So I had an idea while reading a post where someone was trying to buy a used corvette from a dealer and used the residual value of a 3 year old corvette as a starting point. The conversation from my understand went something like this “Well the market value for a 2015 corvette with XXX miles is $50000, however the leased corvettes have a residual of $41000. So I want to buy a 2015 Corvette for what it cost you to buy it out from a lessee.”
For the most part every lease has an option to purchase the vehicle at lease end for a predetermined price i.e the residual value. This is essentially the banks guess as to what the vehicle will be worth in 3 years. Now generally speaking there are a lot of bad leases out there due to High MSRP and low residual value (Corvettes, Luxury, Performance).
I propose an app or digital marketplace which will connect people who lease these cars and people who would like to buy these cars preowned. The system is predicated on the bad leases people sign on these cars which in turns makes them over pay for the vehicle, but then leaves equity at lease end if the market value surpasses the purchase option. Without having to purchase the vehicle and sell, you basically sell your right to buy the vehicle at a premium (basically like a stock option).
Here’s an example of how the system will work:
John leases a 2018 Corvette for 36 months, 10k miles, MSRP $71000, RV 56%. That means John will have an option to purchase the Corvette for $39750 at lease end. Fast forward 3 years, Sam wants to be a preowned Corvette to fulfill his midlife crisis, he goes to his local dealer who is offering 3 year old 2018’s for $48000. They both use the app to match and make a deal, the car on the app sells for $43000. John makes $2000, the app takes a percentage and Sam scored his dream car for $5000 under market.
I would appreciate your thoughts and concerns on the idea, as well as any insight you may have in any snags that might occur.