Looking for some information about ending a lease and starting a new lease (possibly with another brand) Currently Jeep Cherokee, way under the miles for the lease. Think it was 36m/36k. Think its about about 18k right now.
Just trying to figure out what to expect, I have looked at some dealerships and they say they can buy the car after the lease, but does that mean anything goes towards say trade-in or down payments ect. Or is it just like a clean break?
Thanks
I’m confused what you’re asking.
When you return a lease, you pay your disposition fee plus any damages at turn-in and then you’re done.
If you’re under miles, you may want to consider buying the car out and selling it to take advantage of any potential equity.
Separate ending this lease and starting the new one to determine how much equity (positive or negative) you have. Jeep leases could be CCAP, Ally, or US Bank among others, which will determine your ability to get out. Search for that company here to learn more about getting out. There are also threads on all th car buying services if you search for any of those by name.
OK I guess I misunderstood when looking at some cars. I was talking with the dealerships about having a pre-existing lease and they said they would buy the car from the lease. I didnt know if that meant it would be a strait buy for what the car was worth or something like KBB value, and you might get something towards a new car.
First time starting a new lease upon the completion of another.
You can definitely do that, you didn’t really misunderstand, lots of dealers will happily buy your car and subsequently end you current lease while leasing you a new one.
However what we are saying is to take a step back and do your homework and evaluate each transaction separately, otherwise you’re setting yourself up to leave major money on the table with the new deal, your trade, or both.
Basically get offers on your trade from a variety of dealers, Carvana, Vroom, CarMax, etc. Compare that to your payoff (make sure you’re using the correct 3rd party payoff) to see how much positive or negative equity you may have. Keep the trade out of your shopping and calculations on the new lease deal.
Otherwise, you walk into the dealer and they say “Great news! We can take your car on trade, end your current lease, and lease you this new XYZ for only $500/mo with nothing put of pocket!” You have no idea how much or little they’re allowing for the trade, how good or bad the new deal is, etc. etc.
@j_e_f_f Thanks, so that makes a bit more sense now, started searching the forums. I guess I was hoping for easy, but I think I understand.
Ill look ath the 3rd part buy out, and then contact the places like Carvana, Vroom, ect.
Would it make sense to say buy out the car and then sell it as used to a 3r party? Or is that basically doing the same thing as above?
Guess we should have started this process more then halfway through the last month of the lease.
Just looked at the RV for the car lease 20,500 (That would be the price if I buy it out from CCAP if I am not mistaken right).
I did a look at KBB not sure if that matters and rough ball park says 27k.
Waiting for account information to see 3rd party buy out.
The RV is what you can buy the car for at the end of the lease, so it’s not really relevant if you have 1 or more payments remaining.
Also most banks do not list the 3rd party payoffs online, you typically have to call and/or have the dealer call to request it.
As to buying your lease then selling it, this requires you to pay sales tax in most instances, so it’s always better to sell directly to the dealer if possible. Some banks will not allow the sale of a lease to a 3rd party though, in these cases the only way “out” is to buy it (and pay sales tax) then turn around a sell it.
You have 10 days in California (and only CA) once you buy it to resell it before you don’t have to pay taxes. Discussed at length here if you search, but the issue is timing.
You can probably still extend the current lease if you need more time.
There was never an “easy way” here that didn’t leave money on the table, but the shortages have made the past couple months much, much worse.
We have someone else here who just spent A TON of time extracting every penny of their trade (yay!) then walked into a dealership and overpaid for the new car.
Rushing will cost you money, especially right now. If you can slow it down a beat, it will really be to your benefit.
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