[Jubilee]

I prepaid $7k for a 36/36 lease on a 2017 Volt, am currently at 28k miles with 1 year to go. We no longer need two cars so the original plan was to turn this one in once it hit 36k miles and pay the disposition fee of $395. I probably would need to replace the tires and that would be an extra $250. No dings/dents as of now that I foresee having to pay for.

Today I stopped by CarMax and got an offer to sell my car to them for $19k. Offer is good for 7 days. My lease buyout is $17.7k.

Should I sell now? Our second car is sitting in the garage, unused, while we try to rack up our miles on the Volt. Had anyone done this? Do you have to pay sales tax on your lease buyout? TIA

 

[Don M]

I would *think* a private sale on a 2017 with 28K on it would bring you more than $19K - I'd be thinking 22 or 23 depending on what model it is - LT or Premiere. I'm pretty sure CarMax would be asking more than that when they put it up for sale. I paid a good bit more than that for my loaded Premiere with 22K on it when I bought it 6 month ago

Don

 

[fasn8n]

Put it on swapalease


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[Prohidium]

I prepaid $7k for a 36/36 lease on a 2017 Volt, am currently at 28k miles with 1 year to go. We no longer need two cars so the original plan was to turn this one in once it hit 36k miles and pay the disposition fee of $395. I probably would need to replace the tires and that would be an extra $250. No dings/dents as of now that I foresee having to pay for.

Today I stopped by CarMax and got an offer to sell my car to them for $19k. Offer is good for 7 days. My lease buyout is $17.7k.



Should I sell now? Our second car is sitting in the garage, unused, while we try to rack up our miles on the Volt. Had anyone done this? Do you have to pay sales tax on your lease buyout? TIA

Not sure about your tax rules but normally tax would be due on the buyout price if you were buying it. If carmax buys out the lease, they may be able to get it without having to pay the taxes as they are a reseller. That would have to be coordinated between the lease company and carmax. So, if you buy it out and sell it privately, taxes come into play and you would have to consider that as part of your vehicle cost and then set you resale based on that and what the market will bare. Selling to carmax may net you less but certainly a lot less hassle. Also, carmax would be buying it “as is” so any turn in fees would be avoided so no new tires etc. unless that became a condition of the sale but I doubt that. As long as there is about 5/32 of tread remaining no one will care.

 

[9G-man]

Did the Leasor add the $7500.00 Fed. tax credit (and CA rebate?) to your residual or deduct it from the Cap cost, when you leased car?
If it was added to the residual, they took the tax rebate and are charging you for it too, if you buy out the lease, and in addition got $7K down on a lease! So, they were handed the tax credit and handed another $7K. Your monthly payments should literally be $0 for 36.months. Your up-fronts along with any Mfr/dealer incentives were pretty much the entire depreciation of the car. The buyout should be about $10K, having put $7000 down, but they are charging you for the tax credit they already took.

 

[Jubilee]

Did the Leasor add the $7500.00 Fed. tax credit (and CA rebate?) to your residual or deduct it from the Cap cost, when you leased car?
If it was added to the residual, they took the tax rebate and are charging you for it too, if you buy out the lease, and in addition got $7K down on a lease! So, they were handed the tax credit and handed another $7K. Your monthly payments should literally be $0 for 36.months. Your up-fronts along with any Mfr/dealer incentives were pretty much the entire depreciation of the car. The buyout should be about $10K, having put $7000 down, but they are charging you for the tax credit they already took.

Deducted from cap cost. Just checked

 

[Jimbo62]

Did the Leasor add the $7500.00 Fed. tax credit (and CA rebate?) to your residual or deduct it from the Cap cost, when you leased car?
If it was added to the residual, they took the tax rebate and are charging you for it too, if you buy out the lease, and in addition got $7K down on a lease! So, they were handed the tax credit and handed another $7K. Your monthly payments should literally be $0 for 36.months. Your up-fronts along with any Mfr/dealer incentives were pretty much the entire depreciation of the car. The buyout should be about $10K, having put $7000 down, but they are charging you for the tax credit they already took.

OP wrote $7k prepaid, not $7k down. I read this as no monthly payments. $7k total paid for 3 years.

 

[Jubilee]

I prepaid $7k for a 36/36 lease on a 2017 Volt, am currently at 28k miles with 1 year to go. We no longer need two cars so the original plan was to turn this one in once it hit 36k miles and pay the disposition fee of $395. I probably would need to replace the tires and that would be an extra $250. No dings/dents as of now that I foresee having to pay for.

Today I stopped by CarMax and got an offer to sell my car to them for $19k. Offer is good for 7 days. My lease buyout is $17.7k.

Should I sell now? Our second car is sitting in the garage, unused, while we try to rack up our miles on the Volt. Had anyone done this? Do you have to pay sales tax on your lease buyout? TIA

Just to close the loop on this, I sold the car tonight and got a check for $1,300.

In summary,
I paid $9,000 up front for a 36/36 lease
Got $1,500 CA rebate
Got $500 PG&E rebate
Turned in the car for $1,300 back at 28,500 miles

Not too shabby a deal I hope??

 

[Don M]

Not too bad - That comes out to 20 cents per mile, plus taxes, license fees, gas, electricity cost and maintenance. Maybe not as cheap as owing it, but not bad for a lease

Don

 

[Jubilee]

Not too bad - That comes out to 20 cents per mile, plus taxes, license fees, gas, electricity cost and maintenance. Maybe not as cheap as owing it, but not bad for a lease

Don

Taxes and maintenance are included in the 20c/mile calc. I suppose I did put gas in from time to time... licence fees were $388/year, but owning the vehicle wouldn't have precluded me from this. Electricity is free at my workplace.

I had to insure it at a level higher than I'd normally insure my cars though, so I guess there was that added insurance premium cost.

Well, hopefully this will provide a reference to anyone wanting to run a similar calc in the future.

 

[voltdoc]

Was your car a LT or Premier?

 

[Jubilee]

It was a LT.