Coming in from Northeast PA, my wife and I are looking to capitalize on the equity we have in her 2019 Traverse LT Cloth lease with the market so upside down. We have 14 months left on her lease but she only has 7500 miles on her car. Since GM Financial has moved to stop allowing buyouts from anyone but GM as of July 1, we are finding it hard to locate inventory of a GM product to trade in for.
With that being said, we can lease a 2021 Durango GT Plus with an MSRP of $49,530 for $375 tax included with only first months payment out of pocket. $5500 in rebates. This dealer has a GM store as well as Dodge so they can buy the lease out. I have negotiated them to give me full KBB Excellent trade value of $36,000.00 which gives me about $8500 in equity towards the Durango to help covers the acquisition fee and bring the ACC down. They are using a local bank for the lease. 7500K per year 39mths .00125 MF with a 54% residual. With flawless credit I feel like we can do better on the MF but they wont budge- I’m assuming there is a nice dealer reserve built into that. I am happy with the trade in however even before the the lockout from GM it is the highest offer to buy it out.
What are your thoughts?- Dealing with an early buyout to harvest the equity is muddying the water for me to truly understand if this a good move or not.
The market is great for people with existing leases. If you leased a Durango 6 months ago, you would have gotten better terms, but you would have had like zero equity. So if you’re happy with it, go for it.
is this new monthly payment lower than your Traverse? Just curious as to if you have a specific need to swap cars right now or it just feels like a good deal at the moment.
Monthly payment goes up $24- We pay $351 right now on the 19 Traverse. My gut tells me that if I wait until the end of the lease term it be be worth contracted residual or even less once the market swells back up with used cars again. My thinking is strike while the iron is hot and capitalize on the positive equity and get into a much higher trim level SUV with minimal impact to our monthly payment.
In all honesty my wife is indifferent. She loves her Traverse and is the type of person who would drive something until it dies. She also loves a feature packed leather Durango with Nav and a sunroof. The push is more on my part as I feel like I am leaving money on the table by not trying to use the shortage of cars to my advantage to trade up. My thinking is in about a years time we have to make a move either way when the lease is up.
Out of pocket is really 8500 + first month. That’s alot of money to give away, take it and run. At least put it into an account and let the higher monthly pull from it. Total the Durango that money’s gone.
That is a good way to think of it. I am doubtful the dealer would just buy it outright for 36000 without me taking the new lease. I’m assuming their profit is coming from the acquisition fee and kickback on the MF from the bank, and not so much on what they will sell the Traverse for
I’ve thought of that but, I am doubtful the dealer would just buy it outright for 36000 without me taking the new lease. I’m assuming their profit is coming from the acquisition fee and kickback on the MF from the bank, and not so much on what they will sell the Traverse for. With the policy GM put in place July 1 it eliminates a Carvana type of company from just buying me out. I believe I could technically buy it out myself, if I got a loan and then rolled the dice on reselling it for profit and starting a lease from scratch with no trade in.
If one dealer is offering it to you, then why wouldn’t another? In this case, shop around since it doesn’t look like this dealer is doing you any favors.
