Question guys. I am twelve months out of my lease end on my patriot however I wanted to see if I had options to get out of my vehicle because it doesn’t fit my needs any longer. My residual value is 13,400 and I have had it appraised through vroom and caravana and received offers of 14,500 and 15,100. If I’m understanding this right I would have to satisfy my remaining lease payments of approx 4000 on top of the residual correct ? My miles are significantly lower then I should be at this time in my lease (about 6k under ). Just wasn’t really sure how this worked and even if I have options to get out of this. Lease is with ally.
What is your current payoff through Ally? Residual value has nothing to do with anything unless you’re at 12 months from now.
Other option is to transfer the lease. Your payment doesn’t sound too bad, and you’ve got plenty of miles. Unfortunately it’s a Patriot.
Yeah it’s just way to small and under powered. My payoff quote through ally is $3008. So if I were to trade this in at a dealer I would have to satisfy that with the trade in value over the residual right ? Or am I understanding this wrong
If your payoff from Ally is truly $3008, and you received say 13k from a dealer for your Patriot trade you’d have about 10k positive equity to roll into something else. If your payoff is truly only 3k I’d assume you’d have put a lot down or made a lot of extra payments.
That residual # is only if you wanted to purchase the car after your lease end.
Ally’s payoff quote is to satisfy the lease, which includes turning the car in. So $13.4k plus the $3k. With a $15.1k offer, that doesn’t sound so bad. So either pay the $1300 to carvana when you sell it to them, or transfer it if you can.
Call and get a payoff quote, don’t assume it’s your residual plus remaining payments
OP isn’t assuming. Remaining payments are $4k plus residual. Payoff quote is $3k plus residual. I just did this exact thing with my Ally lease 3 mos ago.
Just remember sometimes a dealer payoff is different than what the individuals is. I know when I recently got out of my CCAP lease it was the same for both but not always.
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So you want to get out of your lease? You could be over mileage, in need of a larger or smaller car, or simply desire something new.
First, check to see if the bank your lease is through permits lease transfers here: http://www.swapalease.com/help/lease-company.aspx
Some companies, such as BMW have relatively few restrictions, while others such as Infiniti require the original lessee to remain liable if anything happens to the vehicle. Others, such as Hyundai, do not permit transfers at all.
Assuming you can transfer your lease:
If you got a great Hackr deal, you could post it in the marketplace section to gauge interest.
If you didn’t get a good deal, you should probably post it on Swapalease. Anyone with half a brain on Leasehackr doesn’t want to pay $550 for your stripper 320i with manual seats. Sometimes a cash incentive that effectively reduces the payment is necessary if it is not a good deal or if there are few miles remaining.
If you can’t transfer your lease (or believe you could have equity), see how much Vroom, Carvana, Carmax, etc. will offer for your car. If their offer is higher than the buyout, you will receive a check for the difference. If their offer is lower, then you would be required to pay the difference. It also makes sense to check to see if you have any positive equity at lease-end. This will avoid the disposition fee and any wear and tear. Please note, some companies, such as Ford, give dealers different buyouts than you, the lessee.
If you have negative equity (you owe more than it is worth), you have several options. One common option is to negotiate with the dealer to decide whether it’s better to make your remaining payments and return the vehicle or have the dealer buy out your lease and apply the negative equity towards a new lease.
Assume you have a lease with a $200 monthly payment and you have 5 payments left to pay and the disposition fee (let’s assume $395 for Chevrolet). The dealer could pay $1000 to close that lease and add those payments to a new lease (and you would receive a bill for the disposition fee). Adding $1000 in negative equity adds approximately $33 a month to your new lease (assuming 36 months).
If you believe that you must get out of your lease because of mileage overage, first look into whether or not you can prepay ahead for miles at a discounted rate. Some manufacturers have programs that allow this.
It’s better to just assume what is though.