I think one needs to be in a certain mindset when approaching lease “flips.”
Your mindset must be, “if I get stuck with this car, I’m happy to drive it at this payment for the remaining term.”
And, as others have mentioned here, it’s really only something that can be done in this current market, if using the sell to 3rd party option as the key strategy. With this, 3rd party sales are becoming more difficult as well since the banks are shutting this down because they want their cars back.
As long as one is comfortable getting stuck, then it can be a fun game to play.
I will probably flip 3 cars this year that were leased in 2021. 2 of those I got with the intention of selling or transferring (has also become much harder this past year to the point where it’s not worth the hassle). The few thousand I’ll get on the sell end means I got to drive a great car for effectively no money, or a slight profit. That’s what is interesting to me and what drives me to do it (driving some cool cars on the cheap).
You can’t expect make a lot of money on these flips on a regular basis.
Some of the best sells right now are folks who had no intention of that ie 10-12% off Tacoma leases two years ago
At some point this is going to come to an end. NOBODY knows when. Actually, if you want a definite date wait for me to order and take delivery of a 4Xe Wrangler, then things will turn south. Real quick (Yes, I’m THAT guy).
I wouldn’t flip more than 1 of the same vehicle (I don’t think). THAT wouldn’t be much fun. lol. Now if only I could flip something really cool, like a Porsche. hahah. I can’t afford the up-fronts on that, though.
We had at least one person this year with excellent credit who had trouble securing the newest lease because all the lease churn knocked them out of Tier 1.
There are a handful of states where the renter has more power than the owner. It’s actually quite sad and extremely unfair with circumstances this way. that the owner has no say, There are now OVER 10 million people living rent free, yes 10,000,000 people living rent free, who knows what happens next with landlords trying to get the rent they deserve, but this is entirely unfair to the individuals who worked hard for their houses to become a landlord. Let me tell you it’s not easy being a landlord. I only know this through the stories I have heard.
And it’s not just the auto industry that this chaos is occurring in. There are sectors across the entire market totally inflated all because of the fabulous money printing by the federal reserve. Look at sports memorabilia. Poke mon cards. Prices of commodities and my personal favorite NFTs. If you don’t know what NFTs are I suggest you don’t even bother looking it up because that right there is just one complete joke of a market I have ever seen.
Exactly. Treat these moments of market inefficiency as a chance to drive cool new cars at a nice discount, and you’ll be much better off and probably much happier.
If profit is your sole (or even primary) motivation, you’ll find that your greed eventually gets you stuck in something you didn’t bargain for.
I had the thought to flip an XC40 Recharge. But, while the discount is huge, it still works out to close to $600/mo. That is not a payment I am comfortable getting stuck with, so it is a no go. Just supports the point that one should NOT attempt this, as others said, for the sole purpose of profit. Get something you’ll enjoy and can afford.
Wife’s family is in NJ and had this come up few years back. There is an exception for people with less than three rental properties who are moving into the property in question themselves or are selling to someone who will occupy the home as primary residence. Through some ethically dubious transactions like transferring a few rental properties to other family members and then a dubious sale to someone who stated they would live in the property they got the tenant out.
I don’t want to stay off topic, but, yes, if it will be your primary. Problem is, you still have to get the renters out, and that can take time. If my son was 18, I’d use him for it. lol. But that is a few years off and I don’t want to wait that long, if I can help it. I have had thoughts of just selling it as is to a 3rd party, but that would hurt.
I meant if somebody leased something in the last couple of months with the intention to flip and actually flipped it. Not someone who leased something early in the year and lucked into a ton of equity and sold it.
Deal hasn’t funded yet / haven’t received a statement but I assume payoff is 74-75
Going to hang on to it and enjoy it for a bit. If I make $5K I’ll still be happy since the family is having a blast and we are a week in. Wife keeps stealing the keys.
