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Discussion Starter #1
I am looking at trading in my 2015 Escalade, but I am currently in a lease with Ally. I know some members have traded in their Cadillacs early, and I was wondering how this all works. I was under the impression that Lease Buyout is calculated by adding the amount you still owe (month payment x months left on lease) to your buy option amount (printed on contract).I have spoken to one dealer who said Ally makes it hard for dealers to buyout the lease and it would be better to buy the truck from Ally then sell it to the dealer. I am new to all of this, so if someone could explain I would really appreciate it. On a side note does anyone know the auction price or solid trade in value on a 15 Luxury AWD Escalade. Thinking about a Platinum or some form of electric suv.
 

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Discussion Starter #3
I would just buy it from ally in a new finance agreement then sell it?
Nail on the head Evois, I think that is exactly what I am going to do. By the way I am seeing amazing trade in values on our Escalades. I know it is hard to get but Kelly Blue Book and Edmunds have the early run 2015 Escalade AWD Luxury, with a trade in (not private) value between 70K and 75K. I think I will shoot for the 70K number and CarMax might be my best option. :)
 

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gmfamily said:
Nail on the head Evois, I think that is exactly what I am going to do. By the way I am seeing amazing trade in values on our Escalades. I know it is hard to get but Kelly Blue Book and Edmunds have the early run 2015 Escalade AWD Luxury, with a trade in (not private) value between 70K and 75K. I think I will shoot for the 70K number and CarMax might be my best option. :)
If it's very new, carmax will give a nice offer then bring to the dealer of your car/SUV of preference and tell them the magic number and ask if they will match it. You got carmax in the bag and any offer better than them is just icing.
 

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You are missing something here. Your dealer has absolutely no dog in this fight. Your contract is between you (the renter) and Ally (the vehicle owner). To keep this as simple as possible, your payment is made up of two parts. The first being an amortized amount to cover depreciation of the vehicle for the term of the agreement, determined by the residual. The second is the money factor, aka the APR or interest to be collected for the period of the agreement. This too is evenly divided by the term of the agreement. Ally will want to be paid in full on this amount when you try and terminate your agreement early. Period. Read your contract.
 

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Your welcome to do this as you wish. But here in California, if you buy out your lease you will have to pay tax on the residual balance. (Of which you haven't paid yet. You are only paying tax on your monthly payment, and of any Cap Cost reduction when you initially bought the vehicle) This sales tax you pay will be non refundable. That's one of the major advantages of leasing, not paying tax on the unpaid balance/residual balance. Weather you call Your lienholder or dealer calls. Should be the exact same payoff balance. Only difference could be your dealer has a resale license, and YOU will not have to pay the sales tax on the residual balance. Do your homework, call your lienholder and get the payoff PLUS TAX. Then have your dealer do the same.
BTW. This is what I do full time. I'm a finance guy in the auto biz. For the last 25 years. I 100% disagree with paying the lease off. Paying all the sales tax. Then selling the car to a dealer that is tax exempt. Goes against every advantage of leasing any vehicle.
 

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Your welcome to do this as you wish. But here in California, if you buy out your lease you will have to pay tax on the residual balance. (Of which you haven't paid yet. You are only paying tax on your monthly payment, and of any Cap Cost reduction when you initially bought the vehicle) This sales tax you pay will be non refundable. That's one of the major advantages of leasing, not paying tax on the unpaid balance/residual balance. Weather you call Your lienholder or dealer calls. Should be the exact same payoff balance. Only difference could be your dealer has a resale license, and YOU will not have to pay the sales tax on the residual balance. Do your homework, call your lienholder and get the payoff PLUS TAX. Then have your dealer do the same.
BTW. This is what I do full time. I'm a finance guy in the auto biz. For the last 25 years. I 100% disagree with paying the lease off. Paying all the sales tax. Then selling the car to a dealer that is tax exempt. Goes against every advantage of leasing any vehicle.
If he is in a state like Virginia, they charge tax based on total price of the lease, so the tax on 80,000 may have already been included in the payment.

Which makes leasing in Virginia not as attractive.


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Discussion Starter #8
If he is in a state like Virginia, they charge tax based on total price of the lease, so the tax on 80,000 may have already been included in the payment.

Which makes leasing in Virginia not as attractive.


