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Started By
Message
re: Selling a leased car
Posted on 9/12/17 at 8:59 pm to ThuperThumpin
Posted on 9/12/17 at 8:59 pm to ThuperThumpin
The only way to "sell" a leased car is to a dealer other than the company you leased it from. And that will only happen if you are trading. But yes still possible to have equity at the end of a lease.
I made out on my lease and I got lucky. However I won't lease again. One of been there, done that type of experiences. But wasn't as bad as people make it out to be.
I made out on my lease and I got lucky. However I won't lease again. One of been there, done that type of experiences. But wasn't as bad as people make it out to be.
1
Posted on 9/12/17 at 9:03 pm to CapperVin
It looks like I can sell it but depending on the terms I may have to buy at the locked in residule price or pay a fee. The residule is about 2700 less than the estimated value. A dealer I messaged said its possible I could make money on it or use it as a down payment.
This post was edited on 9/12/17 at 9:10 pm
Posted on 9/12/17 at 9:06 pm to momentoftruth87
quote:
I made out on my lease
Arkansas
That's funny
Posted on 9/12/17 at 9:11 pm to cajuncarguy
quote:
I made out on my lease
Arkansas
That's funny
Okay?
It was actually a North Carolina vehicle driven by me with an Arkansas license as an Illinois resident.
Traded in because Illinois wanted to tax me on original sales price for transfer. Luckily for me vehicle was clean, low miles, and booked out higher.
But still don't know why that's funny?? Too much drinky ?
Posted on 9/12/17 at 9:20 pm to ThuperThumpin
I sold a lease 3 years ago. Technically not you selling it, but i found a buyer that was willing to pay more than the payoff for it at lease end. Profit
Posted on 9/12/17 at 9:25 pm to ThuperThumpin
A lease is one of the most airtight rock solid agreements known in the civilized world. Not only can you not sell it but you can't return it early without penalty.
Posted on 9/12/17 at 9:28 pm to ThuperThumpin
You would have to buy it from them and then re-sale it. Trust from me having friends that leased they never give you a great deal on the car you leased for 3 years or so. It's like they just broke it off in you for three years and they decide to break it off again.
This post was edited on 9/12/17 at 9:36 pm
Posted on 9/12/17 at 9:30 pm to MasCervezas
quote:
I sold a lease 3 years ago. Technically not you selling it, but i found a buyer that was willing to pay more than the payoff for it at lease end. Profit
Yep. Honestly if you do have a buyer call the dealership and see if they'll let someone buy the vehicle. Honestly no different than trading a vehicle.
Posted on 9/12/17 at 9:32 pm to rebeloke
Ok I guess selling was the wrong term. Essentially Im wondering if its possible to profit from the differnce b/t the estimated residual price and the actual value. From what I understand now its possible but depends on the lease terms.
Posted on 9/12/17 at 9:34 pm to ThuperThumpin
quote:
Lets say Im at the end of a 3 year 30000 mile lease and I only put about 12000 on the vehicle and its in great condition. If the car is worth more than the residule value I should/ can sell it right? I mentioned this to the finiance guy at the dealership I leased with and he said something like it does not work that way. Anyone sell a leased vehicle?
yeah i bet once you pull all the wires out you can get at least 300 for the scrap copper
Posted on 9/12/17 at 9:40 pm to momentoftruth87
No. I don't drink. No real OEM dealer is going to let you write your own lease. Who is the lessor? You know... the company that buys the car from the dealer, holds the title and leases it.
Now GMAC and Ford Credit used to have similar products that were sales that were structured like a lease. GMAC called it "Smart Buy". You put a little down, paid for 24 or 36 months. At that time you still owed about 50% and you had the option to 1) walk away 2) sell it 3) refinance and keep paying 4) If you have equity, trade it in.
I used to own part of a leasing company and we created a different types of leases. Open and closed end leases.
Then the tax laws for leases changed. That's also when the ITC and accelerated depreciation went away. Also the easy money!
Now GMAC and Ford Credit used to have similar products that were sales that were structured like a lease. GMAC called it "Smart Buy". You put a little down, paid for 24 or 36 months. At that time you still owed about 50% and you had the option to 1) walk away 2) sell it 3) refinance and keep paying 4) If you have equity, trade it in.
