Taco Brethren - Taking over a lease, Good Opportunity? Please advise...

No kidding, get a loan, ask your folks get your buddys all together, buy it and sell it. Fuck the truck honestly its a cash cow.

 

Thanks, I asked about the residual. Residual amount given for the end of the lease is locked in.

 

Original guy did a one pay lease. Probably had a new vehicle trade in or a huge down payment. Now he wants something else and is trying to recoup some money without paying extra fees.
So, if OP did this he would be giving the guy 3k and paying the transfer fees. The original guy will take the 3k and get whatever else he wants, and OP will have a lease paid in full for the next 22 months. After 22 months OP could choose one of 3 options that are typical for lease end.

 

I’m not the OP though lol...

 

I have a hard time believing that anyone would accept $3000 to give away a truck that he already paid off a 2 year lease. That would mean that he is probably walking away from $5K. I know people are desperate, but he could probably do better just turning it in early.

Let's put this in perspective, could you rent that truck for $140 a month? Absolutely not. There is something fishy with this deal.

 

OP - Make sure that the guy you get this truck from didn't do any mods on the truck. Anything could violate the lease agreement, not to mention the warranty. It's smart to get a vehicle inspection before you fork over the money to make sure there isn't anything hidden, like damage, mods, etc...

Other than that, the only thing I know about leases is that you can get good deals on lease returns.

Looks like there has been some good solid advice offered up here. Some people love to lease, others not so much. I've never leased a vehicle but I have friends that do and swear by it.

 

He’s still responsible for all maintenance on it and something doesn’t sound right to get a new vehicle for 3k? For 22 months? Something doesn’t add up to me? Just saying...maybe I’m wrong

 

What am I missing? If the lease was already bought out, then just make an offer and buy it?, right?

 

The term for the lease was paid for in a one pay lease. This means the owner would negotiate a lease for say 300 a month for 36 months, that comes to 10800.00, so they just paid it in full up front and then have no monthly payments. They still have the lease agreement for 3 years but no payments. The original owner could buy it out early but not a 3rd party unless the lease was first transferred into their name.

 

You guys that are “don’t buy it unless you can pay cash” kill me sometimes. $36k vehicle held for 10 years and sold at 40% of purchase averages $180/month.... and you say “no way” to $140/month? Explain why?

 

Oh, and average age of that 10 year hold is 5 years. Average age of this one... 1 year. If this is legit (don’t know), I’d be all over it too. Would rinse and repeat as well.

 

Not to mention if you take the money you saved on monthly payments and invest it. Plus take that 36k you didn’t pay for a truck and invest that, it will be worth more in 10 years than your “paid off” truck.

 

It shoudl

This quote answers alot of question, BUT .... If none of his friends want the deal, not family not anybody in his town and even in his state havent jumped at this, well then your gambling.

I smh at the scammer, I mean seller. Odd behavior.

 

I agree it seems odd to get out of a paid for lease and not just ride it out or try to get more for the trade. But honestly there are a lot of people with more money than sense and they spend it faster than they make it. Hopefully it works out and it is the deal the OP is hoping it is.

 

Because a paid off vehicle does not hurt your monthly income.
An obligatory debt payment does.

Any time you sign up for monthly payments or debt you are hurting your take home pay, and thus your ability to build wealth.

Average car payment is $400. Thats $400 less dollars a month you have to invest in retirement, put towards a future car, put as an additional payment on a mortgage, or just plain spend if you have all your bases covered.

The median houshold income for the US is $59k. Household income. Most people don’t make enough per month to have 1-2 car payments while still feeding kids, saving the reccomended 15% in retirement, saving for future expenses, and getting to enjoy some cash.
There are some people who do make enough to out earn their stupidity and can still do it all with a car payment but I’d rather have the cash in hand to build wealth.

The key is freeing up cash to build wealth and have options.
Debt leaves you digging yourself in a pit.

$400/month from age 25 to 65 invested in mutual funds is $1,000,000.
I hope you like the car.

Or given the median mortgage payment is 30yrs $1030/month. Thats and extra mortgage payment saving almost $100,000 in interest depending on the interest rate.

I’m not interested in getting into any arguments over it. People get grossly defensive over money.
This is just the explanation to your question on my thought process.
People can disagree, thats fine.

 

I'm trying to skip through all the rhetoric here and get to the bottom line.

If you're asking all the right questions, you'll be able to make a reasonable decision.

What I want to know is the end result. Was it a scam or a deal?

Waiting.

 

Seems legitimate. I’m calling Toyota Financial today to give them the VIN and get details before doing anything. I’ll also have Toyota dealership do a vehicle inspection and put it in writing that the vehicle was in good shape before anything happens. Fingers crossed. I really appreciate all of your time and insights. Thanks everyone ! I’ll keep you posted.

 

I think you are doing the right things to safe guard yourself, but I still feel the risk of a scam is high. Really high.

Lease or buy is up to you... I just want to make sure that this isn't someone playing games and at the end you are out 3 grand, finding out the VIN he gave is a different truck, there are other fees, or other typical King of Nigeria type of stuff.

 

Is this the “best possible” route? Yes. It’s just not what 99% of us are going to do. That’s why you’re finding such resistance. If it matters...you are correct

 

This is exactly why I lease. I'm huge into investing: stocks, money market, etc. I have money going into those accounts every single month instead of pumping cash into something that depreciates. I'm sure I could still pump money into investing if I purchased but it wouldn't be as much as I would if I leased.

But.. Then again, I 'm just a dumb recent college graduate millennial who has student debt and going to medical school next year and getting into even more debt....