would I lose out on this deal?

[WouldRatherbeDrivingaManu]

My current vehicle (jeep gladiator, 10,700 miles) has 2 more lease payments. Pay off quote $29,277.47 Chrysler Capital said Carmax can buy the lease. Carmax offered $38,000 (maybe I can talk them up for 1, buying another vehicle & 2 the upgrades & options on my jeep). In the past when I've checked trade in values on my jeep it's been ~$37,300. I understand when I started a lease... I am locked into the Jeep's depreciation. So getting rid of it 2 lease payments early (sept 30th is the last payment) I am losing out on ~85 days of not being able to use the truck for what I agreed to pay for its depreciation. I don't know how to describe it well, but some one has explained to me I am losing what I could use for what I already agreed to pay.


Carmax near me has this. Short Term I go from a $460.06 monthly lease payment into something much lower per month with my net positive $8,722.53 trade in value. Sales tax is 5.5% I'm guessing my new vehicle loan is $19760.36 Does not matter if the % load in garbage, I can refinance at a bank or credit union
Maybe this state law will apply and I will pay less in sales tax, maybe not because carmax would buy the lease (maybe that means technically I don't own the jeep). I think I will get an excise tax//registration credit back when I end my jeep's registration with my city and the MSRP of this transit is less & its a year older, so it may not cost me anything to register this ford transit the rest of the year.

My plan is to order a Ford Maverick XL (with only a few options, trailer hitch, plug socket in the rear seat, moon roof, key pad) on August 15th, maybe that will show up in November//December2022, maybe April//May 2023
I only drove 10,700 miles in a 3 year lease (because of the pandemic & a lot of work from home but also I don't drive a lot & I have a 1st Gen Miata & Subaru Legacy). I'm pretty sure the 4000 mile car max warranty will last me a year.

Long Term If later I take this Ford van and trade it in for a Maverick, would I be losing out in the long run?
I ran the est trade in value on kelly blue book. Car max wants near $27k for it... trade it back in later for $21 - 23k?
Also, yes I have been trying to sell my Jeep private//directly however I live in a poor area of a very elderly and poor state so asking $40k for a used vehicle is a big ask around here. Things are only worth what they will sell for

Long story short... I tried to throw in as much details as possible to help out anyone reading this, but also I don't want to get too off topic. The main two things I need help with are answer to Short Term & Long Term.

& Happy 4th!

Sponsored

 

[MLowe05]

I can't really answer your question, but if you do buy that from Carmax.. when your Maverick comes in, take that Transit Connect back to Carmax and let them make an offer on it. In the past, in our dealings with Carmax, they will offer top dollar for former Carmax cars (so long as you haven't crashed or trashed them).

 

[Tirpitz]

OK- you clearly want a Maverick and don't want to pay the ridiculous markups to get one when your lease expires. This is good. You have to have something to fill the gap. And you have figured out you can get good money on your lease so you want to grab that money.

You didn't mention which motor you want in the Maverick. If it is a hybrid you will be waiting a while. Ford will have leftover 2022 hybrids to build plus I'd expect a ton of 2023 orders as soon as the order banks open. If you get a 2023 hybrid before March-April I'd be surprised. I'd personally plan on seeing a 2023 hybrid 6-8 months from start of production in October.

2.0 Turbo you will get much quicker. Ford probably will only have a handful of turbo Mavericks left over and all of those will be due to constraints. So if all your options are unconstrained I'd think you should be in production pretty quickly.

The great unknown is the future value of the Transit. I'd expect the car market to cool off a bit if only because I think interest rates will continue to increase. How much of the roughly $8,000 you are making on the Jeep will get eaten up by the taxes and depreciation? You might have $2,000 just in taxes and dealer fees. If it was me I'd assume the depreciation is going to consume the rest of the $8,000.

I hate the idea of paying markup but you should run the numbers and see if it is worth buying a Maverick XL off the lot somewhere. Sell the Jeep to CarMax and you have $8,000 for the Maverick. Even if you pay a couple thousand in markup you might still come out ahead vs. buying the Transit.

Too bad the lease end didn't line up better with the Maverick ordering process.

 

[WouldRatherbeDrivingaManu]

You have to have something to fill the gap.

You didn't mention which motor. Plan on seeing a 2023 hybrid 6-8 months from start of production in October.

The great unknown is the future value of the Transit. I'd expect the car market to cool off a bit if only because I think interest rates will continue to increase. How much of the roughly $8,000 you are making on the Jeep will get eaten up by the taxes and depreciation? You might have $2,000 just in taxes and dealer fees. If it was me I'd assume the depreciation is going to consume the rest of the $8,000.

Even if you pay a couple thousand in markup you might still come out ahead vs. buying the Transit.

Too bad the lease end didn't line up better with the Maverick ordering process.

I could just keep the Jeep to fill in the gap. I am going to order the hybrid... so April//May//June 2023. By then the jeep will not be a lease it will be a loan and it will be paid off more so I may make more than $8000 on the trade in. I don't see the jeep depreciating. I have seen jeeps hold their value well because Jeepers are loyal kool-aid drinkers. You are correct about the transit, it is a big unknown. Depreciation wise & maintenance wise.

If there are $2000 in taxes and dealer fees and Carmax will not give me over $38,000 I probably will not do it, and just keep the jeep. In my state however there is a law that says:

when you trade in you pay tax "only upon the difference between the sale price of the purchased property and the trade-in allowance of the property taken in trade".​

So if that applies to carmax buying my lease it may not add much tax to the purchase of the ford van. Also if I buy the lease at the end of September, I am pretty sure I have to pay tax on the jeep Sam has me saying uncle either way.

