This month, I traded in my 2018 Jeep Grand Cherokee for a VW atlas. The dealer in which I leased the atlas used the equity from my 2018 Jeep Grand Cherokee to put toward this new Atlas lease. The contact was signed a few days ago. I have possession of the Atlas and they took my Jeep. About 2 days after signing the contact, got a call from the dealer who took my Jeep and handled the lease of my atlas saying that there was a mistake and he cannot buy-out my Jeep as a dealer (because of the 60 day maturity dealer buyout rule), so the money he used toward equity for my new lease is no longer available. I was not aware of this prior to signing the contract and neither was he. Am I not obligated to give him this money? Do I have any other options? As mentioned, I already signed the contract, have possession of the Atlas, and gave over possession of the Jeep to the leasing company.
What options is he giving you?
He said the only option is for me to buy out the lease myself since I can buy it out, but a dealer can’t. I said that wasn’t an option because don’t have 20,000+ to dish out. He said he will call me tomorrow to discuss in more detail. But I signed a contract. I don’t think this should be my issue, but I’m really not sure what my obligations are. Im just trying to do research to find out what I can do before speaking to him.
I am assuming you had a Chrysler Capital lease. I had 63 days left on my 2018 Jeep Grand Cherokee lease with CCAP when I started the process of selling it to Carvana. I had read other posts on this forum that you could not sell within the last 60 days. I called CCAP and was told by 2 different representatives that I could sell to a dealer within the 60 day window. They told me that within the last 60 day window their system is not able to generate a dealer payoff but the dealer can just use the personal payoff minus the tax. Nervous about losing out on the $6K equity I decided to sell it right way to CarMax. I am sure you have spoken to CCAP but you may want to ask them about what they told me. This was back in May so I am not sure if things have changed but it’s worth a try.
What does your contract say ?
In spite of what FIHackr posted, I suspect that this could go against you.
How did the dealer know you had equity and figure it into your new deal? It is the dealers obligation to get a dealer payoff. If the dealer bought your vehicle and used your equity in the Atlas deal than it was not turned into the leasing company.
Thanks for this information! How do you think it could go against me? Only asking because I’m really trying to get a full picture of how to handle this.
He told me he was handling the dealer payoff and when he found me the atlas he just calculated the equity into the new deal. When he sent me a break down I saw the $2,000 calculated in.
I don’t know if he just made the numbers up or what. But I had nothing to do with the dealer payoff. He said he was getting that information and I just assumed he did. He told me the equity was $2,000 and he was putting it toward the money down. I didn’t question it any further because I just assumed that made sense.
Thank you! After hearing from the leasing company about this issue, I called Chrysler Cap right away. When I called Chrysler, the representative did tell me the dealer could use the personal payoff. But the dealer said he was told I was the only one able to do so. This is very new to me so I’m just figuring it out as I go. I guess I need more clarification.
I suggest you do a 3 way call with the dealer and CCAP to get it clarified.
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