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Getting out of my lease early

tarndesigns

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Hi all... My last Jeep was a YJ, about 6 years ago, but I'm DYING to get into a JL Rubicon.

I'm currently one year away from the end of my lease of a 2015 VW GTI. I'd love to get out of it early but I'm not sure if it makes sense financially.

My monthly lease payment is $363.

I am in talks with a Jeep dealer right now and they say they can include trading my lease in into the deal... but I feel like this will cost me a lot in the long run.

Anyone have any pointers? Should I wait a few months? Will they be able to stretch the price of the Jeep to help me out and maybe meet in the middle? Does anyone who has done this have any pointers for me?


Thanks in advance.
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$uicide$hift

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I think you need to first work with the dealer and find out what they are offering. Without that what type of information are you exactly looking for? It does not matter what somebody else experienced. This all comes down to what that dealer will offer you. If you don't like it try another dealer and see if they can do better.
 
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tarndesigns

tarndesigns

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Fair enough. I'm just wondering if dealers are known to give an additional discount in order to make a sale that works for the buyer.

So for example, if I need them to take $2k off the price of the Jeep to get where I want to be price wise, will they typically do it?
 

$uicide$hift

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Again if my dealer did something like this it has no bearing on what your dealer may do for you. You need to shop around. It sounds like they have one on the lot and you are hot to jump into it. They probably know this and are not going to bend over backwards for you would be my guess.

You need to shop around to compare what dealers are going to offer in your area.
 
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tarndesigns

tarndesigns

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Again if my dealer did something like this it has no bearing on what your dealer may do for you. You need to shop around. It sounds like they have one on the lot and you are hot to jump into it. They probably know this and are not going to bend over backwards for you would be my guess.

You need to shop around to compare what dealers are going to offer in your area.
Actually... I'm looking to order one. Thanks for the advise though.
 

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$uicide$hift

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Then even better, you have time to shop around. You may want to check out the recommended dealers list HERE.

If you are willing to travel for pick up there are a few dealers on this site that are used a lot for 5% below invoice such as Koon's.
 

ThirtyOne

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Buying a vehicle consists of 3 separate transactions.

1 - Negotiate the price of the vehicle
2 - Negotiate the value of your trade
3 - Negotiate the financing for the new vehicle

The idea is to do each one separately initially to have a baseline and then combine them together to try and get the best deal.

So first get a price you like on the Jeep. This will have the biggest impact on what you pay. Do it up front.

Then find out - net - what they are willing to do on your VW.

- The remaining cost to you on the VW is your payment * the number of months you have left
- The value of the VW may be more or less than that. If it is more than they will be able to apply some money to the Jeep. If it is less, they will add the cost to the cost of the Jeep. Do some work to figure out if their numbers are fair. Look at online tools and at least get an estimate from CarMax. While you will pay down more on your VW over time, you will also add mileage that could reduce its value.

- Once all that is done work with them on financing and figure out what the payment will be.

Once you have all that information you can bring it together to adjust whatever variables they can to make it work.

Does that make sense?
 
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tarndesigns

tarndesigns

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Buying a vehicle consists of 3 separate transactions.

1 - Negotiate the price of the vehicle
2 - Negotiate the value of your trade
3 - Negotiate the financing for the new vehicle

The idea is to do each one separately initially to have a baseline and then combine them together to try and get the best deal.

So first get a price you like on the Jeep. This will have the biggest impact on what you pay. Do it up front.

Then find out - net - what they are willing to do on your VW.

- The remaining cost to you on the VW is your payment * the number of months you have left
- The value of the VW may be more or less than that. If it is more than they will be able to apply some money to the Jeep. If it is less, they will add the cost to the cost of the Jeep. Do some work to figure out if their numbers are fair. Look at online tools and at least get an estimate from CarMax. While you will pay down more on your VW over time, you will also add mileage that could reduce its value.

- Once all that is done work with them on financing and figure out what the payment will be.

Once you have all that information you can bring it together to adjust whatever variables they can to make it work.

Does that make sense?
You guys are a HUGE help.

