I leased (39 month) a 2022 Jeep Grand Cherokee 4xe in November 2022. The turn-in date would be around February 2026, but we have reached our mileage limit and no longer want the vehicle. We could keep it in the garage while we run out the remainder of the lease, but I don’t really want to pay insurance on it if we aren’t driving it.
So, we are trying to look into Early Lease Termination options and after talking with several reps, I am beyond confused. One told me it would be about 1500 (I can’t remember the math he used) and one told me 20k. I will include some numbers below, can someone help me determine approximately how much the early termination fee would be?
Also, if I paid the remainder of my lease payments, can I return with no fee?
Here is the section of the lease agreement that states Early termination fee:
EARLY TERMINATION LIABILITY
A. MONTHLY PAYMENT LEASE. For a Monthly Payment Lease, if this Lease terminates early, you agree to pay the sum of items (1) through (5) as follows:
Any unpaid Monthly Payments accrued up to the termination date, plus
A Turn-In Fee of $495 or, if we repossess the Vehicle, instead of a Turn-In Fee, the actual expenses we incur in connection with repossessing, obtaining, storing, preparing for sale, and selling the Vehicle, including transportation and reconditioning, plus
Official fees and taxes in connection with the termination, plus
All other amounts due and owing under this Lease, except excess wear and mileage, plus
An early termination charge equal to the amount by which the Adjusted Lease Balance exceeds the Vehicle’s Realized Value at termination.
I am not sure how to calculate #5. The residual value is 38k, wholesale is approx 26k. I am assuming the vehicles realized value at termination is the wholesale or the amount it goes for at auction. But how do I calculate the adjusted lease balance? Do I need any other numbers to calculate this?
I did contact the dealer I bought it and talked with the finance dept since I was getting conflicting messages from CCAP. She told me she would check into it and get back to me. I have heard nothing other than now the salesman is calling asking if I want to buy a new car.
Let me know what info you need. Thanks!
ETA: I did get a lease buy out/purchase price of 46,637.72 + taxes = 49,552.79
You cannot calculate it, just estimate it. The actual number is post facto (auction result after the vehicle is wholesaled after early termination).
What state are you in? Several states the consumer can only be charged the lesser of the two amounts (remaining contractual payments or the negative equity after it’s auctioned).
1061 is my payment. I will see if I can include a couple of pictures with some figures on it as I do not know the base charge nor do i know the rent fee. The base charge (depreciation) is around 820 according to Chat GPT/AI but I dont know if that is reliable
My first lease, we were testing the waters, but obviously, we didn’t do something right. Could you explain what the red flags are in case we decide to lease again?
Is there something other than the monthly lease amount that I should be seeing in my lease that has everyone so in aww?
The payment amount isn’t an issue for us. I alone make enough to afford it not including any other incomes in the house, have a lower house payment, and went without a car payment for almost 10 years before this lease. Not to mention, I don’t really have a gas bill since I mainly use the electric motor in this car and can charge my car at work. But I am concerned that I don’t see something that I should in the lease agreement.
2022 was a very different time, with the pandemic shortages, so I think everyone here is in awe (in a bad way) over the monthly payment. It’s not about affordability, it’s about reasonableness, and nowadays if someone is paying more than, say $450/mo for that same truck it would be considered a bad deal.
2022 was still no reason to pay almost 1100 for a grand cherokee, or any chrysler product for that matter. @8nracing not trying to bring you down, but get out of this thing asap
I am defintely trying, but don’t want to be stuck with 20k in fees either. Trying to make sure I am doing it the smart way. I am just glad I am not stuck with it at what it is currently valued at.
Not arguing, honestly trying to learn as this is my first lease and want to not get caught up in any mistakes next time. However, I just priced out my same exact jeep with same options and terms (39 months 12,000 miles) and its showing it would be 1600/mo with 0 money down. So it actually would be significantly more than what I am paying.
