Curious if anyone has any guidance for me here. I have a 2023 JGC L Altitude that I leased through Ally back in October of 2022. Initial lease was 24m/12,000miles. Fast forward to today with 6 payments remaining…the car only has 8,400 miles on it (as you can see, I have not driven nearly as much as expected).
Naturally I am to assume I have to have some equity in the vehicle, but I have heard Ally is a nightmare/near impossible to get ouf of early. Is this correct? I’d really love to either cash out on my equity or put it towards something new to cut down my payment (currently $629/m) as life and daycare aint cheap!
I think purchashing the vehicle is out of the question, as it seems the sales tax and fees I would pay would essentially wipe out my equity. The other thing i was reading about was see if I can find a dealership who has a “floor plan” with Ally directly…they get much more favorable buyout numbers? Is this a thing?
I do want to preface, I have no problem whatsoever staying in this vehicle until lease end or closer to…I love this thing. Just trying to see if I have any options at this moment in time to take advantage of the assumed equity I have.
Appreciate any feedback!!!
Its highly unlikely you have any equity
No equity after paying for 24k miles and only using about 40% of that? Is it because of a 24 month lease as opposed to a 36? Please elaborate.
The entire used marked is way down and grand cherokees don’t hold their value particularly well. Almost nothing has positive equity currently. Most stuff has a lot of negative equity. Ally leases tend to be structured with higher residuals and higher money factors as well, which puts them in an even worse position.
You can always get a quick sanity check by comparing your current buyout (or even just the residual value at lease end) with an offer from carmax or carvana. They can’t buy it for your buyout, so you wouldn’t be able to execute on it, but it would at least give a rough idea.
2 Likes
Got it, my how things have changed over the last two years! Appreciate the feedback.
The covid years were definitely an oddity in the car market and not a good reference point for what “normal” is. We’re feeling the pendulum swinging back the other way right now, but it’s definitely closer to normal.
You absolutely should see if you have any equity, but don’t expect to actually have any.
Try talking to @Anthony_Lopez
