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  #1  
Old 10-30-2015, 05:43 AM
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Ally lease buyout: dealership payoff higher than mine.

My lease payoff with Ally is $29,200 for my '14 Overland (before sales tax). I was looking to trade it in on a '15 HA today but when the dealership called Ally to get a payoff Ally quoted them $34,800 for payoff. This killed my deal in its tracks. I called Ally myself to confirm as I thought the dealer may be blowing smoke.

I've never seen this before. Usually my payoff is the same as the dealers payoff.

Ally = sucks.

I might just buy out the lease for $31,500 with sales tax and then rework things from there.

Caught me way off guard.

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  #2  
Old 10-30-2015, 08:41 AM
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Re: Ally lease buyout: dealership payoff higher than mine.

Well that really sucks, I guess the idea of getting a lease via Ally and buying it 3 months later is out of the question. Do you know what makes up the price difference between the buyout and what Ally gave you?
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Old 10-30-2015, 10:22 AM
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Re: Ally lease buyout: dealership payoff higher than mine.

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Originally Posted by rszwestko View Post
Well that really sucks, I guess the idea of getting a lease via Ally and buying it 3 months later is out of the question. Do you know what makes up the price difference between the buyout and what Ally gave you?
You could still lease and buy it out three months later. That would be fine if YOU buy it.

It's just if the dealer wants to buy it out then Ally charges all kinds of fees to them.

I had a smoking deal working on a '15 High Altitude w/ hemi all worked out up until this happened at last second.
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Old 10-30-2015, 11:50 AM
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Re: Ally lease buyout: dealership payoff higher than mine.

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Originally Posted by Copefree View Post
You could still lease and buy it out three months later. That would be fine if YOU buy it.

It's just if the dealer wants to buy it out then Ally charges all kinds of fees to them.

I had a smoking deal working on a '15 High Altitude w/ hemi all worked out up until this happened at last second.
very interesting, never heard of a leasing company or a bank to impose fees on the dealer in that situation. Like you mentioned before, you can still buy it and pay taxes and work up a new deal with the dealer.
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Old 10-30-2015, 01:33 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Dang that sucks. I too want a HA. Why are you leasing through Ally?
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Old 10-30-2015, 03:30 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Quote:
Originally Posted by Copefree View Post
My lease payoff with Ally is $29,200 for my '14 Overland (before sales tax). I was looking to trade it in on a '15 HA today but when the dealership called Ally to get a payoff Ally quoted them $34,800 for payoff. This killed my deal in its tracks. I called Ally myself to confirm as I thought the dealer may be blowing smoke.

I've never seen this before. Usually my payoff is the same as the dealers payoff.

Ally = sucks.

I might just buy out the lease for $31,500 with sales tax and then rework things from there.

Caught me way off guard.
There should be no difference whether the check is coming from you or a dealer. The leasing company doesn't care where payment is coming from as long as they receive full payment. No sales tax needs to be paid if the dealer is aquiring vehicle, only if you plan to purchase it. Take a look at your lease contracts residual and add the remaining payments for an "approximate" payoff amount.
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Old 10-30-2015, 03:38 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Quote:
Originally Posted by 2015 High Altitude View Post
There should be so difference whether the check is coming from you or a dealer. The leasing company doesn't care where payment is coming from as long as they receive full payment. No sales tax needs to be paid if the dealer is aquiring vehicle, only if you plan to purchase it. Take a look at your lease contracts residual and add the remaining payments for an "approximate" payoff amount.
We all agree on that, however Ally is imposing fees for and we are trying to determine what they are for.
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Old 10-30-2015, 04:27 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Some leases have an early termination fee. I think the last one I did years ago was 1 year.
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Old 10-30-2015, 05:40 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Quote:
Originally Posted by 2015 High Altitude View Post
There should be so difference whether the check is coming from you or a dealer. The leasing company doesn't care where payment is coming from as long as they receive full payment. No sales tax needs to be paid if the dealer is aquiring vehicle, only if you plan to purchase it. Take a look at your lease contracts residual and add the remaining payments for an "approximate" payoff amount.
Yea, that's how it usually works. But Ally operates differently, apparently. And like I said in the OP, I independently called Ally to verify this as I thought the dealer was trying to pull a fast one on me.

There are all kinds of fees if it's a dealer buyout. To the tune of $5k. I have 10 months left on the lease. My buyout right now is very reasonable at $29k (~$32k with sales tax). 2014 Overland with 32k miles.

I got a loan from my credit union today to buy out my lease for $32k from Ally. Payments will drop $90/mo, too. I'll make a couple payments and then see where I'm at. Ally says it takes ~20 days to complete the buyout (with paperwork, title transfer, etc).
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  #10  
Old 10-30-2015, 05:53 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Quote:
Originally Posted by Copefree View Post
Yea, that's how it usually works. But Ally operates differently, apparently. And like I said in the OP, I independently called Ally to verify this as I thought the dealer was trying to pull a fast one on me.

