Newb with a question about refinancing a leased vehicle

[JasonK94Z]

Hi everyone!  First time poster here.  

I am planning to purchase my truck in August that I have leased for 3 years.  Had to lease at the time to keep the monthly payments down, and now I want to keep the truck.  No big deal, I got a really good deal on it to begin with.

Some details before I ask questions...

2011 Ram 1500 Outdoorsman, 4x4, Hemi, 24k miles

I will be able to purchase the truck for $16,xxx.  NADA value for a loan is at $25,xxx.  The truck is leased through Ally Bank, and all I have to do in August is call them for a payoff quote, and the bank or myself can pay them directly to purchase.  No dealership involvement at all!!  

My question is:  Will I be able to borrow any extra money besides what the truck is going to cost me?  I would like cash to purchase an extended manufacturers warranty from a dodge dealer online.  This would cost me about $2100 for a lifetime bumper to bumper through dodge, not some aftermarket warranty.  Possible maybe to borrow any on top of that to cover taxes, registration, etc?

If this is possible, good.  If it is, how does this work out?  I plan on trying to apply through DCU and some other online credit unions.  So would the credit union send me a check?  Never purchased a vehicle without going through a dealer, so I'm a little lost.  I hate this because I'm a detailed kinda person that likes to plan out scenarios in advance 

[ExplicitElicit]

Welcome to the forum!

What you will be doing is called a "lease buyout" from Ally, I do these all the time for my customers. To answer your question though, yes you will be able to borrow and extra $2100 if you would like to purchase an extended warranty from Dodge. Most banks only finance up to 100% LTV but some will do 125%-150% depending on the deal. Everything will be credit based though, so if you scores and previous history are good then you should have no trouble obtaining financing.

Good thing is the purchase will only be $18,xxx and you will still be under value. If you don't mind sharing please fill the following out.

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[angel_baby_1_2]

Not to steal your thread but I plan on doing the same with my two leased cars. They will be due next year, is there any haggle room with the buyout price or whatever is in the contract is what I have to pay? Also, are you able to but it early without any penalties?

[Remember0]

Haggle room depends on a couple factors. If there's a vast gulf between buyout price and what your car is worth (aka buyout price is way higher), there might be haggle room w/ some lenders. Call them and ask. Sometimes there won't be. At that time, you can try to work out a deal w/ the dealer if they want to play ball. Remember you can turn in to any dealer so I'd email a bunch with your situation and see if they'd work with you. Be cautious about signing anything at the dealership lest they trick you just to get the car turned in at their dealership when you don't want to.

I have more about lease termination in my guide here. Post 7 of 9 in that thread. http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

Typically with most leases you can pay the payoff amount at any time and own the car without penalties. Best people to ask would be your lender, but 99% of the time, yes you can buy it early with no penalties.

[angel_baby_1_2]

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@Remember0 wrote:

Haggle room depends on a couple factors. If there's a vast gulf between buyout price and what your car is worth (aka buyout price is way higher), there might be haggle room w/ some lenders. Call them and ask. Sometimes there won't be. At that time, you can try to work out a deal w/ the dealer if they want to play ball. Remember you can turn in to any dealer so I'd email a bunch with your situation and see if they'd work with you. Be cautious about signing anything at the dealership lest they trick you just to get the car turned in at their dealership when you don't want to.

I have more about lease termination in my guide here. Post 7 of 9 in that thread. http://ficoforums.myfico.com/t5/Auto-Loans/Guide-to-Financing-Leasing-and-Refinancing-a-Car/td-p/289...

Typically with most leases you can pay the payoff amount at any time and own the car without penalties. Best people to ask would be your lender, but 99% of the time, yes you can buy it early with no penalties.

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Great info, thank you!