Lease Equity in a Kia?

Off-Ramp
1

Here’s my situation:
I did pretty good on the 2016 Optima SX I leased 3 months ago for 24 months at 209 per month all in. Sticker was 31,190, and I only paid first month’s payment up front.

I just checked the payoff on the car and it’s 22,800. Now I know that number includes sales tax, so assume I could find a private buyer and pay a dealer $250 to handle the sale (this is definitely possible as I’ve done it before). They would be able to purchase it from KMF for approx. 21,200 (22,800 / 1.075) since the dealer doesn’t have to pay sales tax when they do the buyout.

Assume further that I sell the vehicle to the private buyer for 25,800 (that’s what ISEECARS says it’s market value is, anyway). Have I just made 4,350? (proceeds from sale = 25,800, less 250 doc fee, less buyout from KMF of 21,200).

2

"so assume I could find a private buyer and pay a dealer $250 to handle the sale (this is definitely possible as I’ve done it before)"

Please elaborate, why would a dealer want to do this and help you make $4350 while they only make $250?

What dealer has done something like this for you in the past?

3

A buyout that includes sales tax, I’ve never seen such a thing. Are you sure about that?

Edit: Is this in one of those states where you pay tax on the total price of the car, even on a lease? Then that would make sense. Otherwise, highly doubtful.

4

My buyouts through GMF include tax, as did my buyout through NMAC. I’m in PA where we get taxed on the payment, and not the total price of the car. I never understood it, but it’s definitely included.

5

I think that could work. Several people have flipped leases before. However, I think the selling price of 25k on a 2016 Optima (meaning 2 years old) is very optimistic.

6

I think the dealers motivation is that they get to move a unit and they make $250, without too much effort. After all, I’m bringing the buyer to them to transact, not shop.

I have only done this once, and I leased my current car from the same dealer on the same day. However, I had a couple other small used car lots lined up to do the same thing (buy out my lease and then immediately sell to my buyer) in case the dealer tried to pull some nonsense on me. After speaking to a few different used car lots, I don’t think it’s that hard to talk them into doing it, especially if you agree to pay them a doc fee upfront. But, as it worked out, everything went down as agreed at the dealer.