Thought I would share my experience with my Ally Lease Buyout. 2018 - 2 year old Alfa Stevio Quad.
My Buyout: $47,000 with tax
Dealer Buyout: $62,000 (Yup)
Estimated Resale Value: $56,000
So I sent Ally a check for $47,000 on 6/21. Ally processed on 6/26. Emailed me the buyout papers via Docusign 6/29. Received the Bill of Sale, Odometer statement, sales tax via email on 7/2. Received Lien Release on 7/9. Receiving signed over title this week.
HOWEVER, another snag. I need to go to NYS DMV, submit all my paperwork and wait a minimum of 4-6 weeks to get Title in my name. In fact, they said donāt call before 90 days.
Hope this helps anyone looking to do an Ally Lease Buyout. Figure 2-3 months minimum before you can actually sell the car on your own. Unless I missed something?
Ouch. I am going to PM you someone in their āRemarketing Deptā that is very responsive and handles the lease buyouts. She usually responds to me within an hour. Iāll also send you the phone # to the buyout dept.
Hopefully everyone remembers which lenders are pulling this BS on their customers.
I get that Vroom, Caravan & the other 3rd party buyers may be complicating things a little for the Finance Companies. Unfortunately these finance companies are basically trying to eliminate any competition for the dealer/manufacturer you bought the vehicle from. Leased a GM, Etc & unless you buy/lease another GM we are going to gouge you on the buy out of your currently leased vehicle. There is a huge problem with this business practice as where does it end.
They set the terms of these leases & now they want retail value from the dealer when you trade in your leased vehicle. These same finance companies didnāt care a bit about you 1 yr ago when your lease buyout was more than the vehicle was worth. They didnāt accept the current value as a buy out then did they?
I understand the argument that you donāt own the vehicle so you are at the mercy of the Finance Company. The problem is maybe you put a bunch of money down which is Ill-advised but does happen or you drove few miles during the pandemic. Your actions directly contributed to the increased retail value of the vehicle at that moment in time and you should be able to benefit from them.
You can. All you have to do is buy out your lease, in accordance with the terms set in the contract when you signed it, and you can pocket all the equity you want.
I know you are new, because the answer to this is [Practically all of them now.]
Almost all (well after 8/1 TFS joins this), are forcing people to buy the car and get out of direct selling of their property
Yeah, at first it feels wrong but thatās one of the reasons I always lease so I donāt have resale risk. There were years that finance companies got crushed on residuals so only fair that they get the profit for taking the risk when times are good. Also, if I had an accident the finance company takes the hit on resale value not the consumer. Canāt have if both ways.
You are reading the implied law wrong. Itās not that it says you canāt sell to a 3rd party, itās implied that you cannot sell their property and make a profit off it. But people were doing it, and they allowed it. Since they āallowed itā, itās hard to stop, so they are making it so horrible to do, that no one will do it.
You can buy it for that low price because itās written in the document and is legally binding, but selling to a 3rd party is implied to not be allowed, but they were allowing it. Thatās like renting a car from Enterprise, selling it to Vroom and giving the car value to Enterprise. It doesnāt work that way and Enterprise can legally go after you and Vroom. Leases are the same way. But sometimes are allowing these sales to go through.
There isnāt an obligation to sell to a third party. All of my leases have a clause in them that essentially say āif we come to an agreement that weāre both satisfied with, we can mutually agree to terminate the leaseā.
Selling to a 3rd party was previously mutually agreeable.
My point is more to the fact that this now enforced buyout clause can be used to coerce people to only shop at those places the Finance Company has business relationships with. That is if they want more than a break even deal on their trade.
Most will not go through the process to buy out their lease then start over.
So I read it as 'implied you cannot sell it to a 3rd party directly.
Now we can ābend itā to say we purchasing it then selling it immediately, but then Taxes get involved.
But I donāt see how āYouā can be applied to Vroom or Carvana.
What Iām saying is that a 3rd party sale that has occurred would likely fall under the terms of mutually ending the contract rather than being them ignoring the rules laid out in the lease return section.
