Hi everyone, I have a couple questions – thanks in advance for any insights!
I’m coming off of a Silverado lease with GM Financial. With the crazy market for used vehicles, I have a good bit of positive equity in the vehicle. I know GM Financial has stopped lease buyouts except to the lessee, so am wondering about buying out my lease then quickly selling the vehicle to a dealer after I have possession (I’ve recently started a 50 mile commute and would like to downsize to something more fuel efficient).
First, I wondered if there are any tax or other implications that folks are aware of that I might not be thinking about related to the quick purchase and sale (I’m in Indiana).
Second, I have the cash on hand to buy out the lease, but with current low auto rates I likely would finance the new vehicle because I’d prefer to invest the cash. In light of this, would it make sense to pay cash for the lease and then put the cash back in the bank when the dealer pays me for the truck? Or are there tax or fee implications I’m not thinking about?
Thanks, again, for any advice. Somehow something that seems like it should be super simple has me going in circles…
You’re paying sales tax on the buy out either way.
If you’re just buying it out to resell, I don’t see any reason to finance it if you don’t have to. It’ll expedite the process without having a finance company involved.
Is there no GM dealer that gets close to 3rd party offers in your 2-3hr driving distance? I’m guessing tax and registration will cost you at least $2-3k.
Yeah there no point of financing it if you want to sell it immediately.
Keep in mind the time it takes to receive title. I’m in Florida and bought out my lease to sell it to carvana. It’s supposed to take about 1 month to process and receive it. Meanwhile carvana won’t guarantee the same offer price for a whole month so I’m hoping the offer doesn’t change much by the time I have title in hand.
Also if you need to go to a dealership to do the early buyout like I had to do in Florida, call a few dealerships in your area and make sure that they’re not charging you more than the payoff you have to make to GM Financial. In my case I called a few dealers who wanted to charge me dealer fee + doc fees AND they didn’t include a rebate from GMF so I would have to pay about 3k. Annoyed, I called the same dealer I bought the car from originally which is about 1 hour drive away and they were awesome, didn’t charge me an extra dime - just sales tax and a tag transfer fee. Hope this helps.
