Cobra Jet
Well-Known Member
- Thread starter
- #346
Almost, but no.Thank you, Cobra! So I did call and get the Regional CSR. They actually tried calling me today to get more information for possible buy-back purposes, but I was working. I just called back and left a message. Today is Day 35 of my vehicle being in the shop. I also requested for my monthly payment for last month to be reimbursed due to the vehicle being out of commission. Your assistance has been very helpful.
I do have a few questions, however. So you stated Replacement would be a straight MSRP to MSRP swap and there would be no discounts etc. applied. So my GT was purchased new at $30,000. I know most MSRP's for GT Automatics are roughly $35,000. So if this buyback was approved for replacement, would I now be financing the $35,000 amount if I found another identical vehicle? Basically:
1) If approved for replacement, am I now responsible for financing $35,000 instead of $30,000?
2) The payments I made to my lender are just reimbursed to me?
I would definitely be discouraged if I'm now having to finance an additional $5,000 because of the vehicle's quality.
So here’s a (2) example breakouts with totally hypothetical numbers and values of how the vehicle replacement MSRP to MSRP works.
——-
MSRP to MSRP where new MSRP is higher:
Owner finds new replacement 2019 GT for $40k.
Owner had $10k left on existing 2018 GT.
$35k original 2018 GT MSRP
$(25k) amount paid down on note
———
$10k left on note
Owner’s State Lemon Law says owner is responsible for following fees:
Mileage use
Tax delta between original vehicle and new vehicle (apply State sales tax to delta).
DMV fees
Dealer Doc fees
Other misc fees
Say all those above fees/penalties were $1,000.00
$10k - left on original note
$1k - total penalties/fees
———
$11k still Owner’s responsibility
$40k New 2019 GT MSRP
$(35k) - 2018 GT MSRP
——
$5k over original MSRP
Total due at signing and delivery of new 2019 GT replacement:
$11k original note/fees
$5k over MSRP
———
$16k due at signing via cash or new loan
So the owner is into a brand new 2019 GT for $16k.
Some lending institutions will do a swap of collateral and let owner keep existing loan and change VIN info, while others will require payoff of existing loan and open a new loan - every bank or Credit Union is different so if attempting a vehicle replacement, the owner should inquire as to how that would work for them and their situation.
Again, the above is hypothetical MSRP values and fees - BUT the process or worksheet from RAV works exactly as depicted above for a vehicle replacement.
Fees, monetary penalties, taxes are different in every State, so some folks may only have to pay fees and tax deltas and NO useage penalties - where some other folks may have to pay fees/penalties/misc costs AND mileage penalties.
Now OBVIOUSLY if say the scenario above were equal MSRP to MSRP; here’s the same figures played out:
$35k original 2018 GT MSRP
$(25k) paid down on note
———
$10k left on original note
$1k fees
———
$11k still responsibility of owner
$35k 2018 GT MSRP
$(35k) 2019 GT MSRP
———
$0.00
$11k remaining note + fees
——
$11k due at signing
——-
I hope that helps with how the vehicle replacement works.
When going through the RAV process, you the owner have the right to reject RAV’s figures, etc. It’s all part of the process.
—-
State sales tax is only due when the new vehicle replacement is higher than the original MSRP. So if the new MSRP was $5k higher than your original, then you are responsible for State Sales Tax only on the $5k delta (or whatever that delta may be), not the whole MSRP.
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