If you have a lease ending soon, you can make some money

akin67 · 04-08-2021, 01:12 PM

The used car market is very hot where many dealers have limited inventory. As a result, used car prices are at a premium. If you have a current lease that is almost up and you treated the vehicle good, most likely your residual value is a good deal less than the current market value.

Most people think their only two options are to either turn the lease in or buy it out. Well in this market you have a third option. You can go to a few dealers and tell them you are planning on buying the vehicle and selling it for profit, due to the hot used car market. The dealer, who is most likely struggling for inventory may offer to pay you a premium over the residual value to get your car enabling you to make a few thousand dollars. At a minimum you will not be forced to pay excess wear / tear and disposition fees to the dealer. You can do this with any dealer, not just the one you leased the car from. I had a Genesis G90 where the residual value was thousands of dollars less than the current market value. I took my car to a few Genesis dealers and told them what I wanted to do and managed to secure a few thousand dollars net to me. It was hassle free. I made some money and they will make even more when they resell it. And by going this route you don't have to register the vehicle and pay sales tax to your state or deal with the hassle of buying and then trying to sell it yourself. Everyone wins.

RMachuca3d · 04-08-2021, 05:28 PM

Be weary, manufacturers will not let profits go without a fight. The latest trend is that some manufacturers are now setting different buyout prices depending on who is buying it, if its the owner, then the buyout is what is agreed on the lease agreement, if its a dealership the manufacturer will most likely have a much higher buyout amount.

akin67 · 04-08-2021, 07:06 PM

Quote:

Originally Posted by RMachuca3d

Be weary, manufacturers will not let profits go without a fight. The latest trend is that some manufacturers are now setting different buyout prices depending on who is buying it, if its the owner, then the buyout is what is agreed on the lease agreement, if its a dealership the manufacturer will most likely have a much higher buyout amount.

I don't know what others are doing or what they are charging. i am just telling you what I did. Now keep in mind I went to a Genesis dealer to do this on a Genesis vehicle. And by the way, I had told the dealer that I was going to buy and sell me car because the difference between the buyout price and market value was significant and they offered to buy it from me and provide me money on top of the buyout. I could just as well have purchased the vehicle and sold it for a good deal more than what the dealer provided me. But then I would have had to register the vehicle, pay the sales tax, and go through the hassle of selling it on my own. I was concerned that I would have to do test drives with potential buyers etc... But after I turned the vehicle over to the dealer I saw ads for services that will purchase your car at your premise. But again the problem even with this option would have been me buying out the vehicle and waiting weeks to get the title before I can then sell it.

nyalpine90 · 04-11-2021, 02:47 PM

mine is ending this Oct. i have 23k. white msport G01

swanson · 04-11-2021, 03:03 PM

I'm in the same situation. I leased a 2019 Audi S5 sportback back in Jan. 2019. I did a 3yr/45k mile lease because I was supposed to be transferred to a different location for work that would require a much longer commute. Change of plans on their part and I ended up almost never driving it because I also have a Raptor I drive. I have about 8 months left on my lease and only 7200 miles and its in mint condition. Very desirable options and color combo(Daytona w/red interior) I know its worth a lot right now and am considering doing the same in selling it to the dealer for a profit.

akin67 · 04-11-2021, 07:15 PM

Quote:

Originally Posted by swanson

I'm in the same situation. I leased a 2019 Audi S5 sportback back in Jan. 2019. I did a 3yr/45k mile lease because I was supposed to be transferred to a different location for work that would require a much longer commute. Change of plans on their part and I ended up almost never driving it because I also have a Raptor I drive. I have about 8 months left on my lease and only 7200 miles and its in mint condition. Very desirable options and color combo(Daytona w/red interior) I know its worth a lot right now and am considering doing the same in selling it to the dealer for a profit.

You don't even have to wait till your lease expires. Who knows what the used car market will be next January. Right now the market is very hot. You can even sell it now (they will obviously factor in the remaining lease payments).

Alfisti · 06-28-2021, 08:47 AM

Revisiting this as we are paying some $850 a month on a Stelvio that we are barely driving. Now we write this off but still, it is a significant expense.

I called the dealer and yeah no luck offloading it etc, the numbers just do not jive. Right now the car has barely 5,000 miles (7,500km) and is approaching the end of it's second year of the lease, I anticipate it will have in the region of 18,000 to 20,000 miles by the time it is due to be returned in 2 years.

So I may play this backwards, residual will be just 29K, I can re-up the lease for say 3 more years on the residual or buy it out. I have two sets wheels and tyres etc, the wife absolutely LOVES the thing so if I can steal 3 cheap years out of it, so be it. I mean at 18,000 miles, car is still like damn new.

nick3753 · 06-28-2021, 09:42 AM

Quote:

Originally Posted by Alfisti

Revisiting this as we are paying some $850 a month on a Stelvio that we are barely driving. Now we write this off but still, it is a significant expense.

I called the dealer and yeah no luck offloading it etc, the numbers just do not jive. Right now the car has barely 5,000 miles (7,500km) and is approaching the end of it's second year of the lease, I anticipate it will have in the region of 18,000 to 20,000 miles by the time it is due to be returned in 2 years.

