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?
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.
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.