sure that the purchase and sale agreement states that the car is not subject to collateral, credit, and has no restrictions or encumbrances.

If you are purchasing a car from a legal entity, then in addition to the above points, we recommend requesting an extract from the Unified State Register of Legal Entities on the tax service website page. Compare the details of the legal entity in the certificate and in the purchase and sale agreement. If the seller’s authorized representative is involved in the transaction, then you can check the authenticity of the power of attorney at the notary office that certified the document.

I bought a car from an individual. faces, but it’s on lease

Situation. A month ago I bought a car from an individual. persons under a handwritten contract. The seller had a copy of the PTS. I checked on three databases, including the mortgage registry, there are no restrictions on this car. Yesterday the leasing company arrived and took the car away on a tow truck. When I wrote a statement to the police, it turned out that this car was leased and they took the car for debts from the LLC (the first owner). The question is, what are my actions? And what is the judicial practice on these proceedings?