Anyone familiar with leasing?

[Lease-V-cross]

Is it possible to use a car that you are currently in a lease with as a trade-in?
Like my screen name, I am currently leasing a VX til July 2006.

I asked a dealer and got a full blown number-crunching session. Not sure if he answered my question! LOL

Since I really don't "own" the VX, I think it will be impossible to do this. I might have to grin & bear it til 2006 and then just walk away.
I called the bank and I was told if I wanted to buy out the remaining VX it was valued at $15,000. Plus my payments would be $519.00 a month! HUH????!

Which I don't understand because when I punched up everything at the Kelly Blue Book site, my VX was estimated at about $10,000 as a trade in.

ya know...I kinda get the feeling I asked this all before, I f I did..I do apologise to everyone on here.

It's been a long day.

I'll never lease again.........that's for sure!

[jayfotos]

Wow, that's nutty.

I purchased my VX with 7K down @ 0% made payments of $400 for 3 years and then just refinaced, now I'm paying $180 a month.

[skunkworks]

Generally if you trade in a lease early, you take the residual or the purchase price at the end of the lease and add the total of remaining payments. From this you can subtract whatever you are given as a trade in, and the result is added to or subtracted from the price of you new vehicle and this what your payments and downpayments are figured from. If your total of payments and residual are more than your trade in, then you have negative equity and are as they say "upside down" in your lease.

albert
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[vxkween]

Skunk.....In my former life I was an assistant lease manager at a Honda dealership for 7 years so I have some good knowledge about leasing.

Your remaining balance is not affected by Kelley blue book, just like with a conventional loan...say through your credit union or whatever bank you might use...the difference between what you still owe on the car and what the dealer will give you for it is your responsibility (i.e. if the balance on your loan is 15000.00 and the dealership is giving you 12000.00 for your VX then you are responsible for that 3000.00 difference...how you handle that difference is up to you...you may "roll it into the next purchase" up to a certain dollar figure depending upon your credit....you may offset some or all of the inequity with a down payment....or you can sell the vehicle yourself to try to break even.

In Texas the one advantage of trading it in with the dealer is you only pay sales tax on the difference between the new car minus the value of your trade in (new car 24000.00 - 12000.00 for your old car = tax on only 12000.00 instead of 24000.00) check with your local tax office and they can tell you.

YOU CAN TRADE YOUR LEASED VEHICLE ANYTIME YOU WANT - the longer you keep it though the better position you will be in come trade in time, as is true for a conventional car loan. Typically if you have a 4 year lease you should stay in it for at least 3 years so as to reduce your inequity.

Leasing is not BAAAADDD if you meet the parameters that leasing what designed for....for alot of people a conventional loan is a much better choice depending on their driving habits and financial situation.

Don't let anyone tell you you can't trade in a leased vehicle it happens thoussands of times all over the country each day. If you had done say a 60 month conventional loan on your VX you would still have a balance that was higher than the value of the car and have to make up that difference.

If you need anymore info you can "private message" me and i would be happy to help you out!

[Dallas4u]

I had no problem trading in a past leased vehicle to purchase another... vxkween's post is right on the money. (Plus, it just so happened it was a Honda I traded in!)

[Lease-V-cross]

Ah-hhhhhhh........but how good was your credit?

That will be my deciding factor in this hell-equation.

[vxkween]

You must have had pretty decent credit to do the lease initially, lease companies tend to have stricter requirements. Has your situation changed since you leased your VX?

[skunkworks]

vxkween, If you read what I wrote its basically what you said.
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[vxkween]

Yeeeesssss but my version is a bit more "layman" friendly....he was already confused and throwing out words like "residual" and "negative equity" can make a persons' head spin. I was just trying to simplify it for the guy since he had already been throught the ringer at the dealership.

[Navigator]

Originally posted by Lease-V-cross
Is it possible to use a car that you are currently in a lease with as a trade-in?... I'll never lease again.........that's for sure!

Yes it is possible to use your leased vehicle for trade in... but it's not a good idea for the reasons mentioned above by other members.

A lease makes sense if you drive 12,000 miles or less a year and have NO long term commitments to the vehicle. I leased a Trooper in 1999 and paid a total of $13k~ for 3 years of use of a $28k truck. The blue book value of the Trooper at the end of the lease was just under $10k however the cost to buy it from GE Leasing was $15k. The bottom line is I saved a ton by not buying the Trooper and walking away at the end of the lease.