Anyone near end of car lease? Could make some money by flipping it.

[Donald]

People doing a lease buyout and then flipping it could make some serious $$.

But your next lease is probably going to be expensive. But the people doing the lease calculation may (but doubtful) figure things will settle down in 3 years and new & used car prices will not be crazy high.

 

[SwampSurvivor]

That thought has crossed my mind. The buyout on our 2019 Sentra is about half of what 2019 Sentras are going for right now.

But Nissan no longer has the $250 down / $250 month leases on them. I think we're just going to cut a check and buy it off lease.

 

[JeffKeryk]

If you need a car, buying out your lease option probably makes sense.
Or selling it to one of those Carvana deals so you don't have to pay tax and registration.
I was offered good money for our 2018 RX450h from Carvana, and this was Jan Feb 2021, before all the insanity.
The good news is, Putnam Lexus in Redwood City gave us the same money on the new RX450h F Sport, no questions asked.

Good luck.

 

[Danno]

Use the money you make on the sale on the new lease.

Rising tide etc.....

 

[dubber09]

Personally, I never understood why people would lease a car unless the lease is a business expense and can be written off.

 

[JeffKeryk]

Personally, I never understood why people would lease a car unless the lease is a business expense and can be written off.

A friend has leased, in order, an RX350, Tesla Model S and now a new Vette.
Tells me you can't take it with you when you go.
His wife got a Model S as well, I don't know what else. Sheesh.
I hate leases.

 

[Wolf359]

Personally, I never understood why people would lease a car unless the lease is a business expense and can be written off.

It's been explained many times. You basically have to run the numbers. Depends on the numbers. Sometimes manufacturers want to sell more cars by doing leases instead of sales. Sorta like the rebate vs the interest rate. If the rebate is big enough, you take the rebate, or if it's small, you take the interest rate, but you need to run the numbers to figure it out. You don't automatically exclude leasing vs buying, it all depends on the numbers. Most of the time when you run the numbers long term, a purchase is better, but sometimes the numbers favor the lease. You always need to do the analysis on a problem and not automatically assume one is better than the other.

 

[Kjmack]

A friend has leased, in order, an RX350, Tesla Model S and now a new Vette.
Tells me you can't take it with you when you go.
His wife got a Model S as well, I don't know what else. Sheesh.
I hate leases.

Sounds like a third world problem

 

[JeffKeryk]

Sounds like a third world problem

Huh?

 

[Kjmack]

Huh?

They had real money they would just buy it

 

[Wolf359]

They had real money they would just buy it

You also make money by saving it. You basically run the numbers. Some manufacturers don't want to offer big rebates to sell cars but will offer a really attractive lease deal so they don't have to discount the car. They basically end up subsidizing the car by offering an artificially high residual. Basically they cut the price to rent the car. At lease end, the car is priced higher to buy it than it's worth on the open market so it gets turned into the dealer. In effect the manufacturer subsidized the lease by setting an artificially high residual. Usually it's best to lease foreign cars because they typically have better resale value at the end than domestic models. Because you're paying rent which is basically depreciation, the higher the depreciation, the more you're paying for rent.

 

[JeffKeryk]

They had real money they would just buy it

Eddie is filthy rich. And one of the most generous people I have ever met. He never fails to help someone in need.
One of 7 children, no one ever gave him anything. Just a super hard working guy.

He is a legend in the Silicon Valley car business. An honest guy in a cut throat business. Currently onws a car auction.
Also one of the most naturaly competitive people I have ever met; don't play one-on-one basketball with Ed.

 

[SwampSurvivor]

It's been explained many times. You basically have to run the numbers. Depends on the numbers. Sometimes manufacturers want to sell more cars by doing leases instead of sales. Sorta like the rebate vs the interest rate. If the rebate is big enough, you take the rebate, or if it's small, you take the interest rate, but you need to run the numbers to figure it out. You don't automatically exclude leasing vs buying, it all depends on the numbers. Most of the time when you run the numbers long term, a purchase is better, but sometimes the numbers favor the lease. You always need to do the analysis on a problem and not automatically assume one is better than the other.

When Nissan used to run the $250 down / $250 a month lease deals, those really made sense. Get a new car with no maintenance or repairs for way less than depreciation on a new vehicle.

Sure it's not a high end vehicle, but it's a darn cheap and reliable way to drive somewhere.

 

[measureman]

Personally, I never understood why people would lease a car unless the lease is a business expense and can be written off.

A. It allows a person to drive a brand new car that could not afford the much higher buy it payment
B. It allows a person to drive a more expensive car then a buy it payment.
C. Some people will lease a high end car every 3 years, always have a new car and warranty.

 

[measureman]

I did not need my lease car and just recently sold it back to the dealer and walked away with $6200 in my pocket.

 

[ls973800]

Because of the shortage of new and used vehicles, many manufacturers have changed the way you can purchase your lease. Now most of them are not allowing an outside manufacturer's dealership to purchase your lease. You have to buy it yourself or sell it/trade it to your brands dealership. This may mean you have to pay taxes and extra fees before getting the title and then selling it yourself.

This is being done because the residual buy out in many cases are much lower than what the car value is due to the unprecedented car and truck market shortage. The Honda (for example but other brands are doing the same) store wants your returned Honda to put on their lot, not have it end up on a Chevrolet lot. So you either buy it yourself and then sell it or trade it elsewhere or you turn it in at your manufacturer branded store.

This article explains it better than me I think. Since the article was printed most manufacturers now limit your purchase or sale of the leased vehicle except to them. There may be one or two who still allow it but not many. Some are also making you deal with a dealer who adds extra fees instead of being able to purchase directly from the finance company that holds the lease, such as in the case of Honda you can't go directly through Honda Financial anymore in some states.

Remember that the dealer nor you own the vehicle so the financial institution that owns the lease can do what they want. they will honor your residual buyout written in the lease IF YOU are the one buying it, not another brand dealer or neighbor, etc.

Lease Buy Out

 

[dubber09]

It's been explained many times. You basically have to run the numbers. Depends on the numbers. Sometimes manufacturers want to sell more cars by doing leases instead of sales. Sorta like the rebate vs the interest rate. If the rebate is big enough, you take the rebate, or if it's small, you take the interest rate, but you need to run the numbers to figure it out. You don't automatically exclude leasing vs buying, it all depends on the numbers. Most of the time when you run the numbers long term, a purchase is better, but sometimes the numbers favor the lease. You always need to do the analysis on a problem and not automatically assume one is better than the other.

Well, I guess I'm one of those who keeps a car for over 10 years thus lease math isn't attractive to me. I do my own car maintenance as well.

 

[PandaBear]

Personally, I never understood why people would lease a car unless the lease is a business expense and can be written off.

Outside of people spending more than they can afford, there are 2 legitimate reasons:

1) The car has questionable reliability (i.e. EV battery that weren't well understood yet, or an iffy brand and model), you can decide to buy it off later if it is proven to be reliable or if problem arise, just turn it in instead of selling it with a massive loss.

2) The manufacturer use lease deal to hide a discount. Many brands don't like to reduce prices because they look cheap, or they want to use it to work around trade tariff concerns.

 

[gregk24]

My mother in law's lease on her 2019 Jetta is up in a few months. She was unsure if she wanted to lease something else or buy off the 2019. I recently spoke with her, and told her she won't find anything similar for the price of the lease buyout. I think she knows what she wants to do now.

 

[SammyChevelleTypeS3]

Well, I guess I'm one of those who keeps a car for over 10 years thus lease math isn't attractive to me. I do my own car maintenance as well.

Our record is 18 years with one. Wife finally gave it up.