I sold a US Bank leased RAM 1500 to Vroom with 12 months left on my lease. No problems.
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Wow, when was this? Can you please describe what steps you went through, especially in terms of getting the payoff from USB/to Carvana, and how it all went?
This was in May 2019 so something may have changed. I called USB and had them fax the payoff to Vroom and Vroom handled the rest. I dont think I mentioned it was Vroom. I just said that I was selling to a dealer and here is the dealer’s fax number.
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Same here. I’ve sold two leased cars through us bank to vroom. Was simple. Not sure why people are saying not possible.
There needs to be some kind of sticky thread that lists all the banks/dealers that don’t allow lease buyout.
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Back in November I had that issue with a us bank lease. With 6 months left on a lease I received a very good offer from vroom to buy my ram truck. Us bank lease refused to work with vroom but did say they would work with a legitimate car dealer. So in working with a Toyota dealer on a trade when the dealer called for the payoff, us bank did give them a payoff but told them the payoff was $5000 more if they didn’t use us bank on my new lease. Unbelievable. The lease contract clearly spelled out the cost if you wanted out of the lease early but they seem to be able to arbitrarily use any number they choose and restrict who you do business with.
The lease contract clearly spelled out the cost to sell the vehicle to YOU.
Neither Carvana nor the Toyota dealer is a party to your current lease agreement. That’s a contract exclusively between you and US Bank.
If US Bank wants to decline to sell the car to anyone else in the universe, that’s their right, just like they could light the car on fire after you turn it in. It is their property.
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Correct, just like the contracts from many other leasing companies I’ve used in the past. US Bank was the only one that I’ve used that has refused to provide a pay-off to a third party, and certainly the only one that has quoted pay-offs significantly higher to a dealer if they didn’t use them again for the new lease. What’s allowed by contract and what’s fair and ethical are two different things. Is there anything that can be done? Yes, refuse to use them again in the future, and let others know what your experience has been.
There are many leasing companies that have a higher buy out for third parties and/or won’t allow third party buy outs.
Frankly, I’m surprised anyone allows for third party buy outs at lower than market price.
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It’s neither fair nor ethical to flame another party for not honoring contract terms that only exist in your head.
Out of curiosity, what do you think is unethical about a company not allowing you to sell their asset for your profit?
I certainly get liking to be able to capture equity and voting with your wallet here to be sure to utilize a bank that allows this is totally reasonable, but there’s nothing unfair or unethical about this. One could probably the opposite, that the banks that do allow this when not spelled out in their contract on not living up to their fiduciary responsibilities to their shareholders, and that is what’s actually unethical.
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