Vehicle: 2020 Tundra, MSRP $50,500
Lease: $311 including tax for 24 months, 8 payments left. $500 at signing which was first month and DMV costs. So nothing down, no fees or costs upfront (which is always the way to do leases)
Lease Buyout: $40,850
Carnax Offer: $50,000
So I could do this deal and end up having a free lease for a a year and a half PLUS, get paid $2,000 tax free for driving the truck. This is a mad, mad, mad world.
I imagine you’ll find that if you speak to a cpa, you’ll find that you’re supposed to claim that $2k as income and pay taxes on it.
Yeah I’ll get right on that, lol.
You are missing 1 important point. Toyota Financial Services has started to stop people from Selling to 3rd parties.
Where did I mention Toyota Financial Services? The lease is not with them. And even if I had, I can buy the lease out myself and then do whatever I want with the truck, including selling it to Carmax.
Is it with Ally or US Bank?
You can certainly buy it out yourself and resell, but you’ll lose some of your equity to sales tax.
Yeah sales tax is the downside to doing it that way. But I live in a state with a pretty low sales tax rate so it’s not a huge deal breaker. And I can also deduct that sales tax from my state income tax, which makes it even that much lower.
You also run the risk of it taking a while for the title to show up (US Bank, for example, is notorious for taking their sweet time), your carmax offer expiring, and the used market regaining a since of normalcy. May not happen, but it’s a risk one must take. It’s more relevant when talking about cars with a marginal amount of equity though where it can swing from black to red quickly.