Author Topic: Dealer Lease buyout  (Read 10753 times)

Offline yossig

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Dealer Lease buyout
« on: October 12, 2020, 06:14:35 PM »
I think this topic deserves a separate thread,

I was guided through this process in this thread (thanks DDF!) https://forums.dansdeals.com/index.php?topic=2990.4230
Maybe @mod can separate and merge.

The point of doing this is:
1) getting rid of your vehicle without any excessive wear and tear and mileage charges.
2) you might be able to cash out a significant amount like in my case if the offer is above your “Dealer” buyout amount.

Beware: This cannot be done with all Vehicles and it really depends what the secondhand market is on your specific vehicle, and what your buyout amount is.

So here’s my recent experience which I hope will be helpful.

My car model was a Honda sedan, and I was 16 months in, in a 36 month lease agreement, And I needed a bigger vehicle.

So I submitted for online quotes at Vroom.com algo.com and carvana.com, 3 biggest in the market)  Vroom came back with the highest offer seconded by Algo ($500 less).

the reviews here on DDF for Algo were very good so I decided to give them first choice and I scheduled a virtual inspection, after the approximate three minutes inspection they came back with the offer $900 less than their original offer (which was $1400 less than Vroom)
So I explained to the Algo appraiser that Vroom has offered me a significant amount more, and that Algo’s policy is to match competing offers but he said that this is his final offer and that Vroom will eventually subtract from their offer after receiving the vehicle like they usually do, claiming that it has more damage then described originally.
So I contacted Vroom and told them I would like to go ahead with their offer and I raised my concerns about not receiving the full quoted amount, they reassured me that this rarely happens and that is only if it’s significantly different than the way it was described, so I went over with him my vehicle condition and he assured me that I’ll receive the quoted price.
The rest went really smooth and fast,
I filled out the online contact
I Received the next day a vehicle transfer POA to sign via FEDEX overnight priority.
I returned it same day and they received it the next morning.
Pickup was scheduled.
A few hours after picking up the vehicle they overnighted me a check.

Total time spent: approx 2.5 hrs
Total gain: got rid of a car that I didn’t want mid lease, didn’t need to deal with any excessive wear and tear damage, and (more then) some extra cash.

I might’ve missed something, if I did just ask.

Offline Mordyk

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Re: Dealer Lease buyout
« Reply #1 on: October 12, 2020, 06:37:48 PM »
How much wear and tear is ok for them? I wanted to do this but I have one bashed door and I was afraid they will cancel last second

Offline yossig

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Re: Dealer Lease buyout
« Reply #2 on: October 12, 2020, 06:40:57 PM »
How much wear and tear is ok for them? I wanted to do this but I have one bashed door and I was afraid they will cancel last second
They take the vehicle as is and pay you according to its condition

Offline Mordyk

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Re: Dealer Lease buyout
« Reply #3 on: October 12, 2020, 07:19:33 PM »
They take the vehicle as is and pay you according to its condition
They consider any condition?  Or must be more or less decent?

Offline yossig

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Re: Dealer Lease buyout
« Reply #4 on: October 12, 2020, 08:22:55 PM »
They consider any condition?  Or must be more or less decent?
in the online form they ask you the condition, try it.

Offline ADG

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Re: Dealer Lease buyout
« Reply #5 on: October 12, 2020, 08:32:44 PM »
Do you continue to pay the car payment until the end of the lease and then "buy it" from the dealer?

Offline yossig

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Re: Dealer Lease buyout
« Reply #6 on: October 12, 2020, 10:29:42 PM »
Do you continue to pay the car payment until the end of the lease and then "buy it" from the dealer?
no. You can do a buyout mid lease.

Offline joe1234

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Re: Dealer Lease buyout
« Reply #7 on: October 12, 2020, 10:51:16 PM »
if i have a small dent in the bumper does it help that i have a damage waiver?

Offline yossig

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Re: Dealer Lease buyout
« Reply #8 on: October 12, 2020, 10:57:25 PM »
if i have a small dent in the bumper does it help that i have a damage waiver?
im not sure how the damage waivers work, you’ll have to ask your broker.
But I don’t think one small dent will make a big difference in your offer.

