Help! Ending lease- looking to buy it out and sell to either 3rd party or dealer

Ask the Hackrs
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I live in Virginia and have a 2019 jeep cherokee, 34,000 with the lease ending next month with Ally Bank. It looks like from the rates I’m getting from carvana etc. I could potentially make a couple thousand by buying the car and selling it back. Does anyone have any advice on this? Should I go back to my original dealer or is a 3rd party ( carvana/vroom ect) better? I know VA has weird tax laws where if I go to where I got the car I wont have to repay taxes but they might make me pay other things? Does anyone know what percent the taxes are based off? Thank you so much in advance!

2

couple of thousand? Go to the dealer and see if they will match it.

It will cost you a couple of thousand to buy it out, get the title, get a NEW price, and get your money.

3

I heard a weird thing from my dealer: they are not allowed to charge any fees for buyouts in VA (maybe this is a Volvo thing and not the state). So, he said there are no fees/taxes if I go through him. You can probably also buy directly from Ally and show the proof of paid taxes on your lease to DMV. I don’t think Ally allows 3rd party buyouts (carvana, etc), but you don’t pay tax if you sell to them anyway.

4

Something interesting I found buried in VA’s lease terms regarding tax

  • Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee’s name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again. The lessee must present proof that the payment was made. Additionally, the vehicle must be either acquired directly from the lessor or from the selling dealer who leased the vehicle to the lessee initially. Purchases made through another dealer will disqualify the lessee from receiving the exemption from Motor Vehicle Sales and Use Tax (MVSUT). The title must include an individual named on the lease. The lease must be to a person or persons, and it shall not include any commercial entity as a lessee.

So your dealer might be forced.

5

Well, I knew there was no tax charged again. But this part is interesting:

The lease must be to a person or persons, and it shall not include any commercial entity as a lessee.

So if one has a business lease, then the tax is due again, even when the same entity buys the lease out? That really sucks.

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