Anyone ever sold a leased car?

[Throckmorton]

Shipping to the west coast is about $1000... Maybe you should buy a car you really want, and just ship it back when you leave

 

[Doppel]

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

Good job on missing the entire point.

You also missed his point about your schemes, though. It's true, you come up with the most bizarre ideas. It's why there will be few/no people in this thread who tell you that leasing a car for 4 months is anything but a terrible idea.

It seems that combined posters in this thread have leased infinity more times than you ever have, but I see you're still trying to defend this financially terrible idea anyway.

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.

He'll never pay only $1000 in lost money leasing a car over 4 months, no way in hell. He'll pay at least that alone when he signs the lease in tax, tag, title, doc fees, then the immediate hit in depreciation, and then at the end of the lease trying to find somebody to take it over.

 

[GTJoe]

Let's put some numbers on it. They are not real, but the point remains...

TTI - $1000
Buyout - $9000
Used Car Sale price - $7000
Payments - $1200
----------------------------
Total car cost - $4200

What can you rent/purchase for $4200? I bet you would come out ahead buying a beater and then driving it into the ocean at the end of the trip.

 

[SpatiallyAware]

Your threads baffle me sometimes.

Just buy a cheap car and resell in 4 months. Even if you pay $6k-$7k you should be able to sell it for very close to that.

 

[Sluggo]

DP

 

[Sluggo]

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

Good job on missing the entire point.

I didn't miss the whole point. Sometimes even transferring a lease does not completely remove the original lessee from the transaction.

 

[imagoon]

Leases are typically front loaded with the "driving it off the lot devaluation." A lease transfer is treated just like a sale. The next person is assuming a used on lease vehicle at the cost of a new one. Most people wouldn't bite on that because they would be paying "new car" premium on something used and won't want to assume the financial losses. You will get stuck paying the devaluation at the end.

 

[amdhunter]

I didn't miss the whole point. Sometimes even transferring a lease does not completely remove the original lessee from the transaction.

Yep. It's happened many times where the original lessor is sued after the person who assumed the lease defaults.

Stupid idea. You CAN just do a short term lease. Mercedes offer lease options for as low as 6 months. If you can stomach a little raping, it will make more sense to do this.

 

[EagleKeeper]

1) Find a rental place that handles older cars for about half the price of the big boys.

2) Buy a used car. Try to get an agreement from the dealer to take the car back after x months at a set price. In other words a short term reverse lease

3) Insurance Fraud. Buy car, use it and take it swimming when finished.

 

[Insomniator]

That old forester would be a cool car to have for a few months and I'm sure you could resell that for most of your money back. Very useful vehicle.

 

[mvbighead]

Leases are typically front loaded with the "driving it off the lot devaluation." A lease transfer is treated just like a sale. The next person is assuming a used on lease vehicle at the cost of a new one. Most people wouldn't bite on that because they would be paying "new car" premium on something used and won't want to assume the financial losses. You will get stuck paying the devaluation at the end.

Thats what I was thinking. He makes it sound like getting someone to take up the lease is as easy as posting it to CL and having an offer the next day. I just don't see it.

Best idea is to set up something with a dealership for a short-term borrow type of deal. Being Hawaii, I can't imagine it would be that odd to them for someone to propose that sort of deal.

 

[MixMasterTang]

For less than 6 months I would just rent a car, too much hassel any other way.

 

[jlee]

That old forester would be a cool car to have for a few months and I'm sure you could resell that for most of your money back. Very useful vehicle.

He could also move photo gear and sleep in it!

 

[imagoon]

Thats what I was thinking. He makes it sound like getting someone to take up the lease is as easy as posting it to CL and having an offer the next day. I just don't see it.

Best idea is to set up something with a dealership for a short-term borrow type of deal. Being Hawaii, I can't imagine it would be that odd to them for someone to propose that sort of deal.

Yeah but that is what a place like Avis is for. Long term (ie more than 2 week) rentals. Most dealerships wouldn't want to eat the loss on short leases without one heck of monthly payment. Cars seem to lose right around 15-20% just driving them off the lot. On a $20k car that is an immediate $4k drop. Then start to roll in wear and tear. So in a 4 month lease of a new car, the dealer would need to roll the 4k loss in to those 4 months likely making the lease in excess of 1k / month so when they resell it they break even.