Offline Dovdovmoneytree

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Re: Dealer Lease buyout
« Reply #9 on: October 13, 2020, 05:53:01 PM »
How does this work with ALgo, for example? I "sell" a vehicle I only am leasing to them? They pick it up and then do what?? I don't have title, since it's a lease. Obviously they need to buyout from Nissan. How am I assured they don't take my vehicle and run for the hills, what guarantees they pay off MY liability to Nissan? On Nissan site; there are two buyout options; 1. "Dealer Assisted" 2. Financial Institution. with 1 being a lower buyout. Which do I use when selling to ALgo, Vroom etc? Sorry, I'm pretty clueless with this. TY
« Last Edit: October 13, 2020, 06:16:18 PM by Dovdovmoneytree »

Offline yossig

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Re: Dealer Lease buyout
« Reply #10 on: October 13, 2020, 06:59:21 PM »
How does this work with ALgo, for example? I "sell" a vehicle I only am leasing to them? They pick it up and then do what?? I don't have title, since it's a lease. Obviously they need to buyout from Nissan. How am I assured they don't take my vehicle and run for the hills, what guarantees they pay off MY liability to Nissan? On Nissan site; there are two buyout options; 1. "Dealer Assisted" 2. Financial Institution. with 1 being a lower buyout. Which do I use when selling to ALgo, Vroom etc? Sorry, I'm pretty clueless with this. TY
you sign a contract with them conforming your offer, and when they pick up the car you get a receipt that it was picked up.
You do “dealer assisted” (but ALGO does all that work, not you).

On a side note, Nissan doesn’t have a good resale value in general, But every car if different.
 

Offline Dovdovmoneytree

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Re: Dealer Lease buyout
« Reply #11 on: October 13, 2020, 07:47:00 PM »
you sign a contract with them conforming your offer, and when they pick up the car you get a receipt that it was picked up.
You do “dealer assisted” (but ALGO does all that work, not you).

On a side note, Nissan doesn’t have a good resale value in general, But every car if different.
So they cut me a check for the difference between the buyout and their offer and then pay the remainder to Nissan?
Their offer is still $2300+ more than my buyout. That may very well be because I only used half my mileage allowance. It is a Rogue Sport.

Offline Luvisrael

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Re: Dealer Lease buyout
« Reply #12 on: October 13, 2020, 08:05:42 PM »
So they cut me a check for the difference between the buyout and their offer and then pay the remainder to Nissan?
Their offer is still $2300+ more than my buyout. That may very well be because I only used half my mileage allowance. It is a Rogue Sport.
yes

Offline Dovdovmoneytree

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Re: Dealer Lease buyout
« Reply #13 on: October 13, 2020, 08:13:41 PM »
you sign a contract with them conforming your offer, and when they pick up the car you get a receipt that it was picked up.
You do “dealer assisted” (but ALGO does all that work, not you).

On a side note, Nissan doesn’t have a good resale value in general, But every car if different.
Car's in excellent condition with 17k on it), However; it is filthy (neighborhood road work). Mostly exterior but also the drivers mat from sand/mud....
Does it need a good cleaning prior to a virtual inspection?

One blemish it has is a relatively minor crack on the windshield. Was driving on the Hwy, s/o must've tossed a can out their window. I got a crack, perfectly round like the bottom of a soda can etc. Stayed like this for past 1-2 years. Will they change their offer? I think I read here that ALgo usually does not.

Offline yossig

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Re: Dealer Lease buyout
« Reply #14 on: October 13, 2020, 09:46:02 PM »
Car's in excellent condition with 17k on it), However; it is filthy (neighborhood road work). Mostly exterior but also the drivers mat from sand/mud....
Does it need a good cleaning prior to a virtual inspection?

One blemish it has is a relatively minor crack on the windshield. Was driving on the Hwy, s/o must've tossed a can out their window. I got a crack, perfectly round like the bottom of a soda can etc. Stayed like this for past 1-2 years. Will they change their offer? I think I read here that ALgo usually does not.
why not schedule an inspection and take it from there, you’re not binding yourself by having an inspection.
The whole thing is 3 minutes and is a basic walk around the vehicle.

Did you also try another company like Vroom or carvana?