Banks calculate these numbers through different statistics and reports on the values of vehicles when they are returned from leases. These values are calculated by the banks and financial institutions. Usually, the residual prices are not determined by the car dealers. ![]() the only difference between the two is their Residual Price. In this example, you can see that the monthly payment for vehicle A is over 26% or higher than the payment for the vehicle B. Here is an example of the same car with two different payment plans based on nothing other than the residual price difference. The Residual Value is determined so that you can ascertain how much you owe while you are making payments. The main purpose of this value is to determine how much the vehicle will depreciate over the period of lease. The Residual Price is the expected value of the car at the end of the lease. ![]() Question- was carvana or carmax or vroom not able to purchase the car directly from VW or something in your case? I could see doing what you did if there were different buyout amounts for you vs a dealer as Ally and USBank have sometimes.The next biggest negotiable term after your Capitalized Cost in your lease is Residual Price of the vehicle. I think what VW sent you basically is something that says yes you are the new buyer and you have permission to title/register the car in your name, but you need to actually do that before you sell it. Then after I sold the car, I applied for a registration/property tax refund and got 11 months prorated amount back. Even with having to pay sales tax and registration I still pocketed about $1500 as my buyout was way under what a dealer buyout was. After the car was registered I went straight to CarMax and they filled out the title as the buyer etc and I was able to collect my positive equity check from them. There was some sort of rush same day title change service that I was able to take advantage of. ![]() I had to go to the DMV and they issued me a new title with the car in my name and I had to register the vehicle at the same time. I sent the paperwork and buyout check to USBank, they sent me the title and I believe a power of attorney letter. ![]() If I still need to register the car and then transfer it to my name and it could take 30 days, am I unable to sell this in the private market and am stuck with the car?Īlbeit a different state (NC) and pre-Covid times, I did have to title a car in my name after a USBank lease buyout. I took the car to Carmax today and they refused to purchase it, stating I need to register/title it under my name prior to selling it to them and that process would take 30 days with everything going on with the DMV.Īm I unable to sell this car to CarMax or even a private party immediately upon receiving Title VW Credit? Do I need to make an extra trip to the DMV to register or transfer title to my name? I am trying to harvest the positive equity in the car, by selling it within 10 days of obtaining title, but if there are major delays at the DMV, I’ll possibly have to end up paying sales tax on the residual value?Ĭan I sell the car immediately to a private party? Does CarMax have different protocols for selling a vehicle. The title notes VW Credit on the front with my name on the back of the title form. I had sent in the paperwork for the buy-out inclusive of payment and received title to the vehicle today. Hey guys, I’ve been doing a good amount of research on buying out my car from VW Credit upon expiration of the lease with the intention of selling within 10 days to avoid paying use tax.
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