Not a new post but hopefully new questions. Like others, I ran into the unfortunate situation of thinking I could trade in a car I leased through Ally because I have equity, just to find out the dealer payoff is 13k higher than the lessee payoff. I also learned the Lessee payoff does not include tax and fees.
This is a Ram 21 Lonestar and I was trading for a Jeep, so not going to another dealer or private party.
My questions:
1.) I leased the car in Texas, but now live in Oregon where there is no sales tax. If I was to buy it outright to then trade, would I get hit with Taxes?
2.) On another post someone said Georgia, and maybe other states, have a law where the lessee payoff and the dealer payoff is the same. Anyone know of this?
3.) Also on another post, someone said at lease end once payments or made, or sometime toward the end of the lease, the payoffs could be the same. I called and they said it’s never the same but would still like confirmation.
Sounds like there is limited or no options here, but would love to hear if anyone has details around the above ideas others had posted.
If you buy out the lease, you are subject to the taxes of where you live. If oregon has no tax on vehicle purchases, then you dont pay any tax. I thought i recalled them having some other tax/reg fee that made up for the no sales tax thing, but i don’t recall the specifics.
Youre not going to get around ally’s third party payoff amount.
You may be able to find an ally affiliated dealer that can buy it for closer to your pay off, ad they wouldnt be a 3rd party dealer.
This is helpful, thanks. I would be buying the truck here in Oregon, but selling in California, which means I might avoid the priviledge tax I think? But I would then pay the use tax when getting a new car? half a percent of market value for each.
I posted the other day about trying to tradein my Ram leased through Ally for a Jeep but ultimately ran into the lessee and dealer payoffs being about 13k off. Most suggested buying outright and trading was my only option. I even read that some states (Georgia) have law where payoffs must be the same, or that once you are x number of months out the payoffs become the same. I have one dealer that says that as a volume dealer they might be able to buy for 1k over but I’m awaiting confirmation.
The reason for this post is I had one offer that seems crazy that I had not read about at all. I have a dealership willing to write a check to me for my trade, then go to the bank with me, watch me get a cashiers check to Ally for the payoff amount, watch me send it, take possession of my car, and then have me return to them with the title. Unclear if I only get the check for my payoff and then get the equity check if I return with the title, or I get the check for full trade amount up front.
Has anyone heard of this being done? It kinda makes sense if you are a dealer trying to get around Ally 3rd party buyout restrictions. I am also covered since I get the check upfront? Is there risk I am missing?
