Hello all… lurked here for tips for quite awhile and have found many helpful tips. I am currently in the market for 2021 Charger Scat Pack and I have been shopping around at many different dealerships in my immediate area, as well as outside of it. Unfortunately I haven’t been blown away by any numbers but I did receive some today that left me scratching my head. I was hoping that a fresh sets of eyes could help me find what I am missing. This is by no means where this lease will end up, as I don’t want to step into a 42 month lease. Further, I am currently in a 2018 Charger R/T lease that I pay $365/mo and my lease is up on 4/3 so the shopping has commenced.
I am way, way undermileage…COVID and all has kept me working from home. As it stands I am at 21,1XX miles so I certainly should have some equity in it. US Bank has me at a payoff of approx $22,900 and one dealership has offered $25,000 for it. This is not shown on the numbers below, but I have my own spreadsheet that I show it. I also realize that most, if not all are against and down payment but it is shown here anyways.
Now to where I am having an issue. The sale price is $41,151 (about 3.5% off MSRP) which doesn’t seem like a great discount. In any case, should the Gross Cap Cost not be a sum of the fees and sales price? They show $43,351.71 and it should be be $41,713.47 according to my spreadsheet. The salesman said that the first month is included in the inception fee, but that will change based on the correct Gross Cap Cost and even if it is included, that is still only $42,268.47… obviously significantly lower than what they show.
Sorry for the long winded and possibly confusing post. Thanks in advance all.
I’m not sure why you put $22,900 above unless you’re going to personally buy it out, pay the tax on it (I assume PA doesn’t have a grace period), then trade it in Which actually is really not a bad idea considering the experiences many have had with US Bank turn-ins.
Unfortunately I have to plead ignorance here as I assumed I would for all intents and purposes buy it and “sell” it to the dealer for $25,000, essentially giving me equity in it.
First time having this kind of situation come up at the end of a lease.
Ah gotcha. Basically, US Bank is rough for both buyout and end of lease charges for “damages”. Search the forums for more info.
With most captives the buyout price is the same no matter who it goes to, but for US Bank to get that lower buyout price you need to personally buy it out then flip it. Probably in PA you have to immediately pay your sales tax rate on that and THEN you can sell it to the dealer; someone from PA can chime in.
So I got a call from what seems like a decent dealer who was upfront about the situation. He provided me with the different payoff amounts, my personal pay-off, the dealerships if they put me into another vehicle and lease through US Bank and finally a dealer payout if they do not put me into a lease with US Bank.
Me: $22,978
Dealer using US Bank: 23,177
Dealer NOT using US Bank: 27,489
This dealer in particular does not work with US Bank, so I guess my best course of action is to either sell privately or work with a dealer that can get me back into a US Bank lease and I can hopefully get some cash on their end… first time using a non-captive lender at lease end so this is uncharted waters for me.
In any case, am I missing something with the Gross Cap Cost above? I just can’t figure out where they are getting the 43,351.71 from.
If you have the cash, you could buy out the lease yourself and then sell it to the dealer. You’d be paying sales tax, but I can’t imagine that’d hurt as much as the dealer buyout.
@bob_wiley if you need a list of dealers in PA that use USBank, and possibly have them purchase said vehicle, send me a PM and I can send you all that I know of.
Which actually is really not a bad idea considering the experiences many have had with US Bank turn-ins.