Lease end question?

[HSKR R/T]

First ever lease for me so it's def a learning curve .

I know the feeling.

 

[millerbjm]

I talked to the sales manager. Good possibility they want to deal in some way to buy it for resell or get me in something else. I never thought of that.

All my lease buyouts were done through dealers because I was buying the lease out to trade-in and take advantage of the positive equity (will be doing this in a week or 2 when my 23 arrives) . In these situations they have never added any fees - some leases do have a purchase fee around $250-300 but they often waive that fee when working with a dealer they lease through. There is lots of misinformation out there about leasing but it really is pretty simple in the end as it's all in the contract as you stated.

 

[HSKR R/T]

All my lease buyouts were done through dealers because I was buying the lease out to trade-in and take advantage of the positive equity (will be doing this in a week or 2 when my 23 arrives) . In these situations they have never added any fees - some leases do have a purchase fee around $250-300 but they often waive that fee when working with a dealer they lease through. There is lots of misinformation out there about leasing but it really is pretty simple in the end as it's all in the contract as you stated.

That's a different situation than OP wanting to keep the truck. The fact that they want to charge him for an inspection, he doesn't need, doesn't make the dealer seem very upfront or trustworthy.

But, I wish I had known more about leases when my wife turned in her last one. We didn't get any equity out of it.

 

[6of36]

Ally is the worst leasing company out there! I just bought out my lease from another leasing company last month, 18 months early. I called, got a payoff price, and sent a check. Within a week, I received my payoff papers, and went to our Secretary of State, (DMV), and titled in my name. I did have to pay my local sales tax, not the out of state leasing company's.

 

[jl13]

That's a different situation than OP wanting to keep the truck. The fact that they want to charge him for an inspection, he doesn't need, doesn't make the dealer seem very upfront or trustworthy.

But, I wish I had known more about leases when my wife turned in her last one. We didn't get any equity out of it.

Thanks to this forum i was able to help a friend last month, he was about to turn in his 2020 lease on a ford and let go of a good chunk of money in equity

 

[WXman]

I just wanted to drop a helpful note to all my former fellow Ram guys:

DO NOT under *any* circumstances EVER use Ally bank for financing, especially leases! Don't do it. They are as shady as a forest. They play dirty. And you'll never talk to an American when you call for help or to complain. And they'll stick you with late fees every single chance they get. And if you do manage to miraculously get to the point of sending a payoff check to get out of the lease, they'll sit on it so they can hit you with fees again.

Throughout this year I've tried to get out of my lease and into a "buy" on a HD pickup. (Side note: I have leased a half dozen times before, never had one single issue with any other bank.) When the dealers would call Ally for a payoff amount, Ally would tack on $9,000 in fees! They were basically trying to make it impossible for me to get out of the lease early. Never had that happen before with any other bank, ever. So, I decided to wait six more months and try again. So at the beginning of August I found a sweet HD truck at a Ford dealership. The dealer called Ally to get payoff. Ally now had reduced the $9k charge to something much more reasonable so I agreed. Dealer cleaned up the truck I was buying, a day or two went by, wife and I went over and signed all the paperwork. I took the new truck home. Thought the deal was done. The next day the dealership calls. Ally had decided to tack on $1,200 more bucks, even though we were within the original 10-day payoff window Ally originally quoted! Dealer says it's a "smart lease" which means that in the fine print Ally can charge whatever they want since technically my trade-in was their truck. Legally, I get it. But ethically that's WRONG!! So I had to either cancel the deal or fork over another $1,200 bucks. I really just wanted to be done with Ally so I reluctantly forked over the cash. We sign papers again. Dealer sends payoff check to Ally, with UPS tracking. Ally then sits on the payment. Two weeks go by. Ally starts sending me notices that I'm late on my lease payment...on the truck I turned in and had paid off weeks earlier!

So here we are in September and it's still not 100% resolved. I don't know how this is going to end. I may have to lawyer up, and I hate that. But Ally is so shady.

Go check out Ally's BBB reviews. It's a train wreck.

 

[HSKR R/T]

I just wanted to drop a helpful note to all my former fellow Ram guys:

DO NOT under *any* circumstances EVER use Ally bank for financing, especially leases! Don't do it. They are as shady as a forest. They play dirty. And you'll never talk to an American when you call for help or to complain. And they'll stick you with late fees every single chance they get. And if you do manage to miraculously get to the point of sending a payoff check to get out of the lease, they'll sit on it so they can hit you with fees again.

