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Discussion Starter #1
Hello all,

I am looking at upgrading to a Hellcat from my Scatpack. I am currently in a lease and my payout is around $33,700. I was offered $39,500 in trade for the Hellcat, so I applied with the credit ap. After that, the dealer tells me "sorry we can't take a lease on trade." I've had two other dealers offer me the same $39,500 on trade, KNOWING I am in a lease.

My understanding is I can buyout my lease at ANY time and own the car outright, correct? So why would the dealer have an issue with this?

I'm ready to pull the trigger on a great deal, and I cannot think of any reason they cannot take a lease in on trade.

If there is a some weird clause where the dealer can't take my car because it is a lease, could I transfer cash to buy it outright, and then trade it in as a car that I own?
 

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Is your buyout the value at the end of your lease? If so you'll need to make up the remaining lease payments to get to that buyout number.

I get out of leases early all the time. Its honestly the stupidest idea ever as most times you'll be immersed in negative equity. For myself, its only money so what's the big deal lol.
 

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Is your buyout the value at the end of your lease? If so you'll need to make up the remaining lease payments to get to that buyout number.

I get out of leases early all the time. Its honestly the stupidest idea ever as most times you'll be immersed in negative equity. For myself, its only money so what's the big deal lol.
They can take a lease on trade, what they are really doing is buying your lease out (dealers buyout is different than yours, sometimes higher and sometimes lower) and if the trade value is more than the buyout you get the excess. They may have an internal business rule they don't take leases on trade.

However, your amount due to get out of the car is not $33,700. It's (# of remaining payments X monthly payment) + $33,700

Buying the car outright and then trading it would not make sense. You have to pay the $33,700 + total of remaining payments + Chrysler Capital fee ($395?) + tax/title/tags for your state.
 

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They can take a lease on trade, what they are really doing is buying your lease out (dealers buyout is different than yours, sometimes higher and sometimes lower) and if the trade value is more than the buyout you get the excess. They may have an internal business rule they don't take leases on trade.

However, your amount due to get out of the car is not $33,700. It's (# of remaining payments X monthly payment) + $33,700
What are the payments and how many remaining?
 

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They can take a lease on trade, what they are really doing is buying your lease out (dealers buyout is different than yours, sometimes higher and sometimes lower) and if the trade value is more than the buyout you get the excess. They may have an internal business rule they don't take leases on trade.

However, your amount due to get out of the car is not $33,700. It's (# of remaining payments X monthly payment) + $33,700

Buying the car outright and then trading it would not make sense. You have to pay the $33,700 + total of remaining payments + Chrysler Capital fee ($395?) + tax/title/tags for your state.
Your first part is right, the 2nd part is not.

The payoff is the end residual of the car (since leased) + whatever the amount of the remaining payments left minus some interest in there (due to the MF/interest). It can be calculated by the lease holder though.

The customer payoff includes sales tax on the car, since you're purchasing it, the dealer payoff will be less & not have the tax since they pass the sales tax on to the end buyer (when it's bought as a used car).

The dealer will call Chrysler Capital to get the dealer payoff on the car (which usually includes a $500 charge IIRC to buy it).

If that $33,700 was the DEALER pay off, then you'd have $5800 in positive equity towards the Hellcat. Not bad!

What are the payments and how many remaining?
It doesn't matter how many payments are left really. The leasing bank will have/know the dealer payoff/buyout.


I just traded in my leased '19 Scat Pack. I had it exactly 1 year into a 36 month lease. Payments were $540/month.
I didn't roll over ~$13,000 into my '20. (which would've been the remaining payments)

The dealer payoff was $34,700. (residual was ~$22 or 23k + the remaining payments & minus interest)
They appraised it at $38,000.
I put $1500 towards my new car & am awaiting a check back for $1,800.

I've never kept a lease car the full term. I've always traded them in early, as a used car, and have NEVER rolled in the remaining payments (because it'd be stupid high/expensive).


Back to the OP, they CAN/are able to buy the car....now if they truly WANT to or not, that's another story.

You buying it though, you'd pay sales tax on it. Don't do that!
You want a dealer to buy it directly from Chrysler Capital
 

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Your first part is right, the 2nd part is not.

The payoff is the end residual of the car (since leased) + whatever the amount of the remaining payments left minus some interest in there (due to the MF/interest). It can be calculated by the lease holder though.

The customer payoff includes sales tax on the car, since you're purchasing it, the dealer payoff will be less & not have the tax since they pass the sales tax on to the end buyer (when it's bought as a used car).

The dealer will call Chrysler Capital to get the dealer payoff on the car (which usually includes a $500 charge IIRC to buy it).

If that $33,700 was the DEALER pay off, then you'd have $5800 in positive equity towards the Hellcat. Not bad!


It doesn't matter how many payments are left really. The leasing bank will have/know the dealer payoff/buyout.


