How much do miles matter when planning to sell after lease to third party?

Ask the Hackrs
1

I’m looking at lease offers on Gladiators and Wranglers. The best offers are on 42/10 leases, and traditionally I have used 36/12 leases. If I’m planning to sell third party at the end of my lease, will it really matter much in 3 1/2 years if I’ve got 36k miles on a 2021 Gladiator vs 30k miles?

I currently have a deal for a $45k MSRP 2021 Gladiator Sport, for sale price of $38,884 at $299/month with zero down for 42/10. I know I’ll go over the miles but I want to sell third party at the end of the lease. Would that work? Thanks for any pointers.

2

It only matters if you can’t sell it for its value. Which is likely If you get in an accident. Also perhaps if these new trucks lose some of their luster in the next three years.

Ultimately it’s a gamble. You save money on monthly payments with the risk of owing money at the end either when you return lease with mileage penalty or selling the car to a third party for less than you owe.

The threshold question is do you think you will have the cash on hand to cover the mileage penalty/negative equity if you can’t sell it for what you owe. If so, do the cost benefit calculations and figure out if the savings is worth the risk.

3

Miles play a huge role in determining value, I would say it matters a lot @nlacina, in your specific scenario though it’s all speculation, my opinion is that it might make a minimal difference.

With that being said like ec99 said there are other factors that determine the value like how late in the model year the vehicle is… i.e previous gen, current gen, etc etc. Is a new generation coming up? Will People flock to the new gen?

This is really speculative question and nobody knows what the market will look like in 3 years.

You can sell your lease if it’s through Chrysler cap with minimal hassle, I can’t speak for ally or us bank maybe somebody else could give more insight.

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4

Ok thank you both. My impression was that it was somewhat of a gamble one way or the other, I just wanted to make sure that I wasn’t doing something completely unreasonable. I’m ok with having the potential for a small bit of downside if I’m over on miles, and I think it’s likely I’ll be over at lease end. I just didn’t want to get into a deal that was nearly certainly going to be a bad one in three years.

5

What is the RV drop and monthly difference to go from a 42/10 to a 42/12?

6

Your plan is based on a huge assumption, that these third parties will even be around in 36-42 months, let alone making these inflated offers.

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7

How much in incentives gets you that selling price? That is a stupid amount of money off to be all dealer discount.

Also, as others have said, don’t do it. Get the mileage you need and plan on returning the car, evaluate whether you have any equity towards the end of your lease to determine your options then.