Positive equity at lease end!

[Johnvan]

My lease is coming to an end soon and I was prepared to drop off the truck and pay a few hundred dollars in lease termination fees.
I discovered that the trade in value of my truck is mid to high forties and the buyout is $37k.
It turns out that Carmax will buy out the lease just as they would any other car. Looks like I may be able to walk away with a few grand in my pocket.
Anyone here with a similar experience? What did you do to cash in on your positive equity? I don’t need to replace the vehicle so I won’t be forced to buy during this hot market.

 

[millerbjm]

I've ended 3 leases all with equity (2015 Outback, 2017 outback and 2019 Ram). In my case each time I used the equity as a down-payment on an upgraded vehicle lease but if you don't need a replacement vehicle just take the cash and invest or spend it! I just traded my 2019 BH for a 2021 Laramie and had over 6k in equity. If you leased from a dealer I would see if they will match or beat Carvana's offer as in some cases the dealer can buy the car without any fees so they may be willing to give you more than Carvana.

 

[ripvanhalen]

Did this on a 2018 Ram Classic lease last summer.

Did not try Carmax.

Tried a couple local dealers and they were not interested, or would not touch it.

Carvana gave the best offer, but they would only buy it if there was at least 60days left on lease. I waited until less than 30 days so Carvana would not buy it.

Ended up using KBB--put in all info about truck into their website -- they have arrangement with local dealers, one dealer gave a higher offer than the KBB web site without even looking at truck, not as high as Carvana, but pretty good. That dealer bought out the lease with his $, did all the paperwork, title transfer etc. Then when he got the title in his name, gave me a check for the difference.
He said it depends on the leasing company and their rules, sometimes they make the lease holder buy the vehicle and do not allow dealers/third party to purchase.

 

[dieldrin]

Just for giggles I just got a quote from carvana on my '21 Laramie $67k sticker with 2600 miles.
... $44664 ...
How is it that people seem to be getting similar offers for 3 year old big horns with 30-40k miles?

 

[Malodave]

Just for giggles I just got a quote from carvana on my '21 Laramie $67k sticker with 2600 miles.
... $44664 ...
How is it that people seem to be getting similar offers for 3 year old big horns with 30-40k miles?

I think they are low-balling you because they may think you can't handle the payments and
just want to get out from under them. Then they can Jack their selling price up to normal and
make a killing.

Vroom offered me $54K for my loaded 2021 Laramie ($71,1K MSRP) with a $3.5K LEER Cap
on it. I would be losing $11k from my purchase price plus the cost of the Accessories I have
already added and the Cap Price. So about $15K total. Their Offer would only pay off the Note.

Malodave

 

[shaginwagon]

Givemethevin.com offered me $47K on my 2021 Lonestar ($49K MSRP) that I paid $46K.

 

[HEMIJAKE]

When I was shopping offers on my 19 ranger, guys on that forum were getting bad pricing on 21 models too. The consensus was that the truck was too new to get an accurate pricing model on it. A year or 2 older seemed to pay out better. I got offered 30k for my ranger (msrp 35) online, my dealer gave me 34+. The equity I rolled into my ram. I just used givemethevin to sell my 2018 mustang though. Easy process and they payed me 10+k over what I owed. Got a check overnighted to my house.

 

[cubsfaninsc]

I bought my 2019 Laramie with 29,000 miles on it for 38k from Autonation a year ago. I looked into my selling price on Vroom, Carvana, KBB, and Autonation. The same dealership which I bought it from just offered 41.5k for it, after I have driven it for a year and it is at 41000 miles. Crazy time for used truck prices. Thought about taking them up on it, and flipping the profit for a Charger Scat Pack, but just don't want to lose the cabin room of my truck.

 

[Ickabod]

My 3 year lease was up last month and I had 13K equity in it (29K buyout from lease, 42K offer from dealer). Just decided to buy the truck at the end of the lease. Will look to getting a 2500 when the chip shortage is over.

 

[Ksmitty67]

My lease is coming to an end soon and I was prepared to drop off the truck and pay a few hundred dollars in lease termination fees.
I discovered that the trade in value of my truck is mid to high forties and the buyout is $37k.
It turns out that Carmax will buy out the lease just as they would any other car. Looks like I may be able to walk away with a few grand in my pocket.
Anyone here with a similar experience? What did you do to cash in on your positive equity? I don’t need to replace the vehicle so I won’t be forced to buy during this hot market.

I literally just did this at the end of May. Lease was up on my 2019 and I could have turned the truck in and paid a few hundred in turn in fees. I heard the used car market was strong. I filled out the online profile at CarMax. They made an offer that was $3,500 over my purchase option. Went there, they did their thing and I left with a check. Super easy and would highly recommend.

 

[Jackieee_Ram]

Just for giggles I just got a quote from carvana on my '21 Laramie $67k sticker with 2600 miles.
... $44664 ...
How is it that people seem to be getting similar offers for 3 year old big horns with 30-40k miles?

They definitely lowballing you. Just sold my 19’ Laramie that I had for 2 years for more than I bought it for

 

[Mr. Hindsight]

So I’ve heard about these crazy trade in values for a while now and finally checked out what Carvana had to offer. The offer is for $42,837.00. I have about 17 payments left which totals $6,885.00. My purchase price/ residual at the lease end is for $29,036.00.

