Anyone ever sold a leased car?

[fuzzybabybunny]

I'm thinking about leasing a car on the island, and after 4 months or so selling the car. Does anyone have any experience with this?

 

[Crono]

Don't you effective purchase the car if you lease it then sell it?

 

[Throckmorton]

Why would you do that?

Just buy a car. Surely you have a $5000 to spend on something decent. Or get a loan and buy a car and sell that. AFAIK, leasing would just cost you a lot more

 

[fuzzybabybunny]

Why would you do that?

Just buy a car. Surely you have a $5000 to spend on something decent. Or get a loan and buy a car and sell that. AFAIK, leasing would just cost you a lot more

Completely depends. Leasing and selling it later for at least the residual value is possible or finding someone to take over your lease is possible as well. That compared to losing the entirety of $5000 all at once for an older car when I could spend $300 a month for a much newer car that I can later sell or transfer the lease.

All I wanted to know was what kinds of paperwork or roadblocks in this process have people come up against?

I'm also debating whether to even do this, but only because of the unique island situation. Lots of people here are transient, so lots of cars get listed from people leaving the island, meaning much of the used car selling values are below KBB and that it's difficult to sell a car to begin with due to so much supply.

 

[fuzzybabybunny]

Don't you effective purchase the car if you lease it then sell it?

Yes, you purchase it for the residual value. Sometimes the residual value is actually higher or comparable to the price of other equivalent used cars.

 

[amdhunter]

How do you plan to pay off the car when you are ready to sell? Or, what incentives will you offer someone to flip the lease to them?

If you really want something short term, work out a 1 year lease on something nice and give the car back at the end.

 

[Zenmervolt]

Lots of people here are transient, so lots of cars get listed from people leaving the island, meaning much of the used car selling values are below KBB and that it's difficult to sell a car to begin with due to so much supply.

If people have difficulty selling cars outright because the market's flooded, it's going to be harder still to find someone willing to assume a lease or deal with the extra hassle of buying out a lease. Generally speaking, people who are looking to buy aren't going to want to deal with a lease in any form.

Yes, what you talk about is technically possible, but you're really limiting your pool of potential buyers; especially if there are a lot of cheap used cars around.

ZV

 

[Doppel]

I'm thinking about leasing a car on the island, and after 4 months or so selling the car. Does anyone have any experience with this?

lololol terrible idea. Just th other night I was reading my lease papers and getting out early is not fun or easy if u need to buy it out the resell not to mention u never recoup the money you spent at closing in doc fees and taxes plus there may be a disposition fee at lease turn in.

Would be cheaper and easier to just rent a car for four months or buy a used car then sell at end of four months.

 

[GregGreen]

Lots of people here are transient, so lots of cars get listed from people leaving the island, meaning much of the used car selling values are below KBB and that it's difficult to sell a car to begin with due to so much supply.

If used car values are that low, just lower your standards and buy something and deal with the fact it isn't "ideal" for FOUR MONTHS

 

[PhoKingGuy]

Its hawaii, can't you hotwire an aveo rental car for like 200 a month or something?

 

[Sluggo]

That compared to losing the entirety of $5000 all at once for an older car when I could spend $300 a month for a much newer car that I can later sell or transfer the lease.

You are deluding yourself.

If the market is as saturated as you state, you could effectively buy a 8k car for 5k, then sell it for 3500 or 4000 when you leave. This gives another buyer even a better position on a car than you got, and you only lose a bit of real cash, oddly enough about the same you would spend for a lease, but you don't get fucked out of a down payment or the TTL of a new car purchase.

Sounds to me like you are taking a round-about way of having a huge headache on your hands, justifying a large purchase, so you can have exactly the car you want. A lot of your threads seem to center around some bizarre financial transaction that gains you literally pennies, but they all require some unfathomable trust in the people that you hardly know.

What do you think will happen will Joe Blow defaults on the lease he takes over from you? You will be out of state, but your name and credit will still be attached to the lease. He gets a car to trash until a repo man/skip tracer can find him, you get the financial repercussions after they auction the POS off, and there is still a $10,000 balance on the note.

Good Luck.

 

[fuzzybabybunny]

You are deluding yourself.

If the market is as saturated as you state, you could effectively buy a 8k car for 5k, then sell it for 3500 or 4000 when you leave. This gives another buyer even a better position on a car than you got, and you only lose a bit of real cash, oddly enough about the same you would spend for a lease, but you don't get fucked out of a down payment or the TTL of a new car purchase.

Sounds to me like you are taking a round-about way of having a huge headache on your hands, justifying a large purchase, so you can have exactly the car you want. A lot of your threads seem to center around some bizarre financial transaction that gains you literally pennies, but they all require some unfathomable trust in the people that you hardly know.