If I can talk carmax up closer to $40,000 based off the upgrades (Sport S jeep with Rubicon suspension) & factory options closer & the fact I would buy a vehicle from them the van is a maybe. if they won't budge on $38,000 I think I say no

...yeah, too bad I did not order a '22 Maverick in Oct//November '21. It may be arriving July - September.

--------------------------------------------------------------------------------------

after reading your post, now I am thinking, in the short term, provided the transit van's transmission doesn't blow up ect. I would be saving $92.06 per month, maybe more. my lease is $460.06 monthly now, that will go up once I finance it, taking a loan to buy this jeep will be more per month. Maybe I cannot look at $92.06 savings per month like that's offsetting the van's depreciation... that's my own $92.06. However that is vs keeping the jeep, paying $92.06 more but the jeep holds better value?

Long term you seem to be saying it's cheaper//better savings to pay some markup buy 1 vehicle not 2.

 

[Tirpitz]

I agree that the Jeep will probably do better on holding value vs. the Transit. Plus you know the Jeep- you put the miles on it, you did the maintenance, you know if it has been reliable.

The sale tax issue varies from state to state. It looks like in your case you only have to pay it once. How does Maine handle sales tax on a lease? Did you pay sales tax on the full value of the Jeep or just on the lease payment portion? You might have some part of the Jeep's value with no tax and part with tax.

My experience is that CarMax offers are not negotiable. Your milage may vary!

Since you want a hybrid that odds of finding out locally to buy are probably slim. I just looked and within 200 miles of a Portland, Maine zip code there are only 8 XL's listed, all turbos and several asking over $10,000 markup which is ridiculous. I guess you have to order one and wait.

In most cases it is better to do one transaction instead of two. There are always transaction costs. If it was me I would buy out the lease on the Jeep and aim to trade it in when your Maverick turns up. Get a new quote from CarMax when that happens and see if the Ford dealer will match or beat it. You'll have paid the sales tax so the full value of the Jeep should roll over toward the Maverick.

For what its worth I ordered my hybrid last October and I'm still not scheduled. However I've had the XLT Lux package on it which is a major constraint item. If I had a clean XL I probably would be scheduled for late July/early August production with delivery in September.

 

[n0maverick]

Does jeep offer lease extensions?

 

[WouldRatherbeDrivingaManu]

Does jeep offer lease extensions?

I do not believe so. I think that's a no. Maybe only if you're buying a new jeep or vehicle though Fiat//Chrysler. Not sure why you would want to do that vs just buy the truck.

 

[WouldRatherbeDrivingaManu]

The sale tax issue varies from state to state. It looks like in your case you only have to pay it once. How does Maine handle sales tax on a lease? Did you pay sales tax on the full value of the Jeep or just on the lease payment portion?=

My experience is that CarMax offers are not negotiable. Your milage may vary!

In most cases it is better to do one transaction instead of two. There are always transaction costs.

Thank you for the advice: one transaction.

I do believe that is CarMax's sthick, no negotiating. I've heard you can negotiate your rate (does not matter you can refinance the very next day), and maybe on your trade in amount.

I will have to double check how the lease tax works. It either was on the full amount I paid to lease (about $16k) or just the depreciation (about $12k). It was not tax on the full msrp of the jeep.

 

[Tirpitz]

I will have to double check how the lease tax works. It either was on the full amount I paid to lease (about $16k) or just the depreciation (about $12k). It was not tax on the full msrp of the jeep.

Then you probably will have to pay the tax on the remaining balance when you purchase the Jeep. That should result in a tax free transfer into the Maverick when it turns up.

 

[n0maverick]

I do not believe so. I think that's a no. Maybe only if you're buying a new jeep or vehicle though Fiat//Chrysler. Not sure why you would want to do that vs just buy the truck.

extend 6 months and not have to deal with an inbetween

 

[n0maverick]

Thank you for the advice: one transaction.

I do believe that is CarMax's sthick, no negotiating. I've heard you can negotiate your rate (does not matter you can refinance the very next day), and maybe on your trade in amount.

I will have to double check how the lease tax works. It either was on the full amount I paid to lease (about $16k) or just the depreciation (about $12k). It was not tax on the full msrp of the jeep.

typically you pay sales tax monthly on depreciation amount of your payment.

 

[Old Ranchero]

Thank you for the advice: one transaction.

I do believe that is CarMax's sthick, no negotiating. I've heard you can negotiate your rate (does not matter you can refinance the very next day), and maybe on your trade in amount.

I will have to double check how the lease tax works. It either was on the full amount I paid to lease (about $16k) or just the depreciation (about $12k). It was not tax on the full msrp of the jeep.

Agree 100% on just 1 transaction. No need to add all the other steps and financial transactions to your ultimate goal of buying a Maverick. You mentioned being able to drive the Miata and Subie in place of the Jeep? Sounds like your secondary goal is getting out from under the big payment on the Jeep? If it was me, I would make the last 2 lease payments on the Jeep and give it back.
That Transit connect actually has high mileage (Insurance companies use 12-15k annually when setting rates) at 54k for a 3yr old vehicle. So get rid of the big lease payment and bank some of that "saved $" each month towards your Maverick purchase. Try and find a dealer who will sell for MSRP on customer special orders and drive your other vehicles while waiting. YMMV

 

[OB1e]

You would be better off dumping the jeep to CarMax, get a beater off Facebook for $1k. Drive it til the mav shows up, sell the beater back to Facebook for $1k.

 

[es7129]

Purchase the Jeep with balloon financing?
You’ll get cheaper payments and you’ll get the equity and tax saving when the Maverick finally arrives.

Sponsored