So in light of all the articles I read about dealers needing Used inventory, I decided to check what my lease was worth, even with 9 payments left. 2018 Jeep GC Laredo E, $340/month all rolled in.
Well, Carvana has offered me almost $4000 over the payoff. So naturally, my goal now is to find a comparable Jeep GC to lease again, so I can sell our current car to Carvana and make a considerable about of money (I would take the check and just make monthly payments from it for a few months).
Here’s the problem: I now pay about $340/month, taxes/fees rolled in. I make sure to always roll everything in. However, due to market madness, I’m being quoted mid 400s to over $500/month for a GC LAREDO! I understand that sell high = buy high, and I’m willing to stretch from current $340ish to maybe like $400/month (since I’d still come out ahead), but $500+ for a base GC?! Pretty insane.
While I love our GC, I guess I could get something comparable. But I like the size, so XC60 won’t work. Honda Passport is too boring. Chevy Tahoes are crazy expensive…
Any insight here as to how I can realize some of this positive equity? Or is it just gonna be awash since new cars are so much higher now, as well? Dealers are very low on inventory, resulting in very weak discounts on the cars.
I think the focus should be on how to creatively find a ‘great deal’ in this market to take advantage of the positive equity gained, vs. realizing the equity to find a good deal. I.e., if you’re only looking at certain Jeeps in your market or state then ask yourself if it’s worth it to broaden your search criteria in exchange of capturing that positive equity.
Thanks ya, I made an edit regarding other models, but I have yet to discover one I’d like. I’m open to suggestions, and willing to up the budget to around $400/month
@Cars4Us is giving away higher-end trim Grand Cherokees. This is a no-brainer if you want to stick with Jeep. Especially if the GC to GC loyalty is still in play.
Yup, I saw and PM’d him. Just shocks me that he can get 12%+ off when all the dealers I asked were at invoice or above lol. And I’ve done well in the past. I also have a GC Upland I got for $328/month with $328 DAS, 40k MSRP
The question you are posing here is some thing I have also thought about over the past few weeks. I was able to sell a leased car to Carvana and make a fairly significant profit, but what to buy to take iadvantage of bailing out early on the other lease? in my case, after searching around for a bit, and since this was a third car that I sold, in the current environment I decided to just wait it out. I suspect the market may change very quickly and vacillate back to how it was just a few months ago.
I can’t just wait around without a car, so I may just have to forego the gain. Like I said, I’m willing to increase the budget if I need to, bc I’d still come out ahead. However, once the payment is $100 more than what I pay now, it’s awash.
Yeah…it is a different story if you need to turn around and immediately get another car. If the price you can sell something for has come up, odds are the price you can buy something for has come up as well…
Other things to consider here are insurance, gas, and taxes, if you want to look at the net value of this opportunity.
Explained by example, I helped the gf out of her 2016 Infiniti Q40 just last month. Crazy Carvana deals had her “equity” reversed from ~1k under payoff to 1.2k over payoff between March and July. Despite having reasonable deals lined up leading to the COVID timeframe, it was the 2k equity swing that ultimately led her to want to pull the trigger. Now, as you said, payments on most models have gone up over that same period. While her monthly payment went up $130, her insurance on the X1 actually went down as compared to the Q40, as well as her expected fuel costs which went from $150 to probably just under 100 based on MPG. In total, her net cost of “upgrade” was ~$85/mo instead of $130. The cash from Carvana basically cover the added cost of the new car for almost a year. (I don’t know the exact increase in taxable base, so I excluded that from my calculation)
In your case, $4,000 buys you a hell of a lot more wiggle room. As @calihackr said, your goal sohuld be to find the best deal in this market to take advantage of a positive equity situation that, in all likelihood, will not last forever and that we may never see again for quite some time ()
I agree about taking advantage of the current market, but I still want a similar vehicle. In other words, let’s say corollas were dirt cheap, sure ya I’d save on gas, insurance and monthly payments, esp with 4k equity, but I’d have a vehicle I do not want at all, which doesnt fulfill my needs.
If the GC isn’t an option, I am open to suggestions for similar vehicles. As such, I dont expect to save a whole lot on gas or insurance.
Thats true, but Ive already come to terms with not realizing the full 4k. I mean at this rate, our logic can soon be, “you can save even more by having no car at all” lol
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