Ally Lease extension

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Hi all,

I would appreciate your help with understating what are my best options before my lease ends.
My Alfa Romeo lease in ending this month and I thought to extend it for additional 6 months. I was told by Ally that I need to pay extra ~$30 monthly for sales tax, but shouldn’t sales be part of my current monthly payment? I did zero down when I leased the car.

In addition, when I called my dealer to ask about “selling” the car to them, he told me that I need to first buy the car, pay sales tax, transfer the title and then I can sell them. I thought a dealer can buy directly from Ally, no?

Thanks,
Dor

2 Likes
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You’re in NJ, which is a tax paid up front state, not a monthly tax state. As such, the bank pays it at the beginning and then essentially loans you the amount of taxes, amortized into your payment. When you go to do a lease extension, they just continue your current payment and then add a charge for new tax due that wasn’t originally factored in. Yah, it feels sorta like double dipping, but it’s one of the byproducts of capitalizing taxes and then extending.

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A dealer who is currently signed up to offer Ally leases can.

Not any dealer.

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A dealer can buy it but at Ally’s 3rd party payoff price, not your payoff price.

6 months is generous. They told me 3 months was max. Also, whatever you pay during the extension doesn’t lower the payoff price.

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Thanks for the quick response and for clarifying

6

I talked to the same Alfa dealer that I have my current Ally lease with, so I assumed they have this relationship with Ally. Maybe it just not worth for them…

7

Yes, residual will stay the same. They told me it’s 3 months, but can be extended additional 3 months for Alfa. I guess it depends on the car brand as well.

8

Exact same situation for me. Had a 24 mo lease coming to an end, should have went for 36 I guess. I am seeing the car for sale used for at least 5-8k over what the buyout is but I feel that if I buy it now and want to get rid of it in a year, there will probably be a glut of cars by then and the equity will be history and then some.

Anyway this thread has helped. Not sure 3 or 6 month extension will be long enough for car inventory to recover.

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