Selling a leased Wrangler

[YYCSahara]

Won't you still be liable though if they default ? Idk... Ally bank goes by letters for tiers. I ended up in a B tier that results in around $38 extra in interest a month. My monthly is $389 but I put 4k down

Not liable once the lease is transferred to someone else. When I did it in the past the person assuming the lease had to pass a credit check, get approved and sign for the lease.

Short answer - Call your leasing company and get the “customer buyout.” You’d have to then write the leasing company a check for that amount (it will include your agreed upon residual value, remaining payments AND taxes.) Your mods mean nothing to them. Then you wait for the title. The vehicle is yours. THEN you sell it privately to another party at an agreed upon price where you can factor in your mods. The new buyer pays taxes too. The downside to this scenario is you HAVE to pay the full taxes on the car just to then sell the car to someone else who also pays taxes. So you lose money there.

We are lucky here as there are no taxes on used car sales from one private party to another. So that's a positive when I go to sell!

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[Ogre_FL]

It's more of like what the bank thinks it's gonna be worth at the end of the lease. Buying out a Wrangler at end of lease works against you since they hold value. I will pay $18k total at the end of my 3 year lease so if I buy it out at $32k I will have thrown loads of money down the toilet. I couldn't buy it because I wasn't comfortable with a $640 payment. If I could go back I would have bought it but then again ...if I bought it for $640 month I wouldn't of had the $7,000 I put in mods and then I wouldn't of been happy driving around a stock wrangler for $640 month .

You have dropped 7K in mods on a leased Jeep?
Have you leased before?

 

[Wrangler847]

You have dropped 7K in mods on a leased Jeep?
Have you leased before?

Well the wheels are 3k alone. I might of over estimated that amount but rest is

$420 Mopar side steps
$179 RC budget lift
$125 RC dual stabilizer
$125 RC spedo flash
$125 Bull bar
$200 Weathertecs
$240 LED tailights / marker lights
$60 Jeep gas cap cover
$50 Tyger hitch

Yeah I guess that was a crappy estimation

 

[ThirtyOne]

Well the wheels are 3k alone. I might of over estimated that amount but rest is

$420 Mopar side steps
$179 RC budget lift
$125 RC dual stabilizer
$125 RC spedo flash
$125 Bull bar
$200 Weathertecs
$240 LED tailights / marker lights
$60 Jeep gas cap cover
$50 Tyger hitch

Yeah I guess that was a crappy estimation

You could pull off most of that stuff before you sell or trade. Sell the parts off or put them on your next Jeep!

 

[Wrangler847]

You could pull off most of that stuff before you sell or trade. Sell the parts off or put them on your next Jeep!

Yeah, that's the plan

 

[Ogre_FL]

Well the wheels are 3k alone. I might of over estimated that amount but rest is

$420 Mopar side steps
$179 RC budget lift
$125 RC dual stabilizer
$125 RC spedo flash
$125 Bull bar
$200 Weathertecs
$240 LED tailights / marker lights
$60 Jeep gas cap cover
$50 Tyger hitch

Yeah I guess that was a crappy estimation

OK, that's not quite as bad as I was thinking.
I was thinking at 7K you had bunch of stuff that would have been a major pain to put back to the stock "as leased" condition.

While you might think of all of those as "upgrades" the lease company is expecting the same stock vehicle you signed for when you turn it in.
Unless of course if you manage to sell it or trade it before lease end for its buy out.

You do still have your stock wheels & tires, right?

 

[GreyFox]

OK, that's not quite as bad as I was thinking.
I was thinking at 7K you had bunch of stuff that would have been a major pain to put back to the stock "as leased" condition.

While you might think of all of those as "upgrades" the lease company is expecting the same stock vehicle you signed for when you turn it in.
Unless of course if you manage to sell it or trade it before lease end for its buy out.

You do still have your stock wheels & tires, right?

If he doesn't, I'd start looking for some Don't give the dealer the ones you bought.

 

[word302]

Trading in or selling to a dealer, a leased vehicle, is really for all intensive purposes, not all that different than if you own the vehicle outright, or took out a loan to buy it. It has a value to the entity who leased it to you that the lease determines mathematically, and anything above that amount a dealer is willing to give you for it, is yours once they pay the leasing entity what is owed them. (just like if you choose not to turn it in, but to sell or trade it, it is possible you could owe them money to get out of it early) With a lease, what you owe (if you turn it in, and what is owed on it in an early termination) is based upon what they calculate it's value will be throughout and at the end of the lease, ahead of time. If you own or are buying it, what you owe on it is determined by the loan against it. As with a lease, if they value it over what you owe on it, then you get anything over what is owed on it.
So you might get more for it (and therefore have more going to your pocket or against a new one) if you have a lot of accessories - after all, some are designated as having a value by KBB and Manheim and...,but don't expect anything near what you put into it, since most accessories don't add value on the market.
Basically, what someone who wants to buy it from either you or the leasing entity (depending on how you possessed it) is willing to pay, is determined mostly by the market value - but as a lessee or someone who took out a loan to purchase it, what you get back after satisfying the lease or the loan, is determined by what that lease or loan is mathematically determined to be owed at any point in its term. The thing with a lease is that it is designed primarily to have you rent the vehicle so that at the end of the lease, the vehicle still has value that must be satisfied in order to buy it - whereas when you take a loan out on a vehicle to buy it, when that loan is paid off in full, there is no more money owed to get the vehicle. That's why you can lease a vehicle for a lot lesser monthly payments than if you buy it - money is still owed once the lease is done.

