Lease buyout

[XX4XEXX]

Our Hellcat buyout was easy as it could be and we bought a year in advance. No inspection, called for buyout figures, called Navy CU, submitted check, Navy even did paperwork.

We bought out our JLUR 6 months in with same CU. Almost exact same process and 2.9%, no inspection costs, no return fees, no "dealer said damage. Only set back was CA Tax which they base on Fair Market Value if you do the paperwork (wink wink), if the CU or Bank does you will get taxed on sales price which was only 2k lease was zero down and 15k in rebates.

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[XX4XEXX]

Our buyout outs were both Ally BTW Ally sucks azz and is known for it. They do allow buyouts and you just need the buyout figures which they mail or secured email in 24to 72 hours. As mentioned don't forget to add tax in your new loan or it will be out of pocket. Highly recommend NFCU

Call now, get it figured out. I don't think Ally allows lease buyouts anymore. I know USBank just flat out says no. Last I tried, Ally was still allowing it but inflating the crap out of the buyout figure to make it untenable.

I had an Ally lease back in the 2017-2020 timeframe and attempted to buy it out. The buyout should have been about 16k but when the dealer called for the buyout figure they got $21k. It killed the deal because the thing was only worth $18k. That said, I was told that it's possible to do the buyout privately and avoid the inflated figure - supposedly by law they are required to offer the unadulterated "residual+remaining" figure to the lessee. Rest assured if they can weasel their way around that they will.

Don't ever lease with third party banks...they are terrible.





I bought out my CCAP lease...first tried through a dealer but ended up doing it privately because of the dealer fees. The buyout figure was the same both ways though, CCAP didn't play any games...it was the dealer that tacked on their own fees. This was in April of this year for reference.

 

[TheRaven]

Thanks, it states in the Ally contract the “buy out” amount, so I can’t see how it can be inflated other than added dealer fees.

That amount is for YOU. YOU must do the buyout if you want to try to hold them to that amount (but from my experience they don't care). If you do it through a dealer, you will find that the dealer is given a different number.

Basically what they do is they look at "fair market value" for the vehicle and determine their price that way. You can try to raise hell about it but from my experience the third party banks' attitude is "take it or leave it". It's pretty clear that they got tired of losing money on lease buyouts when used car values went ballistic.

You can google this phenomenon and you will find countless threads over the last three years about it. So make sure you do your homework and get all those ducks in a row.

 

[Stuckinthesand]

Our Hellcat buyout was easy as it could be and we bought a year in advance. No inspection, called for buyout figures, called Navy CU, submitted check, Navy even did paperwork.

We bought out our JLUR 6 months in with same CU. Almost exact same process and 2.9%, no inspection costs, no return fees, no "dealer said damage. Only set back was CA Tax which they base on Fair Market Value if you do the paperwork (wink wink), if the CU or Bank does you will get taxed on sales price which was only 2k lease was zero down and 15k in rebates.

Yeah I forgot OP was just about at end of lease. I bought mine out 18 months in advance. OP price should be straight forward.

 

[Willys_Wonka]

Our buyout outs were both Ally BTW Ally sucks azz and is known for it. They do allow buyouts and you just need the buyout figures which they mail or secured email in 24to 72 hours. As mentioned don't forget to add tax in your new loan or it will be out of pocket. Highly recommend NFCU

Thanks, so did you just call navy fed and apply for a used car loan and did you need the Ally payoff letter before applying? Also, how do you know what the taxes will be and did you work that into the loan from Navy fed?

 

[Willys_Wonka]

That amount is for YOU. YOU must do the buyout if you want to try to hold them to that amount (but from my experience they don't care). If you do it through a dealer, you will find that the dealer is given a different number.

Basically what they do is they look at "fair market value" for the vehicle and determine their price that way. You can try to raise hell about it but from my experience the third party banks' attitude is "take it or leave it". It's pretty clear that they got tired of losing money on lease buyouts when used car values went ballistic.

You can google this phenomenon and you will find countless threads over the last three years about it. So make sure you do your homework and get all those ducks in a row.

I called the dealer today and they said whatever the buy out amount in the contract is is what I would owe plus taxes and fees. Ally has like a 350 buck buy out fee listed in contract. So if I elect to use a private credit union for the buy out funds I don’t even need to work with a dealer? I just call ally and say I want to buy it out where and how much do I send the check to?

