Automotive

End of Lease Buyout...costs?

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  • May 14th, 2015 6:37 pm
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[OP]
Deal Addict
Jan 6, 2015
2860 posts
783 upvotes
Toronto, ON

End of Lease Buyout...costs?

Anyone know the difference between the costs of buying out a car, at the END of the lease? Curious what BMW, Audi, Mercedes and Porsche are. I remember someone telling me that for the luxury automakers if you want to buy back your OWN car, you have to pay a fee of over $2000 for them to "safety check" the car and make sure its safe to sell it to you. However for companies like Honda, Subaru, you just pay an admin fee of $500 and you can buy back your own car. Seems rather silly, but I guess getting a luxury car means paying outta your ass. Anyone shed some light on this?
7 replies
Deal Fanatic
Jun 11, 2005
8573 posts
2347 upvotes
Mississauga
The car manufacturer credit division owns the vehicle when you are leasing it. When the lease is up the car needs to have a safety done to transfer the car into your name. The admin fee is up to the dealer to set. Some people have had success negotiating that fee.
Deal Expert
User avatar
Jul 30, 2007
31259 posts
17824 upvotes
Toronto
For BMW, if you want to buy it out, don't deal with the dealer, go directly to BMW Canada Finance as they don't require you to pay admin fee on buyout. Otherwise, you will be looking at about $600+ and upwards charged by the dealer for them to push some paper around for you. As for safety, just have it done at the dealer to satisfy BMW Canada Finance.
Newbie
Jan 27, 2014
35 posts
11 upvotes
My experiences have been with vehicles leased under my company's name and them bought in the name of my company at the end of the lease.

In fact, I doing one this week on a Lexus. The only charges are the predetermined residual value of the vehicle mentioned on the original lease contract + GST + QST. (I'm in Quebec)

There might be a small fee to change the registration from Toyota Credit to my company but that's it.

BTW over the years I've bought about 10 car after leasing them and never had any additional charges.
Deal Expert
Mar 23, 2009
20337 posts
6515 upvotes
Toronto
$2000?!? Holy crap. I never paid that for my one and only lease buyout (Toyota). Didn't pay $500 either.
Deal Expert
User avatar
May 10, 2005
36265 posts
10486 upvotes
Ottawa
Each leasing company has their own requirements. One thing for sure, you need to get a safety certificate and pay the taxes and residual. The residual is an agreed upon amount at lease signing. And then there is whatever else is written in the lease agreement you signed.
Deal Addict
May 2, 2010
1646 posts
165 upvotes
Toronto
OP, you're quoting some number someone told you, not actual paper from the dealer, but that number appears to be incorrect. The cost of safety is always there, and I don't admin fee alone getting that high even for high end brands.
Deal Addict
Jan 8, 2007
2996 posts
1536 upvotes
AB
What are the safety certificates you guys speak of? Is that an Ontario only thing? I've never heard of it, and have bought out quite a few leases. Admin fees are up to each dealer otherwise like was pointed out. In Calgary one dealer has a $500 admin fee, the other one is $0.

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