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Old 06-06-2015, 05:18 PM
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Question about Chrysler Capital Leases

We are about 12 months out from a 2014 Jeep GC Limited lease being up. We are trending ahead of our mileage allowance and have been communicating with the dealer I leased from about getting out of ours and into another as it seems our Payoff is less than the appraised value of the car.

In leases with other manufacturers, I've had no issue ending the lease early either via a dealer trade when there was equity or taking the car to someplace like a Carmax and just selling it and taking the equity home with me.

I was curious if anyone else has done something similar with a Chrysler Capital lease and if they allow that or would have an issue?

Thanks!

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  #2  
Old 06-07-2015, 08:39 AM
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Re: Question about Chrysler Capital Leases

I am wanting to do the same thing. The front seats in this thing are becoming unbearable. Back pain from HELL since the first week.
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Old 06-07-2015, 08:18 PM
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Re: Question about Chrysler Capital Leases

Your actual contract is what governs what you can and cannot do. Are there any early termination clauses, etc., there?
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Old 06-07-2015, 09:35 PM
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Re: Question about Chrysler Capital Leases

Quote:
Originally Posted by jeffer0326 View Post
We are about 12 months out from a 2014 Jeep GC Limited lease being up. We are trending ahead of our mileage allowance and have been communicating with the dealer I leased from about getting out of ours and into another as it seems our Payoff is less than the appraised value of the car.

In leases with other manufacturers, I've had no issue ending the lease early either via a dealer trade when there was equity or taking the car to someplace like a Carmax and just selling it and taking the equity home with me.

I was curious if anyone else has done something similar with a Chrysler Capital lease and if they allow that or would have an issue?

Thanks!
As Jim stated, refer to your contract language, but in general you can always term/trade/up/down/buy your lease vehicle at any point. It's just a matter of the numbers and how you take that deal down logistically.

They will give you a buyout based on current state (mileage, market conditions, etc..) plus any and all charges, remaining payment liquidation, etc...you can get a current look at that number yourself online by logging into your CC account at:

https://myaccount.chryslercapital.com/

Based on where you are in the lease they may have it coded to tell you to call them for a buyout but it is simply a financial equation to them so they will be helpful.
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Old 06-07-2015, 10:58 PM
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Re: Question about Chrysler Capital Leases

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Originally Posted by Trentmg88 View Post
I am wanting to do the same thing. The front seats in this thing are becoming unbearable. Back pain from HELL since the first week.
I think it's your back
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Old 06-07-2015, 11:21 PM
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Re: Question about Chrysler Capital Leases

Quote:
Originally Posted by Trentmg88 View Post
I am wanting to do the same thing. The front seats in this thing are becoming unbearable. Back pain from HELL since the first week.
Sorry to hear that. Maybe a Summit or Overland will be better for you, since they have slightly different seats? We had to adjust the lumbar support in ours, of course, but our Limited with the ventilated/leather trimmed seats is quite comfortable.
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Old 06-07-2015, 11:36 PM
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Quote:
Originally Posted by SouthDakota View Post

Sorry to hear that. Maybe a Summit or Overland will be better for you, since they have slightly different seats? We had to adjust the lumbar support in ours, of course, but our Limited with the ventilated/leather trimmed seats is quite comfortable.
Summit, yes, but Overland is suspect since it has same #5 foam as Altitude. Obviously, the leather and vent options will affect the perceived comfort so foam # is not only factor but it is the base within the seat. Its a reason I went Summit (#3 foam) over Overland. Some dont like the Summit seats, its all subjective.
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Old 06-08-2015, 11:08 PM
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Re: Question about Chrysler Capital Leases

I just traded in an Ally lease with equity. Weird and confusing thing, I had to buy it first, which means I had to pay sales tax. Lease equity has become more common, and leasing companies have caught on, so they have made dealers enter into agreements to prevent direct buys., i.e. the dealer's buyout price was not my buyout price. So they couldn't just buy it for me and hand me the difference.

It sounds hinky, we know the dealer gets paid for the transaction if/when you buyout your lease, there's at least a few hundred dollars, and the leasing company has a big payday, Ally was $1500 on top of my residual value (it's all in your contract). Basically I had $5000 equity on a trade in value:value, but it cost me $3000 to get $2000 (no matter what it would have cost me $1500 to buy the lease if I actually kept it). Private party sale would have gotten me a few $1000 more, but again, there was no easy way to get the pink slip in my hands to even accomplish that. Basically, a leased vehicle is not yours, you don't own it, so you can't trade it the traditional way.

