Ally Lease Buyouts; Negotiable or Not?


 “Can I negotiate with ALLY, the lease company on my current vehicle or not?”

This recent email begged the question, to which my initial reply was:

You could try negotiating with someone at the other end of the REMARKETING phone line at ALLY, however, if the present value of your car is close to the buyout figure, it may NOT be worth it.

CONSIDER THIS:  if you are going to incur charges close to the buyout figure you need to entertain the net difference. The only person who can buy the car off the lease is you, after which the dealer can buy it for the buyout or let it go to auction and buy it online at auction for the going market value as decided by “supply and demand” not a book or guide.  With car auction prices being VERY high right now, ALLY may just get their price, and anything over residual is gravy. The residual is typically self-insured against any loss at auction, or fees uncollected from you, so a loss to ALLY is seen as a  loss against profit which is still a win at tax time.

There are many questions to ask here, some of which you may not have the access to the information to make an informed decision.

  1. What state do you live in?  Different states have different market demand for your used car, and laws regarding buying the vehicle direct from Ally or thru the franchised dealership. This is crucial as the dealership gets $500.00 of the $2500.00 buyout fee stipulated on your contract.

  2. What are the current miles on the vehicle and the cost per mile for overage.

  3. What is the condition of the vehicle and possible surcharges for damage, wear and tear and miles. 

  4. What is market demand for your vehicle vs. a new lease or payment option. Check with Mycarlady for an honest evaluation.

  5. What is your current credit situation, has it changed (for the worse) during the term of the lease. Ally may not finance you on the buyout balance. Ask for a lease extension.

  6. What are the Taxes and interest on the remaining balance of the buyout fee?

  7. Are there Incentives: Loyalty or Lease Pull-ahead programs that may make the buyout fee a non-issue with the right dealer (especially during Holiday and year-end promotions).

  8. and… depending on where you are in the end of lease cycle, a few months away or a year, could make a world of difference in the used car market for your old vehicle (it’s value) vs. a new lease payment with minimum down payment required.

    So there you have the latest info. on the Ally Lease Buyout question: will they sell you your car for less than the residual???


Sarah Lee Marks is MyCarlady. She has over 22+ years of experience.
She writes about cars, and is a staunch consumer advocate on car related subjects.
MyCarlady offers free car buying advice.
Call Sarah Lee for more information: 702-521-7546. Join the MyCarlady newsletter to be kept up-to-date on this and other important car information.

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