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^^ This.... I live in VA and they(VA) tax the total amount at the beginning of the lease. I paid for the tax, dealers fees, etc in cash towards cap cost reduction. I owe 16K, and the buy price (at lease end) is 47K. I added those numbers together to get a buyout price of about 63K. This number does not include the money I should get back for already paying for the total vehicle tax. When the dealer called Ally he said they would charge him close to 71K to buy the vehicle, but if I bought it from Ally it would be the 63K number sans tax. He said Ally is tricky to work with, and that is where I am confused? I though a buyout is a buyout no matter who executes it? As far as buying my lease out being a bad idea... Escalades similar to mine are going through dealer auctions for between 71K and 75K and my buyout is 63K maybe less.
 

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Discussion Starter #9
Your welcome to do this as you wish. But here in California, if you buy out your lease you will have to pay tax on the residual balance. (Of which you haven't paid yet. You are only paying tax on your monthly payment, and of any Cap Cost reduction when you initially bought the vehicle) This sales tax you pay will be non refundable. That's one of the major advantages of leasing, not paying tax on the unpaid balance/residual balance. Weather you call Your lienholder or dealer calls. Should be the exact same payoff balance. Only difference could be your dealer has a resale license, and YOU will not have to pay the sales tax on the residual balance. Do your homework, call your lienholder and get the payoff PLUS TAX. Then have your dealer do the same.
BTW. This is what I do full time. I'm a finance guy in the auto biz. For the last 25 years. I 100% disagree with paying the lease off. Paying all the sales tax. Then selling the car to a dealer that is tax exempt. Goes against every advantage of leasing any vehicle.
Another great thing about VA is you pay $4.50 per $100 on your car here in personal property tax. So every year on my Escalade I pay $3,600 just to drive or in my case lease my car.
 

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gmfamily said:
^^ This.... I live in VA and they(VA) tax the total amount at the beginning of the lease. I paid for the tax, dealers fees, etc in cash towards cap cost reduction. I owe 16K, and the buy price (at lease end) is 47K. I added those numbers together to get a buyout price of about 63K. This number does not include the money I should get back for already paying for the total vehicle tax. When the dealer called Ally he said they would charge him close to 71K to buy the vehicle, but if I bought it from Ally it would be the 63K number sans tax. He said Ally is tricky to work with, and that is where I am confused? I though a buyout is a buyout no matter who executes it? As far as buying my lease out being a bad idea... Escalades similar to mine are going through dealer auctions for between 71K and 75K and my buyout is 63K maybe less.
I wouldn't think it's right,

I know for a fact that
Dealership buy rate on ally was about $200 lower then for my friend to buy the vehicle outright.
This was 3-4 years ago though.

No way dealership is gonna pay way more then you.
It doesn't make sense.
 

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Discussion Starter #11
I wouldn't think it's right,

I know for a fact that
Dealership buy rate on ally was about $200 lower then for my friend to buy the vehicle outright.
This was 3-4 years ago though.

No way dealership is gonna pay way more then you.
It doesn't make sense.
I know it's crazy, but I had another dealer call and confirm the same today. Ally is charging the dealers a 10k mark up over the lessee. After I finish building my new home I will reassess the situation. Was hoping for news of a Escalade V by now, if not might get a plug in SUV for the tax credit.
 

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gmfamily said:
I know it's crazy, but I had another dealer call and confirm the same today. Ally is charging the dealers a 10k mark up over the lessee. After I finish building my new home I will reassess the situation. Was hoping for news of a Escalade V by now, if not might get a plug in SUV for the tax credit.
I was going to say maybe what they tell you is a d ealer trick But if you checked it by 2 different dealers it's a different story.


I was told wait till 2017 model for V by Cadillac insider. For sure they are coming up with one.
 

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Wow. VA is not car friendly. That makes lease a lot less attractive. Pay all the tax, and loose the federal GVWR tax credit. Working at a dealerships for the last 25 years, never seen the payoff cost the dealer more. That's really weird.
If you already paid all the tax, and your P. O is less, then it's a no brainier.
 

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There is no difference between trading in a lease car or a financed car. I do it all the time. As long as your car is worth the buy out payoff your good. No need to buy it then resell it there is no difference.


I am looking at trading in my 2015 Escalade, but I am currently in a lease with Ally. I know some members have traded in their Cadillacs early, and I was wondering how this all works. I was under the impression that Lease Buyout is calculated by adding the amount you still owe (month payment x months left on lease) to your buy option amount (printed on contract).I have spoken to one dealer who said Ally makes it hard for dealers to buyout the lease and it would be better to buy the truck from Ally then sell it to the dealer. I am new to all of this, so if someone could explain I would really appreciate it. On a side note does anyone know the auction price or solid trade in value on a 15 Luxury AWD Escalade. Thinking about a Platinum or some form of electric suv.
 
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