Lease numbers not adding up

aug0211

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Question on that approach.

So you make all 36 payments then at the end you buy the vehicle at it's residual value as noted in the lease agreement? And after buying it you immediately sell it and are able to make profit? Or are you buying it less than the residual amount? If so how are you able to do that? Since it's already spelled out in the contract I don't see how or why the dealer would negotiate that.
Close, but not buying the vehicle. Selling to a car buying service. They’ll send their check to the lease lender. Lease lender processes for the payoff amount and any additional equity comes to me.
 

LJ_3M121318

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Close, but not buying the vehicle. Selling to a car buying service. They’ll send their check to the lease lender. Lease lender processes for the payoff amount and any additional equity comes to me.
Interesting. So then I imagine you're talking to a few of those car buying services about your situation to find the highest buyer and they agree to buy the vehicle for the residual value. This would work if you owe $40k as residual but jeep could be sold for $45k so they will cut you a check for $5k?
 

aug0211

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Interesting. So then I imagine you're talking to a few of those car buying services about your situation to find the highest buyer and they agree to buy the vehicle for the residual value. This would work if you owe $40k as residual but jeep could be sold for $45k so they will cut you a check for $5k?
That’s correct! Though in your example, they pay the $45K to the leasing bank who then passes the equity along to me (be sure to get that in writing).
 
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