Cash in on used car prices by flipping one of these 15 models at the end of your lease

2014 Jeep Cherokee.
People who leased a 2018 Cherokee could flip it and pocket more than $US7,000 ($AU9,567). Jeep
  • The pandemic has driven used-car prices sky-high.
  • Owners can cash in by buying their car at the end of a lease and flipping it on the used market.
  • The models most ripe for profit include the Kia Forte and Jeep Compass, an iSeeCars study found.
  • See more stories on Insider’s business page.

It’s not just dealerships that are profiting from today’s insatiable appetite for used cars. Amid an unprecedented shortage of vehicles on dealer lots, sky-high prices, and a buying frenzy, car owners can cash in big too.

Pocketing thousands of dollars can be especially simple for people whose leases are expiring. At the beginning of a lease, a bank, leasing company, or an automaker’s financing arm sets the residual value of the vehicle: the agreed-upon price that a customer can buy the car for at the end of a lease term, often three years.

Today, used-car values are so inflated (for a host of pandemic-related reasons) that some lessees can turn an instant profit by buying back their leased vehicle and flipping it on the secondhand market. Dealerships starved for inventory are willing to pay top dollar for used vehicles, especially ones with low miles.

According to automotive research outfit iSeeCars, the average three-year-old used car is worth 31.5% – more than $US7,000 ($AU9,567) – above the residual value estimated at the start of its leasing term. Coupes, sedans, and pickups have seen the largest jumps in value, the site found.

“This is kind of unprecedented to see such a widespread, no-brainer way to make money on a car,” Karl Brauer, executive analyst at iSeeCars, told Insider.

iSeeCars analyzed nearly 10 million car sales to determine the 15 2018 models people should buy at the end of their lease to flip for the biggest profit. Check out the list below:

15. Ford Expedition
Ford Expedition 2018
Ford Expedition. Ford Media
Increase over predicted residual value: 45.8% or $US15,830 ($AU21,635)
14. Nissan Versa
2018 Nissan Versa Sedan.
Versa. Nissan
Increase over predicted residual value: 46.1% or $US3,961 ($AU5,414)
13. Jeep Cherokee
2019 Jeep Cherokee
Cherokee Jeep
Increase over predicted residual value: 46.3% or $US7,418 ($AU10,138)
12. Jeep Compass
Jeep Compass
Increase over predicted residual value: 46.4% or $US7,163 ($AU9,790)
11. Kia Forte
Kia Forte 2020
Forte. Kia
Increase over predicted residual value: 46.7% or $US4,913 ($AU6,715)
10. Mazda Mazda6
2018 Mazda Mazda6.
6. Mazda
Increase over predicted residual value: 46.8% or $US7,193 ($AU9,831)
9. Hyundai Elantra
2017 Hyundai Elantra
Elantra. Hyundai
Increase over predicted residual value: 47.9% or $US5,319 ($AU7,270)
8. Chevrolet Malibu
2018 Chevrolet Malibu
Malibu. Chevrolet
Increase over predicted residual value: 48.2% or $US6,392 ($AU8,736)
7. Nissan Leaf
2018 Nissan Leaf
Leaf. Nissan
Increase over predicted residual value: 48.3% or $US6,167 ($AU8,428)
6. Chrysler 300
Chrysler 300 2018
Chrysler 300. FCA North America
Increase over predicted residual value: 49.2% or $US8,084 ($AU11,048)
5. Volkswagen Passat
Volkswagen Passat
Passat. Volkswagen
Increase over predicted residual value: 49.3% 0r $US6,400 ($AU8,747)
4. Nissan Altima
Nissan Altima 2
Nissan Altima. Hollis Johnson/Business Insider
Increase over predicted residual value: 49.4% or $US6,228 ($AU8,512)
3. Chevrolet Camaro
2018 Chevrolet Camaro
2018 Camaro. Chevrolet
Increase over predicted residual value: 52.9% or $US12,346 ($AU16,873)
2. Dodge Charger
2017 Dodge Charger
Dodge Charger FCA
Increase over predicted residual value: 55.9% or $US11,806 ($AU16,135)
1. Volkswagen Tiguan
2019 Volkswagen Tiguan
Tiguan. Volkswagen
Increase over predicted residual value: 61.3% or $US8,677 ($AU11,859)