I just traded in my leased '19 Scat Pack. I had it exactly 1 year into a 36 month lease. Payments were $540/month.
I didn't roll over ~$13,000 into my '20. (which would've been the remaining payments)

The dealer payoff was $34,700. (residual was ~$22 or 23k + the remaining payments & minus interest)
They appraised it at $38,000.
I put $1500 towards my new car & am awaiting a check back for $1,800.

I've never kept a lease car the full term. I've always traded them in early, as a used car, and have NEVER rolled in the remaining payments (because it'd be stupid high/expensive).


Back to the OP, they CAN/are able to buy the car....now if they truly WANT to or not, that's another story.

You buying it though, you'd pay sales tax on it. Don't do that!
You want a dealer to buy it directly from Chrysler Capital
All true, with 1 caveat. Depending on your state, there are states where you recieve a tax credit towards the new vehicle from a trade. For example, you trade in a value of 40k towards 70k, you pay onlyb30k worth of taxes. Florida is one of those
 

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Discussion Starter #8
Your first part is right, the 2nd part is not.

The payoff is the end residual of the car (since leased) + whatever the amount of the remaining payments left minus some interest in there (due to the MF/interest). It can be calculated by the lease holder though.

The customer payoff includes sales tax on the car, since you're purchasing it, the dealer payoff will be less & not have the tax since they pass the sales tax on to the end buyer (when it's bought as a used car).

The dealer will call Chrysler Capital to get the dealer payoff on the car (which usually includes a $500 charge IIRC to buy it).

If that $33,700 was the DEALER pay off, then you'd have $5800 in positive equity towards the Hellcat. Not bad!


It doesn't matter how many payments are left really. The leasing bank will have/know the dealer payoff/buyout.


I just traded in my leased '19 Scat Pack. I had it exactly 1 year into a 36 month lease. Payments were $540/month.
I didn't roll over ~$13,000 into my '20. (which would've been the remaining payments)

The dealer payoff was $34,700. (residual was ~$22 or 23k + the remaining payments & minus interest)
They appraised it at $38,000.
I put $1500 towards my new car & am awaiting a check back for $1,800.

I've never kept a lease car the full term. I've always traded them in early, as a used car, and have NEVER rolled in the remaining payments (because it'd be stupid high/expensive).


Back to the OP, they CAN/are able to buy the car....now if they truly WANT to or not, that's another story.

You buying it though, you'd pay sales tax on it. Don't do that!
You want a dealer to buy it directly from Chrysler Capital
If that is the case, I’m in the same boat as you, only probably slightly better off as I’ve made a few more payments and got offered 39,500 instead of 38.
I’m awaiting a call from the manager today.
 

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Discussion Starter #9
Update:

Snobrdrdan was right. The dealer I was originally speaking with did not know what they were talking about, then later refused to deal on the car. I put a deposit on a 75,800 MSRP car. The deal came to 639 a month 10/36 months with $500 out of my pocket.Residual value is 65% which is $49 and change. Now they have another I am seriously debating before I pick it up. This one is an MSRP of $80,290, and given 1k out of pocket,same trade, my payment would be 689 a month with a 65% residual value.

I guess I have to decide if the Harmon Kardon and moon roof are worth the extra coin.
 

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Update:

Snobrdrdan was right. The dealer I was originally speaking with did not know what they were talking about, then later refused to deal on the car. I put a deposit on a 75,800 MSRP car. The deal came to 639 a month 10/36 months with $500 out of my pocket.Residual value is 65% which is $49 and change. Now they have another I am seriously debating before I pick it up. This one is an MSRP of $80,290, and given 1k out of pocket,same trade, my payment would be 689 a month with a 65% residual value.

I guess I have to decide if the Harmon Kardon and moon roof are worth the extra coin.
What type of pricing structure are you getting to be in the 6s? I'm still stuck in the high 7s low 8s.

What's your state? Are you in the southwest region? (Extra $1500 incentive)
 

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What type of pricing structure are you getting to be in the 6s? I'm still stuck in the high 7s low 8s.

What's your state? Are you in the southwest region? (Extra $1500 incentive)
I'm in Florida.To be completely honest with you, on a lease, I negotiate the payment, not the actual price.I'd never do this on a purchased car. I am taking away 5,500 from my Scatpack, so in total I have 6k down to make this deal.

All in all, it cost me $1,500 to drive the scat for 15 months. Who would have thought I'd be in such a good spot this early into a lease?
 

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I'm in Florida.To be completely honest with you, on a lease, I negotiate the payment, not the actual price.I'd never do this on a purchased car. I am taking away 5,500 from my Scatpack, so in total I have 6k down to make this deal.

All in all, it cost me $1,500 to drive the scat for 15 months. Who would have thought I'd be in such a good spot this early into a lease?
Ah, the old cap cost reduction trick.

Do not put 6k down, take the positive equity from the scat pack and have them write you a check.

Also you should negotiate the lease like a purchase, never leave money on the table.... who knows you might be able to shave some off the top.

