How I Made $10,000 Off My Car Lease

On a date with a girl who worked at a Honda dealership, we talked briefly about cars.

I mentioned that my lease was about ready to expire. Her advice made me over $10,000!

What I didn't know was that when you lease a car, you're really signing a lease option.

You have the ability to purchase the car for a set price or hand the car back to the dealership and end the lease.

I was planning to hand the car in and lease another. What I found out was the price set for my car at the end of my 3 year lease was around $14,300.

After COVID 19, something crazy happened.

There was so little supply of cars that car lots were almost empty and prices skyrocketed.

The price the bank appraised the car for? Over $27,000! I pulled out $5000 tax free because it was a loan, got more than $8,000 of equity in the car and maintained a similar payment to what I had with the lease.

Overall I walked away with over a $13,000 difference in what I purchased it for and what it got appraised for. At the beginning of the loan, I put down $3000. Net, I made over $10,000.

Takeaway: when you lease a car, know that what you're really signing is a lease option where you have the ability to purchase the vehicle at a set price. Consider this before turning the car back into the dealership.

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