earning money at end of lease

Rosco P

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Neither of the above will allow you to trade or sell your lease, either. With Ally and USBank, you have only two choices - buy it out yourself, or turn it in to the bank.

Never lease with these banks, always use the captive bank (like Chrysler Capital for instance).

If your lease is with CCAP, you can take it to any dealer and get a trade offer, or you can use Carvana or Vroom online. With a Wrangler, especially right now, you are pretty much guaranteed to have several thousand in "equity".
I traded out of my ally leased JK about 5 months early and got $5-6k more than the “payoff”.





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TheRaven

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I traded out of my ally leased JK about 5 months early and got $5-6k more than the “payoff”.
How long ago was this? I just ended an Ally lease last month because despite all my maneuvering and scheming, I was unable to trade out of it. It was either buy out or turn in. After speaking to many other Ally lessees, the complete consensus is that this is how they have been doing things for years now.

So how long ago was it and how did you do it?
 

Rosco P

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How long ago was this? I just ended an Ally lease last month because despite all my maneuvering and scheming, I was unable to trade out of it. It was either buy out or turn in. After speaking to many other Ally lessees, the complete consensus is that this is how they have been doing things for years now.

So how long ago was it and how did you do it?
Feb or March of 2018. When my 18 JL came in. Lease was up in July on my JK. Nothing to it really. They told me what they’d give me, I accepted, and I drove the JL home.
 

TXRubicon

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While that’s true for some states, it’s not true in all states. In Texas for example you pay sales tax on the entire capitalized cost of the vehicle, not just a portion.


When you lease you only pay sales tax on the portion of the lease. Simple example if you lease a $45k Jeep that has a $30k residual after three years and you have a sales tax of 7%, you pay $15k*0.07 = $1,050 rolled into your lease payments. If you were to buy the vehicle outright, you would pay $45k*0.07 = $3,150. If you sell your Jeep in 3 years, you would have paid an additional $2k of sales tax vs. leasing. A buyer would need to keep his Jeep for nine+ years to break even on taxes compared to the lease. Most vehicles are closer on average to a 50% residual rate after three years so in this case the lease tax would be $1,575 which means you break even on sales tax after six years.
 

The Last Cowboy

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TheRaven is the most knowledgeable guy I've read posts from about leasing. Like he said, use Chrysler for leasing. The outside banks own the vehicle you are leasing (i.e. long term rental agreement) and they want it at the end of that lease. They will make money on it when the dealer or an auction buys it back from them. Make sure you understand what you are signing and what your (and their)rights are.

Also, make sure that either a lease or a purchase is right for you. Simply shopping for a monthly payment has cost many buyer much more than they thought that they bargained for.
 

TheRaven

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Feb or March of 2018. When my 18 JL came in. Lease was up in July on my JK. Nothing to it really. They told me what they’d give me, I accepted, and I drove the JL home.
Yeah that's what I thought. They don't allow this anymore. Only CCAP will allow it because they have no choice.

Chrysler won’t let you transfer a lease. No go for me.
DON'T TRANSFER!!! That's a terrible idea with a Wrangler...you'd be handing all your equity to the person taking over the lease.

Go to Carvana.com, get an offer, and if you're happy with it, accept it. Within a week you'll have your Wrangler gone and a check in hand.
 

Rosco P

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Yeah that's what I thought. They don't allow this anymore. Only CCAP will allow it because they have no choice.



DON'T TRANSFER!!! That's a terrible idea with a Wrangler...you'd be handing all your equity to the person taking over the lease.

Go to Carvana.com, get an offer, and if you're happy with it, accept it. Within a week you'll have your Wrangler gone and a check in hand.
I agree but I like to have exits. But you’re right.
 

Uhdinator

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Leased a $20K 99 Dodge Dakota 4x4 truck.
4 year Lease cost about 10K, pay off at end of lease was about 10K.
Went into Jeep dealer about a month before lease end and traded for 2003 Rubicon.
Dealer offers me 14K buys it from lease/finance company and gives me 4K down on the Rubicon.

3 yr Lease Honda Accord:
6 Months before end of lease I decided I didn't need a 2nd vehicle any longer.
Researched used Accord prices with comparable mileage. Pay off was 17K with 6 months left.
Asked dealer if they wanted to buy it. They paid Honda Finance 17K and gave me a 1K check.
Then it was on their website for 23K the next week. I got out of it, got 1K and saved me the turn in fee, 5 monthly payments and insurance.

If you want out of a lease it is possible. Just pay attention to buy out cost vs. used retail.
Some dealers will pay off the lease and possibly even get money back as long as they think they can make a few thousand profit. At least it saves you the hassle of turn in fee's etc.

I turned in a Honda Civic lease and the buy out was the same as used retail so they did not want to trade as no profit was possible. Inspection company they contract suggested $150 charge for a scratch. They said I would be billed. I never got a bill, and no $350 turn in fee.
They waived the fees due to multiple leases, customer appreciation. (It does help a little being loyal to the same dealer if you find a good one)
 

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