I’m in WA state and have a lease on a 2018 Jeep Grand Cherokee. The lease is up in June, but I think I have some equity so considering selling it to a dealer.
My residual value is $23,900. I have 3 payments left of $365 so that’s about $25,000. I have an offer from Vroom for $26,200. A couple of local dealers are interested. Similar Jeeps are selling for about $30-32,000 on the lots so I should walk away with some cash.
Finally, my issue/question is that Chrysler Financial was giving me the total runaround this morning. I just wanted to confirm the buy off and asked them if it was the residual value plus my 3 remaining payments. They would not tell me. They told me they could only release that info to a dealer. Am I right that if I sold it to Vroom or a dealer about $25,000 is owed? Will Chrysler charge any additional fees if I sell it to a dealer?
I’ve only traded leased vehicles for another car so first time in this situation.
Many banks have different third party buy out numbers vs your personal buy out. I believe chrysler is one of them.
I am selling a Grand Cherokee Overland here in NJ to Carsense, a regional outfit like Carvana or Vroom. Here, my buyout is different than what a dealer can buy it for. Chrysler will not give me the dealer buy out, only my buyout which includes the residual + any remaining payments + the $350 purchase option fee + sales tax on the remaining value of the car.
Essentially the dealer pays the total minus the sales tax. Now this I cannot be sure of but someone told me the Chrysler/Dodge/Jeep dealers can get the $350 waived but I am not sure about that.
That sounds like the same info I’m getting. Chrysler also quoted me my buyout, which is about $27800 since it includes sales tax and some extra fees. The dealer buyout has to be a lot less since sales tax isn’t included.
Chrysler financial has no obligation to sell the vehicle to a 3rd party dealer for the same price that they offer it to you.
I’ll say this. Years ago, I tried to trade in another Grand Cherokee Overland at a different Jeep dealer because there was equity in the lease. They gave me the run around claiming the buy out was massive and that I would have to go back to the original dealer to work a deal. But that was with Ally, I believe. The original dealer told me it was BS, however and that the other dealer was just trying to get me to turn the car in, get another Jeep from them and then they’d reap the rewards of the equity in the truck.
I’m not sure if Chrysler made changes recently or rules differ by region but I sold my Grand Cherokee to Carvana in June and the third party payoff was the same as mine less taxes. No other fees etc. I did have to get Carvana to request the info themselves to find out as Chrysler didn’t want to give me the dealer payoff.
Edit: Forgot to include that I’m in the northeast.
I could be incorrect on chrysler having a different 3rd party buy out (although other banks have made changes recently), but it definitely is something that would need to be verified.
I’m in the middle of selling a jeep grand cherokee to vroom that’s leased thru chrysler capital and this is basically what I experienced. CCAF would not quote me the dealer payoff, vroom had to obtain it themselves. Payoff for Vroom was residual value plus total remaining payments plus about ~$300 which I assumed was the disposition fee tacked on. Vehicle was leased in NJ.
And it looks like mllcb2 was right. After speaking with Chrysler yesterday to confirm account number, when CarSense called back today to get the official payoff as of today, they were told by a Chrysler Capital rep they wouldn’t guarantee that they’d transfer title to CarSense. Something about how they only really deal with branded dealers or some other gobbly gook.
The manager at CarSense is losing his you know what on Chrysler Capital. So I may have to go a different route. Carvana wouldn’t take my Jeep because the lease was up in 30 days and they said they only deal with leases 60+ days out. Chrysler Capital wouldn’t extend my lease by 30 days to make it work for Carvana.
Seems like the rumors are true - Chrysler Cap is a real crap show. Looks like they may hose me twice now.
EDIT: Seems CarSense isn’t considered a verified dealer for Chrysler Capital whereas Carvana apparently is. CarSense is trying to find a work around.
And I got word just now that the manager at Chrysler Capital told them since the lease is up in less than 60 days, they won’t sell back to any dealer. And if a Chrysler dealer wanted it, it would be a $32K buy out whereas my buyout with tax included is only $28,700.
So basically it appears I just got hosed. CarSense claims just turn the lease in at lease end at this point. Which I will and probably will then promptly leave the Jeep world altogether and go to another manufacturer.
Honestly as a consumer they’re being somewhat greedy.
My residual on my current lease with Chrysler Capital that is set to expire within about 4 months is almost 6 grand less than my vroom offer. I’d be making about 4500 dollars if I sold to vroom right now.
Used car values are through the roof right now and they know it. I negotiated a lease under invoice with 4 grand of rebates in it. If I get into a new lease I know I can’t negotiate the same type of deal right now since dealer inventory isn’t there and neither are the incentives. They have the upper hand at the time.
They’re sort of forcing me to buy out my current lease at the end. I’d still be paying less then getting into a new lease.
So will Chrysler not let Vroom purchase the car? I’m in a similar situation and have a good offer from Vroom with about 4 months left on the lease.
I don’t know if you will be OK. You might be. Car Sense told me this morning that the Chrysler Cap manager told them they won’t sell to a third party dealer within 60 days of lease end. I was at 30 days. So you might be fine there at 4 months and it appears others have had been able to sell to Vroom.
My issue may have been I was too close to maturity and using a dealer they didn’t recognize.
Although I now have a Chrysler dealer looking at my payoff since the GM claimed they should have a lower buy out but they asked for mileage which makes me think Chrysler Capital is adjusting the car value based on mileage which means I’ll get screwed there too as I am under mileage (due to pandemic) and they’ll likely jack the dealer buy out.
But why would they adjust the residual for being under the mileage?
If you turn that car back into Chrysler they’re not going to cut you a check to refund you what you overpaid for in mileage.
I just got word from the Chrysler dealer. Their buyout is over $32,600. So they clearly adjusted the dealer buyout based on mileage being under the allotted (I was nearly 10K under as I worked from home much of 2020).
For comparison, my buyout WITH NJ SALES TAX is $28,900. I could buy it out myself and then try to flip it but that doesn’t seem worth the hassle. I never had this issue with Toyota Financial or Infiniti Financial (and Ally when I used them to finance a previous Durango).
So likely we are going to return the Jeep at month’s end March and then switch brands. Granted it’s not Jeep that’s doing this, rather their finance arm, but it just rubs me a bit the wrong way.
No one is forcing you to do anything, not even sort of.
Im a little under 30 days lease term on my Grand Cherokee. I’m in the midst of negotiating a VW lease…is it your understanding Chrysler Capital will give the VW dealership crap? I also have some equity per two offers from Vroom and Carvana, the VW dealership is matching those offers. I just don’t want to run into a hassle once I go there to sign all the paperwork.
You really don’t know how much equity you have until the VW dealer calls CCAP. You should square all that away first, before heading over to sign a deal that has a big fat unknown hanging over it.
You may have an issue based on what I just went through. Now maybe Chrysler Cap has different rules for different states but what I learned today, at least for me, is that 1) Chrysler Cap apparently will not do buy outs to third party dealers less than 60 days from lease maturity and 2) even a Chrysler branded dealer will likely pay more for the buyout than you could buy it for because apparently CCAP adjusts the dealer buyout to market value (the dealer needed to know the mileage on my Grand Cherokee before calling the dealer line at CCAP).
Maybe your experience will be different. And FWIW, Carvana called me after making an offer when they realized it was a CCAP lease and said they had to pull offer because they won’t do CCAP leases less than 60 days (which tells me Carvana knows CCAP won’t do it).
I’d have any dealer - VW, VRoom, Carvana - know it’s a CCAP lease and get them to call and get their buy out. You may be surprised at the numbers.