Throughout this year I've tried to get out of my lease and into a "buy" on a HD pickup. (Side note: I have leased a half dozen times before, never had one single issue with any other bank.) When the dealers would call Ally for a payoff amount, Ally would tack on $9,000 in fees! They were basically trying to make it impossible for me to get out of the lease early. Never had that happen before with any other bank, ever. So, I decided to wait six more months and try again. So at the beginning of August I found a sweet HD truck at a Ford dealership. The dealer called Ally to get payoff. Ally now had reduced the $9k charge to something much more reasonable so I agreed. Dealer cleaned up the truck I was buying, a day or two went by, wife and I went over and signed all the paperwork. I took the new truck home. Thought the deal was done. The next day the dealership calls. Ally had decided to tack on $1,200 more bucks, even though we were within the original 10-day payoff window Ally originally quoted! Dealer says it's a "smart lease" which means that in the fine print Ally can charge whatever they want since technically my trade-in was their truck. Legally, I get it. But ethically that's WRONG!! So I had to either cancel the deal or fork over another $1,200 bucks. I really just wanted to be done with Ally so I reluctantly forked over the cash. We sign papers again. Dealer sends payoff check to Ally, with UPS tracking. Ally then sits on the payment. Two weeks go by. Ally starts sending me notices that I'm late on my lease payment...on the truck I turned in and had paid off weeks earlier!

So here we are in September and it's still not 100% resolved. I don't know how this is going to end. I may have to lawyer up, and I hate that. But Ally is so shady.

Go check out Ally's BBB reviews. It's a train wreck.

Definitely lawyer up. Lawyer fees will be paid by Ally when you win

 

[mikeru82]

That's a different situation than OP wanting to keep the truck. The fact that they want to charge him for an inspection, he doesn't need, doesn't make the dealer seem very upfront or trustworthy.

But, I wish I had known more about leases when my wife turned in her last one. We didn't get any equity out of it.

You aren't entitled to any equity if you turn it in. You will only benefit from any equity if you buy it out then either sell it or trade it in on another vehicle. It's the company you leased from that benefits from any equity if you turn the vehicle in.

 

[FLiPMaRC]

Good info in this thread.

I've always finance all my previous vehicles. The Ram was my first time leasing. My Purchase Option at End of Lease Term = $39k. I'm planning on just buying it outright (cash).

Question, so all I have to do is call Ally for a "payoff amount"? Do I benefit from any equity?

 

[Darksteel165]

You aren't entitled to any equity if you turn it in. You will only benefit from any equity if you buy it out then either sell it or trade it in on another vehicle. It's the company you leased from that benefits from any equity if you turn the vehicle in.

The buyout is 30k. Trucks value is 40k. Dealership the lease is through offered you 37k for it. You "buy is" and "sell it" to the dealership ie the equity?

 

[mikeru82]

The buyout is 30k. Trucks value is 40k. Dealership the lease is through offered you 37k for it. You "buy is" and "sell it" to the dealership ie the equity?

That's correct, but I'm not sure why you quoted me in that post. I'm just saying when you lease a car, you are only entitled to any equity (if there is any) if you buy out the lease at the end. If you turn the car in at the end of the lease you don't get any of that potential equity.

 

[mikeru82]

Good info in this thread.

I've always finance all my previous vehicles. The Ram was my first time leasing. My Purchase Option at End of Lease Term = $39k. I'm planning on just buying it outright (cash).

Question, so all I have to do is call Ally for a "payoff amount"? Do I benefit from any equity?

Yes, you are entitled to any equity that exists. If you buy out the car that means you are buying it. At that point it's your vehicle to do with as you please. If you buy out at the end of the lease for $39k, then end up selling the truck for $50k, you'd have $11k in your pocket at the end of the day.

 

[6of36]

You aren't entitled to any equity if you turn it in. You will only benefit from any equity if you buy it out then either sell it or trade it in on another vehicle. It's the company you leased from that benefits from any equity if you turn the vehicle in.

Yes you are entitled to the equity, even if you don't buy it. Your lease payment is based on the value of the vehicle at the end of the lease. If it is worth more, they have over charged you, and you are entitled to the difference. I got screwed by Ally, because when I totaled mine, it wasn't the end of the lease.

 

[HSKR R/T]

You aren't entitled to any equity if you turn it in. You will only benefit from any equity if you buy it out then either sell it or trade it in on another vehicle. It's the company you leased from that benefits from any equity if you turn the vehicle in.

Depends on how the trade in is handled. The dealer accepting the "trade" can buy out the lease and give the customer some of the equity, as trade in value. And the dealer buying is still ahead.

 

[mikeru82]

That's not how it was explained to me when I leased my Audi thru VW financial services. I'll have to go through my paperwork and read the fine print.

 

[Darksteel165]

That's not how it was explained to me when I leased my Audi thru VW financial services. I'll have to go through my paperwork and read the fine print.

Probbly wasn't explained to you so you didn't know it was an option people can take.

 

[HSKR R/T]

That's not how it was explained to me when I leased my Audi thru VW financial services. I'll have to go through my paperwork and read the fine print.

Do you think the leasing company is going to tell you how to basically cheat the lease system?

 

[MarPar]

Last November I had a 2019 Laramie that I leased coming to an end. The buyout was 31k and it was worth 39k. I negotiated with the dealer and they gave me 37k for it. The $6k in equity I had they rolled into the 2022 Laramie I have now as a "down payment." Which in turn lowered my monthly payment. I made some $$ and I KNOW the dealer made $$$. Win for both sides.

 

[mikeru82]

Do you think the leasing company is going to tell you how to basically cheat the lease system?

Do you think I was dealing directly with the leasing company?

 

[Darksteel165]

Do you think I was dealing directly with the leasing company?

Whoever it was they clearly weren't your friend lol.