Getting out of lease early with Carvana, etc

Ask the Hackrs
,
1

Hey hackers, just a real quick clarifying question. I’ve been toying around the idea of getting out of my lease with Hyundai early, so I have been watching my car’s current value against my current payoff and the offers from Carvana, Vroom, etc… I think I understand some of this, but one thing I have a question on…and forgive my ignorance here.

So, currently there is a $570 difference between what my current lease payoff is and what Carvana offered for my car ($570 in the hole). So what I need help understanding is, let’s say I did this… is $570 literally all I would owe? Or would I still need to also pay various lease-end fees/expenses, what have you? Because I’m looking at it as that’s not too bad of an amount in the hole…but if I also have to add in a whole bunch of other costs, well then forget it and I’d wait. Just looking for some more understanding of this process. Thanks all!

2

Check your contract if there are any lease end fees. More than likely there will be a lease-end disposition fee at a minimum.

3

If Carvana etc buys the car, there shouldn’t be any fees. You just need to cover the $570. I think some banks might charge something when you buy out but I don’t think any of the captives do(no disposition because it’s not going back to the captive, dealer is buying it)

1 Like
4

Will there be any sales tax consideration since you will be buying the car and then selling it to Carvana/ Vroom?

5

No because a dealer is buying it

1 Like
6

Verify with Hyundai if your payoff is for a personal buy out and includes taxes or a dealer buy out and does not.

3 Likes
7

I believe the payoff took into account a dealer buyout, because I got the payoff amount from CarMax when they contacted Hyundai. I went to them for an offer back in August when I was curious then…so I’ve just been taking that amount and subtracting my monthly payment from it each month.

8

Go on your Hyundai lease account and check the buyout section. You have options to choose which buyout price you want shown. All the options equaled the same dollar amount for me however, which included taxes, even for the dealer option.

9

Unfortunately I can’t do anything like that with Hyundai. They make the process extremely difficult and refuse to give me my own payoff. The only way for them to give the payoff amount is for a dealership to contact them and request it.

10

Thats very odd, because I called to get a breakdown of my lease payoff amount and they gave it to me by the penny; residual, taxes, remaining payments. I assume this is also HMFUSA?

11

Correct. I called myself multiple times. Spoke with multiple reps, and all told me they could not give me that number and it can only be requested by a dealership.

12

Hyundai will only show one buy out amount and give this note:

" *Buyout Information

The buyout amount shown may include sales tax*, any past due amounts you owe and any other amounts as set forth in your finance agreement. Buyout amount is subject to increase if a payment due date is missed and no payment has been received.

As part of a like-kind exchange program, HLTT has engaged HCA Exchange, Inc., as a qualified intermediary. You are hereby notified that, pursuant to an agreement between HLTT and HCA Exchange, Inc., HLTT has assigned to HCA Exchange, Inc., its rights (but not its obligations) under this sale agreement.

*sales tax is collected by HCA in the states of AZ, CA, CT, ID, KS, ME, MI, MS, NV, NJ, NY, OH, TN, UT, WA & WI. In all other states taxes are collected by the state typically at the time of registration. Please call us for detailed information regarding sales tax remittance on your individual buyout situation."

If you live in one of those states, you can pretty reasonably estimate your amount by simply taking the buyout quote and backing out sales tax.

For example, my current buyout value on my hyundai lease is $40,943.78

My sales tax rate is 9.5%

My pre-tax buyout, therefore, should be 40943.78/1.095=$37391

Obviously, you’ll want to verify this amount before actually selling the vehicle, but should give you a good idea.

13

So the payoff that CarMax gave me could not be correct? When they gave me all the info they stated that number was my “current dealer payoff”

14

If they got the number from hyundai, I would expect it to the be correct and be the after-tax payoff. When they gave you that number, did you compare it to what Hyundai said on your account? The paragraph I posted above is the disclaimer that hyundai puts on the buyout shown on your account.

As a related anecdote, years ago, I purchased a RR Evoque from @ethanrs 's dealership (unrelated to him being on here as I had no idea this place existed) and traded in a hyundai azera that I was leasing. I had got the buyoff quote from hyundai and based the deal on that number. When all was said and done, a check showed up in the mail from the dealership for about $2k, which was the difference in sales tax between my personal buyout quote and the dealership pre-sales tax dealer quote. I imagine an unscrupulous dealer could have found a way to pocket the difference. I certainly would have been none the wiser.

15

Quick note too, not that it matters that much to my original question, but I’m looking at the option of getting rid of the car early because 1.) I know I’m going to be over-mileage. Its a 36/15 lease and I am currently at 38,800 with 8 months remaining. 2.) It needs new tires (slipping now in just rain) and I’d really love to not invest $600 right before getting rid of the thing. 3.) Overall tired of the driving experience… it’s a 2018 Elantra Sport, so it’s the 1.6 turbo with the DCT. Unfortunately Hyundai just couldn’t really get the whole dual clutch thing right because this transmission is jerky as all hell. Guess I’m just sick of that…but I can wait if I need to.

16

Also, I wanted to ask for some advice in my search. I know I’m a few months out still but I’m wanting to start doing a lot of research and want to share my preferences and see if I’m barking up the wrong tree here…

Looking at doing a 36/15 again. Current payment is $255, but I’m okay going up to $350 since I’d like to “upgrade” a little now. Looking at…

Toyota Camry (XSE 4 cyl)
Acura TLX (4 cyl Tech)
Nissan Maxima (SV or up)
Mazda 6 (GT R)
Kia Optima (SX)

Any of these choices seem obtainable, or am I way off base here? Just want to get good info in my search. Thanks guys & gals.

17

My recent contract for Hyundai indicated $300 fee if I want to buy out a car indicated separately from lease-end $400 turn fee.

18

You are not buying the car. The dealer such as Carvana or Vroom is buying it directly from the lessor.

19

So I am trying to look at my options here and figure out my smartest path… wondering what you all would do in my seat.

I have 7 payments remaining at $255, so $1,785.

It needs tires. Not bald yet, but I’m slipping on just wet pavement.

I know I’m going to be over mileage. Currently have 39,090 with a max of 45,000 and 7 months left. I believe it’s .20 per mile charge.

Carvana offer is around $13,600. Payoff is at $14,170.

Should I wait it out? Start looking at getting rid of it now?

20

Take it now

2 Likes