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  #25  
Old 03-07-2016, 10:41 AM
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Re: Curious: What numbers to use on lease trade-ins?

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Originally Posted by satori View Post
I've got my buyout number from CC, however the dealer says that theirs will be higher and that CC bases the dealer buyout number on "current market value".
So if I lease a vehicle and come back two weeks later, I can trade it in without losing money since the buyout would be 'current market value'? Wow, that would be awesome!

I have to say that this smells very fishy and seems to be a perfect example where a dealer is trying to get a head start on you (which is EXACTLY what I'm trying to avoid by opening this thread).

Did you also get a printout and showed it to the dealer?

As I previously said, if you call CC and ask them for a buyout quote, they will provide you with a number that includes tax. This amount is what YOU would have to pay to buy it out. Check out the sheet I posted.

I never heard of a dealer buyout or trade-in number based on 'current market vale'. The market value is used to determine what equity there is (negative or positive) but certainly not as a payoff itself.

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  #26  
Old 03-07-2016, 10:45 AM
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Re: Curious: What numbers to use on lease trade-ins?

I've never heard of this either, and in all of my years of leasing it's never been the case. Hopefully there are some dealer reps here that can confirm or deny - without guessing.
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  #27  
Old 03-07-2016, 11:05 AM
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Re: Curious: What numbers to use on lease trade-ins?

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Originally Posted by satori View Post
I've never heard of this either, and in all of my years of leasing it's never been the case. Hopefully there are some dealer reps here that can confirm or deny - without guessing.
As I said, this sounds like a made up story by the dealer. In 9 out of 10 times, you actually have negative equity on an early trade and I bet they wouldn't have mentioned this nonsense if this would have been the case with your trade.

Now, they are trying to make YOUR equity disappear into thin air to pocket YOUR money.

If the dealer keeps on insisting on that BS, ask him what I just asked: 'So if that's true, I can never have negative equity on an early trade, either?' If he confirms, get it in writing and post it over here. I'd LOVE to see that..
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Old 04-01-2016, 03:26 PM
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Re: Curious: What numbers to use on lease trade-ins?

I don't know how it is with Chrysler Capital, as I have not called them yet to discuss my buyout, but with all the other banks that I and my family members have leased through, always have 2 buyout prices. 1 for you as the customer and a dealer buyout. The dealer buyout is always less than the customer buyout.

A few months ago my dad decided that he wants out of his 2015 Pilot after 10 months. I contacted Honda Financial and got the 2 buyout quotes. I also contacted my buddy who is a partner at a leasing company. I got a price from him for which he would buy the car, and it was only $500 less than the dealer buyout. My dad wanted a Mini cooper bad enough, so we had the leasing company buy out the car from Honda and find us a Mini.
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Old 04-01-2016, 03:59 PM
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Curious: What numbers to use on lease trade-ins?

In the past, I've always been able to trade a lease early fairly simply; the quote is usually my residual valuable plus the total of my remaining payments. I've done this with Honda, Toyota, and Audi. My 2012 Grand Cherokee Limited was leased through US Bank; they made it very difficult for me to trade early. I started looking at trading around 30 months, and had 9 payments remaining; we thought we were ahead because we were offered $2,500 more than what I assumed our payoff would be, however the 3 dealers I visited relieved payoff quotes directly from US Bank, which was indeed based off current market value. I owed $24,500 between my residual and remaining payments, was offered $27,000 on trade, and US Bank gave the dealer a payoff of $30,000. It would have been cheaper for me to pay the GC off early, including the sales tax and early payment penalty of 150% of 1 payment, then have the dealer buy it from US Bank directly. I have never experienced a situation like this ever, and I have traded many leased cars without a problem. In the end, I wound up just buying the new car, and keeping the GC until the lease was up, at which point I wound up keeping it as a third car anyway.


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  #30  
Old 04-01-2016, 10:10 PM
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Re: Curious: What numbers to use on lease trade-ins?

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Originally Posted by zhenya View Post
I don't know how it is with Chrysler Capital, as I have not called them yet to discuss my buyout, but with all the other banks that I and my family members have leased through, always have 2 buyout prices. 1 for you as the customer and a dealer buyout. The dealer buyout is always less than the customer buyout.
That's how it works with Chrysler Capital as well.
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  #31  
Old 04-01-2016, 10:21 PM
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Re: Curious: What numbers to use on lease trade-ins?

Quote:
Originally Posted by joeyo View Post
In the past, I've always been able to trade a lease early fairly simply; the quote is usually my residual valuable plus the total of my remaining payments. I've done this with Honda, Toyota, and Audi. My 2012 Grand Cherokee Limited was leased through US Bank; they made it very difficult for me to trade early. I started looking at trading around 30 months, and had 9 payments remaining; we thought we were ahead because we were offered $2,500 more than what I assumed our payoff would be, however the 3 dealers I visited relieved payoff quotes directly from US Bank, which was indeed based off current market value. I owed $24,500 between my residual and remaining payments, was offered $27,000 on trade, and US Bank gave the dealer a payoff of $30,000.
This is very interesting and shows the different 'agenda' of a 'normal' financial institution like US Bank and somebody like Honda, Audi or Chrysler Capital.

While US Bank is in the market to make as much money on the lease itself and is absolutely not interested in promoting early terminations, Chrysler Capital is obviously also in business to do Chrysler itself a favor by making early trades and therefore, more sales more attractive. That's why it's so important to know the fine print.

However, there must be more to the story than the simple 'based on market-value' pay-off because I'm still curious how this is supposed to work right after signing the contract and taking delivery. We all now that once you drive off the lot, the market value takes a huge hit. I'm pretty sure US Bank won't allow a pay-off at market value that early...
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