What is going to happen with my Chrysler lease?

Question

I have a 2006 Jeep Grand Cherokee with the lease set to expire in October of 2008, but with Chrysler ending their leasing program starting August 2008 what should I do? I was planning on just leasing a Chrylser Sebring just to avoid all the costs with turning the car in, but will I still be able to do that? Are they ending the leasing program all together?

Answer 1

ask them....i can't believe they would end leases...its a HUGE money maker for them...you are paying through the nose arnt you?

Answer 2

You'll still be able to lease your new car because Chrysler dealers have other sources of lease financing, namely large national banks. Rates may be higher and it might be more difficult to get approved, however.

Leasing will continue to be a viable financing alternative to loans for people who qualify.

Answer 3

way i understand it Chrysler is not doing any new leases  you will be able to turn your car in and walk away at the end of the lease then buy another or lease another from a different manufacturer

Answer 4

they are not going to issue any new leases.

nothing will change with your current lease.

btw a Chrysler Sebring is a poor car.

look at Nissan Altima or Kia Optima

Answer 5

Chrysler is indeed ending its lease program.  A few other manufacturer's are as well.  The problem has been the recent plummet in value of those Hemi trucks and SUV.  The leasing companies have all posted huge losses thanks to the high residuals when compared to the actual market value of those vehicles.  They may have a contracted residual of say $18k on a truck that is now worth $10K.

Oh - and here is a PERFECT example of why leases do in fact work for some people.  Imagine if you had a 5-yr finance contract on that Jeep and wanted to trade it!  You would be buried past your eyebrows.

When the lease period ends, you will just turn in the car.  If you are over miles, then the mileage penalty comes into play.  If damage to the vehicle exceeds the allotted amount in the contract, you will be responsible for that as well.  Getting into another car does not mean they waive those fees - you would have to pay them whether you leased a new car or not.

Just because Chrysler and others are getting out of the lease game, that does not mean leasing is dead.  Many dealers have secondary finance companies that will still structure leases.  GE Capital is one of the largest.  So it will still be an option.  However, manufacturer subsidized lease programs will not be available from Chrylser