 

[XX4XEXX]

There is NO fees from Ally thats BS and no dealer fees thats BS and yes you can do it all from the comfort of your home and PC.

This is what you do. Call Ally and ask for a lease buy out, they have a packet but you don't need it your skipping the dealer. They can secure message you and mail you the quote good for 45 days. Then take that amount and times your state tax. Get that amount over shoot by 1k just in case and go to NFCU or your prefered CU. Apply online it's super easy and you will get a response instantly. Then NFCU or your will mail you a check, endorse it and you will mail that to Ally. Now here's the kicker Ally is notorious for loosing mail, why, besides they suck you mail it to a over night Ally box then that is transfered to Ally payoff NOT lease buyout dept. Once they receive it it's done and your online Ally account will show 0 in the app but it's not over. You must retain the title then send that to NFCU or your. Keep a close eye on tracking of the check and GET tracking cause if it doesn't arrive as mine didnt they lost it and it took 60 days I had to start from step 1, but my smart ass caught it. Ally is a PITA so just track everything and it will go smooth. Also ask NFCU or your for a next pay date of 45 days, do your transaction about 10 days before your lease payment is do and you will skip 30 plus 45 days to pad the pocket a bit.

Any questions send me a DM I'll answer antlything to help.

1 get they buy out quote
2 times that with state sales tax and dmv
3 apply on line with a CU for total +1k
4 endorse check and mail it to Ally over night address not payment processcenter
5 retain title endorse and overnight to your CU. Signed
6 your done
TRACK EVERYTHING!!
mail it over night to the over night Ally address not payment center

Thanks, so did you just call navy fed and apply for a used car loan and did you need the Ally payoff letter before applying? Also, how do you know what the taxes will be and did you work that into the loan from Navy fed?

 

[Willys_Wonka]

There is NO fees from Ally thats BS and no dealer fees thats BS and yes you can do it all from the comfort of your home and PC.

This is what you do. Call Ally and ask for a lease buy out, they have a packet but you don't need it your skipping the dealer. They can secure message you and mail you the quote good for 45 days. Then take that amount and times your state tax. Get that amount over shoot by 1k just in case and go to NFCU or your prefered CU. Apply online it's super easy and you will get a response instantly. Then NFCU or your will mail you a check, endorse it and you will mail that to Ally. Now here's the kicker Ally is notorious for loosing mail, why, besides they suck you mail it to a over night Ally box then that is transfered to Ally payoff NOT lease buyout dept. Once they receive it it's done and your online Ally account will show 0 in the app but it's not over. You must retain the title then send that to NFCU or your. Keep a close eye on tracking of the check and GET tracking cause if it doesn't arrive as mine didnt they lost it and it took 60 days I had to start from step 1, but my smart ass caught it. Ally is a PITA so just track everything and it will go smooth. Also ask NFCU or your for a next pay date of 45 days, do your transaction about 10 days before your lease payment is do and you will skip 30 plus 45 days to pad the pocket a bit.

Any questions send me a DM I'll answer antlything to help.

1 get they buy out quote
2 times that with state sales tax and dmv
3 apply on line with a CU for total +1k
4 endorse check and mail it to Ally over night address not payment processcenter
5 retain title endorse and overnight to your CU. Signed
6 your done
TRACK EVERYTHING!!
mail it over night to the over night Ally address not payment center

Step 5, that would be title and tag completed at the DMV, correct? NavyFEd outlined the process just about how you did and said dmv would handle the title and tag. As far as tag, I would transfer / retain my current license plate(custom), so I don’t need a new one. Taxes are paid at the dmv, as well? Mailing the buy out check to ally overnight is interesting. You would think in this day of age electronic transfer would be standard not snail mail.

 

[The Fixer]

I live in NJ too. Were you able to buy it from the leasing company directly or did you have to go through a dealer?

My wife's JLU lease was originally through a local credit union here in NJ. I went through this in April/May of this year, and it was the same process as @Stuckinthesand . There is a branch close by me and they were offering great rates on used vehicle loans so I did the paperwork and dealt with a person at the CU but we could have done it via phone and email. I also had to make a DMV appointment to turn in old plates, get new registration in my name, and pay the sales tax. Overall, a fairly painless process.