Thank you! I will look into Koons as well!
 

yongming

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Before you start to negotiate with your dealership, you need to know your cars value. Kbb carmax etc.
Eventhough, your car still have 1more year left, you might me able to in better position. They would pay off your balance or even give you higher value on your trade in to sell their new car.

For example, I had 2017 accord for 36months lease and it still had 31months left. But my dealer paid off all of balance so I was able to get jlu without negative equity.

Good luck!
 
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LeaN69

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I was in the same situation.

Call your leasing institution (vw financial?) ask if they do lease transfers, ask if all liability transfers with the vehicle to new owner. If yes post it on Facebook marketplace for lease takeover. Post it on swapalease for more exposure ($100)

Get out of your lease for $0 if you find someone who want to take it over and ride it out for the remainder of the term.
 

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ThirtyOne

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I was in the same situation.

Call your leasing institution (vw financial?) ask if they do lease transfers, ask if all liability transfers with the vehicle to new owner. If yes post it on Facebook marketplace for lease takeover. Post it on swapalease for more exposure ($100)

Get out of your lease for $0 if you find someone who want to take it over and ride it out for the remainder of the term.
This is a good option but keep in mind with lease takeovers you often retain liability if the new payer defaults. Read the fine print.
 

FishyGuy

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Buying a vehicle consists of 3 separate transactions.

1 - Negotiate the price of the vehicle
2 - Negotiate the value of your trade
3 - Negotiate the financing for the new vehicle

The idea is to do each one separately initially to have a baseline and then combine them together to try and get the best deal.

So first get a price you like on the Jeep. This will have the biggest impact on what you pay. Do it up front.

Then find out - net - what they are willing to do on your VW.

- The remaining cost to you on the VW is your payment * the number of months you have left
- The value of the VW may be more or less than that. If it is more than they will be able to apply some money to the Jeep. If it is less, they will add the cost to the cost of the Jeep. Do some work to figure out if their numbers are fair. Look at online tools and at least get an estimate from CarMax. While you will pay down more on your VW over time, you will also add mileage that could reduce its value.

- Once all that is done work with them on financing and figure out what the payment will be.

Once you have all that information you can bring it together to adjust whatever variables they can to make it work.

Does that make sense?

^^^this.

It applies regardless if the new vehicle is a lease or a purchase.

As an example, I was leasing two vehicles when I got my JLU last month. I wanted to end one early to get a JLU off a dealer lot. One of my leased vehicles was appraised at 10k below the ‘payoff’ quote from the leasing company, but only had 4K in monthly lease payments remaining. The other vehicle I was leasing was appraised at 2k over what the payoff quote was from the lease company. I had the dealer cut me a check for the 2k as a completely separate transaction. I left my old vehicle there and walked away with a check and a new JLU on the spot.
 

Sgt Beavis

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Here's a piece of advice that is working out for me.

1. Find out the payoff on your lease.
2. Go to AutoTrader.com and click on Sell My Car then select "Start and Instant Cash Offer"

Fill out the information and see what your local dealers offer you for your JK. I did this for my Jag and I got an offer that is just a couple hundred short of break even. I'm going to pull the trigger on that if I can find the JL that I want. This process doesn't cost you anything but some time and it could work out great for you.
 
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tarndesigns

tarndesigns

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Dealer I’ve been in contact with is offering $14,000 as a trade in for my GTI. Saying that $14k will be applied as a discount to my Jeep.

This can’t be right, right? It’s a lease. The $14k can’t be equity for me. That would go to VW right? The residual is slightly higher than $14k, so I would actually be in the red in that regard, right???

What am I not understanding?
 

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Dealer I’ve been in contact with is offering $14,000 as a trade in for my GTI. Saying that $14k will be applied as a discount to my Jeep.

This can’t be right, right? It’s a lease. The $14k can’t be equity for me. That would go to VW right? The residual is slightly higher than $14k, so I would actually be in the red in that regard, right???

What am I not understanding?
My thinking is that he's saying...

MSRP of your new Jeep
- $14K for your trade in..

But he isn't mentioning that there they will be adding back in any negative equity. So what he's saying is true,

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