So my current 39 month lease on my 2019 Grand Cherokee is up in 1 month. I like the vehicle but was looking forward to upgrading to something bigger before the pandemic and the price increases started. With prices being so high which is my best bet…Should I buy it out and keep it, or sell it and put the extra money towards something new? If I do buy it, does it make sense to do so now? I was gonna try and extend the agreement for a few more months but it doesn’t seem like prices will be going down anytime soon. Also if buying it, I have the money to purchase it without having to finance. Sorry this is my first lease and I have zero knowledge about everything and just looking for some help.
Whats the buyout and KBB values?
Purchase price is $25,848.48. Not sure what else might get tacked on to that. That’s direct from my leasing company. KBB is around $36,000
Who is the leasing company? Chrysler Capital?
First you need to know how much your VIN is really worth:
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CAL Automotive
Not familiar with them but you need to find out if they allow 3rd party buyouts of your lease. If they do you can shop the car around to the sites above and dealers and sell to the highest offer without paying taxes. If not you’ll have to buy it out yourself first and maybe pay taxes. And some leasing companies inflate the buyout price so you need to confirm what it is for you or a 3rd party. A phone call to the leasing company can clear a lot of this up. Good luck.
Edit. Looks like CAL does charge a different (inflated) amount to 3rd party buyers. So that may change the game a bit here taking away your profits.
Even buying out yourself looks like some nice potential margin!
Ya I think I’m definitely gonna buy it out myself, and then decide whether to keep it or sell it down the road. They charge an extra 5k for 3rd party or dealers. Any idea what the extra taxes would be, roughly?
“This quote does not include sales tax. Payment of tax and/or other fees may be due and payable directly to your local motor vehicle agency at time of vehicle registration”
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I just sent a certified check to pay off my Grand Cherokee. My only question is how do I determine what, if any the sales tax will be? How do I know if it was already paid or if a portion was paid and if not roughly how much I can expect to pay?
I’m in NYC and the vehicle was leased from NJ.
Your payoff had to include tax
NYC sales tax is 8.875%, plus the fee for reg, plates and title.
Looks like your lessor has already told you that they don’t collect it and it will be due at the DMV when you go to register it.
I’m a dummy.
So would the tax be applied to the payoff amount or the total I spent over th3 years + the payoff?
Tax is applied to the purchase price
Does your payoff amount have a breakdown? Such as purchase price + purchase option fee + XYZ?
If not we;ll just have to assume payoff = purchase price
Recently bought out my lease in NY (2019 Grand Cherokee Limited). Purchase price was $23,390 + $500 fee. I paid an additional $2,223 for the taxes & title. The KBB is between 32k-35k. I went on about 8 different car buying sites and my highest offer was $29k. I’m into the Cherokee for $26,713. If I sold it I’d profit about $2,300. I was hoping to get something a little nicer and/or a little bigger but not if it didn’t make sense as far as the payments. I haven’t looked into current lease offers so I’m not sure what deals there are. I’m really just trying to decide if I should just keep the Cherokee or get something new. I like it but would love something newer, I just don’t wanna spend $600+. I’m wondering if there’s anything similar in the $500 range. I was paying $390 per month with zero down. Is there anything out there or should I just keep it? Hoping someone can shed a little light.
The market sucks right now. There aren’t a lot of options that are good deals now. I’m hold on to it until things improve.
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That’s what I’m leaning towards. Saving a few hundred a month not leasing anything is a nice bonus I guess.