 

[Bignate603]

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

There's no way you'd find a better return on your money. If you you think so you're bad at math.

Let's say you buy a car for $8500. You drive it for 4 months, then need to resell it. Unfortunately you can only get $8000 when you sell it. Total cost of car: $500 + some charges for getting a title and things.

Now let's say you lease a car. You get lucky, find a zero down lease for $200 a month and you lease the car for 4 months. You go to sell it when you leave. You get really lucky and the car can be sold for its residual or you find somebody willing to take over the lease. Total cost of car: $800 + some other charges

That scenario with the lease is if everything works well and you get lucky, yet it still will end up costing you more. There's no way you can get $8500 to give you a guaranteed return of a few hundred dollars over the course of 4 months right now so you're deluding yourself by saying there's better uses for your money.

 

[mvbighead]

Yeah but that is what a place like Avis is for. Long term (ie more than 2 week) rentals. Most dealerships wouldn't want to eat the loss on short leases without one heck of monthly payment. Cars seem to lose right around 15-20% just driving them off the lot. On a $20k car that is an immediate $4k drop. Then start to roll in wear and tear. So in a 4 month lease of a new car, the dealer would need to roll the 4k loss in to those 4 months likely making the lease in excess of 1k / month so when they resell it they break even.

Well, from the Avis' locations I am checking in the Hawaii area, they don't seem to participate in the long term rentals. Checking Denver, it seems they do, but beyond a couple months is getting up towards 3000 after fees and such.

 

[jlee]

http://www.hawaiidrive-o.com/car-lease.html

 

[fuzzybabybunny]

There's no way you'd find a better return on your money. If you you think so you're bad at math.

Let's say you buy a car for $8500. You drive it for 4 months, then need to resell it. Unfortunately you can only get $8000 when you sell it. Total cost of car: $500 + some charges for getting a title and things.

Now let's say you lease a car. You get lucky, find a zero down lease for $200 a month and you lease the car for 4 months. You go to sell it when you leave. You get really lucky and the car can be sold for its residual or you find somebody willing to take over the lease. Total cost of car: $800 + some other charges

That scenario with the lease is if everything works well and you get lucky, yet it still will end up costing you more. There's no way you can get $8500 to give you a guaranteed return of a few hundred dollars over the course of 4 months right now so you're deluding yourself by saying there's better uses for your money.

I run a business. An expenditure of $8500 into equipment and infrastructure can easily translate into a few hundreds dollars over 4 months + principle. In fact, it'd better give me that kind of return.

 

[fuzzybabybunny]

Yeah but that is what a place like Avis is for. Long term (ie more than 2 week) rentals. Most dealerships wouldn't want to eat the loss on short leases without one heck of monthly payment. Cars seem to lose right around 15-20% just driving them off the lot. On a $20k car that is an immediate $4k drop. Then start to roll in wear and tear. So in a 4 month lease of a new car, the dealer would need to roll the 4k loss in to those 4 months likely making the lease in excess of 1k / month so when they resell it they break even.

FYI I was going to take over someone's lease, not start off by leasing a new vehicle.

This: http://honolulu.craigslist.org/oah/cto/3043680973.html

And then do another lease transfer.

 

[Bignate603]

I run a business. An expenditure of $8500 into equipment and infrastructure can easily translate into a few hundreds dollars over 4 months + principle. In fact, it'd better give me that kind of return.

Only if you can find an opportunity worth investing in. If I remember correctly, your business is taking photos of real estate, it's not exactly something that takes a huge amount of capital.

 

[thomsbrain]

I wouldn't consider any option other than renting a car at a monthly rate. Use your Costco discount.

 

[GregGreen]

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.

Try reading/responding to anything more than the last paragraph of his post...

 

[PhoKingGuy]

You guys are forgetting its FBB, he's not going to do the sensible/easy way out of anything.

Does real estate photography even get that much money? He makes it sound like hes raking in dough.

 

[Throckmorton]

I think real estate photography is a pretty profitable but the market is probably saturated with photographers in Hawaii.

Otherwise, sign me up.

 

[RichieZ]

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.

you know if you buy out a lease before the lease term is up you pay the residual value AND all remaining lease payments.