Once upon a time, trading in a leased vehicle seemed foreign. But now, with the chip shortage and low supply of new vehicles, lease buyout seems to be the recent big deal in the auto industry.
No matter when you lease your new Jeep car, you can still return your lease anytime you want. Whether you still owe on it or not, selling your leased car is one of the easiest ways to get out of your lease early and still make money doing so. But how can you trade in your financed Jeep lease and still make money? Is it better to sell your Jeep lease to a dealership or used car dealers like CarMax, Carvana, and Vroom?
Can You Trade In A Financed Jeep Car?
Yes, you can still trade in a financed Jeep lease. However, trading in your Chrysler Capital financed Jeep lease doesn’t mean your debt will automatically disappear. You’ll still have to pay off your debt or roll it over to a new lease.
Many banks and credit unions have made big moves to restrict trading in a leased vehicle with a third party in recent years. Banks and auto loaning institutions such as US Bank, Ally Bank, Exeter Finance Corp, Wells Fargo, A+ Federal Credit Union, GM Financial, VW Credit, and a host of others don’t allow their customers to sell their leases privately or to used car dealers like Carvana, Vroom, CarMax, and others.
If you want to trade in cars financed by these banks and credit unions, your best bet is to go through dealerships. Your dealerships or official brokers can help you negotiate with your bank or auto finance lender and facilitate your smooth move out of the current lease and into a new lease if you need one.
Your Equity
When you lease a new Jeep, your auto finance company will predict the residual value of your Jeep. Residual value is simply what your Jeep will worth at the expiration of the lease term. However, thanks to changes in the market, your Jeep may be worth more than the earlier predicted value.
The lease buyout price is pegged on the residual value. For instance, if you want to return your Jeep Grand Cherokee lease early, you have some outstanding payments and a buyout price of $18,500. If the Jeep Grand Cherokee is worth more than the remaining payment on your lease and the residual value, say your Grand Cherokee’s current value is $21,000. That means you have positive equity of up to $2,500. You can sell your car back to the dealership and still walk away with a cool $2,500 or use the $2,500 for payment on another Jeep lease.
Trade-In With Dealership Vs. CarMax, Carvana, or Vroom
One of the easiest and most rewarding ways of exiting your financed Jeep lease is to trade-in with a dealership. When you get to dealerships like VIP Auto, the first step will be to examine your Jeep vehicle and appraise its value. After that, you’ll be offered an amount, which will usually not be more than the wholesale price. The same procedure applies to third parties like Carvana, Vroom, and others.
However, with dealerships, you have the room to haggle for a better price if you feel the price offered is not enticing enough. Carvana, CarMax, and Vroom don’t offer you room to haggle the price. It’s always a matter about take it or leave it deal.
Also, you have a tax-free advantage with dealerships over Carvana and its siblings. Once you’ve agreed to the sum, you can choose to use it for a new lease, settle your auto finance company, or walk away with the cash.
If the equity is not so good and you want to get into a new lease, we can help you negotiate with many banks and credit unions to find the right financing option.
Contact VIP Auto, 1204 Hylan Blvd, Staten Island, NY 10305 https://viplease.com/.
