Early buyout question

Hey gang,

I have a 2018 Dodge Charger Daytona 392 on a 36/10 lease. I have 14 payments left and currently the car has exactly 8900 miles.

I’m interested in ending the lease early either by trading it in or doing a third-party sale. I’m of the belief that the car is worth a little more than the buy out or the dealer buyout so I should be in a positive equity situation. Mainly due to the low miles and the fact that car is in really immaculate condition…I just don’t drive very much.

I’ve been to a couple dealerships looking at other vehicles and they have confirmed what they’re willing to give me in trade value is more than the dealer buy out so I know the surplus would be applied towards any vehicle I’d be purchasing… No issue there.

My question is if I sell it to a third-party I don’t think Chrysler Capital will sell it directly To a third-party person so I just want to make sure I understand the process… If someone is willing to buy it I assume they give me the certified funds then I send those to the lease holder in this case Chrysler Capital… They said it takes about two weeks to get the title back to me then I would sign that over to the buyer correct?

Are there any other fees that the buyer would have after I sign over the lease to him… I want to try to be as transparent as I can to him… I’m a little new to Florida so I’m not exactly sure how the taxes or registration would be when he goes to register the car that he just purchased from me.

Thanks in advance

IT

I’d be surprised if you actually had equity in it. Best option is to start by getting your buy out number from chrysler so you know where you’re actually at.

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I have it from CC in writing. $33,750 is my buyout and dealer buyout is less $1,912 (dealer doesn’t pay sales tax) so roughly $31,837. I have it listed for about $37k currently. Sticker was $51k.

Have you gotten a purchase quote from carvana or anything?

Keep in mind if you sell it private party that, depending on state, you may have to pay sales tax when you buy it out, cutting into that margin. I believe Chrysler buy out for dealers is different, but not because of sales tax. You’ll need to verify if the buy out number they provided you includes tax or not.

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Yes sir…I looked at Carvana and also Carmax. Carmax offered $33k - Carvana was slightly lower Which is understandable because they just didn’t see it in person. Two dealers offered 33,500 and 34,000 as trade value.

I have it listed at $36,800 now and I do realize that I have to pay sales tax so I’m someone expecting that the most likely scenario is to trade it in.

The breakdown from CC is as follows:

Current Purchase price: $31,035.23
Purchase option fee: $350
Unpaid monthly payments (due in 10 days): $452.72
Sales tax: $1,911.12

Total: $33,750.06

I spoke with Chrysler capital a couple of times and both times they told me that the dealer would not have to pay the sales tax so when we back that out of the equation the dealer payoff comes to around $31,837.95.

Both dealers that looked at the vehicle on the trade we’re about the same appraised value but ultimately I just wasn’t 100% sold on the car I was purchasing so I backed away without signing but I feel pretty confident that I’ll get between 33k and 34,000 as a trade.

The sales tax is the kicker here. You might be able to get more via private party but you are already $2k in the hole due to the sales tax. As far as the paperwork and hassle, trading it in should be smoother, but you will need to determine how much your time is worth.

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