Chrysler Capital Lease

Ask the Hackrs
1

I leased a 2022 Jeep GC 4XE back in December on a 27 month lease. I was under the impression I could turn around and buy-out the lease at a price less than the sum of the remaining lease payments plus residual. Am I incorrect in my thinking?

2

Yes, your buyout should be less than the sum of the rv plus the remaining payments as the rent charge has not yet been earned. Keep in mind that a buyout amount often includes sales tax, so the buyout + tax may be more than the rv + remaining payments before tax is applied.

3

Let’s just make this easy.

Call up CCAP (Chrysler Capital) and request a copy of the payoff. They will typically email it over and that will show you exactly what you would pay in the event you choose to buy the lease out.

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4

Yes…this is the sure fire way. CCAP is not great at many things, but they do email that letter over within minutes.

5

Yes, I did get the payoff email from CCAP, which is why I am surprised at the result. The person I talked with said the buyout price was the residual value plus the remaining payments. She sent the email with the payoff and the math added up.

6

how many months do you have left?

27 month lease? They sell those?

7

Can you post the info and your lease terms with your personal info removed?

You contract should have the buy out terms spelled out on in that discusses how the buy out amount is calculated.

8

Here is what the lease says
22. PURCHASE OPTION
B. PRIOR TO END OF LEASE TERM. You have an Option to Purchase the
Vehicle “AS IS” at any time prior to the end of the Lease Term. You must
notify Lessor before you exercise the Option to Purchase. If you exercise
the Option to Purchase at any time prior to the end of the Lease Term, you
agree to pay Lessor a sum equal to:

  1. Any past due Monthly Payments and any other amount due under this
    Lease;

  2. Plus any official fees, taxes and other charges related to the purchase
    of the Vehicle;

  3. Plus the Adjusted Lease Balance as of the date the Option to Purchase
    is exercised as determined in accordance with the method indicated
    in Section 19.A for a Monthly Payment Lease and Section 19.B for a
    Single Payment Lease;

  4. Plus the Purchase Option Fee described in Section 8 of this Lease;

  5. Plus a document or other administrative fee that may be charged by
    the dealer or third party processing such purchase, up to the maximum
    allowed by applicable state law. Please contact your preferred dealer
    for the amount of the document or other administrative fee.

  6. ADJUSTED LEASE BALANCE
    A. MONTHLY PAYMENT LEASE. For a Monthly Payment Lease, your
    Adjusted Lease Balance is the Adjusted Capitalized Cost disclosed on
    the front of this Lease, less all Depreciation and other Amortized
    Amounts accrued up to the termination date, calculated in advance on a
    straight line basis in equal amounts for each month of the Lease. The sum of
    such Depreciation and other Amortized Amounts will not exceed an amount
    calculated in accordance with the Constant Yield Method (explained in the
    final sentence of this subsection below). For purposes of this calculation,
    the portion of the Base Monthly Payment consisting of the Rent Charges is
    also an equal amount each month, earned on the first day of each Monthly
    Period and equal to the amount not allocated to Depreciation and other
    Amortized Amounts. The Lease Term is divided into monthly periods (each,
    a “Monthly Period”). The first Monthly Period begins on the due date of the
    first Monthly Payment (see Section 2.A) and subsequent Monthly Periods
    begin on the due date of each subsequent Monthly Payment. “Constant
    Yield Method” means the method of determining the Rent Charge portion
    of each Base Monthly Payment, under which the Rent Charge for each
    month is earned in advance by multiplying the constant rate implicit in the
    Lease times the balance subject to Rent Charge as it declines during the
    scheduled Lease Term.

9

Please post section 19.a to verify the adjusted lease balance.

It should confirm 6a there, which is that the adjusted lease balance does not include unearned rent charge. As such, your buyout would not be equal to the sum of remaining payments + rv.

10

Thanks mllcb42. I just re-did the math and despite what I was told, the lease buyout was about $3K less than the total of the payments plus residual. Now I have to decide if I want to own this thing or give it back in 24 months.

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11

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