Generally, no, a co-lessee cannot sell the car by themselves. The ability to sell a vehicle is determined by who holds the title, and during a lease, the leasing company (the lessor) is the legal owner. Both you and your co-lessee are essentially renters with the right to use the car, not own it. Selling it is not your right.
The core issue is ownership. A lease is a long-term rental agreement. The title remains with the leasing company until you exercise the purchase option at the end of the lease term, pay the agreed-upon price, and have the title transferred to your name (and your co-lessee's). Only individuals named on the official certificate of title have the legal authority to sell the vehicle.
If you attempt to sell the car without the title, you will be unable to transfer ownership to the buyer, making the sale impossible. Furthermore, selling a car you do not own is a serious legal offense that could be considered fraud or theft, leading to legal action from the leasing company.
The proper course of action involves several steps. First, you must contact the leasing company to understand the process and cost of buying out the lease early. You and the co-lessee must agree to this decision. Once you buy the car, the title will be issued in both your names. At that point, both of you must agree to the sale and sign the title over to the new buyer. If you and your co-lessee disagree, the situation becomes legally complex and may require mediation or legal counsel to resolve the impasse.
| Action | Possible? | Key Requirement |
|---|
| Co-lessee sells car alone | No | Legal ownership (title) is required. |
| Co-lessees sell car together during lease | No | The leasing company holds the title. |
| Early lease buyout and then sale | Yes | Both co-lessees must agree and secure financing to purchase the car from the leasing company first. |
| Sale at end of lease using purchase option | Yes | Both co-lessees must agree, pay the residual value, and then sign the title over. |
| One co-lessee sells without the other's consent | No | This is illegal and constitutes fraud, as both parties are jointly responsible for the lease contract. |