My JL lease is through CCAP and is up in July. Gonna look into what I need for that probably after the new year so I have my crap together. I love this little Jeep and plan to buy it out as well.

 

[Willys_Wonka]

My wife's JLU lease was originally through a local credit union here in NJ. I went through this in April/May of this year, and it was the same process as @Stuckinthesand . There is a branch close by me and they were offering great rates on used vehicle loans so I did the paperwork and dealt with a person at the CU but we could have done it via phone and email. I also had to make a DMV appointment to turn in old plates, get new registration in my name, and pay the sales tax. Overall, a fairly painless process.

My JL lease is through CCAP and is up in July. Gonna look into what I need for that probably after the new year so I have my crap together. I love this little Jeep and plan to buy it out as well.

Thanks, fixer. The most straightforward option is to go to the dealer and have them handle everything as long as they match the best rate I find elsewhere. Also, I need to verify that the buy out amount will be honored by ally if I use the dealer to do the buy out. If it ain’t then that’s a non starter going to the dealer.

 

[SH556JL]

So basically just get a pre approval used car loan quote from an outside finance institution and see if the dealer matches or beats it? I called a few credit unions and the current used car loan rates are about 5.5%.

My dealer was able to beat my credit union by a hair over a .25% for a longer term... Unfortunately the banks and credit union I deal with are all in the high 5s or even 6s. This is a lot higher than my 21 was at 2%. I let the dealer have the financing on this one, a hair .25% is still cheaper and longer term means lower payment if I need the option one month.

I still fully intend to pay it off by next year and should be able to do so. At these rates, it’s decent guaranteed return on investment to pay it off early.

But yes, have financing lined up and ready to go. But give the dealer the opportunity to beat it. Sometimes they can surprise you and have relationships with banks that can get lower then their advertised rates.

 

[Willys_Wonka]

My dealer was able to beat my credit union by a hair over a .25% for a longer term... Unfortunately the banks and credit union I deal with are all in the high 5s or even 6s. This is a lot higher than my 21 was at 2%. I let the dealer have the financing on this one, a hair .25% is still cheaper and longer term means lower payment if I need the option one month.

I still fully intend to pay it off by next year and should be able to do so. At these rates, it’s decent guaranteed return on investment to pay it off early.

But yes, have financing lined up and ready to go. But give the dealer the opportunity to beat it. Sometimes they can surprise you and have relationships with banks that can get lower then their advertised rates.

Absolutely, going through the dealer is my preferred option since they handle all of the paper work. So no issues with the buy out amount going through the dealer, no hidden fees, ect.?

 

[SH556JL]

Absolutely, going through the dealer is my preferred option since they handle all of the paper work. So no issues with the buy out amount going through the dealer, no hidden fees, ect.?

I never done a lease, aways purchase. But I always look at my own finance options and compare with theirs. If they are close or better, I let them handle it and makes that side of things easier. I however aways elect to self register if I have that option.

 

[XX4XEXX]

Yes sir. NFCU is awesome. You won't loose plate. Just follow everything and retain title. Once you get it(request for over night from Ally) call NFCU and ask or sign and send.


Dealers will profit on anything they can even if it's 300$ for an inspection which you don't need. Ally will say X amount the dealer will try to retain the vehicle and inflate it even a few K. On buyouts I've never stepped 1 foot in a dealer or paid dealer markups.

That amount is for YOU. YOU must do the buyout if you want to try to hold them to that amount (but from my experience they don't care). If you do it through a dealer, you will find that the dealer is given a different number.

Basically what they do is they look at "fair market value" for the vehicle and determine their price that way. You can try to raise hell about it but from my experience the third party banks' attitude is "take it or leave it". It's pretty clear that they got tired of losing money on lease buyouts when used car values went ballistic.

You can google this phenomenon and you will find countless threads over the last three years about it. So make sure you do your homework and get all those ducks in a row.

Step 5, that would be title and tag completed at the DMV, correct? NavyFEd outlined the process just about how you did and said dmv would handle the title and tag. As far as tag, I would transfer / retain my current license plate(custom), so I don’t need a new one. Taxes are paid at the dmv, as well? Mailing the buy out check to ally overnight is interesting. You would think in this day of age electronic transfer would be standard not snail mail.

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