I am currently leasing a 07 Tundra with the lease ending on 8/9. I just ordered my new 5.0 today.

From what I have been reading it is probably more trouble than its worth but does anyone have any experience with buying a leased vehicle then flipping it immediately afterwards for a profit? The residual value is not great but based on what my model seems to be going for on cars.com and autotrader.com I am pretty confident that I could sell it for $2,000 more than the residual. However I would need to buy it and flip it in a few weeks. Probably more headache than its worth but I thought that I would at least ask the question to see if anyone has any experience with this. I understand that I would have to pay sales tax, but I was hoping that I would not have to pay capital gains tax.

Again, this is not something that I have to do. I just thought if it was relatively easy that I should consider it and use the profit for down payment or future mods. Any input would be appreciated. Thanks

 

In my state, NY, you have to pay sales tax on the residual value then wait 4-6 weeks for the title to come in your name. Usually negates the profit quite honestly.

 

Yeah. I know I definitely have to pay the sales tax on the residual. But I didn't realize the title would take that long. I wouldn't have enough time to flip it if the title took 6 weeks.

 

My 2004 BMW M3 was leased (in fact I lease most of my vehicles) and I was 2.5 years into a 3 yr. lease when I sold it. My payoff was $33k, I sold it for $39k..I pocketed $6k..I didn't have to wait no 6 mos. for the title. In fact paying off a lease is the same for a purchase. You have a payoff just like you would a purchase.

Dave

 

I wouldn't try it with a Tundra, IMO. Too many rebates and 0% deals lately that may not be reflected in the market you're trying to use as a baseline. I had a 2007 Tundra and now have a 2010, and the value has definitely been affected by Toyota.