So I may play this backwards, residual will be just 29K, I can re-up the lease for say 3 more years on the residual or buy it out. I have two sets wheels and tyres etc, the wife absolutely LOVES the thing so if I can steal 3 cheap years out of it, so be it. I mean at 18,000 miles, car is still like damn new.

You could always buyout the lease now and potentially sell it. With the way the used market is you might be able to at least break even or get reasonably close. Obviously it depends on your buyout, the local market and taxes.

Alfisti · 06-28-2021, 09:55 AM

No like I said, numbers don't jive. Buy out nudging $50K right now. Plus wife doesn't really want another car, she loves it, pry it from her cold dead hands.

Taxes are insane too, get murdered.

If I can get, say from today, another 5 years at effectively $500 month or so, I think it's a win. Even if i need to buy it out at 30K, it'd be an ABSOLUTE steal.

04-08-2021, 01:12 PM	#1
akin67 Lieutenant 470 Rep 533 Posts Drives: 2021 BMW X5 Join Date: Feb 2021 Location: NJ iTrader: (0)	If you have a lease ending soon, you can make some money The used car market is very hot where many dealers have limited inventory. As a result, used car prices are at a premium. If you have a current lease that is almost up and you treated the vehicle good, most likely your residual value is a good deal less than the current market value. Most people think their only two options are to either turn the lease in or buy it out. Well in this market you have a third option. You can go to a few dealers and tell them you are planning on buying the vehicle and selling it for profit, due to the hot used car market. The dealer, who is most likely struggling for inventory may offer to pay you a premium over the residual value to get your car enabling you to make a few thousand dollars. At a minimum you will not be forced to pay excess wear / tear and disposition fees to the dealer. You can do this with any dealer, not just the one you leased the car from. I had a Genesis G90 where the residual value was thousands of dollars less than the current market value. I took my car to a few Genesis dealers and told them what I wanted to do and managed to secure a few thousand dollars net to me. It was hassle free. I made some money and they will make even more when they resell it. And by going this route you don't have to register the vehicle and pay sales tax to your state or deal with the hassle of buying and then trying to sell it yourself. Everyone wins.
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04-08-2021, 05:28 PM	#2
RMachuca3d Captain 715 Rep 943 Posts Drives: F30 328i Msport Join Date: Aug 2018 Location: WA iTrader: (2) Garage List 2015 BMW 328i Mspor ... [0.00]	Be weary, manufacturers will not let profits go without a fight. The latest trend is that some manufacturers are now setting different buyout prices depending on who is buying it, if its the owner, then the buyout is what is agreed on the lease agreement, if its a dealership the manufacturer will most likely have a much higher buyout amount.
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04-11-2021, 02:47 PM	#4
nyalpine90 Lieutenant General 7690 Rep 12,018 Posts Drives: MY24 G01 AW Msport Join Date: Feb 2008 Location: L.I. NY iTrader: (4) Garage List 2016 BMW X4 [9.25]	mine is ending this Oct. i have 23k. white msport G01
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04-11-2021, 03:03 PM	#5
swanson Convicted Felon 764 Rep 2,198 Posts Drives: chariot Join Date: Dec 2009 Location: NY iTrader: (0)	I'm in the same situation. I leased a 2019 Audi S5 sportback back in Jan. 2019. I did a 3yr/45k mile lease because I was supposed to be transferred to a different location for work that would require a much longer commute. Change of plans on their part and I ended up almost never driving it because I also have a Raptor I drive. I have about 8 months left on my lease and only 7200 miles and its in mint condition. Very desirable options and color combo(Daytona w/red interior) I know its worth a lot right now and am considering doing the same in selling it to the dealer for a profit.
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06-28-2021, 08:47 AM	#7
Alfisti Brigadier General 6965 Rep 3,283 Posts Drives: 2008 Saab 9-3 Combi Join Date: Nov 2014 Location: Toronto, Canada iTrader: (0)	Revisiting this as we are paying some $850 a month on a Stelvio that we are barely driving. Now we write this off but still, it is a significant expense. I called the dealer and yeah no luck offloading it etc, the numbers just do not jive. Right now the car has barely 5,000 miles (7,500km) and is approaching the end of it's second year of the lease, I anticipate it will have in the region of 18,000 to 20,000 miles by the time it is due to be returned in 2 years. So I may play this backwards, residual will be just 29K, I can re-up the lease for say 3 more years on the residual or buy it out. I have two sets wheels and tyres etc, the wife absolutely LOVES the thing so if I can steal 3 cheap years out of it, so be it. I mean at 18,000 miles, car is still like damn new.
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06-28-2021, 09:55 AM	#9
Alfisti Brigadier General 6965 Rep 3,283 Posts Drives: 2008 Saab 9-3 Combi Join Date: Nov 2014 Location: Toronto, Canada iTrader: (0)	No like I said, numbers don't jive. Buy out nudging $50K right now. Plus wife doesn't really want another car, she loves it, pry it from her cold dead hands. Taxes are insane too, get murdered. If I can get, say from today, another 5 years at effectively $500 month or so, I think it's a win. Even if i need to buy it out at 30K, it'd be an ABSOLUTE steal.
	Appreciate 0 Quote