The Right Way to Sell a Leased Car

time
3 mins read
feature image

We may have urgent financial needs at various times. At such times, you have to sell your vehicle. So imagine that your vehicle is a leased vehicle. How exactly do you sell such a leased vehicle? Today, in MotorGuide, we will talk about how to sell your vehicle if it has a lease payment.

Who benefits when selling a leased vehicle?

The person who buys a leased vehicle has an advantage. Do you know what it is? When buying a leased vehicle, you have to pay a small amount first. Then you can pay the remaining installments. The full ownership of a leased vehicle belongs to the leasing company. Apart from that, the ownership of a leased vehicle is transferred to the buyer when the installments are paid. Also, settling the full lease with the finance company is even more advantageous. Because the finance company transfers the ownership of the vehicle you are buying.

Who are the parties?

In a leasing installment, there are two parties. One is the legal owner of the lease. The other is the customer of the lease. Then the buyer goes to a bank or financial institution and gets the vehicle on lease. Then the leasing facility is provided under the name of the buyer.

What should be done during the sale?

First, you need to sign an agreement. Then, the installments are put in the name of the person selling the vehicle. After the buyer buys the vehicle, you need to ensure that the installments of the vehicle are paid in the name of the person selling the vehicle. Then, you need to sign an agreement stating that the vehicle has been sold again. Because you get the ownership of the vehicle only after the installments are paid.

The problem here is,

  • If the law goes ahead, these agreements will not be valid.
  • If the installments of the vehicle are not paid, the vehicle can be seized.

Then both the buyer and the owner lose. Also, the name of the person who sold the vehicle after it was seized will be listed on the credit report. Therefore, the person who sold the vehicle will not be able to get a loan again and the person who sold the vehicle will be blacklisted.

A great way to buy a leased vehicle

If you are looking to buy a leased vehicle, you should tell the finance company to settle the full lease at the same time. Then the finance company will transfer the ownership of the vehicle you are going to buy. This is how you can buy a leased vehicle. Because when you take out the lease, the vehicle is in the owner's name. Otherwise, you will get the ownership of the vehicle when the installments are paid.

That's the great way to sell a leased vehicle. If you are also thinking of buying a leased vehicle, pay attention to these things.

Nipuna Marasinghe

Written by

Nipuna Marasinghe

Similar News

  • Insurance & Paper Work

    What is the Confusion Surrounding Digital Insurance Cards?

    time
    4 mins read
  • Insurance & Paper Work

    The Digital Vehicle Information Sheet Introduced in Sri Lanka in 2026

    time
    7 mins read
  • Insurance & Paper Work

    The Mandatory Online System for Vehicle Ownership Transfers in 2026

    time
    6 mins read
  • Insurance & Paper Work

    2026 Hybrid Vehicle Battery Reconditioning Standards and New Insurance Regulations in Sri Lanka

    time
    4 mins read
  • Insurance & Paper Work

    The Eco-Friendly Green Insurance System in 2026

    time
    4 mins read
  • Insurance & Paper Work

    DMT Issues 400,000 Permanent Driving Licences to Clear Backlog

    time
    1 mins read
  • Insurance & Paper Work

    New 2026 Legal Protocols for Transferring a Deceased Person's Vehicle to Heirs

    time
    4 mins read
  • Insurance & Paper Work

    How to Transfer Vehicle Ownership Correctly

    time
    3 mins read
  • Insurance & Paper Work

    Flood-Damaged Car Insurance Claims: A Step-by-Step Guide

    time
    3 mins read
  • Insurance & Paper Work

    DMT Driving License Services Fully Restored Today

    time
    1 mins read

Latest Car Reviews

  • Mazda 3 Sedan 1.5L 2025

    Sedan

    Rs 19.5M - 21.5M

  • Toyota Alphard Hybrid 2025

    MPV

    Rs 65M - 80M

  • Honda City RS 1.0 VTEC Turbo CVT 2025

    Sedan

    Rs 14.7M - 15.3M

  • Hyundai Exter SX Smart AMT 2025

    SUV

    Rs 10M - 11.5M

  • Kia Sportage Hybrid 1.6T HEV 2026

    SUV

    Rs 26.5M - 36.5M

  • Kia EV5 Standard Range 2026

    SUV

    Rs 26M - 32M

  • BYD Racco 300Premium 2026

    Kei

    Rs 11.5M - 11.5M

  • Toyota RAV4 2.0L Petrol 2026

    SUV

    Rs 37M - 44M

  • Toyota RAV4 2.5L Petrol 2026

    SUV

    Rs 48M - 50M

  • Toyota RAV4 2.5 Hybrid AWD 2026

    Compact SUV

    Rs 420M - 50M

  • Hyundai i20 Sportz (O) IVT 2025

    Hatchback

    Rs 10.2M - 12.9M

  • Toyota Glanza V AMT 2025

    Hatchback

    Rs 10.5M - 12.1M

Latest Bike Reviews

  • pentest-i15220 draft2

  • pentest-i15220 draft2

  • Yamaha FZ-S V4 2026

    Motorcycles

    Rs 1.2M - 1.5M

  • TVS NTorq 150 TFT 2026

    Scooters

    Rs 1.1M - 1.2M

  • Suzuki Burgman Street 125 Ride Connect TFT Edition 2026

    Scooters

    Rs 1.2M - 1.3M

  • Honda PCX160 ABS 2026

    Scooters

    Rs 1.7M - 1.9M

  • Yamaha XSR155 2026

    Motorcycles

    Rs 1.5M - 1.8M

  • Honda CB350 DLX Pro 2025

    Motorcycles

    Rs 2.5M - 2.8M

  • Royal Enfield Classic 350 2025

    Motorcycles

    Rs 2.4M - 2.8M

  • Kapla ZL9 2026

    eBikes

    Rs 387K - 389K

  • Yamaha Ray ZR 125 Fi Hybrid 2025

    Scooters

    Rs 700K - 830K

  • Honda SP 125 2025

    Motorcycles

    Rs 650K - 780K

hero

Post your car or bike ad on ikman in 2 mins!