On the Lease Payoff section I put my remaining payments of $6,885.00 + the residual of $29,036.00 which equals $35,921.00. So I’m looking at a profit of $6,916.00? Does this seem correct? Or is the Lease Payoff only for your remaining payments? Thanks.

Vehicle info: 2020 Ram Bighorn Night Edition, Crew Cab, Hemi (non etorque), Premium Lighting Group, No accidents, and in Excellent condition.

Mileage: 6,700

 

[millerbjm]

Your correct with your math but may need to add a purchase fee if your lease has one. if you do a trade and the dealer pays off the lease they often waive that fee and may offer loyalty cash. I just did this at the end of May and traded in my 2019 Big Horn for a 2021 Laramie and used the $7,000 in equity as a down payment.

 

[Mr. Hindsight]

Your correct with your math but may need to add a purchase fee if your lease has one. if you do a trade and the dealer pays off the lease they often waive that fee and may offer loyalty cash. I just did this at the end of May and traded in my 2019 Big Horn for a 2021 Laramie and used the $7,000 in equity as a down payment.

Thanks for the reply. I’ll have to check for the purchase fee. It’s tempting to do this but I’m not even sure what I’d be interested in leasing next. I know I’d like to keep the money tho lol. Before I leased my Ram the dealer bought out my charger lease which I had 5 months remaining. But no profit for me at that time.

 

[User_3336]

I had 15 more months left on my 2019 Jeep Grand Cherokee. Even @ the residual value AND the remaining payments, local dealer was still interested in buying it out, and I got a check for $4970!

No other time in history would this have been possible.

I applied the balance they owed me to a 2021 RAM.

 

[User_3336]

So I’ve heard about these crazy trade in values for a while now and finally checked out what Carvana had to offer. The offer is for $42,837.00. I have about 17 payments left which totals $6,885.00. My purchase price/ residual at the lease end is for $29,036.00.

On the Lease Payoff section I put my remaining payments of $6,885.00 + the residual of $29,036.00 which equals $35,921.00. So I’m looking at a profit of $6,916.00? Does this seem correct? Or is the Lease Payoff only for your remaining payments? Thanks.

Vehicle info: 2020 Ram Bighorn Night Edition, Crew Cab, Hemi (non etorque), Premium Lighting Group, No accidents, and in Excellent condition.

Mileage: 6,700

Call CCAP and request a lease payoff. It will be the residual amount PLUS remaining payments PLUS a purchase option fee of $350.

 

[Mr. Hindsight]

Call CCAP and request a lease payoff. It will be the residual amount PLUS remaining payments PLUS a purchase option fee of $350.

I called Chrysler Capital and requested a lease payoff total. She said it was $37,474.84 which is good till July 13th.

I’m confused because my residual / purchase price in my contract is $29,036.00 + $6,480 my remaining 16 payments= $35,516.00. Not sure where this difference of $1,958.84 is coming from.

Also, she said their were no additional fees either and when I tried to confirm that the total she quoted was for the residual at lease end + my remaining payments, she said that’s the total now and couldn’t tell me what it would be at the end. I’m like huh? O K. Maybe she didn’t understand or know what she was talking about. Maybe I should call back. Any thoughts? Thanks.

 

[Eighty]

Here’s my guess. They’ve got you on the hook for the remaining payments. If you keep it until the end of the term, the residual value will be $29,036.
But as of right now, the vehicle has a depreciated value that is $1,958.84 higher. So they are asking for the CURRENT residual value, plus your contractually-obligated payments to be paid off early.
I’m not 100% sure on this, but it’s my guess.

 

[User_3336]

I called Chrysler Capital and requested a lease payoff total. She said it was $37,474.84 which is good till July 13th.

I’m confused because my residual / purchase price in my contract is $29,036.00 + $6,480 my remaining 16 payments= $35,516.00. Not sure where this difference of $1,958.84 is coming from.

Also, she said their were no additional fees either and when I tried to confirm that the total she quoted was for the residual at lease end + my remaining payments, she said that’s the total now and couldn’t tell me what it would be at the end. I’m like huh? O K. Maybe she didn’t understand or know what she was talking about. Maybe I should call back. Any thoughts? Thanks.

SALES TAX???????

Look at your monthly lease statement on the CCAP website. It will show a BASE PAYMENT and what ever percentage sales tax is in your state, which equates to your TOTAL monthly payment.

Unless you are letting the dealer purchase it early, they would NOT pay the sales tax, as they are resellling it, and would collect the sales tax upon reselling the vehicle.

 

[User_3336]

Here’s my guess. They’ve got you on the hook for the remaining payments. If you keep it until the end of the term, the residual value will be $29,036.
But as of right now, the vehicle has a depreciated value that is $1,958.84 higher. So they are asking for the CURRENT residual value, plus your contractually-obligated payments to be paid off early.
I’m not 100% sure on this, but it’s my guess.

They have to honor the residual value on the contract!

you can buyout a lease for the residual value on your contract PLUS any remaining payments PLUS a purchase option fee of $350 PLUS the sales tax on the residual value and remaining payments.

The Sales Tax is more than likely the difference.