I am considering to sell a leased Toyota to a Toyota dealer and wanted to make sure I am not missing anything. Will there be any extra fees/components if the dealer is requesting the lease buyout or will it be just the following:
(+) Purchase price
(+) Dealer fees
(+) Acquisition fee
(-) Down payment
(-) Monthly lease payments made to date excluding the interest paid and sales tax
No. Your buy out decreases only by the depreciation portion of your payment.
Yes, let me correct that in my OP.
If you sell it, its the same or less than current payoff. Go online to request your payoff and prevent the dealer from stealing the equity
You can get your TFS payoff online. Go to âLease End Optionsâ and then âPurchase Your Vehicleâ.
âSay it aint so Joe!â
Thanks but I am trying to understand what payoff number that a Toyota dealer would see as opposed to the number I would see as the lessee.
A Toyota lease at a Toyota dealer could have a diff payoff for them vs you? I dont think thats possible with even the most restrictive leasing companies?
Unless they are yanking your chain (see @forbs above), shouldnt the only diff be tax?
Recently sold my TFS lease to Carmax and the payoff was just RV.
Iâm not aware Toyota dealers are offered a lower price than RV, esp since TFS is one of the companies that allows any 3rd party buyouts. When I received offers on my Tacoma, Toyota dealers werenât the highest nor did they follow up all that much indicating to me at least, that itâs prob the same price.
@jeisensc - correct, all payments were made and vehicle sold within 5 days of the end of the lease. TFS received their check in the 10 day grace period. OP, the number in your TFS portal should be accurate or call them to confirm.
Theyâll see the number you see.
You must have made all the payments. If not, then payoff isnât residual.
This is for a car I have not yet leased so I donât have an online account to view the payoff amount at the moment. I am just trying to understand when a Toyota dealer buys a leased car from a customer shortly after its inception, the payoff amount would not be driven up by fees (other than the acquisition fee) or taxesâŚ
Hypotheticals are just thatâŚpossibilities.
Toyota can change the rules when they feel like so âplanning aheadâ like that isnât really going to give you enough info.
Hereâs a good rule
All other banks follow the similar rules but those 4 up there make early trade ins extremely difficult.
Iâm not a TFS expert but your payoff would be the cap cost plus a bit of interest from signing to payoff
plus maybe a lease end fee, possibly $395ish depending upon what the contract is. You will have to read the fine print on the lease regarding charges on flipping. I havenât leased a vehicle in the covid era but the language has changed due to the increased equity in them and limiting who can buyout/terminate the lease early.
I believe dealers do not have to pay the sales tax portion of your lease payoff amount. So it will show less amount on their end for them to buy it out.
What the lessee pays to buy out the car is what the balance is shown on their monthly statement or online account. On my Acura for instance the buyout shown on my account directly through AFS has sales tax included. I only pay that amount to purchase plus any dmv fees to transfer title once i receive it.
So if lessee buys it they have to pay sales tax in their state. Acura AFS does not charge any fees to buy lease out. They have been excellent in customer service on my lease extentions and questions on buyout actually.
If you buy it out from dealership you still have to pay tax on total but they keep the equity/difference when paying off the lease from lease finance minus sales tax and they also may have made up dealer fees to âprocess the buyoutâ for you. They will also try to sell you extended warranty at same time.
My Acura called me to âhelpâ me with my buy out, though i already knew my numbers and my equity, he came to with 2000 more than my buyout on my account. And tried to add in a"great deal" on an extended warranty. I was like yeah ill think about that lol.
Better to pay out yourself to lease finance directly.
If your car is worth more than buyout you can always flip for the difference too and keep the equity.
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