Lease flipping for fun and profit

Off-Ramp
1

I haven’t seen a thread or anyone try to do this yet but it seems possible to do the following;

Track top deals with high leashackr scores that require a competitive lease. Negotiate the lease, park the car in the driveway, and flip it to someone who can’t qualify. For instance the Volt has a $3k incentive if you lease currently on a handful or Asian cars. If you went at the start of the month you could get a car that qualifies then pick up as many Volts as you can qualify for under DTI. List and flip the Volts for .40/$ of the qualified incentive. That would be around $1200/car and be better than anything available to the general public. At the end of the month flip the Asian car lease at the minimum loss. As long as you flip fast you can duck registration and plate fees. In CO plates so t transfer (DMV scam) so new owner has to transfer their own plates or fork up for new ones anyway.

2

GM won’t let you transfer out of the lease until 6 months after inception. Which means the vehicle and liability belong to you until that time

3

Can you put your own dealer plates on a leased car? Probably not.

4

I had leased a Chevy Spark EV and after 3 months it wasn’t cutting it due to my long distance commute (90 miles round trip) plus the slow charge (110v at work and home) so I took it into Carmax to see how much I could get for it. Lucky, Carmax offer was 2.5k more than the payoff so I was able to break even. I’m sure with the super lease hacking skills from this community, the deals would have been better than what I got and able to do a quick turnaround either private sale or sell to dealer. Maybe those swap lease sites can help, but I haven’t tried so I’m not sure how it works.

5

So let’s say you could pick up 4 volts through comp lease. Plate and register them and put them on Turo. Run Turo for 6 months then sell off the leases. At the monthly listed you would pick up at least a three or four hundred a month on the cars then flip at the 6 month mark for the comp lease credit.

6x $300×4 +$4800 = $12k

6

You can only sell to a dealer typically (can’t sell privately without a title and you can’t get title without paying sales tax to register it).

7

That’s a lot of work for $12k. Plus, you’re not counting the monthly fee and insurance into your calculations. Also, to qualify for the CA CARB rebate, you have to keep the vehicle for at least 30 months.

8

Quite a few people I know do this as a hobby/side gig. All with higher end vehicles.

If you got some spare time, good credit, and enjoy changing your cars up frequently, this side hustle can actually produce a decent dollar or two; specially if you are re-leasing to persons who have the money, yet wouldn’t qualify or be able to negotiate a high leasehackr score lease…

9

A lot of work for 12k and a lot of risk. If you pick up 4 volts you will take a 120k hit on your debt. Then all you need is one bad incident on truro (like a ripped seat and bent wheel) and you would be thousands out of pocket.

10

It’s not 120k hit it would only be the liability of the total lease cost. Turo has comprehensive coverage, I out my old 2005 g35 on Turo and so far so good.

11

Your liability is your entire cap cost.

12

I logged into TU and it shows the monthly payment as my liability.

13

You and Buddy are talking about 2 different things. It started with @vhooloo stating (wrongly):

Which is not the case. But the liability (through insurance) is for the total value (cap costs) of all cars.

14

IMO, Turo market is slowly starting to get saturated as more users list their cars (at least here in Chicago)…just like what happened with uber/airbnb. Still competitive and plenty of people making a decent buck from Turo

15

So what is the case? If you lease a Porsche, they only run your credit for one month’s worth of payment?
I don’t think so. I read more about it and it seems you are liable for your entire lease payment.

16

Airbnb has been easy to stay competitive because most people suck at hosting. All of my units stay fully booked even with the increased market competition. The city of Denver has cracked down and now it’s causing the market to constrict. They are violating people with more than one unit and if it’s not primary residence. If you fill out fraudulent information they charge you with perjury and issue a misdemeanor citation and court date. Turo, on the other hand, has almost no restrictions and requires no skill to operate. Definitely concerned about the long term profit and viability of Turo especially when you only take home 60 cents on the dollar.

17

Your credit report will show total lease cost (monthly payment x length of your lease) as your debt (ex:. $59/mo x 24 = $1,416)

Your liability and your credit report (lease debt) are different. You are liable for your total lease payments and also liable for the car’s value.

18

Same in Chicago with airbnb ‘crackdowns’. I have multiple units and have little to no vacancies due to insights Ive picked up on from prior years of hosting/managing rental properties. However, there are way too many “unskilled” hosts who are basically undercutting the market for various reasons such as just having their place rented while they travel, even if its at break even…which has evidently saturated the market out here in Chicago

19

Has anyone tried Turo with a leased car?
Cruze one pay lease is around $1000 for 2 years.

Even if I use this car purely for Turo, I see easy potential of making $2000 net in 2 years.
Any suggestions/comments?

20

Here’s a blog post about a someone who had that idea. Seems like it works for him… for the most part. If you search his website for “turo” he has another post about how one of his cars got stolen on Turo too. https://www.travelcodex.com/2016/01/make-money-renting-cars-with-turo/