I understand that it is beneficial to me to arrange a sale of the leased vehicle to any dealership before the lease ends. I also understand that if the residual value is lower than the wholesale value of the car, I pocket the equity at the time of sale to a dealership. My interest is in lease take-overs. What variables do I have to look at when considering taking someone else’s lease over with the intent to make a profit at the sale. I know I must read the lease agreement to make sure I can even sell it to dealerships. If someone knowledgeable in this subject could just give me a quick list of the most important variables to be looking at.
I doubt you would have much luck with this. A lease transfer is usually the last resort a leasee takes. Leasees would first try to sell (possible even for a small loss) to get out.
I was under the impression that most leasees are not aware of the sell option, that for the most part the general leasing population believes their only options are; 1. Continue til lease end date, 2. Roll into another lease using a pullback offer, 3. Transfer the lease to another leasee. If that is the case I assume there are ripe cases out there where the leasee is looking to transfer the lease even though the sell option would be profitable. Even if takes a lot of research to discover these profitable cases I would like to know what variables I have to look for to identify it’s profitability. Thanks for your insight I greatly appreciate it.
You’d be limited to CarMax-type places or private party sales because most dealers would only buy if you are getting something from them as well. If the CarMax offer to buy is greater than the lease buyout price, then it will be profitable. I don’t know how you can get or know the CarMax offer before getting the vehicle though. You can try KBB/NADA prices, but it’s no guarantee.
I still disagree with your thoughts about being about to get/find these lease transfers with equity, but good luck.
Your assumption is based on your assumption that you are smarter than most people who lease their cars.
You can just bring your car to carmax and they will tell you if you have positive equity. Doesn’t hurt to try… I got a grand from car max and sold my lease to them instead of dropping off my car the dealer.
My Kia Sorento on the other hand had negative equity so just dropped it off the dealer when it was due for a return.
The thing is that it’s not his car. He wants to takeover a lease transfer, then trade it in for positive equity.
Attractive lease payment = likely high or at least realistic RV
So I need to first apologize for posting this question on your topic but I am very new to this site and overwhelmed with a tremendous amount of great information!! How do I post my question?
Ok so just figured out that once I posted a reply it will allow me to post a topic. Sorry