You have a scat pack yet you took the Infiniti out here, SMH.
I returned it back in April.
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Sorry to resurrect an old thread, but I am guessing more and more people are in the situation of being upside on their leases as used car prices have gone up. My Toyota Tacoma lease is due to end in 3/2022 with US Bank and my payoff right now is 32k. Offer from Carvana was 38k and Vroom is at 40k now. I was able to get the dealer payoff from US Bank for Carvana through fax and it was over 38k. My question is, in my case it does appear I should purchase the car from US Bank and then resell it to Carvana or Vroom, so should I avoid refinancing it and just pay cash to get title in hand, or is it Ok to finance with local credit union or bank and then do the deal? Anyone have any experience with this? FYI I am in TN and will have to pay 7% sales tax.
It shouldn’t make any difference if you’re immediately reselling, however paying cash would seem much less complicated and faster.
If you are paying cash, I believe that there is technically no need to go to DMV and re-title/pay sales tax. Although the title will still have USBank as the lienholder, all you should need is a lien release letter from US Bank accompanying the title. However I am not from TN and this could be wrong.
I don’t believe that we have any dealers from TN on this forum. You should research and see if there is a grace period where you can obtain a clear title and not have to pay tax on it by reselling within a period of time. For example in MI, I believe you have 14 days to re-sell and you don’t have to pay sales tax.
Unfortunately it’s the default you do have to pay the sales tax to get the title to sell to vroom afaik (when purchasing the car I mean).
Ok thanks for the response. I called the County Clerk and they said there is no such grace period provision. If anyone knows any different, please let me know. It’s about 2400 in tax so definitely would be nice to avoid that hit.
Regardless, I do stand to make about 6k even with the tax so I’m not complaining. I love the truck but, it’s hard not to take advantage of the market. Only decision left is if I should trade in for the tax savings (2800) if I can find a vehicle I want on Vroom.
If you do not know anyone who flips or buys/sells vehicles, you may be well served by calling a local independent mom&pop used car dealer or two and asking them for advice or if there is a way around the taxes without a car business/license. It seems silly to me that individuals cannot buy and resell without paying sales tax.
California is the only state that has this grace period.
I haven’t seen any other states than CA that actually have this on the books.
Just to over-complicate this US Bank-Carvana-Vroom issue even further, I just had two USB reps tell me that the absolutely will sell to Carvana or Vroom, but (of course) at the dealer buyout price.
If you type “lease buyout” into the Carvana online chat tool, you will get the following response;
Please note, we do not buy out leases through Ford Motor Credit, Ally, US Bank, Nissan/ Infiniti, Tesla, Volvo, or Lincoln, nor those within 60 days of the maturity date.
This is a dead-end.
Just had a three-way call with US Bank and Vroom, where US Bank confirmed that they will not give dealers a simple payoff option – it has to be payoff as part of trade-in.
Also, fwiw, the trade-in payoff amount they gave the dealer was (wait for it) $7k higher than my personal payoff – 31k vs 24k.
I’ll be buying the car and selling it to Vroom, obviously.
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Who uses Ally or US Bank?
I’ve leased dozens of cars, and every one has been financed through the manufacturers name…though I guess Subaru is Chase?
Thanks.
Lots of brands. Seems like Toyota and CDJR are the more common ones, but I’ve seen Hondas, etc, as well.
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I believe Porsche can be leased using US Bank as well.
GM uses US Bank and Ally.
Leased a 2013 Traverse with Ally and a 2015 Equinox thru US Bank.
2017 Equinox was thru GM Financial FYI
I am curious how much the leasing company factors into forum members decisions.
If you were comparing a BMW and Mercedes with the same deal terms, but liked the Mercedes car just a bit more, would BMWFS sway your decision? Since it’s easier to get out of a lease with them.
I never really factored the leasing company into my decision, but now, since a lot of them are getting more strict, it seems like something I should pay attention too.
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I leased two Toyotas (2011/2014) and both were through Toyota Financial Services.
Does the customer have a choice? Or are the published MF and Residuals only for the manufacturers bank…TFS in this case?
Some dealers will work with multiple banks. They usually offer the lowest price, but that doesn’t always mean the best experience. You can certainly ask them to put the lease together through a different bank they work with.
If you go to edmunds and request rv/mf/incentives, you’ll only get info for the captive bank. Ally/USbank/etc have their own numbers and they’re harder to get a hold of.
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For what it’s worth I just sold my US Bank Honda lease. It took a while a to get, but USB eventually emailed ME a dealer payoff number that was basically my purchase price minus taxes. I ended up selling to a local dealer who matched an online offer from Car Max without me purchasing a new vehicle.
In my case the payoff was still slightly more than my trade-in price so I’m not sure if this factors in, but the quote had no contingencies for leasing a new car through them or which dealer I could sell too.
All in all though, if you think there’s a reasonable chance you are going to sell/trade your lease early I would steer clear of USB.