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Anyone know how a "Loan/Lease Termination Event" work?

MarinexViper

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Here is the next problem. You can not trade a lease, as you do not own the car. The dealer has to purchase the car from the lease company. The residual is only available to the person on the contract. If the dealer wishes to purchase the finance company can tell the dealer what price they can buy for. The lease company owns the car. If a residual is lower than ACV the finance company knows with auction reports and will sell it higher than the contract residual. The only way it can work is the person leasing has to buy the car at the contract residual, flip title in their name and trade in.
Most leases have a preset dealer buyout or consumer buyout as well. If the consumer buyout is less there are ways to work it out depending on the brand. Definitely from jeep to jeep.
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jmill012

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Most leases have a preset dealer buyout or consumer buyout as well. If the consumer buyout is less there are ways to work it out depending on the brand. Definitely from jeep to jeep.
That would be dealer specific and I suppose they could offer a better residual at lease end to get you to buy from them again. Wouldn't make sense though because they would assume a lot of risk.

In the end, the bank doesn't care who pays them as long as they get paid. Which is why they don't care if you trade it in, refinance to a loan or turn it in early. They are not in the car selling business.
 

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In Florida tax is only on the payments, not the residual. If you buy it at lease end you pay the tax on the residual amount.
Understood. Was talking in general and not all states work the same.
 

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I have never seen remaining payments and residual value lower than ACV.
My 2011 JKU was this way. Residual on the 36 month lease was far less than what book value on 3 year old Wranglers were selling for at the time. I had huge positive equity in it at almost every point during the lease.

Here is the next problem. You can not trade a lease, as you do not own the car.
Not really true here. I've traded in every single lease I've had early, some well over two years early. It worked exactly like it would have worked if I had "bought" the vehicles.

You do not own the car when you lease. The leasing company buys the car and leases it to you. That's why you don't get a tax break on a lease turn in on another car.
Unless you write a check for the full amount the day you purchase, NOBODY owns the car they are driving. There is very little difference between a lease and a buy in practicality.
 

smithrd65

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YOU WILL BE UPSIDE DOWN FOR SURE. IF YOU STILL HAVE 1 YEAR LEFT AND PURCHASE/TRADE FOR A JEEP THE BALANCE WILL CARRY OVER.

Not being a smart _ss but a IS200t you are guaranteed to take a lost on it.
 

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old8tora

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Hey,

I got an email from a nearby Jeep dealership, regarding a 72 hour "Early Termination Event", Below is some of the information within the email. My wife is leasing a 2016 Lexus IS200t, with one more year left. It would be great to move her into a wrangler.

Anyone familiar with how these programs work? I know they wouldn't do it unless the dealership (whoever) is making some money.


TERMINATE YOUR LOAN OR LEASE EARLY!
Jeep Wrangler JL Anyone know how a "Loan/Lease Termination Event" work? {filename}

Our records show you qualify for this program.

We work with all lenders in the U.S. and payoff your vehicle in full.

Also, you may have significant equity or paid off your vehicle; we can purchase your vehicle during this event or use it to offset taxes and monthly payments.
Wait until your lease is up , turn in the Lexus , and decide who will get the Tundra and who will get the Jeep ? Problem solved to the satisfaction of both .
 

smithrd65

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This is a no win situation. They will beat you on this deal. You Least the wrong vehicle.You can check for yourself.
I will say in a nice way sir. The Is200t is a lower model resale is at an all time low. Go to Carmax and get them to give you a price.
You will be MAD at your yourself.
Second option pay the difference and then you will be OK. Don't let a dealer do this to you.
JL Wranglers will still be here.
 
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phatjoe

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Thanks for the responses. I was just curious to learn more about it. Dealers only offer "events" like this if it benefits them...it's just business.

My wife enjoys driving her is200t and will be fine waiting for the lease to end next year (I'm the impatient one :)) She's in a good place with it. At this point she should be at 20k miles and is only at 15k.

Years ago, I had good luck with swapalease.com. I had a dodge challenger scat pack that someone took over the lease. I probably got lucky....
 

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I am sorry if I'm wrong, but I think that a Loan/Lease Termination Event means that all the remaining payments will get calculated into your new loan. So I don't think that this is a win for you, so no matter what you will pay that money. That's why I don't love to get loans, it's always something bad in the middle. Those loans are so awful that people even created a website where they collect complaints from debt collectors. You can find here .
 
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GARRIGA

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I am sorry if I'm wrong, but I think that a loan/lease termination event means that all the remaining payments will get calculated into your new loan.
Not always. Sometimes manufacturers as an incentive might cancel the last few. Usually if leasing with the same manufacturing group.
 

XX4XEXX

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Exactly. I early termed my 2020 hellcat and the value was over the term buyout. No fees except 125$ paperwork then sales tax to buy. Excellent deal!


Not necessarily. If the trade value is higher than the payoff, he will have a credit toward the new purchase. (Doesn't happen often but COULD happen)
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