Lease buyout

[Willys_Wonka]

Are you leasing through CCAP? Or a third party? I would request a payoff from the bank now just to make sure there's not going to be any issues...third party banks have pretty much made it so you can't buy out your lease and I was told CCAP now has added a 90-day-from-lease-end block on buyouts. So get this stuff figured out before it's too late.



Depends on the state. I did not have to go through a dealer at all, CCAP said "just send us the check and we'll send you the title" (we bought it straight up, if you are financing they'll send the title to the new lienholder). Same with the registration - we didn't have to do anything at all with the registration since in PA the vehicle is not registered to the lienholder. Your state may vary.

I might just go to a dealer to handle it, no fuss especially if the finance rate is equal to or better than my bank.

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[Willys_Wonka]

Buying out a lease is generally a smart move right now. Like others have said, call the company holding the lease and ask the questions of when can you vs when can’t you. If there’s a 90 day block like @TheRaven mentioned, ask if you can extend the lease if something comes up and you need more time to get outside that 90 day block. Sometimes policies loosen restrictions to hold onto customers, so it is always worth asking.
You can do a pre-approval with a bank or credit union before going to the dealer, they’ll try to beat that. Plates are a state-by-state thing.
Good luck!

So basically just get a pre approval used car loan quote from an outside finance institution and see if the dealer matches or beats it? I called a few credit unions and the current used car loan rates are about 5.5%.

 

[Willys_Wonka]

It’s gonna be a long caravan of jeeps headed south. I can’t decide between the Carolina’s or Florida. I just need salt air.

I’ve been wanting to move to Florida for awhile, but we are growing on the idea of settling in DE. If I had to go deep south, probably NC would be the pick.

 

[Some Random Guy]

So basically just get a pre approval used car loan quote from an outside finance institution and see if the dealer matches or beats it? I called a few credit unions and the current used car loan rates are about 5.5%.

Yes, if you have pre-approval the dealership might work harder to beat the rate (and lower your payment).

 

[COJeeper]

Find your rate before you go in. The dealer is going to bump whatever you’re approved for up to 3% so if you know what you’re approved for before hand, they’ll most likely match it.

 

[TheRaven]

I might just go to a dealer to handle it, no fuss especially if the finance rate is equal to or better than my bank.

Just pay attention to their quote - they will generally add their "fees" and may try who-knows-what other crap. I know when I got a quote to do it through a dealer it was $1600 higher due to "processing fees" and "documentation fees" and "inspection fees"...etc. And of course they might pad the rate too.

 

[Greywind]

I am in NJ and at least here can confirm I had to get new plates and registration when I bought mine out.

I live in NJ too. Were you able to buy it from the leasing company directly or did you have to go through a dealer?

 

[helldorado]

if the buyout is low enough that you would have equity against the trade-in value, you don't even have to buy it out. You can have the dealer buy it and use the difference as your trade value. *I don't know if a JCDR dealer would be allowed do that on a Jeep,* but I've done that in the past going from one brand to another. Toyota dealer bought my leased Subaru and gave me the difference as my down-payment. I was out of pocket $0.

 

[Stuckinthesand]

I live in NJ too. Were you able to buy it from the leasing company directly or did you have to go through a dealer?

I went through a credit union. They emailed me all the paperwork. I filled it out and had to get a couple papers notarized and sent it back with the payoff letter from CCAP. Everything was done through email and docusign.

 

[Stuckinthesand]

if the buyout is low enough that you would have equity against the trade-in value, you don't even have to buy it out. You can have the dealer buy it and use the difference as your trade value. *I don't know if a JCDR dealer would be allowed do that on a Jeep,* but I've done that in the past going from one brand to another. Toyota dealer bought my leased Subaru and gave me the difference as my down-payment. I was out of pocket $0.

If it is through CCAP they mark the buyout up for the dealer. On the formal payoff letter it states this is for the names leasee only. Dealers have to call CCAP to get their payoff amount.

 

[Greywind]

I went through a credit union. They emailed me all the paperwork. I filled it out and had to get a couple papers notarized and sent it back with the payoff letter from CCAP. Everything was done through email and docusign.

Thanks for the response.

 

[kah.mun.rah]

It’s a pretty simple process. Just keep in mind that you will be paying the taxes, fees, etc. that you would for any new car loan at the time of converting your lease to a loan.

 

[Willys_Wonka]

If it is through CCAP they mark the buyout up for the dealer. On the formal payoff letter it states this is for the names leasee only. Dealers have to call CCAP to get their payoff amount.

I think it’s with ally not ccap.

 

[TheRaven]

I think it’s with ally not ccap.

Call now, get it figured out. I don't think Ally allows lease buyouts anymore. I know USBank just flat out says no. Last I tried, Ally was still allowing it but inflating the crap out of the buyout figure to make it untenable.

I had an Ally lease back in the 2017-2020 timeframe and attempted to buy it out. The buyout should have been about 16k but when the dealer called for the buyout figure they got $21k. It killed the deal because the thing was only worth $18k. That said, I was told that it's possible to do the buyout privately and avoid the inflated figure - supposedly by law they are required to offer the unadulterated "residual+remaining" figure to the lessee. Rest assured if they can weasel their way around that they will.

Don't ever lease with third party banks...they are terrible.

If it is through CCAP they mark the buyout up for the dealer. On the formal payoff letter it states this is for the names leasee only. Dealers have to call CCAP to get their payoff amount.

I bought out my CCAP lease...first tried through a dealer but ended up doing it privately because of the dealer fees. The buyout figure was the same both ways though, CCAP didn't play any games...it was the dealer that tacked on their own fees. This was in April of this year for reference.

 

[Willys_Wonka]

Call now, get it figured out. I don't think Ally allows lease buyouts anymore. I know USBank just flat out says no. Last I tried, Ally was still allowing it but inflating the crap out of the buyout figure to make it untenable.

I had an Ally lease back in the 2017-2020 timeframe and attempted to buy it out. The buyout should have been about 16k but when the dealer called for the buyout figure they got $21k. It killed the deal because the thing was only worth $18k. That said, I was told that it's possible to do the buyout privately and avoid the inflated figure - supposedly by law they are required to offer the unadulterated "residual+remaining" figure to the lessee. Rest assured if they can weasel their way around that they will.

Don't ever lease with third party banks...they are terrible.



I bought out my CCAP lease...first tried through a dealer but ended up doing it privately because of the dealer fees. The buyout figure was the same both ways though, CCAP didn't play any games...it was the dealer that tacked on their own fees. This was in April of this year for reference.

Thanks, it states in the Ally contract the “buy out” amount, so I can’t see how it can be inflated other than added dealer fees. The only fee I see with Ally is a buy out fee of about 350 bucks. From what others mentioned, I might shop around for the best used car rate than ask the dealer to match or beat it also watching of no “extra” dealer fees. I really like my jeep and inventory seems currently low, so it looks to be the best option to buy it.

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