How much of that went towards depreciation vs to rent charge?
If it’s current buyout price then it includes any and all payment. If it’s the lease end buyout, then it’s really just the RV. Should be pretty easy to tell which it is. If you know what the contract RV is, that’ll clear it up pretty quickly.
1 Like
All the points made before are valid.
It’s a base 2.0T Stinger. It almost makes no sense to buyout at this stage (to me).
I would ride it out until lease end and dump it.
However, you should run the numbers and do the math to see if it makes financial sense (I don’t think it does).
2 Likes
Buyout price is just that - you’re 100% not responsible for the remaining payments (it’d defeat the purpose of an early buyout if you had to make the payments).
I’m little bored, so ran some math… Based on your initial post (when you got the car) and the calculator provided, it appears you’re paying roughly $70/month in rent charge and the remaining ~$250 goes toward depreciation. Since you have ~26 payments remaining, the cost to carry the car till the end is ~$1920. IF you do nothing, between the lease-end buyout ($14,650) and total remaining payments (26*$317 -> 8242), you;re looking at the cost of the car in 2 years to be $22892 (+tax on RV) in today’s $$$.
IF you buy it out now for #20800 + tax - let’s say $21,500. and finance all for 60 months @ i.e. 3%, your new payment will be ~$386. In 26 months, you’ll have ~$12,577 balance, but you’d have paid $10036 in payments and ~$1206 in interest. So, not including the difference in payment, your carrying costs for the next 26 months are lower with the buyout (duh - you’re paying 3% vs MF of 0.00184/4.42%).
Oh, and if you decide to keep the car in 2 years, you’ll have to come up with ~$15K cash or get a loan, which will probably be higher interest since the car will be older.
In the end, it’s still cheaper to buy it out NOW, but not by any significant amount.(~$1000).
If you could get Carvana/Vroom/Carmax/etc… to buy it for about that, it’d mean free car for the past 10 months.
2 Likes
Out of curiosity, have you checked what Carvana/Vroom/SHIFT are offering on the car right now? That would be a good place to start in seeing if the value of the car is above or below your buyout price. If you haven’t, I would do that ASAP.
1 Like
Thank you so much for crunching these numbers. I wasn’t sure where to start. Very helpful.
I haven’t. I’m not looking to unload the car now, but I am seeing the used price is a lot lower than I expected for a 1 year old car. I figured at the 3 year old mark it would have maybe been around $23-24k. As others have stated, it looks like it makes more sense to ride out the lease. Thanks to all those that helped with constructive comments.
So i’m in a slightly similar situation, I leased a 2018 Kia Stinger GT 2 fully loaded in April 2018. Lease end is coming up in a couple months, lease buyout is 28k and im seeing the car valued around 31k-33k. I really like the car and was considering buying it out although Im just a big lease fan and wanted to see what you guys think is best to do. If I decide to lease agian, should I just sell the car myself?
Must likely you will be able to get a profit of 1k by selling it to Carvana/Algo … rather then just returning it.
Remember it’s free to get a quote, you will know for a fact 
1 Like
So I tried this…have an Ally Lease, 36 mo, 375/mo
MSRP 46K
Gross Cap 44964
Rebates 7500
Adj Gross Cap 37464
RV 29871 (66%)
Deprec 7592
Rent Charge 5900
Total pymts 13942
Earlier in the year I got an offer from Algo and Carvana at about $38,300. I tried to get my dealer payoff and I assumed it was my residual + remaining depreciation cost + some fees/charges, but it came back at a number very close to my RV+remaining payments (at that time I was told it was close to 42,000). My 375 payment is roughly 164 rent charge and 211 in depreciation cost.
Am I missing something? I was hoping to cash in on some equity and get rid of the car earlier in the lease to avoid the high rent charge as you mentioned.
The Algo offer has actually improved in the few months that I thought about selling.
Your gross cap was only $1k below MSRP.
1 Like
Even if the adjusted gross cap is 7500 less? The rebates were applied as cap reduction.
Sorry, posted before I had coffee lol.
Payoff should be the net cap minus what has been paid towards depreciation. It’s been discussed a lot on here. $42k makes no sense.
1 Like
Unless they’re just giving a high 3rd party buy out. Does Ally inflate their 3rd party buy outs?
That’s my confusion.
Ally won’t give me anything directly. Earlier did the 3 way phone call with 3rd party buyer and they gave me 42 at the time which was almost exactly equal to RV + remaining payments.
Now according to vrooms offer and neg equity check they want me to write the payoff amount is 40350, which is still higher than my RV and remaining payments.
I assumed from the numbers I was closer to 36k having paid off some of the above depreciation.
I’m wondering.
I tried to have the dealer I got it from get their dealer payoff as I was interested in one of their vehicles and I swear it’s like they’ve never heard of this sort of thing before so they wouldn’t follow my instructions to call ally and get that number.