Hello!
When i called up to ask my buyout with my dealership, i was told it is around $21,331 + 6.25% sales tax. I put my car up on vroom and gave them the details, they came back with the price at $26,103. I decided to go forward with it and the document submission etc and now i get a mail from vroom saying i am in negative equity of 3k and along with the esign.
Am i missing something?
I asked them the calculation on how they arrived at that number and yet to hear back.
what kind of car is this?
And who’s the Bank/lessor? Plays a huge factor…
Alfa Romeo.
Ally Financial. Apparently when vroom guys reached out, they gave the quote to be 28k.
Third-party buy outs with some banks aren’t the same. The number they gave you originally was the buy out if you purchased it, not if the dealer purchased it.
Can i do this?
Take a loan from a bank to purchase the car, then sell it to vroom, instead of vroom directly paying it? That way i wouldnt have to pay 7k more and will be in a profit and title will be on my name.
If you want to take a loan and buy the car, you pay tax in most states.
Then you sell to vroom.
Yup. You could buy it out at your pay off amount (plus sales tax) and then sell it to vroom.
I wonder if there’s any way around the 2nd tax cycle on the buy out considering in texas, one pay sales tax on the entire selling price up front.
Tax is only 1300 or so, OP would still be way ahead taking a loan and buying it.
Ally has 3 different payoffs.
Dealer-Lessor
Lessor-Return
Dealer-Return
I am pretty sure I went over this before.
Ok so here are my thoughts.
Buy the car out for 23k (including tax etc.), Sell it to vroom for 26k and pay off the loan/ask vroom to pay the loan which will result in a 2k profit.
Is it worth the pain?
Not worth going thru headaches
The car is sold already, right? Maybe I misread the post.
It’s not the pain/effort that would bother me, it’s the risk of the vroom offer changing by the time you go through the whole process.
Ah. It not. I still have the car. I still am yet to sign the docs with vroom for selling it but the negative equity shocked me. I learnt something new today.
This makes sense. Guess i gotta keep the car for another year till May 2022. No new car for prego wife.
No he wants to sell his current Alfa to get something for the wife.
The thing is you’re floating a 5 figure Alfa Romeo, and if you’re stuck with it… you’re stuck with it.
Depends on the state. In Michigan you have 14 days IIRC to flip it without paying sales tax.