Chrysler Capital Ram Lease Impossible to Trade at Lease-End w/Equity

[mdc1990zr1]

I completely understand what you're talking about as I owned about 67 vehicles and been playing this game for years with equity and it had been very lucrative money when it comes to leasing. Leasing gives so many options if one knows how to play the game. I now shifted to leasing only from honda and toyota as their residual value is much lower than American brands, which gained me more money with no liability.

You could buy the lease and try to sell it but that's risky as you will have to pay the taxes, safety the vehicle, and gamble on selling it privately to get a profit. You'll have to deal with the headache of selling to window shoppers, which is something I hated.

Or you can try find a buyer in your last 30 days and sell at an agreed price and go to dealer together and you get the difference.

Or you can find a second dealer that wants your vehicle and you can arrange for a "deal of convenience" with first dealer so you can save the taxes and gain equity on a new brand you want. This strategy is not talked about often but works. I just did it with a corvette.

These dealers are ****. They don't want to see anyone but them gain.

Correct. You can sell it yourself before the lease ends if there is equity. You will be responsible for the remaining payments in the lease, and you will have to wait for the title one the bank loan is satisfied and "unencumbered". If you need more time, sometimes the lessor will extend the lease for you. I had done this with a Jeep Grand Cherokee before as they seem to hold value on the used car market.
If you buy the lease out, you will become the title holder and be required to pay taxes on the risidual. When you sell the vehicle to the new owner, he will have to pay taxes again on the price you sell it for. You will need to make a bill of sale and have an odometer statement at least. The government wins on this deal too with so much tax collected.

 

[aszumilo]

If you buy the lease out, you will become the title holder and be required to pay taxes on the risidual. When you sell the vehicle to the new owner, he will have to pay taxes again on the price you sell it for. You will need to make a bill of sale and have an odometer statement at least. The government wins on this deal too with so much tax collected.

Some states do not charge taxes on private vehicle sales. Nevada doesn't. Now the Federal Govt tax liability is another issue.

 

[Docwagon1776]

Some states do not charge taxes on private vehicle sales. Nevada doesn't. Now the Federal Govt tax liability is another issue.

What's the federal tax liability on a vehicle sale?

 

[aszumilo]

What's the federal tax liability on a vehicle sale?

Profits can be considered income. Therefore the IRS will want its share. Usually this won't matter since most people will sell a vehicle for less than they pay, but, if you sell one for more than you paid (think of selling a restored classic car) then you could be liable for federal income taxes.

 

[Dusty]

If leasing a vehicle is as complicated as just this discussion, it's something I'll never do regardless of any potential advantage.

Regards,
Dusty
2019 Ram 1500 Billet Silver Laramie Quad Cab 2WD, 5.7 Hemi, 8HP75, 3.21 axle, 33-gallon fuel tank, 18” wheels. Build Date: 3 June 2018. Now at 114300 miles.

 

[blackbetty14]

I don't mind leasing, gives you the opportunity to give the vehicle a test before you decide to keep it. You loose a little money a few grand maybe but what if something happens and you want to get a different vehicle or the vehicle doesn't meet your quality or you have issues with it. You can wash your hands and move on, or buy it at a lower price than its probably worth since car prices are so high. I was up almost 10k on my 2018 Laramie that was leased and then financed 5 months ago when I got paid out. Leasing also gives you a chance to get into a vehicle at a more manageable price point but you spread the payment out over a longer period of time (with some loss). I don't like leasing to lease and to keep doing it but if you lease and buyout if you love it and do it again unless your financially able to purchase/finance leasing isn't that "terrible".

Don't deal with the dealers at the end of the lease, deal with the bank and they will appraise it for you at least they did for me and sent a guy out to my house to perform it. Dealers want to keep you leasing.