Wanting to turn in my 2021 leased Willys early to lease new 4XE

[ammie805]

Hey all...my husband and I currently lease our Jeeps. I have a 2020 Willys unlimited (nothing fancy, white, premium soft top and CWG) but my husband has a 2021 Willys unlimited (Sun and sound pkg so it has the better radio and SOT, crystal granite, tow pkg). The 4XE is expected to come in sometime in November. We'd love to turn in my husband's jeep to the dealer and have them take the remainder of the lease balance off our hands (his lease is up 1/2024, the balance of the remainder of the lease if we were to end it today is $4375, or even meet us half-way) since the dealer can get more money for his because of the SOT and it being a 2021. It has 29K miles. Am I dreaming that the dealership would/could do that? It's leased through Ally so I can't sell it to a 3rd party, and there is no buy out option on this lease. I have no problem re-leasing with Ally again.

Anyone have any luck getting out their lease early at no cost (or minimal cost) just to re-lease again? Is there still a market for used Jeeps? Thanks in advance!!

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[Deleted member 59498]

That sounds tricky if you can't buy out the lease nor sale the Jeep. Basically when you trade in to a dealer you are just selling them the Jeep and they would need to buy out the lien on the Jeep. Not sure if they would have any way to deal with Ally.

If you pay off the outstanding on the lease does it then allow you to buy out at the end of the lease?

 

[Some Random Guy]

To be clear, is there a buyout option for you or a dealer? It’s becoming common for dealers to be unable to buyout leases but I thought leasee buyouts were still generally allowed.

 

[Deleted member 59498]

To be clear, is there a buyout option for you or a dealer? It’s becoming common for dealers to be unable to buyout leases but I thought leasee buyouts were still generally allowed.

Yeah they are confusing to me. I guess it would be some where in the contract legalese though. Maybe?

 

[Some Random Guy]

Yeah they are confusing to me. I guess it would be some where in the contract legalese though. Maybe?

Have you inquired with the lease company? They can usually answer pretty quick and with transparency. Sometimes there’s policy which is more lenient than the contract language. It’s worth an ask.

 

[PeppeWrangler]

Ally is horrible. They will not let a dealer purchase my daily which is a 2019 Alfa Romeo Stelvio. There are 4 payments left on my lease so when my new car arrives (hopefully by December) I can turn car in early and then make whatever remaining payments are left. I can buy it now or at lease end but only me. Can't wait to get out and never do business with them again. If you have equity in the Jeep then it might be worth trying to buy it and then turn around and sell to the dealer or even Carmax. Good luck!

 

[Buster1]

@ammie805 Its rare to have anyone (dealer or otherwise) assume the remaining lease (the payments remaining). Doing so involves paying interest that’s baked into your payments, and technically, at the end, they don’t even get to keep the vehicle! They’d still have to purchase it or turn it in.

When trying to get out of a lease, you really have to focus on one number… the lease payoff. This is the remaining TOTAL value of the vehicle plus any payments you owe. Likely $25k-$40k depending on many options.

Find a buyer (individual or dealer) willing to pay that total and you’re done!

 

[Terpsmandan]

I’m in the business. The only options that you have with Ally is to pay the $4375 (the walk away amount) or for you to buy your lease out, pay the sales tax and trade it in. The second option does take more time to complete because you have to wait for your title. Before you make that decision you will need to what it’s worth to the dealer to see if the second option is financially prudent.

 

[cripton805]

-Call your bank and get the total payoff for the car.

-Ask the dealer what the trade in value is.

Negotiate.

The "total" payoff on my Wrangler was 26k and they offered me 29k. I put the positive equity toward the new Jeep.

 

[Terpsmandan]

Ally is horrible. They will not let a dealer purchase my daily which is a 2019 Alfa Romeo Stelvio. There are 4 payments left on my lease so when my new car arrives (hopefully by December) I can turn car in early and then make whatever remaining payments are left. I can buy it now or at lease end but only me. Can't wait to get out and never do business with them again. If you have equity in the Jeep then it might be worth trying to buy it and then turn around and sell to the dealer or even Carmax. Good luck!

Ally is not horrible. They are just protecting their investment. The residual is agreed upon by both parties when you sign the lease. Also the early termination process is spelled out as well. Had you read the contract you would have known that. If the wholesale value of your leased car happens to be less than the residual, the bank doesn’t come after you for the difference. You can’t have your cake and eat it too.

 

[Terpsmandan]

-Call your bank and get the total payoff for the car.

-Ask the dealer what the trade in value is.

Negotiate.

The "total" payoff on my Wrangler was 26k and they offered me 29k. I put the positive equity toward the new Jeep.

It’s not that easy with some banks. Ally doesn’t let the dealer buy a vehicle for the residual. Through Ally the dealer has to pay market value. OP can buy the car for the residual but will have to pay sales tax and wait for the title from Ally and then go to DMV and get the title in their name before trading it in.

 

[caraholic]

Best bet for you would be to buy it out then sell it to either a dealer or individual.

 

[laroo]

If I'm leasing a Jeep (and I currently am), I'm only going to lease with Chrysler Capital. CCAP is much less restrictive than Ally. Even if the cost of the lease is more through CCAP, you're still likely better off due to easier access to any equity you might have. I traded my previous lease to a dealer, who was able to buy at residual (CCAP). I got back $6k, then the dealer sold it and made another $3-4k. That was partly due to the crazy market at the time, but I also lost at least $3k by waiting 4 months to pull the trigger.

As for OP getting out of the lease early, that has been detailed here pretty well. Leases are not the best financing vehicle if you're not going make it to lease end.

 

[ammie805]

That sounds tricky if you can't buy out the lease nor sale the Jeep. Basically when you trade in to a dealer you are just selling them the Jeep and they would need to buy out the lien on the Jeep. Not sure if they would have any way to deal with Ally.

If you pay off the outstanding on the lease does it then allow you to buy out at the end of the lease?

Thank you Scott for replying....I'm thinking I don't have the option to buy at the end because when I go to my Ally account and look for payoff, it only gives the lease payoff quote, no lease buy out option (my 2020 has a buy out option...for example, my 2020 buy out price is $36, 614 not including tax) Is that worth it? Should I just buy my 2020 and sell it or is it not worth that much?

***updated to add****
turns out I do have a buy out option on the 2021, but because it was leased in the state of FL I don't see the price, I must go through a dealership in FL to make any deal. The lease buy out on my paperwork from the dealer that I found (after finishing the lease) is $34358.

 

[BXFXJeep]

There is something called Lease take over in Canada, not sure if that applies to you.

There are cases where take overs are beneficial for some, they don't have to make a down payment, they go a shorter period then have to ability to buy out etc.

Basically the leasing company will charge a small fee to inspect the vehicle and make changes to the paperwork.

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