It occurred to me the dealer might be making more for selling me the lease vehicle, but if they actually could buy it for the same price as me, why jump through hoops to have me pay sales tax? If they weren't going to make money on the buyout, they'd get it on the trade difference anyway.

Anyway, it confused the whole process, so keep it a totally separate transaction if you can. And don't be surprised if you have to buy it to get your money out, meaning you won't be getting all the money you expect. It makes me favor buying rather than leasing, as the equity would have been mine to keep. But I did lease again, the residual seemed like a fluke this time. I am in a Chrysler lease this time, so maybe it won't be so ridiculous - heck, even their payday on a buyout is a much lower $350.
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Old 06-09-2015, 02:29 AM
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Re: Question about Chrysler Capital Leases

Even the contract can be nullified by high demand for your particular vehicle.

Heck, I used to get offers from Ford dealers wanting my F-150 all the time - even when it passed the 10 year mark. Granted, that was with a purchase, but the offers were coming even before I paid it off. My father gets offers to trade in early all the time with the pickups he leases. He bought his latest one, but still gets those offers.

If, for example, demand is high for your model, but you're looking to lease a model that doesn't move as quick off the lot, they may waive pretty much every closing fee, regardless of what's in the contract.
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Old 06-09-2015, 07:30 AM
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Quote:
Originally Posted by JackBurton View Post
Basically I had $5000 equity on a trade in value:value, but it cost me $3000 to get $2000
True, but then your basis in the vehicle was raised to the amount that was taxed. Presuming someone were to immediately flip that "lease=>purchase" equity into a new vehicle, then don't most states deduct the trade in value from the new vehicle's purchase price when calculating the sales tax basis for the new vehicle?

That is to say, unless you paid sales tax on the vehicle's value when you started the lease *and* when you sold it (i.e. being doubly sales taxed on the same vehicle), the sales tax would seem to be a wash. Therefore, any semblance of money "vanishing" when unlocking the equity is merely an illusion in the same way it is an illusion to perceive that a portion of one's lottery winnings "vanish" due to the income tax they incur.

In fact, trading in a vehicle (as opposed to executing a cash sale followed by a separate purchase) is the most tax efficient approach in the US states that I am familiar with. If you don't trade in, then you lose the deduction from the sales tax basis in the new vehicle purchase, at least as far as I understand it.
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Old 06-09-2015, 01:47 PM
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Re: Question about Chrysler Capital Leases

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Originally Posted by Roadkill View Post
True, but then your basis in the vehicle was raised to the amount that was taxed. Presuming someone were to immediately flip that "lease=>purchase" equity into a new vehicle, then don't most states deduct the trade in value from the new vehicle's purchase price when calculating the sales tax basis for the new vehicle?

That is to say, unless you paid sales tax on the vehicle's value when you started the lease *and* when you sold it (i.e. being doubly sales taxed on the same vehicle), the sales tax would seem to be a wash. Therefore, any semblance of money "vanishing" when unlocking the equity is merely an illusion in the same way it is an illusion to perceive that a portion of one's lottery winnings "vanish" due to the income tax they incur.

In fact, trading in a vehicle (as opposed to executing a cash sale followed by a separate purchase) is the most tax efficient approach in the US states that I am familiar with. If you don't trade in, then you lose the deduction from the sales tax basis in the new vehicle purchase, at least as far as I understand it.
You're right, they want you to pay tax on it is the thing. Basically the state and the lease company are going to take part of your equity. I was not escaping without paying tax... unless I walked away from the lease. Keep them separate as far as talking to the dealer, the equity and trade and so on confuse the numbers in my opinion. Negotiated separately to avoid confusion is all I meant. And as per my experience, they were separate, I had to buy the leased vehicle, then it was treated as a trade on the new vehicle - I'm not sure the lease buyout can be co-mingled into a single transaction.
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Old 06-11-2015, 11:39 AM
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Re: Question about Chrysler Capital Leases

My dealer called me, wanting to trade in my 2014 limited that had 19 months left on the lease, 20 months old. I traded up to a 2015 Summit 4x4 and only had to roll $500 in negative equity but got a $5k lease to lease rebate. Lease wasnt a problem at all. I went from Chrysler Capital to Ally in the new deal
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