U.S. Bank "Difference Between Dealer and Leasee Buyout Cost"

Hello,
I leased a 2019 Tundra via U.S. Bank when the deals were nice, now trying to take advantage of equity at the end of term.
My buyout of a 19 Tundra Crew SR-5 4x4 with off-road, convenience pack and spray bed liner with 30,000 miles is $36,412 plus $300 paperwork fee plus tax.
Questions;
-How much less is the dealers buyout than mine (local dealer wants to keep it a secret)?
-Do I get out all fees (disposition and/or $300 administration fee if I sell to dealer)?

Thank you, Bear

  1. Depends on make / model / state / dealers mood / captive banks mood. Might even be more in some cases

  2. Usually, but see #1

Less? Their buy out is likely a good bit more than yours.

US Bank isn’t interested in your selling their property and pocketing the profit.

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Will USB even let you sell it to a dealer?

US Bank won’t let you take advantage of the equity.
They want it for the same reason you do.

They will allow you to sell it to a dealer, but only a franchised new dealer with an existing relationship with US Bank, AND the dealers buyout will be thousands more than your buyout.

A determined friend has spent the last few weeks calling and FAXing US Bank trying to do exactly this on a 2019 Tundra… It can’t be done. You have to buy it, pay all taxes and fees, then sell it to the dealer. You might still profit, but the margin is a lot smaller, and you will spend a lot of time waiting for US Bank.

It is US Bank that has equity in the truck, not the lessee. US Bank wants to exercise that equity when they sell the truck at auction. They only have to sell YOU the truck at Your Payoff, and they are within their rights to charge whatever price they want on a third party buyout.

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Being a broker, I know you have more experience than I do. But, when I sold my Ram lease 2 years ago that was with FCA, the dealer could buy it $750 cheaper than I could.

The dealer bought it from FCA ($750 cheaper than I), did an inspection (which cost me $250) and sold it to the buyer on my behalf (charged him a $299 doc fee) I lined up and the buyer paid me the equity I had in the lease.

Am I correct in understanding, the local Toyota Dealer which does leases via U.S. Bank does not get a lower buyout cost that myself, the leasee?

Sincerely, Bear

That is my question.
Since the dealer can take it on trade and buy it from U.S., why would they not be able to buy it without a purchase from me?
I’m probing for answers here.

Bear

They can, but it isn’t your property, hence US Bank wants the equity not you. The Trade will be the same price BTW.

You mentioned Chrysler Captial, that’s different than US Bank. Though most OEMs have caught on to this game and have started to charging more for Dealers or even outright preventing Dealer ‘sales’.

I’ve gotten several clients out of their usbank leases and into new ones. Some with equity. Not Carvana/vroom equity but equity none the less. Issue is you need to get a new lease through usbank which doesn’t always make sense. It’s def a pita

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I bought a 2020 Tundra from @Jrouleau426 back in December 2020 w/ USBank. Carvana is offering $49,202 and my current payoff with 8 payments left should be around $41,296. Even adding sales tax for buy out I’d only be $44,186 in with about 5k in equity (currently). Does anybody know how fast US Bank can get me the title on a buy-out? lol

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@Jrouleau426 This is exactly what I did. Traded in my Tundra from US Bank on another US Bank lease on a 4Runner. The buyout on the Tundra because I was going to back to US Bank created equity. I also avoided any inspections. Because of that I am in a really good place on the 4Runner and will likely have more room in equity on it vs. the Tundra. You definitely have to do your homework and make sure the dealer is being totally transparent on what is going on. It took some work on learning on my part to figure it all out.

Yes I just did this it took about 12 days total after they received my payoff check

Tricky part was title transfer at dmv

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I am in a similar situation. This is my first lease('18 4Runner Limited), and being through USB it has been a huge pita. My lease is up in July and my buyout is around $31500. We are purchasing a different vehicle, not leasing again. My question is, trade it in(dealer buys it out) or buy it and turn around a sell it myself with used prices being so high. We should have equity looking at used prices right now.

They are quite slow.

I re-started this thread with a few questions and wised up quickly that the only way to make out was to buy the vehicle and resell.
-Sent a payment in on April 16 and am still waiting for title. Here is the dance;
-I sent cashier’s check to a secondary company that U.S. Bank hires to process sales called USB Services-Northstar exchange.
-US. Bank sends me purchase contract and I sign and notice mileage and if I want to transfer or buy new plates.
-I mailed back purchase contract on April 23 and have not heard back yet. I am not sure if WI DMV will send me title or if US. Bank will send me title. Note; U.S. Bank says I will get title directly from U.S. Bank as they physically hold them in Oshkosh, WI (20 miles from my home). Past practice says WI DMV will send me the papers and I will have to deal with their delay too.
-Called U.S. Bank yesterday and they would not provide update and said it can take 6-8 weeks.

Anyway, it is worth the hassle as the equity after taxes is well worth it.
Already sent in payment on my leased 2019 Tundra to buy that too, not as much equity as the Taco but still nice bonus.

Bear

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I just left a Toyota dealership who offered me 42k for my Jeep GC. Us Bank told me my payoff was 38k and when I spoke to them on the phone they said they couldn’t give me the dealer payoff but it would be the same minus taxes. I had Toyota pull the payoff and it was lower around 36k. Visiting another dealer tomorrow who is also interested based on the KBB instant price. I will confirm the dealer payoff with them, but it’s looking like a normal transaction where dealer payoff is actually lower.

Can i ask what the tricky part at the DMV was and what the solve was?

Currently I have a 2020 Tundra leased with US Bank. I’m buying out the lease through my bank who will be the new lien holder - my thinking was I can then sell it quickly, given most people don’t want to deal with US Bank.

Thank you

Getting an apt was the rough part it took a month…luckily the value kept rising so i made out like a bandit

Dealer payoff is what yours is minus the tax. Currently working on selling my Jeep and getting into a Toyota. US bank is letting the dealer buy my car even though, I am not getting another US bank deal from them. I believe many at US bank have no idea what they are talking about. Spoke to few people who where higher ups and they all verified this info. Plus my dealer called US bank twice to confirm they can buyout and buyout price was essentially my price without sales tax.

Yes, that is correct. US Bank confirmed this morning that my account has been paid by the dealer and closed. I ended up selling mine to a non-affiliated dealer and there’s been no issue despite what some others on this board have reported.

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Glad you verified. I am little worried about US bank screwing me. However it seems US bank has improved its ways as of late.