Whether you lease a luxury sedan or a minivan, if you've fallen in love with it, consider a lease buyout at the end of the lease agreement. Many people aren't aware that they can purchase their leased vehicle, either early in the contract or when the time comes to return the leased Chrysler. Contacting the Chrysler Capital Lease Servicing Team is the best way to help you decide if a lease buyout suits your needs.
When you signed your lease agreement with Chrysler Capital Lease, there was a clause allowing you to purchase any vehicle under the Chrysler brand, including Dodge, Jeep, Ram, Fiat, or Alfa Romeo. If you decide you want ownership of your leased vehicle, you have two buyout options:
Early-lease buyout. If you decide your leased Chrysler is the perfect vehicle for your lifestyle, you can talk with your lender to discuss the terms and fees associated with an early-lease buyout any time before the lease agreement ends.
End-of-lease buyout. You can also wait until the end of your lease to start the Chrysler lease buyout process instead of returning the leased car.
While the Chrysler lease buyout process is pretty straightforward, you'll want to do research, gather the proper documentation, and speak with a spokesperson at Chrysler Capital to learn about the buyout fees and process.
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What Is a Car Lease and Lease Buyout?
Leasing a car is often a great alternative to owning a vehicle. A car lease provides the use of a car for a fixed time and price, kind of like a long-term rental. When leasing a vehicle through Chrysler, you must pay a portion of your car's asking price and leasing fees, as stated in your lease agreement. At the end of the lease terms, you have the option to return the vehicle, lease a new vehicle of your choice, or if your lease agreement has the clause, you can purchase the vehicle you've been leasing.
You may ask how much it costs to purchase a leased vehicle. When you buy out your lease, you'll pay the residual value, any remaining monthly lease payments (when applicable), and applied lease buyout fees. What is residual value? This is the amount of money your car is worth at the end of the lease.
Chrysler Lease Buyout Process
Once you've decided to buy out your leased Chrysler, either as an early buyout or end-of-lease buyout, contact your lender or dealer and review your agreement. If you choose the early lease buyout option, be aware of early termination fees and add those to the total that includes the residual value of the car, sales taxes, and additional charges stated on your lease contract. You'll want to contact the Chrysler Capital Lease Servicing Team to let them know you want to buy out the lease and get the residual value number.
You'll probably need to apply for a loan unless you pay cash for the buyout. Even if Chrysler Capital was your original lender, shop around to see if you can get a better interest rate or lower monthly payments elsewhere. If you decide to use Chrysler Capital to finance your loan, you'll need to sign the Leased Vehicle Odometer Disclosure Notice and Statement and return it to the finance department.
Once the finance team approves your loan application, you can register your Chrysler with the Department of Motor Vehicles and make monthly loan payments. After you've paid the loan off, you'll receive the title to the vehicle and become the owner of your Chrysler.
Is a Lease Buyout Worth It?
For some people, yes, a lease buyout is worth it. If you've enjoyed driving the Chrysler and see yourself owning it, buying out the lease may be worthwhile. In addition, if you want to make changes or modifications to the vehicle, such as adding a new stereo, different wheels, or snazzier headlights, you can only do this if you own the car.
You may decide that purchasing your leased vehicle is a good option when:
The Chrysler brand vehicle is perfect for your driving needs.
You're ready to stop leasing a vehicle and move toward ownership.
You've damaged the vehicle, or it has excess wear and tear, and you'll have to pay fees associated with the damage.
You want to have a vehicle that doesn't limit mileage.
You'd like to make modifications to your Chrysler vehicle.
One thing to keep in mind is that once you own the vehicle, you'll have to pay for repairs and maintenance out of pocket. When you drive a leased vehicle, the car is under the manufacturer's warranty, which may include a maintenance agreement. This means that when you lease a vehicle, you don't have to pay for any repairs covered under the warranty.
Most lenders will charge you for any excess miles you've accrued during the lease terms and for excessive wear and tear. You can avoid paying for these extra fees (if applicable) by buying out the lease, making it worth the time and money.
Can You Negotiate a Chrysler Lease Buyout?
In most instances, yes, you can negotiate a car lease buyout. First, you'll need to contact the lease-end servicing department at Chrysler Capital or the lender with whom you signed the leasing agreement. Next, you'll both have to review the contract to see if there are buyout fees so you clearly understand all costs involved with the Chrysler lease buyout.
If your lender can't negotiate the actual loan buyout costs, work with them to see if they can negotiate some of the buyout or end-of-lease fees, such as the dealership or transaction fees.
Chrysler Buyout Fees and Rates
Now that you know you have a lease with an option to buy, you'll want to understand the Chrysler lease buyout fees and rates. Depending on the state, you may have to pay additional sales taxes for the buyout. Additional lease buyout fees differ for each lender. You'll want to review your original lease contract carefully to see what fees are listed.
Next, contact your lender for a list of transfer, documentation, dealership, and other fees they may charge for the Chrysler lease buyout. Remember, the dealer is obligated to only charge the fees listed in your lease agreement. However, they can charge more for specific dealership fees. You can negotiate any fees not listed in your original lease agreement if you choose to do so.
If you decide this is the vehicle for you as your Chrysler lease ends its term, consider a Chrysler lease buyout. You'll want to do your research and work with your lender to gather the information you need to help you decide if purchasing your leased Chrysler makes financial sense. If you do opt for a lease buyout, congratulations on your decision, and enjoy driving your Chrysler for years to come.
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