I am currently finishing up a 3y lease on a 2019 Jeep Cherokee Latitude via Ally Financial and really could use some advice on what to do. The lease ends at the end of April 2022.
The lease buy out is ~16700 and just a spot check on car gurus is saying a similar car is around ~28k. I’m also about ~2500 miles over, although I don’t plan to drive all that much in the next several months.
I’m in professional school so don’t have an income/much savings (financial situation was wayy better when I started the lease and was working fulltime)
A few things to note:
The lease ends in late April right when I have board exams and can’t really be spending time car shopping. Also the dealer is several hours and states over in Massachusetts
I like the car alot
Next academic year I will definitely need a reliable car as I need to commute to hospital sites (and may have to move cross country).
Minor damage as I was sideswiped (and also myself sideswiped a tree). I never got it fixed but when I started my lease I also got the protection plan
Options I’ve considered:
Buying out the lease. Confused on how to proceed though?
Working with CarMax/Carvana/similar and trying to sell the car for a profit
Return the car and just get something cheaper/bare bones
If you made it this far, thanks so much for reading and appreciate any advice!
Only you can decide on what to do. Not sure if Ally does a lease extension or not to get you to the point of having an income.
Your bid may be high as the damage you mentioned was probably not factored in. You can go to CarMax and see what the offer is with the damage.
If the car is reliable and fits your needs a buyout might be the best thing. You can re assess after you start working and have a larger income to play with the numbers/sales prices that are out there now.
I would check first if you can get a lease extension with your bank. I know Hyund gives 6 months lease extension and the lease payments further lower the residual value and the eventual buy out price. This will give you more time to decide.
Some learnings with my daughter and an Ally lease recently…
Ally/Dealer have been impossible to get an actual payout to buy the car at least in Mass. - Apparently they cant sell the car in many states and force you back to the dealer. In my case dealer has been unable in their words get Ally to provide the P&S. They will charge the delaer some crazy amount…In my case 21K payoff and dealer quote 34K. Till now i have not been able to buy it out. You have to stay dilligent and push. Neither Ally nor the dealer seem to want to relinquish the equity (nor do I)
Ally will auto grant a 3 month extension of the lease you just have to call and ask (when you make your last payment)
Still trying as of now neither dealer nor ally has been very helpful. I think the hope is we go away. I may, but definitely not until they have totally broken my will.
This ^. The MA AG has already put out a notice that car dealerships and banks must honor lease contracts/buy outs.
People have reported similar shenanigans in multiple places but I’d definitely try going up the chain at Ally, maybe emailing someone in their legal department and send them AG Healey’s advisory.
Called Ally Bank and told me I needed to visit dealer. Recently while getting an oil change on my daughter’s '20 Black & Tan at MA dealer, GM asked if I was interested in-stock 4XE. They were able to get get a hold of Ally and provided me with two options: Dealer Purchase for Resale to Lessee (right around what I calculated as pay-off) or Dealer Purchase for Inventory which provided $3800 in equity towards '21 in stock w/ significant “market adjustment”.
