I got a new lease last week and I was surprised that Toyota went with Ally Financial. I was looking at the numbers for the buy out and I noticed there was no sales tax. I’m based in California. If I were to buy it out, would I need to pay sales tax and who would it go to? Ally said they don’t need sales tax to buy out.
Toyota did not go with Ally Financial. The dealership went with an Ally Financial program.
If Ally doesn’t collect the taxes, you will be pay it to the DMV when you go register it in your name.
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When you go to DMV to apply for your new title, they collect it there.
The way a lease works is a leasing company buys the car from a dealer, which then leases it to you. The dealer can sell it to any leasing company the want. Ally, US Bank, Chase, and others. Or they can sell it to the in house finance arm of the manufacturer. But it’s really the dealer’s sale.
As a customer if you know Ally has a better deal going than US Bank, you can tell the dealer, I want to use Ally. The dealer may or may not agree to it. Not all dealers work with all leasing companies.
But really Toyota itself, has no say in it.
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Thanks all. This is helpful information.
What’s the vehicle? Why didn’t you buy it from the start if that’s your plan? Ally is fine unless you want to sell the vehicle early then it’s a pita. Many times Ally will save you money monthly if you’re just planning to hold the lease to term and return it.
Lately Toyota bank has been better then Ally so not sure why the dealer used them unless maybe your credit wasn’t getting approved with tfs.
Rav4 Prime. I noticed that after 24 payments the residual value is only going down $1000 even with $10k of total lease payments. The sales tax is killer though but I do like the car and I might end up just buying out instead of using that payment for the “rent charge”.
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Yeah they screwed you. Should have been tfs for sure on the prime
I don’t agree, I think it was probably the best rate when he got it. He’s screwed cause it’s Ally, not the dealer screwed him.
Ally is the most painful lease buyout.
I bet you it’s not the best deal even if Toyota was higher monthly…check the residual difference when he buys it out. Rates def higher with ally on it too
Edit I didn’t see he bought 2 years ago. My bad would have to compare it from back then. Thought he meant he did a 24 month lease.
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I’ve only made one 1 payment. I save a lot if I just buy it out. The residual is super high. Of course, there are ally fees like disposition fee and acquisition fee probably around $1k that they get for just taking the loan.
You already signed so not much help we can give you now to be honest
Maybe for a third party.
A lessee like the OP should have no problem.
I don’t really see any issue to tell you the truth. I assume he is talking about the Dealer buyout being a high price.
There is $7500 rebates going with the lease. It’s better to lease and buyout.
I’ve had experiences where people have mailed payoffs and odo statements but Ally wouldn’t release the title due to a misplaced Odo. Just one of my least favorite banks.