Would paying off my lease be better than looking around for a new lease? (CA resident)
I have a 2020 Volvo XC50 T5 Momentum 4D leased with this breakdown paying $361/month to Volvo Car Financials.
Lease is ending mid-May, and I have less than 19,000 miles on the car. New lease prices are significantly higher for similar models atm.
Pay-off amount is around $25,300. Unclear if this includes sales tax or not… Considering just paying for it if buyout loan doesn’t net out in any good interest rate. Would likely keep the car for another year before trading it in for a new lease or purchase. Would additionally look into extending the warranty for another year or 2 as well.
Getting about $30-35k trade-in range from KBB. Planning to take it into carmax or the likes for an in-person quote within the next two weeks to get a better idea.
I’m new to buying out a lease, and mathamatically this sounds like a sound approach but would appreciate any advice for the process. Thank you!
It does not include tax. You pay that after you receive the released title and transfer that into your name.
It should have a 4/48k warranty, so if you leased it new then it should have another year of warranty.
If you scroll to the first post in this thread, it links to the thread of car buying services — you can get estimates without leaving home. Keep in mind that you can’t sell this car to anyone until after you buy it yourself, and after you receive the new title in your name you have 10 days to resell it and recover the sales tax paid.
I’m wavering between buying my car at the end of my lease which ends on July 2nd versus turning it in and leasing a new one, or selling it for a profit and then leasing a new car.
I have a 2019 Audi A6 3.0 Premium Plus S Line with driver assistance package. It had an MSRP of $68K and I’m paying $627 a month including tax (Los Angeles, CA) for 7,500 a year with $3K DAS. The lease is with Audi FS.
I currently have about 16,600 miles and the residual is $30,363. I just got an online offer from Car Max for $36,600 and one from Carvana for $34,241.
It is a great car and I don’t mind keeping it. I love the tech, the styling, and the drive. But I don’t want to pay more per month for a new car. My main concern is if I keep it, I will only have one year left on the warranty. Or at least that’s what friends have warned me about.
But considering I can net $4-6K, perhaps the best thing is to flip it and use that money towards a similar car. My dealer said I can get a new A6, but a 2.0, for the same monthly lease price, which doesn’t sound too appealing because it hasn’t changed at all since 2019, but at least I’ll be under a new warranty. It is always nice to have something new and a little different.
I would forget the dealer for a moment, separate the trade, and figure out what a target deal on a new car would be.
Only you, or an Audi/VW dealer can buy your Audi lease for payoff. So you can also
But keep in mind you have to buy it out first to get that payoff/equity.
Once you know what your car is worth, and you have your target deal, then consider approaching dealers. If you are thinking about another Audi, I would not wait - this is the last month for Costco (if you have it), or PenFed/NavyFed also have incentives (you can choose one of the three, they don’t all stack).
Browse the Marketplace to get some ideas. I’m never driving your car, usually when people ask and start getting suggestions, they have reactions and strong preferences.
$25.5k / 36 was an effective $710/mo - you should be able to come up with a short list.
I have a 2018 Honda Civic Sport Touring w/48Kmiles on it. It’s a lease that was extended as I took some time off payments during Covid. I have gotten a buyout price of $20,112 from Carvana. The purchase w/Honda Financial is $12,026. My previous Honda lease had positive equity, and I sold it to Carvana, and they just came and picked it up and cut me a check for $2500. It was a great experience, then I just went and leased a new Honda. Now, I have over 8K in equity, but I do not have 12K in cash to purchase the vehicle from Honda. This seems to be a NO BRAINER, but I am not educated or knowledgeable at all in the car market these days. I’m sure that this has been asked and answered, but how can the loan companies just make a law that I have to buy the leased car out fully? How is that even legal? They’re getting their money from the contract that I signed? A part of me wants to leave Honda (I have always bought/leased Hondas) and go with a different manufacturer. I just had to put new breaks on the Car and fix the AC. New tires of course. All the shit that I like to avoid by leasing. If I were to just go to Honda, show them the equity, the fact that I’ve had 8 Hondas in my adult life, would they even come close to matching Carvana? Any feedback would really help me out.
I’m not certain I follow the question, so if this response isn’t perfectly relevant, a clarification is welcome.
Your lease agreement enumerates your options at lease-end, which include turning in the car (and likely paying a disposition fee) or buying it for the value you agreed to when you signed the lease.
You can also generally buy out a lease early for a price that’s determined using a formula defined by the contract.
Some lease agreements will also allow you to transfer the lease for the remainder of the contractual term to another qualified consumer (not sure about HFS, that’s a general statement).
Which option that’s spelled out in your contract do you believe you aren’t able to exercise?
Thanks for responding. Basically, HFS is not allowing me to do what I did with my previous Honda. Sell the car and collect the equity. Previously, Carvana just called HFS on my behalf and sent them the money to buy the car. Carvana gave me a check when they picked up the car. Now, HFS is not allowing Carvana (and other companies like it) to buy the car from them in the same process that I did previously. My lease agreement reads exactly the same as my previous lease agreement.
I’m not sure if you’re actually trying to help me, or bust my chops? As I said, it’s the same exact document that I signed years before, when I sold my car to Carvana. Page 1 has a:
Purchase Option at end of Lease Term: $14,981
I guess in response to your comment, what business is it of theirs what I do with the vehicle if I decide to use this Purchase Option?
Yes you did. These new “rules” have come out much later than 2018. As previously mentioned, my current paperwork is exactly the same as my previous paperwork. Moreover, this site, I thought was to help people, not help TBTF, as the banking system has shown a pattern of failure over the past twenty plus years.
According to you, I should let HFS take my equity, because they fucked up? TBTF
