Cal buyout keeps increasing, do I have another option?

Ask the Hackrs
1

I have a Jeep GC with about a year remaining. Last month I got a payoff figure of 35,xxx from Cal, and this month it’s about $1500 higher. I understand that they’re responding to market demand, but shouldn’t I just be able to payoff the car at residual + sum of remaining payments + whatever fees? My residual is about 24k and monthly is 375.

TIA

2

You can buy out the car yourself and then turn around and resell it if you’d like. How much is your personal payoff?

3

My buyout is about $36k
Carvana offered $33,800
Residual is $24k, 12 payments left @ $375

4

That doesn’t make sense. Are you sure that’s your payoff and not the 3rd party pay off?

5

If your getting the payoff quote online, that is most likely the 3rd party payoff number. You would have to call to get your personal payoff number.

6

Usually, the online portals display your payoff, not the 3rd party, but I agree the numbers sound more like the other way around.

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7

I have a Cherokee lease through cal and it’s absolutely correct. My online payoff number is around 28-29k but when I called, they gave me my personal payoff which was close to 21-22. I agree it makes absolutely no sense why they would show the 3rd party number when you click “request payoff quote”

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8

How bizarre

9

Here’s the language that pops up.

“The amount quoted above is ESTIMATED. Lessees and originating dealers should contact our Lease End Team at PurchaseOption@calautomotive.com or call 609.807.3200 Ext 9510 M-F 9am-5pm for a Lease Agreement derived purchase option quote and mailing instructions**”

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10

Yep, this.

11

I guess at least that way they don’t ever have to deal with someone giving their personal payoff to a 3rd party dealer and then be left wondering why it went up so much.

12

I guess! But it’s completely ass backwards.

13

So basically I pay off the car to cal and flip to vroom?

Any tax implication or other pitfalls I’m overlooking?

14

Yes, you’ll need to pay sales tax when you buy it out

15

Am I correct in expecting MY buyout to be approximately residual + sum of remaining payments?

16

No, it’s rv + remaining base payment amount (before rent charge) + any applicable fees and taxes

17

What’s is the “applicable fees” part?

18

You’ll need to look at your lease contract for those. There are often purchase fees, etc.

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19

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20

There will be a whole section that talks about buy outs

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