Lease Buyout 2022 RX350

Ask the Hackrs Buy/Finance
1

My lease is ending in a month [Virignia]. Buyout is $30445.

  1. LFS suggests contact dealer for buying it. If I go through dealer they will add service fee (most likely]. Can I buy from LFS directly. I will pay cash.
  2. I have 7K+ equity [based on offer from Caravan], If I sale it to them, what happens to MSD? I have about 7K in MSD.
  3. LS tells me I might need to pay sales tax again? I already paid it hen signing up for lease on MSRP. its my understanding that I should not be. Any advice?

Thanks!

2

You can.

depends if ur buyout ur basing on includes MSDs in the price.

LS is cookie cutter, only TX/MD/VA require sales tax on entire selling at inception so they may not be familiar.

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3

Or $0 if the payoff is applying your MSD. Better make sure.

4

Thanks! How would Carvana know I have MSD on lease? Wouldn’t that be very personal info with LFS. it never asks questions about it. It seems selling car has risk involved wrt MSD.

5

Thanks! Spoke to LFS, they will send me forms and I just need to write the cheque.

6

That means your buyout includes MSDs applied and deducted from your amount due.

They are not refunding your MSD, correct?

If that’s the case, you have no equity in the car. Any “equity” you’ll receive is negated/offset by the MSDs you don’t get back.

7

@max_g isn’t referring to Carvana knowing about your MSD’s. Many times when you request a payoff quote from LFS, you need to verify whether they are applying your MSD’s to the payoff or if the number shown does not include MSD’s.

If it included $7000 worth of MSD’s thereby lowering your payoff, your equity would zero. If it did not include the $7000, then you may have equity.

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8

Thanks for clarifying. I will need to check my contract residual value. Will call LFS tomorrow. Residual value on contract is $30455

9

I am not clear on it. MSD talk never came up [I forgot and assume its refundable deposit so will be sent back]. Buyout will be residual value on form [$30445] correct. that should generally never include MSD? Anyway, I will call LFS tomororrow.

10

That’s your best bet.

Most lenders usually include it in buyouts. Good luck

11

Update: I was told MSD is not included in Buyout.

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