I live in NJ & am looking to get out of my Alfa Stelvio lease through Ally & get into an EV, either Hyundai Ioniq5 or Mustang Mach E. The Alfa has some equity. The buyout is $31,148 + $2063 tax = $33211.
CARVANA offered $35391
DRIVEWAY offered $36805
VROOM offered $34168
I plan to trade the Alfa in towards the new EV.
One dealer I went to, in NY, said no problem they will take the Alfa & they took my Ally acct info & called for buyout info. Another dealer I spoke with, in PA, said Ally will not sell it to them at that price & I would have to buy it & then sell to them but I figured then I have to pay taxes $2063 to Ally.
Are all dealers, no matter the state going to make me buy the car 1st?
I thought I read somewhere, maybe only in CA, that if you buy out your lease & then trade it or sell it right away within a certain time period you don’t need to pay tax? Is this right?
If I have to come up with $33211 to buy myself, is it worth the risk that I will in fact get one of the offers to go through & come out ahead or not worth the risk?
AFAIK the only way to sell an Ally lease to a 3rd party dealer is to get the dealer payoff which will be way inflated over your personal payoff and most likely eat away any equity you have.
So when the first dealer said they were getting the payoff, that’s what they meant.
As to whether its worth the risk of buying it yourself and then selling, really a personal decision, but $3600 is a decent chunk of equity. Even if the offers come down slightly you’re still talking $2k or $2,500 which is enough to justify it, IMO.
So I see online at Allys site they have a dealer network & yes the Hyundai dealer I visited in NY is on that list - does that mean one of those dealers can facilitate me trading in the lease, getting some equity, & me not havig to personally pay off the car 1st? They would be able to get a payoff amount similar to mine vs the inflated # they give other dealers?
I had not had any luck finding a Ford dealer that both had a car I wanted & also would do the Ally buyout. I have found a good deal on the car I want & also have offer from RODO to buy the Alfa, pay off Ally & cut me check for the Alfa equity. I mentioned to Rodo that many places I checked with said they wouldnt do it because they wouldnt get the same good buyout from Ally that I get & they said they work with Ally often & its no problem. Im a bit nervous to hand over my Alfa to Rodo & worry about them actually paying off Ally for the Alfa. How do I guarantee this works out? Anyone done this before? Any tips or advice?
Did this work out for you? please update.
I have an alfa and want to know how to make this work.
I thought the payoff (or dealer payoff) was the same as residual value. So, if one needs to buyout the car they leased, the dealer can markup the price for sale at lease end? I just don’t know how this all works. I have an alfa that is coming to an end and I may have some 4-5k equity it seems, but I want to avoid buying and paying tax and selling. Please guide.
my post here, if that helps in any way.
I didnt do anything yet because the car we are buying wont be in for months. Here is what I found. I spoke to probably 10 dealers & I think 3 could work with Ally either them or their used car wholesaler said they could give me check for the equity & take the Alfa & pay off Ally without me having to buyout the car. Hope that helps.
Gotta go to the DMV , pay the Sales Tax (Does NJ have any?) and wait about a month for the new title.
Take the new title to the buyer and poof you are done.
Be glad you aren’t in NY where titles are taking 2 or more months.
PS : you are doing to ask this next (cause everyone does), No you can’t take a released title straight to Carmax or others, you need to take a title fully in your name.
Did you ask Ally specifically about the sales tax charge and who pays it? Reason I ask is my buyout from Ally to the dealer states dealer may not charge doc fees and other bullshit but it may add applicable government fees and taxes.
