2019 Dodge Challenger, White, base model, HEMI with 6sp manual
This was my first lease, and I got it as a second car, thinking it would be “cool”… and it is COOL, but it’s not for me. I don’t like having a monthly payment, and the heavy clutch causes my left knee a lot of pain. I want to get rid of the car in the most financially effective way possible.
The car only has 3500 miles on it and still looks showroom new - it has spent most of the time in my garage.
Sale price was ~$36k
Lease terms - $370/mo for 39 months ($3000 down) @ 10k miles per year
I still have 34 months to go, so about $12,500 + insurance
I called CCAP and the payoff amount is $33k ($31k + fees and taxes). The only options they gave me were buying it outright and trying to sell, or having the dealer do a “lease buyback” but the lady I spoke with wasn’t very clear as to how that worked.
From my understanding CCAP doesn’t allow lease transfers, so that is out of the question.
What are my options here? Can I list it for $30k and just eat the $3k difference of what I owe CCAP (in theory)? How does CCAP get paid - do I need to purchase the car, then list for sale or can I have the new buyer pay CCAP directly?
What happens if I go to the dealer and turn it in as is? What are my financial obligations at that point?
On a side note, based on the terms above, how did I do “deal wise”?
Normally, the suggestion would be to get a purchase quote from carvana, shift, and vroom. If they buy it out, taxes aren’t due, etc. Unfortunately, the offers they’ve been giving lately have been very poor. Worth checking though
Challenger manual may appeal to an older car enthusiast. But in general, I think your negative equity on this is going to be more than 3k!!
Also you need to check with CCAP whether they accept third party buyouts. If they don’t, it’s a double whammy since you will need to pay taxes and then the person buying has to pay taxes as well unless your state has a grace period rule (like California)
If you find a buyer you could do a dealer pass through-if a dealer is willing to do it for you, if not you buy it and sell it yourself-pay taxes but here in CA you can apply to get the tax back…
If you turn it in AS-IS you will owe the $12,500 also check your contract if any early termination fees are added
For a Base Model HEMI that SALE price is kinda high, I had a 2012 RT Classic Fully Loaded MSRP $39,000 Sale Price $30,000
Not to be negative-but realistic, I doubt that you will get more than $28,000 if you try and sell it yourself
I don’t think that’s true, he should be billed for the current payoff minus the auction price plus any fees.
Anyway OP your only option is to sell it since CCAP doesn’t allow transfers. It doesn’t matter how you do it (privately or dealer) as long as CCAP is paid the payoff to release the title. It’s no different than a finance in regards to title release.
