About to finish year 3 of a 4 year lease. Looking for feedback on options. warranty and buyout.

[hexeis]

So my 2019 Jeep Wrangler Unlimited Sarah is at about 33k miles. I do love it and am considering a few things. Keeping it is certainly an option for me since I love it and it's doing great. I might need new tires soon though. Here is what I'm thinking:

1) buying out the lease since I think its holding more value than its residual value on the Ally lease
2) buying an extended warranty in the next couple months before it hits 36k or 36 months.

Has anyone been in a similar situation? Which options did you take? Any tips on how to do it, if you were to do it again? Should I approach Ally first and foremost now? Should I discuss with the dealer? Should I do the warranty and buyout as separate transactions? Just looking for some good guidance for anyone inclined to share.

I just feel that leasing another one or buying another one would be based on new pricing which is way higher and not really financially efficient. (that's just my take - open to hearing other opinions/thoughts).

Thanks in advance everyone!

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[mllcb42]

Go direct to the ally web portal and see what options they have. No need to involve a dealer if they don't need to be involved.

 

[hexeis]

Go direct to the ally web portal and see what options they have. No need to involve a dealer if they don't need to be involved.

There's no clean way to automatically execute a buyout. I think I'm going to have to call them. When I do call them, are they going to hit me with fees? What questions should I ask? What can I do to reduce the hit? Am I timing this poorly? Part of the reason why I want to buy out now is for the hope of my new auto loan to have a lower interest rate than what it would be if it were a year from now. Allegedly interest rates will go up.

 

[TheNewGuy]

There's no clean way to automatically execute a buyout. I think I'm going to have to call them. When I do call them, are they going to hit me with fees? What questions should I ask? What can I do to reduce the hit? Am I timing this poorly? Part of the reason why I want to buy out now is for the hope of my new auto loan to have a lower interest rate than what it would be if it were a year from now. Allegedly interest rates will go up.

Shop for the warranty. The dealer price will most likely be way higher.

 

[hexeis]

Shop for the warranty. The dealer price will most likely be way higher.

Sorry, I'm confused. Where can one buy an extended warranty if not at the dealer?

 

[mllcb42]

There's no clean way to automatically execute a buyout. I think I'm going to have to call them. When I do call them, are they going to hit me with fees? What questions should I ask? What can I do to reduce the hit? Am I timing this poorly? Part of the reason why I want to buy out now is for the hope of my new auto loan to have a lower interest rate than what it would be if it were a year from now. Allegedly interest rates will go up.

You're just asking for your current personal buy out amount. Will likely include taxes and some fees.

 

[TheNewGuy]

Sorry, I'm confused. Where can one buy an extended warranty if not at the dealer?

https://chryslerwarrantydirect.com/

If you seach the forum you'll find other options. There are some dealers who sell them for much less than your dealer may quote you.

 

[Dan M.]

You're lucky you're in year 3 and not year 4 of your lease. Now is a terrible time to buy a car new or used so you would pretty much have to buy it out. Hopefully by the time your lease is up things will have normallized and you will have more options. I would verify exactly how much it would cost to buy out, then go build your perfect Jeep on the website or search local dealer inventory to see how much a new one would cost to buy or lease again. Once you do that I think the answer will be pretty obvious. As far as the warranty goes, I've never felt the need for that but I have been extremely lucky with my vehicles and never had a major issue.

Also, don't ask the dealer for their opinion. THey will tell you whatever is best for them.

 

[Jgro151]

Should be simple. The buyout is fixed cost. It’s going to just be the end of lease pre-negotiated price in your contract, plus the number of payments remaining X monthly payment cost. It’s not a bad idea right now and likely you could turnaround and sell it for more the day after you buy it out given todays market.
Honestly surprised you think you need new tires so soon unless I’m missing something. I got 70k out of my first pair on my ‘12 JLU Sahara.

 

[mllcb42]

It’s going to just be the end of lease pre-negotiated price in your contract, plus the number of payments remaining X monthly payment cost

Buyout doesn't include unearned rent charge in the remaining payments, plus there is generally a buy out fee and some applicable taxes. Ally may require the buyout to be performed through one of their dealers which adds other variables as well.

 

[gsbrockman]

https://chryslerwarrantydirect.com/

If you seach the forum you'll find other options. There are some dealers who sell them for much less than your dealer may quote you.

And this place is very competitive with your suggestion.

https://www.chryslerfactoryplans.com/

 

[rcadden]

Wouldn't hurt to run the VIN through CarMax, Carvana, Vroom, etc. Used prices are through the roof still - you may be able to sell for more than the buyout and then order a '22 for 5-7% below invoice.

Some tricky math but get all the numbers in front of you - highly possible that you could come out clean with a '22 instead of a '19.

 

[dalema]

Wouldn't hurt to run the VIN through CarMax, Carvana, Vroom, etc. Used prices are through the roof still - you may be able to sell for more than the buyout and then order a '22 for 5-7% below invoice.

Some tricky math but get all the numbers in front of you - highly possible that you could come out clean with a '22 instead of a '19.

^^^^ this ….

it’s just as simple as calling the lease company and saying - what’s my current pay off amount and is there an early payoff fee?

hop online and find out how much the above companies will give you

buy at way below invoice from one of the preferred dealers on here : https://www.jlwranglerforums.com/forum/threads/dealers-below-invoice-on-2022-wranglers.80479/

btw - if you want to lease again, recently the US bank rate has been exceptionally low ~1.8%

let us know how it goes!

 

[Alan_Hepburn]

Sorry, I'm confused. Where can one buy an extended warranty if not at the dealer?

Just wait for the next phone call...

 

[hexeis]

^^^^ this ….

it’s just as simple as calling the lease company and saying - what’s my current pay off amount and is there an early payoff fee?

hop online and find out how much the above companies will give you

buy at way below invoice from one of the preferred dealers on here : https://www.jlwranglerforums.com/forum/threads/dealers-below-invoice-on-2022-wranglers.80479/

btw - if you want to lease again, recently the US bank rate has been exceptionally low ~1.8%

let us know how it goes!

So I called ALLY, my leasing company. They said that because I'm in Florida that I need to do business directly with a dealer if I want to do a buy out. Is this true?

A friend of mine who is also in Florida says he did the buyout directly with his leasing company over the phone and never spoke to a dealer.

Im not overwhelmed at all but why is this shit not easy and straightforward?

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