Residual Value vs. Payoff on Volvo

Ask the Hackrs
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1

So I currently have a 2017 XC60 with 3 months left (lease expires Dec 19, 2020).

I have 3 payments left of $477.72 or $1,910.88 in total

Turn in fee is $350

Currently My Payoff Amount is $27,985.18

However my residual value per my lease is $24,072.

The difference of Payoff and residual is $3,913.18

If i take the remainder of payments plus the turn in fee(not sure if needed but lets be conservative) I get $2,260.88

So basically there is a spread between these two amounts of $1,650

Does Volvo Financial just get payoff to residual in the final month or am I thinking about this wrong?

I ask the question as I’m way under on miles (at 13K right now vs. 30k allowed) and would love to try and cash in some equity on this car with the used car market the way it is as I just dont need two cars right now.

2

Your payoff may include sales tax

2 Likes
3

Your payoff probably includes sales tax, which is why it isn’t adding up to your numbers.

1 Like
4

But if I sold to a dealership/carvana/etc they don’t pay sales tax right?

If so is there away to get that payoff?

5

Ask how much tax is in your payoff, ask if dealer payoff would be same as yours but without the tax