I’ve called Chrysler capital to get this question answered and have gotten two different answers.
I have a one pay jeep lease that’s due May 20th of this year. Has anyone turned their lease in early, and if so, was there an ETF?
I’m not sure as to why there would be an etf if the lease was paid in full, but it also wouldn’t surprise me.
TIA
I just turned in my jeep early, same lease end month as yours. Mine is monthly payments and they are charging $495 for ETF (included is $395 disposition fee) and I have to pay the remaining monthly payments. I would think you’d just owe $495.
Ccap will charge not only the early termination fee, but the difference between your resodual value and what they get for it at auction.
You need to have a dealer process it as a dealer buyout where ccap retains the title to avoid that.
If I’m within 90 days of maturity Is that considered an early ground?
Yes. Anything before the last 30 days.
This is their official lease end doc they sent me. It seems pretty clear that 90 days is the cutoff. I’m conflicted because I’ve spoken with two different reps and they said two different things. You’ve been around here a long time as well, so I value your input.
I have seen posted documentation from 2018 that has the the day language, but the more recent information posted in 2024 (what i posted a few posts up) says 30 days. Your contract is what really matters though, and if it is anything like mine, it says 30 days.
It’s all a moot point if the dealer just processes it as a dealer buyout with ccap retaining the title though rather than an early term grounding.
Absolutely. First thing I checked was my contract and there is no set amount of days specified. It’s all somewhat ambiguous in spots, and hard to interpret because of the “may” or “could” statements. They are all over the place to be honest. Multiple numbers they provide on their website aren’t even correct, and they have documents that are outdated. My lease statements have 2020 stamped on them. I’ll figure it out one way or another. Thx!
That’s not true. Both Chrysler Capital and Dealer confirmed. It’s UP to the total owed.
For example, if you owe $10,000 in payments and they are able to recoup more than the residual, you owe less. If not, you owe the $10,000.
So, Chrysler Capital can charge you the difference between the ‘adjusted lease balance’ (which is even lower than the lease residual) and the auction value, whatever that amount may be? If that’s the case, with a 4xe Wrangler, the difference could be $10,000–$15,000.
Below is an early term excerpt from a CCAP contract for leases originating in Maryland which was in effect as of 10/2023.
CCAP Contract- Early Term.pdf (435.6 KB)
It’s fairly straight-forward. Don’t know if this applies to your state. Check your CCAP lease agreement.
Yep, looks like my agreement, although I appear to have an extra category. No where on the agreement does it specify a date. My ETF is #19 and yours is #18.
Your Section 19(b) reads the same as mine. However, your Section 20(b) methodology is the same. For instance, in your contract, the initial lease balance is the same as the adjusted capitalized cost - the base single payment. The base single payment excludes tax.
So, let’s work with your lease agreement. The buyout within the first 30 days according to your lease agreement is…
Buyout = initial lease balance x (1 + CYR/12)^N x (1+sales tax rate) + applicable fees/other taxes. This is far easier than adding all those remaining monthly rental charges for which you would need a lease amortization schedule. Either way, you arrive at the same buyout.
N = # of months elapsing since signing. For leases, interest is considered earned one month in advance. So, immediately after you sign your lease, N = 1 meaning that if you buyout your lease at any time within the first 30 days (this covers the part that says “or part thereof”), N = 1.
CYR = Annual Constant Yield Rate which can be determined in Excel using the following syntax…
CYR/12 = RATE(term, -(ACC - Base Single Payment), Res Value, 1)
ACC = Adjusted Capitalized Cost
??? Let me know.
Yes, I believe your math is sound. In my case no payments are owed (I know you’re aware). Really all I’m trying to confirm is that I can give the vehicle back before 30 days but no sooner than 90. Nothing in the contract explicitly states a maturity date, which I find very odd. My Mercedes and Infiniti contracts always had a maturity date. As mentioned, I’ve gotten conflicting answers from the fine folks at Chrysler capital. One said within 90 days I’m perfectly fine, and the other said 30 days. The person at the dealership I plan to return to said no ETF as well within 90 days. This has been left up too much interpretation in my honest opinion by CC. Appreciate your help!
Edit: Also, In re reading your last post and just to clarify, I’m not trying to buy this out within the first 30 days. My lease is almost up and I simply just want to give them the jeep back, and pay my $395 dispo.
If you’re more than 30 days out, the dealer needs to process it as a dealer buyout with ccap retaining the title rather than as an early termination grounding.
Although, you could probably make the argument that with a single pay, any time after the single payment would qualify as “on or after the final payment” due date.
It all becomes a moot point if the dealer just processes it as a dealer buyout with ccap retaining the title.
I’m sorry. I confused you with a different post.
Is there anything on the first page that might provide this info? I find it odd, too.
CCAP- 1st page.pdf (217.4 KB)
Here’s a Lexus single pay lease contract that shows the term and maturity date.
Is there a similar page in the CCAP? My CCAP shows it on the first page (see above post).
In a similar boat. Vehicle is sitting the drive to dealer away from term mileage but holding until 30 days. Not worth the risk with the depreciation on these. Frustrating since I’m eating insurance / registration on it though.
Have the dealer process it ad a dealer buyout with ccap retaining the title if you dont want to wait.