Best of luck, keep us updated.
 

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All true, with 1 caveat. Depending on your state, there are states where you recieve a tax credit towards the new vehicle from a trade. For example, you trade in a value of 40k towards 70k, you pay onlyb30k worth of taxes. Florida is one of those
Yeah I'm not familiar with that, unfortunately, here in Michigan as we don't have that.
And I lease my cars too, so the 6% tax is monthly on the payment.
 

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If that is the case, I’m in the same boat as you, only probably slightly better off as I’ve made a few more payments and got offered 39,500 instead of 38.
I’m awaiting a call from the manager today.
The value on my '19 Scat was going up/had gone up too, but the dealer held firm on the $38k and that was the highest offer I got from anywhere so I "had" to take it.
You're doing better, for sure, but I made some money off it (shockingly/first time ever)....so I'm not complaining.
AND I upgraded to a more expensive/new car for a lower payment.

I'm in Florida.To be completely honest with you, on a lease, I negotiate the payment, not the actual price.I'd never do this on a purchased car. I am taking away 5,500 from my Scatpack, so in total I have 6k down to make this deal.

All in all, it cost me $1,500 to drive the scat for 15 months. Who would have thought I'd be in such a good spot this early into a lease?
I negotiate the monthly payment on the leases too. Nothing wrong with that, AS LONG as you know the numbers and where everything "should" be.

Yeah, like bay_area said....DON'T put the money down on the lease. I know you want the lower monthly payment, but just take the money from the trade in and put it in the bank & take the higher payment instead.
You could total the car the next day, God forbid, and that money is GONE! Insurance would pay off the car, but you'd be out that $6k or whatever and out of a car too.

And what happens if you wanted to trade it in next year, or were forced to sell it off/get out of the lease early? That $6k would be gone as well. Your payoff might be lower, but that $6k you put down to get it there/lower would be gone as well assuming you broke even on trade in versus the payoff amount.

Just some food for thought
 

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I understand where you guys are coming from about not putting money down, and I completely agree; however, I cannot do the deal without. I’m looking at it in the aspect of essentially I paid 41 for my scat, it cost me 1500 to drive it for 16 months. The rest is “free” (I know it’s not free I actually paid for it) money for the cat.

This deal is just one of those times in life where it makes sense to do something nice for myself and enjoy it, especially working in LE and the current conditions our nation is in.
 

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I understand where you guys are coming from about not putting money down, and I completely agree; however, I cannot do the deal without. I’m looking at it in the aspect of essentially I paid 41 for my scat, it cost me 1500 to drive it for 16 months. The rest is “free” (I know it’s not free I actually paid for it) money for the cat.

This deal is just one of those times in life where it makes sense to do something nice for myself and enjoy it, especially working in LE and the current conditions our nation is in.
Just put it in the bank and use it for the payments, not very hard.

I know low payments look pretty but it ain't worth the risk, any number of things can happen, total, stolen, lemon, etc etc
 

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The value on my '19 Scat was going up/had gone up too, but the dealer held firm on the $38k and that was the highest offer I got from anywhere so I "had" to take it.
You're doing better, for sure, but I made some money off it (shockingly/first time ever)....so I'm not complaining.
AND I upgraded to a more expensive/new car for a lower payment.


I negotiate the monthly payment on the leases too. Nothing wrong with that, AS LONG as you know the numbers and where everything "should" be.

Yeah, like bay_area said....DON'T put the money down on the lease. I know you want the lower monthly payment, but just take the money from the trade in and put it in the bank & take the higher payment instead.
You could total the car the next day, God forbid, and that money is GONE! Insurance would pay off the car, but you'd be out that $6k or whatever and out of a car too.

And what happens if you wanted to trade it in next year, or were forced to sell it off/get out of the lease early? That $6k would be gone as well. Your payoff might be lower, but that $6k you put down to get it there/lower would be gone as well assuming you broke even on trade in versus the payoff amount.

Just some food for thought
How do you go about negotiating the lease payment? Negotiate doc fees?
 

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Yeah I'm not familiar with that, unfortunately, here in Michigan as we don't have that.
And I lease my cars too, so the 6% tax is monthly on the payment.
Interesting, that was the only lesse I've done and will do. I blew through 30k miles on my first year lol
 

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How do you go about negotiating the lease payment? Negotiate doc fees?
I wasn't able to negotiate the lease on my new car, as I was more concerned about "negotiating" the good amount for my trade in.

They ordered me a car, with no deposit, and I was already getting Employee pricing + Conquest rebate + First Responder rebate.
Since there's no inventory and the cars are selling quickly when they do arrive, they have the upper hand & they're getting greedy and not discounting them like they "had to" before.
Supply & demand

I've never negotiated the other fees either since they really don't have anything crazy like that here in Michigan. Typically just a ~$200 doc fee and then whatever for the plate transfer fee, which ended up being just $1 for me lol
 
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