What do you think will happen will Joe Blow defaults on the lease he takes over from you? You will be out of state, but your name and credit will still be attached to the lease. He gets a car to trash until a repo man/skip tracer can find him, you get the financial repercussions after they auction the POS off, and there is still a $10,000 balance on the note.

Good Luck.

I'm not subletting the car... subletting =/= lease transfer.

Good job on missing the entire point.

 

[Throckmorton]

I found the perfect car for you http://honolulu.craigslist.org/oah/ctd/3016012702.html

Or how about a Saab hatchback? http://honolulu.craigslist.org/oah/ctd/3045642641.html

 

[Throckmorton]

I found the perfect car for you http://honolulu.craigslist.org/oah/ctd/3016012702.html

Or how about a Saab hatchback? http://honolulu.craigslist.org/oah/ctd/3045642641.html

Here's a cheap Forester http://honolulu.craigslist.org/oah/ctd/3045114237.html

I'm jealous of your used car options on Oahu.

 

[GregGreen]

I'm not subletting the car... subletting =/= lease transfer.

Good job on missing the entire point.

Good job on missing the entire point of his post as well.

 

[fuzzybabybunny]

How do you plan to pay off the car when you are ready to sell? Or, what incentives will you offer someone to flip the lease to them?

If you really want something short term, work out a 1 year lease on something nice and give the car back at the end.

Paying off the car is easy. I won't have the title to the car until I pay off the leasing company, so I have a contract between the buyer and myself stating that I will transfer the title to the buyer after I have paid the leasing company to buy the car.

Buyer gives me money. I pay off the leasing company. They give me the title. I send the title over to the buyer. And we have a contract before all this stating that this is the exact process that will occur.

Incentives? No down payment. The fact that they can get a $10,000+ car (if they were to just buy it outright) for $300 a month seems like incentive enough to me.

 

[herm0016]

the saab looks like a pretty good one.

and... that plan is crazy. just buy a car, then sell it when you are done.

 

[Capt Caveman]

Paying off the car is easy. I won't have the title to the car until I pay off the leasing company, so I have a contract between the buyer and myself stating that I will transfer the title to the buyer after I have paid the leasing company to buy the car.

Buyer gives me money. I pay off the leasing company. They give me the title. I send the title over to the buyer. And we have a contract before all this stating that this is the exact process that will occur.

Incentives? No down payment. The fact that they can get a $10,000+ car (if they were to just buy it outright) for $300 a month seems like incentive enough to me.

Why wouldn't they just buy an used car and save all of the headache that you posted above?

 

[fuzzybabybunny]

Good job on missing the entire point of his post as well.

Right, because the new lessee defaulting effects me how exactly? A lease transfer is a transfer of equity.

I buy a car valued at KBB $10,000 that I could normally lease for $300/month.

Great. I manage to buy that car at $8500 maybe from a person who's leaving the island and needs it sold. During that 5 months that's $8,500 that I no longer have to use and to have work for me. Versus if I paid only $300/month for it. At the end of my stay I'm not going to be keeping the car anyway.

 

[herm0016]

and then you sell it at 8500 to the next sucker and you have spent a total a little maintnence and some fuel.

 

[jlee]

Right, because the new lessee defaulting effects me how exactly? A lease transfer is a transfer of equity.

I buy a car valued at KBB $10,000 that I could normally lease for $300/month.

Great. I manage to buy that car at $8500 maybe from a person who's leaving the island and needs it sold. During that 5 months that's $8,500 that I no longer have to use and to have work for me. Versus if I paid only $300/month for it. At the end of my stay I'm not going to be keeping the car anyway.

Then get a loan?

 

[Throckmorton]

Get a loan for a used car. BTW I didn't realize you could lease used cars

 

[fuzzybabybunny]

and then you sell it at 8500 to the next sucker and you have spent a total a little maintnence and some fuel.

I'm pretty sure that over a span of 5 months I would have better uses for $8500.

Option 1:

Lease a modern, good, reliable car valued at $10,000 for $300 a month. At the end transfer the lease to someone else and wipe my hands clean of it.

Option 2:

Since I don't want to have $8.5K locked up in the form of a car during my entire time over here, I'll go for a sub-$2500 used car to buy so I have at least some funds freed up for work. Then I run into lots of reliability issues, possible immediate repairs, and I'm simply driving an old car.

 

[fuzzybabybunny]

Here's a cheap Forester http://honolulu.craigslist.org/oah/ctd/3045114237.html

I'm jealous of your used car options on Oahu.

Thanks for the Forester recommendation. I didn't see it because I had been filtering only by For Sale by Owner, not by Dealer.

 

[dlock13]

Interesting. I think your plan sounds solid to me at least. I don't know anything about the contracts or how that works, but I understand your concept behind it.

You'd only be losing about 1000-1500 on your stay there, but then you'd sell it off to the other guy, and you'd make back that money. The only problem I have with it, is it going to be hard to find another person to take that lease off your hands? What if you're preparing to leave the island and you still haven't found anyone?