How a Jeep Lease Buyout Works
A lease buyout may be smart if you’ve fallen in love with your leased Jeep—and its actual value is higher than its residual value.
Written by Liz Jenson
Reviewed by Jessica Barrett
Whether you can’t survive without your Jeep Grand Cherokee or you’re not ready to give up your Jeep Wrangler, you might be able to negotiate a good deal on a Jeep lease buyout—as long as the vehicle didn’t need too many repairs during your lease.
- To buy your Jeep during or after your lease, you need a lease buyout.
- You can do a buyout through Chrysler or through your Jeep dealer, but dealers charge extra fees.
- A buyout may not be worth it if the Jeep’s actual value is lower than the residual value.
- To buy your Jeep during or after your lease, you need a lease buyout.
- You can do a buyout through Chrysler or through your Jeep dealer, but dealers charge extra fees.
- A buyout may not be worth it if the Jeep’s actual value is lower than the residual value.
What is a lease buyout?
When you
lease a car
, you typically have the option to purchase the vehicle during or at the end of your lease, typically for its remaining value aka “residual value.” This is called a lease buyout.Your buyout price will be calculated at the beginning of your lease based on how much the vehicle is projected to depreciate over the course of the lease. After you start a new lease on a new Jeep, the vehicle is technically a used vehicle—and its market value drops.
Here are two ways that a lease buyout may work:
- Lease-end buyout: Instead of turning in the car at the end of your lease, buyers may choose to negotiate a purchase when the lease term concludes.
- Early lease buyout: Although it’s less common, some people decide to buy a car before their lease is up. This process may be a little more challenging, but it’s definitely a possibility!
MORE: Don’t fear the dealer—8 things to know before buying a car
How a Jeep lease buyout works
Jeep, Dodge, and Ram are owned by the Chrysler Group, so you’ll need to contact the Chrysler Capital Allegiance Team or talk to your dealer in order to begin the Jeep lease buyout process.
Option 1: Go to Chrysler. Either go to the Chrysler website to apply for end-of-lease financing or call 855-383-0558 to contact the Capital Allegiance Team.
You’ll need to provide a
Leased Odometer Disclosure Notice and Statement
, which can be found on the Chrysler website. Mail this form to Chrysler Capital, P.O. Box 961275, Fort Worth, TX 76161-1275.Option 2: Contact your local Jeep dealer about a lease buyout. If this option is convenient, it might also be less of a hassle for you. The only downside of this approach is that you may end up paying extra fees charged by your dealer—but some dealers offer incentives, too.
Remember to buy an extended warranty, if you plan to keep the car for more than three years. Whether it’s a Dodge Ram or a Wagoneer, an extended warranty can provide valuable protection beyond the initial factory expiration date.
Jeep offers lease buyouts with financing for qualified applicants
Here are some things that might make you more qualified for a lease buyout loan:
- A good credit score
- High income
- Low debt
To learn if this option is available to you, you’ll need to submit an application to Chrysler or discuss your options with your dealer.
Don’t overlook other lenders and leasing companies, however. It’s important to shop around to compare interest rates and monthly payments, especially if your lessee profile is less than ideal.
Is a Jeep lease buyout worth it?
Maybe. It’s important to do the math to make sure a lease buyout is the right choice.
First, you need to get an idea of the cost of your buyout. You can get a payoff quote from Chrysler or from your dealer. Alternatively, you can compare the numbers yourself:
- Find your Jeep’s residual value on your original lease agreement.
- Compare the two numbers.
Worth it: If the actual value of your leased Jeep is much higher than the residual value on your contract, then your car is worth more than expected and you’re in a good position to negotiate a deal on your buyout.
Not worth it: If the actual value of your car is significantly lower than the residual value listed in your lease contract, a buyout might not be the best idea. Your car’s market value might be lower because of accidents, lots of mileage, excess wear, or driving in rough conditions.
If you realize a lease buyout isn’t financially worth it once your lease return date rolls around, consider these other options:
- Buy a used car
- Buy a (cheaper) new vehicle
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