Purchasing a Used Car Currently Being Leased?

Question

I am looking to purchase a used vehicle which is currently being leased. I live in Texas. The owner owes $20k on the vehicle and is asking the same amount. I plan to write a check for this.

What steps do I need to take? Will I first write the check to the finance company and wait for it to clear? Then, the title will be transferred to me from the finance company?

Is there some kind of contract I need to sign along with the seller to show that I sent a check for the vehicle?

If you can point me in the direction of an official site which explains this, it will be appreciated.

Answer 1

I'd also recommend against buying a leased vehicle since people tend to beat on them and not properly maintain them.

Answer 2

I can't help you with the whole legal situation, but I will tell you my opinion on leased vehicles.

I personally would never buy a leased vehicle. Reason being the owners generally do not take care of the vehicle as it's not theirs. I have seen a whole bunch of leased vehicles that have blown motors at 50k. Lots of times the owner will keep up with the oil changes, as they have to, but don't change the oil filter. The cars a bag driven and just in general junk. Not saying everybody is like this, but there are people who are. So be-warned about purchasing a leased vehicle.

Answer 3

The other owner is mistaken.

Leasing is just LONG TERM RENTING.  He does NOT own the car.  When the lease is up, he return it to the leasing company. He cannot sell what he does not own.

That's like renting a car for the week (on sunday) and then selling it on monday - impossible.

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That is why at the end of the lease - lessee have the option of BUY OUT.

Good Luck...

Answer 4

Go with the owner to the leasing company or their representative, ask for a buy out amount, its going to be a number right down to the cent. Buy the car out and make sure they send the title to you.