I used to own part of a leasing company and we created a different types of leases. Open and closed end leases.
Then the tax laws for leases changed. That's also when the ITC and accelerated depreciation went away. Also the easy money!
Posted on 9/13/17 at 9:17 pm to ThuperThumpin
quote:
But it is possible to make money off of it if the numbers are right?
yes it is "possible"
"if" you can sell it for what you want for it
"if" you don't mind waiting for that to happen, which could take weeks or a month or more if you want full value.
"if" you don't mind it sitting in your yard for weeks or a month or more
and "if" you haven't misjudged its value based on what its "worth" vs what its true resale value is, which is often at least $1,000 below true book value
yes your thinking is correct but chances are good that you are overestimating just how easy it will be to sell and what it will "actually" sell for vs what you "think" someone should pay for it
its definitely a gamble and with any gamble you can make money, break even, or lose money so you are looking at 2 out of 3 options of what could happen that aren't good
This post was edited on 9/13/17 at 9:19 pm
Posted on 9/14/17 at 12:04 pm to keakar
quote:
yes it is "possible" "if" you can sell it for what you want for it "if" you don't mind waiting for that to happen, which could take weeks or a month or more if you want full value. "if" you don't mind it sitting in your yard for weeks or a month or more and "if" you haven't misjudged its value based on what its "worth" vs what its true resale value is, which is often at least $1,000 below true book value yes your thinking is correct but chances are good that you are overestimating just how easy it will be to sell and what it will "actually" sell for vs what you "think" someone should pay for it its definitely a gamble and with any gamble you can make money, break even, or lose money so you are looking at 2 out of 3 options of what could happen that aren't good
Thanks. I spoke to a rep at Car Max that said it will depend on the terms of the agreement but that its not uncommon to have some "equity" in a lease towards the end and if the lease company will allow it they can buy it and I would then receive trade in credit for the equity. Im not sure why my question was viewed as so stupid considering it does not seem to be an very uncommon thing to do.
Posted on 9/14/17 at 12:28 pm to ThuperThumpin
quote:
Thanks. I spoke to a rep at Car Max that said it will depend on the terms of the agreement but that its not uncommon to have some "equity" in a lease towards the end and if the lease company will allow it they can buy it and I would then receive trade in credit for the equity. Im not sure why my question was viewed as so stupid considering it does not seem to be an very uncommon thing to do.
yeah I'm not sure why you were getting blasted in this thread, although I have a feeling its because most people here disparage leasing without really knowing how it works.
everyone here pays cash for their vehicles and drives them for 10+ years.
Posted on 9/14/17 at 12:35 pm to ThuperThumpin
quote:
The residule is about 2700 less than the estimated value. A dealer I messaged said its possible I could make money on it or use it as a down payment.
You need to contact a dealer that will allow an "in and out." You have to trade your vehicle in on your next purchase and have you buyer ready to purchase your trade from the dealership. It'll probably cost you about $500 as the dealership will charge to do paperwork and titling.
Posted on 9/14/17 at 12:38 pm to Steauxn
If you don't have a buyer and you do have equity, trade the SOB in and use the equity as cash down on your next purchase.
Posted on 9/14/17 at 12:52 pm to Steauxn
quote:
If you don't have a buyer and you do have equity, trade the SOB in and use the equity as cash down on your next purchase.
This is probably what I will do. This is my first lease so I was not sure if was possible to really have equity in a lease. The dealer I got it from acted like I was stupid for even asking about it.
Posted on 9/14/17 at 12:57 pm to ThuperThumpin
Whats the year/make/model/mileage?
A residual is an educated guess as to what a vehicle's value is going to be at the desired term. Sometimes they're good and other times, they're bad. If you've only driven 12700 in 2-3 years, you may be in a great situation.
A residual is an educated guess as to what a vehicle's value is going to be at the desired term. Sometimes they're good and other times, they're bad. If you've only driven 12700 in 2-3 years, you may be in a great situation.
Posted on 9/14/17 at 12:58 pm to kc8876
quote:
you can't sell a leased vehicle
Posted on 9/14/17 at 1:04 pm to majoredinwhitehorse
quote:
Contact the lender, not the dealer, and ask if they will negotiate the buyout.
Will they?
I've always heard that the lender never budges on the buyout price.
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