Silver21Ram
Member
- Joined
- Sep 9, 2021
- Posts
- 82
- Reaction score
- 103
- Location
- Indianapolis, IN
- Ram Year
- 2021
- Engine
- Hemi 5.7 etorque
Anyone currently leasing or thinking about leasing, Ram or otherwise, needs to read this and understand it, as thousands of dollars in your real money could be lost.
I've leased quite a few vehicles over the years. Mostly Ram 1500 trucks, but also Chrysler cars and Lexus. I've never had a problem getting a deal done to my satisfaction and have been happy with all lease-end outcomes. Until now !!
I have the 2021 silver Bighorn in my photo here. I just made the last of 36 lease payments yesterday. So nothing more is owed and I am now in my final 30 days with this vehicle.
I can, of course, buy it for the Stated Residual Value in the Lease Contract. I have never bought a leased vehicle at lease-end. I have also never turned one back in and paid a fee to do so.
What I have done in each of my own circumstances, is to TRADE the vehicle in on my next lease as I have always had decent equity in the vehicle.
The 2021 has a Residual Value of $30,375.00. The vehicle is in like new condition after 3 years with ONLY 8,460 MILES. Online trade appraisal quotes are 35 to 37,000 dollars.
So the EQUITY would appear to be $6625.00 on the higher end and $4625.00 on the lower end. At any rate, this is decent equity going into another lease. My 2019 Ram with only 13,000 miles had $10,000. equity all going into the 2021 lease. My '21 msrp was $53,200. / capitalized costs reductions of $13,900. and an amazingly low monthly payment of $324.72 ! This is why people lease IF YOU CAN LIMIT WEAR&TEAR and keep your miles under 10,000 per year, sense can be made of it.
Today I find out from Chrysler Capital and while at the dealer to lease a 2025 1500 Crew and with the new 3.0L Hurricane, (the test drive was amazing! With this, I would not miss all my 5.7 Hemi's of the past!) that the dealer cannot take the vehicle in trade using the Residual Value as a Payoff.
Explained to me that the dealer has to obtain Chrysler Capital's determination of "Fair Market Value". It no longer makes any difference what the Residual is. So forget 30K, Chrysler says the new adjusted LENDER PAYOFF IS $37,000. !!
The dealer appraisal is $34,000. and that gives me $3,000. NEGATIVE EQUITY!! VS WHAT COULD HAVE BEEN $6600. POSITIVE EQUITY!!
Iam learning that under this fair market value adjustment, virtually NO ONE will ever again realize Trade-In EQUITY in a Lease!
All trade-in's will carry over negative equity.
The Fair Market Values from the Lenders will look more like and be closer to a DEALER RETAIL VALUE! And for this reason, the dealers really don't want to see these vehicles traded because they own it at a number difficult to show a profit on the front end while being totally dependent on a back-end of finance, warranties, dealer accessories.
There are no disclosures that will inform the lease customers of these things upfront at the time of signing the paperwork.
People are not going to know of this until that day when the lease is done and they think they have a trade-in with EQUITY!
RE: PEOPLE LIKE ME.
Be mindful that you can't trade it; if you attempt to private sell it, you are subject to the same Lender Imposed Payoff. You will be limited to either buying it for the Residual or just simply turning it back it and paying a fee to do that.
A lot of people will be finding that they have Leased their Last Vehicle!
I've leased quite a few vehicles over the years. Mostly Ram 1500 trucks, but also Chrysler cars and Lexus. I've never had a problem getting a deal done to my satisfaction and have been happy with all lease-end outcomes. Until now !!
I have the 2021 silver Bighorn in my photo here. I just made the last of 36 lease payments yesterday. So nothing more is owed and I am now in my final 30 days with this vehicle.
I can, of course, buy it for the Stated Residual Value in the Lease Contract. I have never bought a leased vehicle at lease-end. I have also never turned one back in and paid a fee to do so.
What I have done in each of my own circumstances, is to TRADE the vehicle in on my next lease as I have always had decent equity in the vehicle.
The 2021 has a Residual Value of $30,375.00. The vehicle is in like new condition after 3 years with ONLY 8,460 MILES. Online trade appraisal quotes are 35 to 37,000 dollars.
So the EQUITY would appear to be $6625.00 on the higher end and $4625.00 on the lower end. At any rate, this is decent equity going into another lease. My 2019 Ram with only 13,000 miles had $10,000. equity all going into the 2021 lease. My '21 msrp was $53,200. / capitalized costs reductions of $13,900. and an amazingly low monthly payment of $324.72 ! This is why people lease IF YOU CAN LIMIT WEAR&TEAR and keep your miles under 10,000 per year, sense can be made of it.
Today I find out from Chrysler Capital and while at the dealer to lease a 2025 1500 Crew and with the new 3.0L Hurricane, (the test drive was amazing! With this, I would not miss all my 5.7 Hemi's of the past!) that the dealer cannot take the vehicle in trade using the Residual Value as a Payoff.
Explained to me that the dealer has to obtain Chrysler Capital's determination of "Fair Market Value". It no longer makes any difference what the Residual is. So forget 30K, Chrysler says the new adjusted LENDER PAYOFF IS $37,000. !!
The dealer appraisal is $34,000. and that gives me $3,000. NEGATIVE EQUITY!! VS WHAT COULD HAVE BEEN $6600. POSITIVE EQUITY!!
Iam learning that under this fair market value adjustment, virtually NO ONE will ever again realize Trade-In EQUITY in a Lease!
All trade-in's will carry over negative equity.
The Fair Market Values from the Lenders will look more like and be closer to a DEALER RETAIL VALUE! And for this reason, the dealers really don't want to see these vehicles traded because they own it at a number difficult to show a profit on the front end while being totally dependent on a back-end of finance, warranties, dealer accessories.
There are no disclosures that will inform the lease customers of these things upfront at the time of signing the paperwork.
People are not going to know of this until that day when the lease is done and they think they have a trade-in with EQUITY!
RE: PEOPLE LIKE ME.
Be mindful that you can't trade it; if you attempt to private sell it, you are subject to the same Lender Imposed Payoff. You will be limited to either buying it for the Residual or just simply turning it back it and paying a fee to do that.
A lot of people will be finding that they have Leased their Last Vehicle!