What is an intensive purpose?

 

[RUSTYS]

I don't have any plans of doing this I was just wondering how it works because I was reading up on it. If my residual is 32k and I owe $8k left on my lease payments until Feb of 2020 does that mean if I sold the Wrangler for 38k I would get back 6k for myself after I pay the leasing bank or do I still have to pay the total remaining $8,000 in remaining payments?

You owe the $32k plus all remaining payments. If you sold the Jeep for $45k and residual is $32k and remaining payments of $8k you would keep anything over the $40k. Also Jeep/Chrysler financial have some funky end of term fee's unlike most lenders.

 

[ZombieMojitoJL]

I don't have any plans of doing this I was just wondering how it works because I was reading up on it. If my residual is 32k and I owe $8k left on my lease payments until Feb of 2020 does that mean if I sold the Wrangler for 38k I would get back 6k for myself after I pay the leasing bank or do I still have to pay the total remaining $8,000 in remaining payments?

The problem is you will have to pay TAXES on the Purchase Price (Residual Value) - a dealer does not because they are going to resell it.

 

[ThirtyOne]

The problem is you will have to pay TAXES on the Purchase Price (Residual Value) - a dealer does not because they are going to resell it.

In my state that would be $900. Probably get more than that out of a private sale versus a trade-in. But other states are higher so it depends on the specific situation.

 

[PapaJoe]

What is an intensive purpose?

I think it has to do with being "right in theory, but not implantation"

 

[Durango]

What is an intensive purpose?

It's an egg corn. Certainly you're familiar with those?

 

[iznthesky]

Trading in or selling to a dealer, a leased vehicle, is really for all intensive purposes, not all that different than if you own the vehicle outright, or took out a loan to buy it. It has a value to the entity who leased it to you that the lease determines mathematically, and anything above that amount a dealer is willing to give you for it, is yours once they pay the leasing entity what is owed them. (just like if you choose not to turn it in, but to sell or trade it, it is possible you could owe them money to get out of it early) With a lease, what you owe (if you turn it in, and what is owed on it in an early termination) is based upon what they calculate it's value will be throughout and at the end of the lease, ahead of time. If you own or are buying it, what you owe on it is determined by the loan against it. As with a lease, if they value it over what you owe on it, then you get anything over what is owed on it.
So you might get more for it (and therefore have more going to your pocket or against a new one) if you have a lot of accessories - after all, some are designated as having a value by KBB and Manheim and...,but don't expect anything near what you put into it, since most accessories don't add value on the market.
Basically, what someone who wants to buy it from either you or the leasing entity (depending on how you possessed it) is willing to pay, is determined mostly by the market value - but as a lessee or someone who took out a loan to purchase it, what you get back after satisfying the lease or the loan, is determined by what that lease or loan is mathematically determined to be owed at any point in its term. The thing with a lease is that it is designed primarily to have you rent the vehicle so that at the end of the lease, the vehicle still has value that must be satisfied in order to buy it - whereas when you take a loan out on a vehicle to buy it, when that loan is paid off in full, there is no more money owed to get the vehicle. That's why you can lease a vehicle for a lot lesser monthly payments than if you buy it - money is still owed once the lease is done.

You are COMPLETELY Lost my friend. I don’t know another way to say it more politely. There is a major league difference........either YOU OWN the Jeep......or your throwing your money to someone else to let them drive it TEMPORARILY. For that 37K....you could have OWNED a Rubicon. But with a lease ....you will own NOTHING. ALL financial experts (like Suzy Orman) will tell you to buy New.....but keep it and pay it off. They all strongly advise against leasing. If you we’re financially well off, you wouldn’t be asking about leasing and the pay off of your Jeep. You should get advise from an expert financial adviser.....not from forum members........well unless they are experts.

 

[Durango]

You are COMPLETELY Lost my friend. I don’t know another way to say it more politely. There is a major league difference........either YOU OWN the Jeep......or your throwing your money to someone else to let them drive it TEMPORARILY. For that 37K....you could have OWNED a Rubicon. But with a lease ....you will own NOTHING. ALL financial experts (like Suzy Orman) will tell you to buy New.....but keep it and pay it off. They all strongly advise against leasing. If you we’re financially well off, you wouldn’t be asking about leasing and the pay off of your Jeep. You should get advise from an expert financial adviser.....not from forum members........well unless they are experts.

Not sure why you say I am completely lost...I am not the OP who asked about leasing in the first place. I just responded to the OP's question about turning back in a leased vehicle, or selling it, or similar. But since you brought it up - yes, leasing isn't usually the best alternative - although I leased many a vehicle in my younger years and am still alive to talk about it! But for someone who just MUST drive a vehicle they can't afford to purchase at the time, it's an option. I buy all my vehicles now, and other than an occasional lease just to take advantage of a better price if you lease (and then I pay off the lease and buy the car as soon as the waiting time is over), I stay away from leases. But I have been known to take a loan against a car if it gets me a better deal - again, as soon as the waiting period is over I pay it off. (the dealer usually loses if you pay it off before three months - as long as the savings is greater than what those three months of a loan cost, it's worth it)(I've bought houses where I had a mortgage on them for one day - some times you get certain perks for procuring something a certain way, and if you do the math and it's to your advantage, why not?
(BTW - I bet you've offended a few forum members with your comment about not asking for advise from forum members - I know I have been around the block and am no dummy, but I still find valuable advise on forums)

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