There are all kinds of fees if it's a dealer buyout. To the tune of $5k. I have 10 months left on the lease. My buyout right now is very reasonable at $29k (~$32k with sales tax). 2014 Overland with 32k miles.

I got a loan from my credit union today to buy out my lease for $32k from Ally. Payments will drop $90/mo, too. I'll make a couple payments and then see where I'm at. Ally says it takes ~20 days to complete the buyout (with paperwork, title transfer, etc).
Like I said, take a look at your contract and see what fees might be imposed for early termination, dealer buyout etc. It doesn't make sense to impose a fee on a dealer that likely could turn around and place another contract with Ally. Again, something big is missing here and if I had to guess, someone misquoted the payoff, either to you or the dealer. Keep us posted.
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Old 10-31-2015, 11:39 AM
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Re: Ally lease buyout: dealership payoff higher than mine.

I'm in a similar situation with my 2013 Limited leased through Ally. I plan to buy it out soon, as the lease is ending and the buyout value is several thousand dollars less than the trade-in value. There is a $2500 fee added on under the Ally lease agreement when you buy it out at the end of the lease. When I call in for the price now, I don't believe that is included on the quote. Hoping I don't get hit with that after I send in the check. This $2500 may be included in your dealer's quote already.

Not sure about your state OP, but in CA I believe that if you buy a car and sell it within 10 days you don't have to pay sales tax on it. In CA the tax is collected by the DMV, not Ally. If Ally collects the tax for your state, you may be able to get a refund if there is a similar exemption. I'm going to send the check and try to trade the Jeep in the second I get the title. This is a bit risky, because it is pretty likely a delay on the Ally side could make it look like I owned the Jeep more than 10 days by the time I actually receive the title. This may be impossible if I can't get a title quickly for any reason. I was hoping to trade my 2013 in for a 2016, but there will not be any 2016s around within the timeframe I have to do this in.

Check the situation in your state, but you may be able to do this buyout/trade-in without paying tax. It looks like you are in WA. There are some phone numbers for the WA Department of Revenue and Department of Licensing toward the bottom of this page that may be useful in determining if there is a tax exemption for WA:

http://www.dol.wa.gov/vehicleregistration/refunds.html


Last edit: I think some states only charge sales tax on the difference in value of a trade-in. In other words, if you trade in a $20,000 car and buy a $35,000 car, you only get charged tax on the $15k difference in value. Is this the case in WA? If so, maybe none of the tax stuff I mentioned matters to you...
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Old 10-31-2015, 02:35 PM
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Re: Ally lease buyout: dealership payoff higher than mine.

Quote:
Originally Posted by ElLobo View Post
I'm in a similar situation with my 2013 Limited leased through Ally. I plan to buy it out soon, as the lease is ending and the buyout value is several thousand dollars less than the trade-in value. There is a $2500 fee added on under the Ally lease agreement when you buy it out at the end of the lease. When I call in for the price now, I don't believe that is included on the quote. Hoping I don't get hit with that after I send in the check. This $2500 may be included in your dealer's quote already.
Not sure about your state OP, but in CA I believe that if you buy a car and sell it within 10 days you don't have to pay sales tax on it. In CA the tax is collected by the DMV, not Ally. If Ally collects the tax for your state, you may be able to get a refund if there is a similar exemption. I'm going to send the check and try to trade the Jeep in the second I get the title. This is a bit risky, because it is pretty likely a delay on the Ally side could make it look like I owned the Jeep more than 10 days by the time I actually receive the title. This may be impossible if I can't get a title quickly for any reason. I was hoping to trade my 2013 in for a 2016, but there will not be any 2016s around within the timeframe I have to do this in.

Check the situation in your state, but you may be able to do this buyout/trade-in without paying tax. It looks like you are in WA. There are some phone numbers for the WA Department of Revenue and Department of Licensing toward the bottom of this page that may be useful in determining if there is a tax exemption for WA:

WA State Licensing (DOL) Official Site: Fee refunds: Vehicles and boats


Last edit: I think some states only charge sales tax on the difference in value of a trade-in. In other words, if you trade in a $20,000 car and buy a $35,000 car, you only get charged tax on the $15k difference in value. Is this the case in WA? If so, maybe none of the tax stuff I mentioned matters to you...[/QUOTE

Certainly a lesson learned here if in fact there are fees imposed as mentioned in the aforementioned posts. I'm not sure Ally is to blame as much as the dealer that arranged for the lease on your behalf. Furthermore, it just shows the importance of reading the contract before signing on the dotted line. Most take it for granted that there are no unexpected surprises buried in the contract. And yes, I do take the time to read what I'm signing. I'm still very surprised at much of this, perhaps one of you will scan a copy of the contract so we can see where this language lies in regards to penalties.
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