Help w/Lease-End Options

[wangstarr03]

Hey all, I wanted to get some real world experiences for anyone who may have gone through this recently so I can plan ahead and know what to expect, especially since this is my first lease. The lease on my truck comes due September 2022 and was done through Chrysler Capital. I have 11 payments left totaling ~$8,300 and the residual value found on my lease agreement is ~$31,117. FWIW, Vroom offered me around $50k for my truck a month or two ago.

I will likely lease something else (preferably another Ram so I can at least get more use out of my wheels/tires) but may consider another make depending on what the situation looks like.. My plan is to perform a third party lease buyout (i.e. selling it) prior to lease-end. I have read that CCap has a policy which makes that difficult within 60 days - can anyone confirm/deny this? If I do this outside of 60 days is it pretty much good-to-go?

Another reality I may have to face is that we'd still be experiencing this semiconductor shortage therefore making inventory slim pickins and prices unmanageable. If that's the case I may consider purchasing my truck - what's the process for this? Do I have to specifically seek out "lease purchase" financing or does it work like any other auto loan? Do dealer lenders (i.e. CCap, for example) offer lease buyout financing? Alternatively, I assume I can simply write them a check for the residual value and be done with it?

I know this stuff might be pretty remedial for those of you who are more experienced so please take it easy on me. Appreciate any insight everyone can provide, thanks!

 

[FLiPMaRC]

Following this thread. I've only previously financed all my vehicles, and this is also my first lease.

 

[rylock21]

It’s true that the last 60 days Chrysler won’t allow a third party lease buyout so you’d have to secure financing yourself to buy out the lease and then sell elsewhere.

Lease end buyouts are really the same as financing, you can either go through Chrysler for a loan on the buyout or use any other lender if they give you better rates. I would really think by summer of next year the chip shortage will not be nearly as dire as it is now which will make inventories a bit more full..at least from most of the articles I’ve read on the subject.


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[Thewrangler73]

My lease ends on the 23rd of October, 2021, so less than a month away from now. I went into my dealer today to buy it out. Process took me about 30 minutes. I was able to finance the entire residual value, plus tax, no money down. Residual value was about 29,000, and dealer told me my truck was worth about 38,000. They lined me up with financing from a local bank, .99% interest rate.

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[wangstarr03]

My lease ends on the 23rd of October, 2021, so less than a month away from now. I went into my dealer today to buy it out. Process took me about 30 minutes. I was able to finance the entire residual value, plus tax, no money down. Residual value was about 29,000, and dealer told me my truck was worth about 38,000. They lined me up with financing from a local bank, .99% interest rate.

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If going this route, will mileage overages, etc matter if you're purchasing out of lease?

I'll be over my mileage allotment by lease-end and that reason, along with the fact that the current market has the value of my truck close to what I paid for it after 2.5 years leads me to either sell it outright or buy it out myself. No plans to turn it in.

 

[wangstarr03]

It’s true that the last 60 days Chrysler won’t allow a third party lease buyout so you’d have to secure financing yourself to buy out the lease and then sell elsewhere.

Lease end buyouts are really the same as financing, you can either go through Chrysler for a loan on the buyout or use any other lender if they give you better rates. I would really think by summer of next year the chip shortage will not be nearly as dire as it is now which will make inventories a bit more full..at least from most of the articles I’ve read on the subject.


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But I'd only have to secure buyout financing for a third party sale if I'm within 60 days of lease termination, right?

If I'm outside of the 60 days I can pretty much sell to whomever; settle the residual value + remaining payments and walk away?

 

[jmt8706]

If going this route, will mileage overages, etc matter if you're purchasing out of lease?

I'll be over my mileage allotment by lease-end and that reason, along with the fact that the current market has the value of my truck close to what I paid for it after 2.5 years leads me to either sell it outright or buy it out myself. No plans to turn it in.

From what I've heard, if you buy out the lease, they don't ding you for over mileage.

 

[Finn5033]

I sold my leased Ram to Vroom back at the end of May. I was only like 8 months into a 42 month lease and it was with Chrysler Capital. Yes you are correct about it being an issue within 60 days of lease end. I know Vroom was very busy earlier this year so that made the process for mine drag out a bit. It was a very simple process but it took them a long time to get that check mailed over to Chrysler. In the end it worked out for me.

 

[Finn5033]

With the market the way it is now it doesn’t make sense to wait and turn your lease in. If you don’t plan to keep it, trade it in before the lease is up. Values are so high you’re likely to have big equity.

I was able to get out a 42 month lease after only 8 payments and I put zero down. Walked away for nothing. I mean that’s unheard of. Before this market I would have been 10k upside down and never been able to do that

 

[Thewrangler73]

If going this route, will mileage overages, etc matter if you're purchasing out of lease?

I'll be over my mileage allotment by lease-end and that reason, along with the fact that the current market has the value of my truck close to what I paid for it after 2.5 years leads me to either sell it outright or buy it out myself. No plans to turn it in.

I was a little over 9000 miles over my limit, there were no fees. If you buy your truck out then you shouldn't have to pay ANY fees. I have a good relationship ship with my dealership, they and I have an understanding that yes, they will make money off of me, but I'm not gonna get screwed over either. Between my wife and I this truck was our 5th brand new vehicle from this dealership.

But some things to keep an eye on; again, there should be NO FEES. Your buy out price is already on your original lease contract, it will be listed as "residual value". You should only pay for this, tax, title and license. So for me in my state, ND, I paid the residual value, plus 5% sales tax, and a $16 title transfer fee to the DMV. If they try to charge you a documentation fee, point out that you already paid that when you initiated the lease. There shouldn't be any vehicle prep fees, because they're not prepping anything, you're buying a truck you already have possession of. If the dealership gives you a hard time at all, remember that you don't have to buy it out there, you can go to another dealership and have it done, or secure financing on your own at whatever bank you wish, and have them cut the check to Chrysler capital. If you go this route you may want to call Chrysler ahead of time so they can email you all the proper documents.

Hope this helps!

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[wangstarr03]

With the market the way it is now it doesn’t make sense to wait and turn your lease in. If you don’t plan to keep it, trade it in before the lease is up. Values are so high you’re likely to have big equity.

I was able to get out a 42 month lease after only 8 payments and I put zero down. Walked away for nothing. I mean that’s unheard of. Before this market I would have been 10k upside down and never been able to do that

I 100% agree with this sentiment especially considering what Vroom offered me for my truck just a month or two ago. That said, the issue becomes what I would get into right now if I sold my truck - the options are less than stellar (IMO).

The Tundra looks great but no V8 option, and I wasn't blown away by the refreshed Silverado though I am holding out for the Sierra 1500 reveal on 10/21. I feel similarly about the newish F150, it's...fine, but doesn't blow me away. If I could only justify a Hummer EV to the wife...

 

[Finn5033]

I 100% agree with this sentiment especially considering what Vroom offered me for my truck just a month or two ago. That said, the issue becomes what I would get into right now if I sold my truck - the options are less than stellar (IMO).

The Tundra looks great but no V8 option, and I wasn't blown away by the refreshed Silverado though I am holding out for the Sierra 1500 reveal on 10/21. I feel similarly about the newish F150, it's...fine, but doesn't blow me away. If I could only justify a Hummer EV to the wife...

Yeah exactly. I needed to get a bigger truck for our new RV/fish house. Normal market I would have been stuck, and I did have to pay full msrp for my new 1 ton. So it ended up a wash.

I loved my ecodiesel and absolutely would have kept it otherwise