Am I better off with a 48 month lease opposed to a 39 to get better numbers if the sole purpose is selling it?
Get the selling price as low as possible. That’s the goal.
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Actually, in NJ, it may be more expensive to go longer because we pay up-front tax on all interest. So, assuming the 48-mo total interest will be greater, then your up-front tax, which you can’t avoid and is a sunk cost, will be greater.
Depends completely on the MF.
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I’ll argue you should never go into a lease expecting to sell it for positive equity. It’s simply a bonus if you can.
Used car prices are going to come down sooner rather than later. This is probably the worst time ever to try to do what you’re doing with all the unexpectedness of future resale.
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I don’t know about “the worst” time considering leasing almost never gets you immediate equity during normal times. lol.
Anyway, you are totally right. I’ve personally been going into this with the idea that “I’d be just as happy to be stuck with the vehicle.” My wife was kind enough to remind me of that when I presented the conundrum of flipping a Jeep or a Bolt. She said “you would not be happy getting stuck with a Bolt, so get the Jeep.”
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Correct. You lease BECAUSE you don’t expect any equity at the end (i.e. your depreciation is more than the end value of the car).
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You might be a bit late to that game. To echo others, I wouldn’t lease a vehicle unless you were also okay with keeping it should the used market cool off (which it inevitably will). It’s like buying a house to flip in an already peaked market; you don’t want to be caught holding a hot potato unless you really enjoy eating potatoes.
Keep in mind as well that the people making great buyout deals have leases that they acquired back when the overall market allowed for great deals. Dealers aren’t negotiating on new leases like they used to for obvious reasons, so you’re buying at a disadvantage too.
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Thanks for all the info everyone I appreciate it…I actually already have offers and would flip it as soon as registration arrives…my wife would also be thrilled if we got stuck with it…
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this is an extremely rare scenario where used car prices skyrocketed allowing for being able to sell a lease for a bit of cash. The caveat to that is, good luck buying your new one, because of that whole supply/demand thing too.
Most people will be lucky to break even on a lease, let alone pocket thousands in a typical market.
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What would the point of leasing a car to then sell immediately be vs. just buying it, unless lease incentives far outweigh what can be done through purchase?
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Sales Tax!
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Selling a car i got in january for positive equity replacing with this, selling it and taking over a car on swapalease that I plan on selling as well…so im not worried about replacements
What’s the game plan here…to capitalize on the hot used car market? I don’t understand why you are just buying and flipping it otherwise.
As said, tax savings is one. Another, as in the case of the Jeep, is the fed incentive. You get that at point of sale on a lease, but not a purchase.
Yes, positive equity on every 1 so far and i build everything in so basically my first payment is the month that its in my possesion
more power to you then. Just know that this gravy train will eventually end, and we’ll go back to being lucky to break even on a lease.
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I’m assuming your doing this with an electric Hyundai so you use the calculator to find the total lease cost not including tax or interest (set at 0), and add that to the residual to calculate your estimated buy out after 1 month. The lower the better. If your selling for profit with Hyundai you want the most rebates and don’t worry about the MF because you don’t pay interest on the payments you don’t make. And hopefully you live in a state that doesn’t tax incentives.
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I am buying my F-150 at the end of the month. Even after I buy it and pay the taxes. I have offers that are between 5-6k higher than what i owe. So Its a simple. Buy…wait 4 weeks for title to be right then trade in and get 5k in my pocket.
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How is this possible? Why wouldn’t Carvana, etc just buy new cars from a dealer and resell them as used if that’s the case?
Also, isn’t the tax alone on a new F-150 $5k+?
If you’re leasing with the plan to immediately resell for a profit, be sure you’re properly accounting for the tax liabilities in doing so.
Reselling for a profit and selling to recapture some of your expenses are different things.
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