Carvana won’t sell vehicles with an accident history on their site. Instead they send all these vehicles directly to wholesale auction. Since they are not able to get the premium margin they usually get on these vehicles, they offer below wholesale to ensure they turn a profit. It has nothing to do with how much damage was done or how much it cost to repair the damage, it’s all about what they are going for wholesale vs retail.
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Just as a heads up to this, the buyout price ended up being $25,051.56, NOT the residual value/purchase option at end of lease term price of $25,844. I’m still curious why the buyout price now is less than what it would be at the end of my lease, but whatever. I had a 2019 Tacoma SR5 4cyl which I paid $4100 (which includes all extra fees/taxes) 1 pay for a 2 year lease in June 2019. A little over a year later, Vroom offered me $24,102, Carvana offered me $29,005, and Carmax offered me $29000 even. Decided to offload it to Carmax since it was local and quick (only took about 45 minutes start to finish)- and ended up getting a check back for $3948 after they paid off Toyota. Definitely super happy - basically got to lease a Tacoma for 12.5 months for only about $150 total.
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That’s great to hear! I just submitted my paperwork to carvana for review on my 2013 BMW 535i. Dealers offering $10.5k max on trade in and Carvana came in at $12.8k. Hope it works out!
How do they assess the damage?
Congratulations! This is definitely crazy.
Long time reader. First time poster.
Needing some help here. I have a lease that I want to sell to Carvana. Payout is $19.5k. Carvana will give me $22.7k. I want to use the overage towards a car on Carvana (to purchase) but Carvana is saying I cannot do that and take advantage of the tax advantage due to never paying full taxes on the lease. Here are the options they gave me:
- Buy the lease then sell to Carvana. Then buy the Carvana car.
- Sell the lease to Carvana. Then buy the Carvana car.
I haven’t read anything like this before on here so wanted to get your opinion and advice.
Trying to get rid of the free Bolt?
This is usually a wash. With option 1 you pay tax on the lease but get a tax credit on the purchase. With option 2 you don’t pay tax on the lease but you pay full tax on the new purchase. I generally just do what’s easier and that’s option #2 where I’m not fronting any money.
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Actually I’m really trying to get rid of my Volt. I just wanted to see what they would pay for a Bolt too. I can’t think of a reason to ditch the Bolt, it’s been great so far.
Thank you very much! I think that is what I am going to do, option 2. Option 1 is definitely adds “risk” because the car I am looking to buy will most likely be gone by then.
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Need some advice here. Had an idea which sounds a bit strange but could work out. Currently have a '19 Civic EX lease, leased Aug 19. I only need a car until August 2021 hence I leased a civic for 3 years thinking I’d have equity or at least break even (did not know of any 24 month leases at the time, silly I know). Now I currently have a payoff of 19900, and carvana offering 20900. Thinking of selling and taking the grand since prices are crazy right now, then going out an leasing a civic sport touring, plan being to do the same thing again and sell the new lease after a year. Bizarre sounding plan but anyone have comments? potential pitfalls? other cars besides a civic that could at lease break even after a year? Love the new Forte GT but not sure if it’d have equity 14 months into a lease.
Why not do that everyday for the next month, then you’ll have enough to buy a new Civic with cash. Then in August 2021, sell the Civic and keep all that money as profit?
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Why would you buy a car from Carvana? Their pricing is insane. I’ve seen plenty of SUVs with 30-40k miles on them selling on Carvana for basically what it costs to buy new.
You’re essentially betting these inflated values will be around in a year and you can exit without negative equity again.
Nobody has crystal balls so if you wanna gamble on not being way upside down, go for it.
Did Chrysler mark up the payoff amount? They did that to me the last time when I had carvana call them
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I think the reason is that in the onepay you made there was rent charge and sales tax are included. Since the bank has not earned the rent charge (and the guvment has not earned the tax) they have to give it back. So, instead of giving you a payoff equal to your residual and cutting you a check, they just give you a net payoff.
That’s my theory. FWIW.
how fast did they pay toyota? I sold my QX60 on monday and still waiting on them to pay the credit union.
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try carmax if you get a chance, some of us have been lucky with them
FYI, tried to sell my US Bank Lease to Carvanna, and after many hours of dealing with both, they are not able to move forward with purchasing it as US Bank’s policy is to not allow third parties (even dealers like Carvana) to purchase their leased vehicles. I have sold many other leases from other lenders to third parties in the past.
Do not trust any dealer who tells you otherwise when they are selling you a vehicle with US Bank.
US Bank is the worst.
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As of now it is not technically paid off. The Carmax dude explained that they have to send Toyota a check, along with the DMV transfer paper and odometer statement via mail, Toyota has to cash it, and then after that they will send the title to Carfax and it will be theirs. From reading on other threads, it looks like this process takes a week or two, at which point when it does finish - then on my Toyota Financial account page for the Tacoma it will officially be marked as “closed”. I just did the Carmax deal on Tuesday, if I remember I will come back and update when my TFS page marks the account as closed on my side.
Thanks. I’ll also try to update when it’s done.