Automotive

Think anyone would want to take over this lease with the intent to buy the vehicle at the end?

  • Last Updated:
  • Sep 18th, 2021 8:52 am
[OP]
Member
Nov 13, 2001
401 posts
4 upvotes
Ottawa

Think anyone would want to take over this lease with the intent to buy the vehicle at the end?

I leased a 2020 Chev Silverado Custom with the trail boss package. Sticker price was $55k. Lease is for 2 years and expires march 2022. The buyout at the lease end is just shy of $40k. I thought that was ludicrous at the time and fully intended to return the vehicle when the lease was finished. With the truck pricing I am seeing right now due to vehicle shortages all over I wonder if it would be worth trying to find someone who wants to buy one of these and offer them to take over the last month or 2 of the lease and send a few $$ my way.

Buying it out and resell right away is pointless since I'd have to pay tax on the buyout price which would kill any chance of some sort of profit.

Any thoughts? Probably not worth the time/effort but thought I would see if there is someone knowledgeable about this stuff here.

TIA!
Jeeps are cool!
6 replies
Temp. Banned
Jun 4, 2020
1634 posts
1652 upvotes
Clarington, ON
My local toyota dealer is selling a 20 tundra with 50k for 60 grand.

Msrp on the same truck new for a 2021 model is 54700...

Yup. I'd probably buy it out and sell it.
Deal Expert
User avatar
Jul 30, 2007
30041 posts
16045 upvotes
Toronto
you would have to research to see what is the going market price is now to determine what kinds of "profit" you want to ask from a potential buyer.
Deal Addict
User avatar
Jan 14, 2007
3928 posts
1037 upvotes
GTA
Also, make sure that you can in fact transfer the lease with so few months remaining (i.e. ~2 as per your post). Some manufacturers do not permit lease transfers within the final six months of a contract.
Sr. Member
Mar 28, 2011
979 posts
753 upvotes
Toronto
Ask a dealer to buy out instead of private sale, they need used cars and make more than new car sales

Through dealer buyout, you save paying taxes on the buyout for private sale

Ie you say buyout is $40k
With taxes and other fees (license, safety, etc) call it $45-$46k out of pocket

Say it’s worth $55k private sale, you net $9-10k through buyout and resale

A dealer may offer $50k which still nets you $10k cause they pay you the diff on buyout without the taxes. You don’t have to find $45-$46k to put into a car just to net a profit

Dealer then turns around and resells for $55k+

Win win in this case for both parties
Jr. Member
Jul 4, 2017
152 posts
285 upvotes
I wanted to do something similar with my car, but I was unable to transfer the lease because the contract had less than 3 months left on it.

Instead, you can sell the car to someone using your buyback - I did it twice now. To be honest, I don't know how they let me do it, but it worked.

I found someone that wants to buy the car, went to the dealership and said that the person is family and he will purchase the car. They charged the usual administration fees, did a credit check in case of financing, but that was it - they let him buy it. I obviously charged the person money to be able to buy the car at that price.
[OP]
Member
Nov 13, 2001
401 posts
4 upvotes
Ottawa
Went in to the dealership this week. They told me I have $2700 in equity for a trade in. Then they came back with a ridiculous lease offer on a new vehicle. The sales guy very bluntly told me to wait until the 2022s are released. He says I'll be much more likely to get a good lease with better residuals and interest rates than what's available now. Who knew car salesmen could be honest lol. He probably realized there's no way I'm going from 117/biweekly to $450 biweekly just to get in a truck that 18 months newer...
Jeeps are cool!

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