2016 Jeep Cherokee Trailhawk - Lease Options

LH Community - thank you in advance for your help here.

Long story short: I’m paying $600/mo on my fully loaded 2016 Jeep Cherokee Trailhawk and due to some life changes, really need to cut those payments in half (or more). I’m exploring a lease pull ahead options, but want to avoid making a major mistake. Details regarding my situation are below.

2016 Jeep Cherokee Trailhawk - Fully Loaded

  • 8 payments remaining (48 month term) @ $600/mo = $4,800 remaining
  • Financed through Ally Auto
  • Payoff quote = $3,588
  • Gross Capitalized Cost = $42k
  • Residual Cost = $19,102
  • 40,000 miles remaining
  • KBB Estimated Value at “Very Good” = $23k

A. What is your advice?

B. Is my goal of < $300/mo payments feasible with the situation above? My credit is “fair-good”.

Note: I totally understand and will embrace the significant “downgrade” in my next leased car. Happy to do a base level package in order to meet payment requirements. I was naive when I leased this car and I am well aware that I should never ever do a 48 month lease again.

Any help that the community can provide would be much appreciated. Please let me know if I can provide further info to help with the advice.

That payoff quote doesn’t look right. There’s an article on the front page specifically about how to get out of lease early. Read it.

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Ignore kbb. What do CarMax, carvana, shift, or vroom offer?

20,687 via Carvana

Thanks for the response. I did read that article and while it was helpful, I still feel like there’s grey area which is why I asked. As for the payoff quote, I go to Ally and click “Payoff Quote”…is that the wrong place? What “doesn’t look right”?

Well, the payoff has to be greater than the RV. You can’t have a ~$4k payoff on a car with a $19k residual.

@mllcb42 So combining the $19k plus the $4k means the total payoff is roughly $23k, right?

Is this “payoff” Ally’s terminology for an early end to the lease?

Remaining payments less interest and taxes?

Yes - from what I can tell @max_g

Do they have a separate number for buy outs or something like that?

If there’s nothing else online you might need to call Ally and ask how much a dealer would pay to buy the car from them.

In the meantime how much of this estimated 3,600-4K negative equity can you pay off in cash and how much are you planning to roll into your next lease?

Will give them a call and work on getting that figure for you, thanks!

As for the negative equity, likely all of it rolled into next lease. At most it would be ~$500. In which case that would be ~$133/mo + the new lease…which based on what I know, means I’m screwed/no way to get to the $300/mo goal?

With fair to good credit and value in mind, Hyundai Elantra might be a good bet.

Someone here helped their friend with Tier 6 credit get into one for 197 and with a better tier you could probably hit your target of $170 ish.

It’s not anything remotely close to a penalty box like a Nissan Versa, lot of standard features plus a value package which is very reasonably priced. JMO

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Awesome. That’s really helpful. Appreciate the time/input. FYI - just called Ally and said they cannot give me a dealership buyout quote without calling a separate number WITH the dealer present. They were the least bit helpful, so that was a dead end…

Dude you shouldn’t get a downgrade at all for 300. I pay 277 a month for my Cherokee trial hawk. And 460 for a 2019 bmw 440i gran coupe. You can get a pretty great car for 300 dollars. Good luck in your search. Maybe look into a Tacoma?

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