Hi all - have loved reading this form and now am interested in some opinions.
As the title says I have a 2018 JGC coming off a lease through Chrysler Capital this month. I can now confirm what’s been posted in several different threads here - CCAP will not play nice once the lease is in its last 60 days. They won’t give any third parties a dealer buyout quote (I stood right there while someone from the Carmax back office called them), and they won’t give me a courtesy extension to put me back in that window unless I’m ordering another Jeep. In the meantime the offer from Carmax was almost 7K over my personal payout, and an online offer from Carvana was even higher. I don’t hate the Jeep, but am leery of driving it too long out of warranty. So with instant gratification of that equity apparently off the table would you:
Buyout the lease with a new loan, pay the taxes, make a payment or two, and then try to sell it again. If similar offers were still available, they’d still yield several $K profit even after I paid the taxes on the residual. I know a ‘quick flip’ isn’t realistic considering the time it will take to get the title processed, but I was thinking 2-4 months. The big risk seems to be whether I could still count on these runaway used car offers to be around, or do you long-term industry watchers think this bubble could collapse very quickly. I suppose the worst case scenario is I get stuck with much less equity and will then have to pay it down for longer to get back in a good position, and then possibly start paying in for a long-term warranty and/or repairs & maintenance. But as I said, its a familiar, useful car at this point, so not the end of the world. Other downside would be multiple credit inquiries within a few months if I ended up selling quickly and leasing again, but I’m assuming that’ll be temporary with no other credit issues to bog me down.
Or, just turn the car in and be done with CCAP and start over with something new, which is obviously the original idea behind leasing for 3 years. This mitigates the other risks, but its feeling hard to just walk away from the rare feeling of having so much positive equity in a car after a 3-year lease. Not to mention it pushes me into a pretty quick decision on something new in the first month of a quarter in a not so great leasing market.
Appreciate any opinions and of course any options I haven’t thought of.
The value won’t drop THAT drastically and fast. I’d buy it. I probably wouldn’t even wait that long. As soon as account shows paid, and you have the loan showing due, it is time.
Check out Lightstream. If your credit warrants it, they’ll give the loan unsecured, so you can get the title sent to you rather than the lender.
I am in the same boat with a 2018 GC coming off lease this month. $7K in equity seems really high - what trim do you have? Anyone have any color about whether Jeep dealers can get the dealer buyout price out of Chrysler - my experience on my other leases with Honda was pretty straightforward with the dealer buying the car every time at a discounted price to my quoted price (at least no tax and in some cases at a bigger discount).
It’s an Overland, and very low mileage after a year of limited commuting like a lot of people I’m assuming. I think I closed the original lease in a sweet spot - mediocre residuals but aggressive discounts, so now I’m here at the end with a pretty low residual and the used car market on fire. I haven’t tried anything with the Jeep dealer, but I have a hard time seeing what their incentive would be to buy it at a price that would return equity to me when it would be coming back to them anyway in a few weeks if I turned it in. Leaning towards just buying it out via a credit union, and toying with the previous suggestion of opening a personal loan for a month so I can get the title directly and speed things up. Main concern with the whole process is the time it’ll take to get the title cleared either to a new lender or to me and hoping these unicorn offers will still be out there.
Funny you are posting this. I’m in the same boat. Carvana offer 3.5k above buyout on my Ram. Already started loan process with BoFA. Waiting for them to pay ChryslerCapital and sell the truck in a month or 2
Yes - I have a great offer in hand from Carmax too, but unfortunately was blocked by Chrysler Cap from selling to them. So this thread was to get advice on how to get CCAP off the title as quickly as possible so I can take a hopefully similar offer soon or shop it around further.
