How best to buy a late model car from private party, when it's coming comes off lease?

Ask the Hackrs
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1

Hi. I’m not sure if this is an appropriate question to ask here, but I have no doubt you’ll kindly set me straight if not. :slight_smile:

I am interested in buying a used 2017 Lexus RX 450h. I noticed the residual on these is in the about 56% range. If the MSRP was $56,000K, then the purchase price at the end would be $31,360, plus tax. Dealers are selling these same cars are listing for $40K+. I would, of course, be willing to pay the owner a generous premium over residual.

So, finally, my questions… Can this be done? Has anyone done it? Are there any caveats that I need to be aware of?

2

What are you talking about?

Asking to buy someone else’s car off lease?

3

Try finding one on a lease swap website and then take over the lease.
Alternatively if you find one at lease end, some dealers probably used car dealers will do it for a fee.

4 Likes
4

If this were a thing, would not there be a glut of people already doing it for the profit?

5

Do you know someone with one?

The big gotcha here is going to be in how taxes are handled based on your state. In some states, to sell the vehicle to you, the person leasing it will have to purchase first. They’ll pay sales tax on that transaction. You would then purchase it from them and pay sales tax on that transaction.

Some states have ways around this though.

6

visit swapalease.com, find a car, take it, buy at end of lease.

7

like a dealer… of used cars?

A used car dealer?

I can’t come up with a clever name for carvana or carmax.

1 Like
8

If you do it through a dealer you’ll potentially get around the sales tax as well. The dealer buys out the lease without getting taxed. Then dealer sells it to you.
Obviously you need to trust the dealer.

9

Typically a private party lessee has no ability to sell you the car because they don’t own it.

10

Here you go. That wasn’t hard. If this is what you’re asking.

11

Exactly. Like, say a group of people who have access to, say, auctions where off lease cars go after grounding that the general public cannot attend?

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12

Copart?! Are we buying a salvage Lexus today?!??

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13

Low miles
New carpet
Very mild mildew odor (but ferchrissakes don’t park it in the sun with the windows up)
Nearly clean title

14

This one looks good!

https://www.copart.com/lot/23760919

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15

Needs an oil change… Maybe OP can ask for a discount based on that

16

Why not just negotiate a dealer down to ~$30-35K and possibly get in it with a CPO warranty?

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17

Is that the RV% now or was it 3 years ago?

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18

The RV for this vehicle, in 2017 model, has fluctuated between 56-59%. So, residual amount would be $31K-$33K.

19

Yes, exactly.

20

I agree. That’s why I’m wondering if I’m missing something here.

What I think is happening, is these cars are getting scooped up by the carvana/vrooms of the world. Or, lease holders are hitting the “easy” button and just giving it back, which means hefty profits for the dealers.