can you trade in leased vehicles?

[rcc]

So if you have a leased vehicle and the KBB tradein value is higher than the residual, can you trade the vehicle in when buying another one without doing the obvious (buy it from CA, pay CA sales tax and wiping out the profit)?

Thanks.

- Ray

[Jon S.]

Absolutely - people trade-in their leased vehicles all of the time...

What typically happens, though, is that the Trade
ACV Actual Cash Value is less than the lease payoff,
and the net result is a negative equity position...

Ray, in some rare instances, you can have trade equity
prior to lease maturity - BMW's strong resale value can make
that happen from time to time...

:thumbup:

[The HACK]

Yeah, when my Z3's lease was up, the car was worth $24,000 retail and lease payoff was $21,500. Could've sold the car and pocketted the change. :(

[Jon S.]

Originally posted by The HACK
Yeah, when my Z3's lease was up, the car was worth $24,000 retail and lease payoff was $21,500. Could've sold the car and pocketted the change. :(

There's quite a gap, the difference between retail
(what you can sell it for yourself) and trade ACV.

I agree with Dan - that's the best thing to do.
Not only do you mitigate your damages,
but you stand to possibly even make a
profit...

:D