Sell Your Buy-Out To Me?

[RED!]

I’m looking to buy a 2022-3 Turismo Turbo (preferably S)
There are some around, but when I look at the residuals I think it might make sense to buy out someone’s lease through the Porsche Dealer.

Any thoughts?

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[69Mach390]

I’m looking to buy a 2022-3 Turismo Turbo (preferably S)
There are some around, but when I look at the residuals I think it might make sense to buy out someone’s lease through the Porsche Dealer.

Any thoughts?

How exactly do you plan to pull this off?

I don’t see any way for you to pay the residual value on someone else’s lease through a dealer.

What would be in it for the original owner and for the dealer to do this deal for you?

Obviously you can buy a used car from the dealer that used to be a lease, but they will mark it up significantly above residual and CPO it.

You could look to take over a lease on leasetrader

 

[JackSparrow]

Although it sounds implausible, when the vehicle being turned in is market-valued at less than the residual, there is room for negotiation.
The turn-in dealer can be pitched on doing a lease turn in CPO buyout as an end to end deal. I personally did a similar deal where I bought my leased Audi wagon out of the lease at less than the residual and they included the 2 year CPO as well. I had to wait a week with a loaner while they did the CPO. It’s good for the dealer since its easy money, a pre-sold unit without them needing to carry it on their floorplan (they finance their inventory).
I do think they’d need you to pay for the vehicle at turn-in, which removes risk of them getting stuck with a hard to sell unit.

 

[69Mach390]

Although it sounds implausible, when the vehicle being turned in is market-valued at less than the residual, there is room for negotiation.
The turn-in dealer can be pitched on doing a lease turn in CPO buyout as an end to end deal. I personally did a similar deal where I bought my leased Audi wagon out of the lease at less than the residual and they included the 2 year CPO as well. I had to wait a week with a loaner while they did the CPO. It’s good for the dealer since its easy money, a pre-sold unit without them needing to carry it on their floorplan (they finance their inventory).
I do think they’d need you to pay for the vehicle at turn-in, which removes risk of them getting stuck with a hard to sell unit.

Yes, but that’s not what it sounds like the OP wants to do.

He wants to pay residual price for someone else’s lease turn in through a Porsche dealer.

Would be a fun “life hack,” but no way that’s happening.

Even if you had a friend with a lease buy out the lease then sell to you, you’d be paying sales tax twice in that deal plus whatever the dealer fee is to process.

And a stranger isn’t doing this for you unless you pay them more than the buyout+ sales tax costs them.

Even taking over a lease, many companies now don’t let the 2nd lease person buy out at the end.

 

[RED!]

Yes, but that’s not what it sounds like the OP wants to do.

He wants to pay residual price for someone else’s lease turn in through a Porsche dealer.

Would be a fun “life hack,” but no way that’s happening.

Even if you had a friend with a lease buy out the lease then sell to you, you’d be paying sales tax twice in that deal plus whatever the dealer fee is to process.

And a stranger isn’t doing this for you unless you pay them more than the buyout+ sales tax costs them.

Even taking over a lease, many companies now don’t let the 2nd lease person buy out at the end.

It's actually an easy transaction to do:
1) Lessee tells PC that they're going to exercise the buy-out
2) Lessee talks to Dealer and explains that someone is going to stand-in for the buy-out and that they want to put a warranty on the car - that way the Dealer makes money
3)Lessee drops car to Dealer, Dealer handles paperwork - DONE!

No problem - I'm in Toronto, and this is done all the time.

 

[Schroederhc]

Check Swapalease if you want to get into an existing PFS lease with pretty much no money down.

 

[69Mach390]

It's actually an easy transaction to do:
1) Lessee tells PC that they're going to exercise the buy-out
2) Lessee talks to Dealer and explains that someone is going to stand-in for the buy-out and that they want to put a warranty on the car - that way the Dealer makes money
3)Lessee drops car to Dealer, Dealer handles paperwork - DONE!

No problem - I'm in Toronto, and this is done all the time.

And how does sales tax work in that deal, and how much does the dealer charge? And does the original lessee get compensation?

I tried Internet searches to find what you’re talking about and couldn’t find squat except counterpoints as to why it’s not possible (a lot of leases don’t allow it).

I understand why this would be great for you, just trying to figure out why anyone else would do it if there is more money to be made doing things the traditional ways-

For the Lessee, if there is equity, buy it out and then sell to a 3rd party or dealer.

For the dealer, just take the car in, mark it up and sell for a profit.

Example- https://www.capitalone.com/cars/lea...to-sell-your-leased-car-to-a-third-party/1890

 

[RED!]

And how does sales tax work in that deal, and how much does the dealer charge? And does the original lessee get compensation?

I tried Internet searches to find what you’re talking about and couldn’t find squat except counterpoints as to why it’s not possible (a lot of leases don’t allow it).

I understand why this would be great for you, just trying to figure out why anyone else would do it if there is more money to be made doing things the traditional ways-

For the Lessee, if there is equity, buy it out and then sell to a 3rd party or dealer.

For the dealer, just take the car in, mark it up and sell for a profit.

Example- https://www.capitalone.com/cars/lea...to-sell-your-leased-car-to-a-third-party/1890

I read the page, and you're right, it seems to be more complicated these days than it was just a few years ago. That said, the residuals on Taycans are generally higher than the sales price, so PC is potentially likely to want to support buy-outs vs. taking a wholesale loss.

That said, a Porsche Dealership should be able to "buy out" a lease anytime, how else would they transfer someone into a new car midway through the lease? Using that logic, what the new buyer would be doing is standing in and allowing the Dealership to make some money and hit their warranty sales quotas.

If that didn't work, there's the option of a lease transfer with a few months to go on the lease - this could be especially useful to someone who's over milage.

Creativity generally solves problems.

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