I’m trying to see if I am understanding this correctly.
I just reached out to CCAP about ending my lease potentially early (1 or 2 months before maturity). They advised me that if I do so, I will be charged the months left over, a penalty for ending early, and then the difference between the residual value and auctioned off price.
I asked if I could pay the 2 months early, and then turn in the vehicle to avoid the penalty for ending early and the charge for the difference between the residual value and auctioned off price and they said no. They said I could pay it off early, but if I chose to turn it in BEFORE the maturity date, I would still be charged the penalty fee AND the difference between the residual value and auctioned off price.
So based on my understanding, I could hold the vehicle until lease maturity , (meaning I pay the 2 months remaining), and then turn the vehicle in and NOT pay the penalty and the difference between the residual value and auctioned off price or I don’t hold the vehicle until lease maturity , turn it in now, (still have to pay the 2 months remaining), AND be charged a penalty AND the difference between the residual value and auctioned off price.
Why does this make no sense to me. I would assume the lender would be incentivized to take the vehicle early if the payments are taken care of but it appears that there is not any incentive to take the vehicle early but to penalize the customer for paying it off early? I just don’t understand the logic.
I am asking this because I am about to get my new Jeep a bit earlier than expected on lease, but it is with Stellantis (not CCAP).
Speaking from experience, I turned my Jeep in about 4 months early with only 2 payments remaining on Nov. 2024, lease was due back April 1st 2025. I was charged turn fee which I paid online once it showed up in my balance due and vehicle went to auction in December. Residual was 39k, vehicle sold for $29k and somehow my last bill was only $635.
So I just went back and forth with the CCAP representative about the costs for terminating early and they were doubling and tripling down on this ‘the system will generate the totals for you and send you a bill’ but they would not tell me as to what the calculation was.
Essentially the conversation was back and forth because I stated that I was told if I terminated early that I would be charged the termination, remaining payments AND the difference to which the vehicle was sold to auction etc etc.
Now, after speaking to someone at a Jeep dealership who specializes in leases and financing, they made it clear that I would ONLY need to pay the remaining months left over on the original term PLUS the turn in fee.
I paid few months ahead knowing I would turn it in early. Somewhere on reddit another individual said that his contract mentioned that if the lease was turned in 90 days prior to maturity, leasee would be responsible for remaining payments, dispo and turn in fee. Check your contract. With 2 months remaining why not sit this month out and return on the last month.
