Trading in lease midway through contract - possible?

[BMW_Brand]

I'm wondering if anyone has ever traded their leased vehicle in for a lease on a newer one before their original lease was over?

Is it possible?

and how would the finances work on something like that... :dunno:

[jw]

Sure it's possible. You (or the dealer) will be responsible for paying the remaining payments on your lease.

I once leased a '93 Grand Cherokee. I did a 5 year/60k mile lease. I traded it in 96 for a Chevy Tahoe. It was a complete wash. I didn't lose any money. Partially because the Grand Cherokee was a completely new model and there was nothing to base an accurate residual from.

What some people have done is put their lease up for assumption. Try swapalease.com.

[SARAFIL]

I'm wondering if anyone has ever traded their leased vehicle in for a lease on a newer one before their original lease was over?

Is it possible?

and how would the finances work on something like that... :dunno:

Sure...

Every account has a "payoff" amount, whether the account is retail finance, lease, or balloon finance. Your dealer can obtain the payoff from your lender, and that is the price that they have to pay to close your account and receive the title to the vehicle. Then they can appraise the car as a trade in, and if there is a difference between the two numbers, you'll have either positive or negative equity in your trade. If you have equity, you can use that as a down payment or get it back in cash. If you have negative equity, you can roll part of that into the new contract, or pay the difference seperately.

In some cases where the negative equity is a large amount, it makes more sense to just make the remaining payments on the lease to satisfy the terms of your contract, and then just return the car to the leasing company.

[missing23]

Owner's Circle will give you a lease payoff amount and you can then compare to market value.

[missing23]

Sure...

Every account has a "payoff" amount, whether the account is retail finance, lease, or balloon finance. Your dealer can obtain the payoff from your lender, and that is the price that they have to pay to close your account and receive the title to the vehicle. Then they can appraise the car as a trade in, and if there is a difference between the two numbers, you'll have either positive or negative equity in your trade. If you have equity, you can use that as a down payment or get it back in cash. If you have negative equity, you can roll part of that into the new contract, or pay the difference seperately.

In some cases where the negative equity is a large amount, it makes more sense to just make the remaining payments on the lease to satisfy the terms of your contract, and then just return the car to the leasing company.

Anybody with a lease (unless you really have $ to burn or are REALLY stupid) NEVER 'just make the remaining payments on the lease to satisfy the terms of your contract, and then just return the car to the leasing company'.

Get the other car but you may as well just keep the leased car as an extra since you are paying for it anyways.

[SARAFIL]

Anybody with a lease (unless you really have $ to burn or are REALLY stupid) NEVER 'just make the remaining payments on the lease to satisfy the terms of your contract, and then just return the car to the leasing company'.

Get the other car but you may as well just keep the leased car as an extra since you are paying for it anyways.

What if you don't have room for two cars, or you don't want to insure, pay registration and property tax fees on a car you have no need for? Up here where you're assessed property tax at $30-60 (depends on city) per thousand, you might not want to keep a car registered and insured for a year if you won't be using it! ;)

Or, what if you've exceeded your mileage allowance and each extra mile on the car is costing you 20-25 cents? Do you want to keep driving it, or just get rid of it?

Though, in general, I agree that it makes sense to keep the car if you've already made the payments...

[jw]

Anybody with a lease (unless you really have $ to burn or are REALLY stupid) NEVER 'just make the remaining payments on the lease to satisfy the terms of your contract, and then just return the car to the leasing company'.

Get the other car but you may as well just keep the leased car as an extra since you are paying for it anyways.
Guess that depends on what you're paying for insurance. Some people have skyhigh bills that are worth saving the exta couple hundred a month. I turned my last lease in 3 months early. It was already over in mileage so it wound up costing insurance plus at least $200/month for miles.

[missing23]

Guess that depends on what you're paying for insurance. Some people have skyhigh bills that are worth saving the exta couple hundred a month. I turned my last lease in 3 months early. It was already over in mileage so it wound up costing insurance plus at least $200/month for miles.

Still doesn't make sense to me, just keep the car and pay the mileage penalty and then get the new car.

Paying the extra $200 a month for mileage is cheaper than paying the payment on the car you don't have and the car you just bought/leased.

[missing23]

What if you don't have room for two cars, or you don't want to insure, pay registration and property tax fees on a car you have no need for? Up here where you're assessed property tax at $30-60 (depends on city) per thousand, you might not want to keep a car registered and insured for a year if you won't be using it! ;)

Or, what if you've exceeded your mileage allowance and each extra mile on the car is costing you 20-25 cents? Do you want to keep driving it, or just get rid of it?

Though, in general, I agree that it makes sense to keep the car if you've already made the payments...

Well, you've made a poor purchase decision on your car but it still makes more financial sense to just ride it out than to dump it and start paying on another car.

[jw]

Still doesn't make sense to me, just keep the car and pay the mileage penalty and then get the new car.

Paying the extra $200 a month for mileage is cheaper than paying the payment on the car you don't have and the car you just bought/leased.
Yeah but I wanted the new car now and I got extra incentive from the dealership that practically negated the difference. It's all about instant gratification. :D Actually, I did put together a 4 month projection and it turned out to be about $350 in the hole (plus new tire, new key and the final disposition fee) to bail... so I did.

[missing23]

Yeah but I wanted the new car now and I got extra incentive from the dealership that practically negated the difference. It's all about instant gratification. :D Actually, I did put together a 4 month projection and it turned out to be about $350 in the hole (plus new tire, new key and the final disposition fee) to bail... so I did.

OK, I agree, dealer incentives to close out leases with a month or two left can make sense.

[jw]

OK, I agree, dealer incentives to close out leases with a month or two left can make sense.
I don't think I would have done it otherwise. But...

It's all just money in the end and you can't take it with you when you're gone. When I look over my bank statements and see all the frivolous charges my wife runs up, how can I complain about a couple hundred bucks over a few months? :rofl:

[missing23]

I don't think I would have done it otherwise. But...

It's all just money in the end and you can't take it with you when you're gone. When I look over my bank statements and see all the frivolous charges my wife runs up, how can I complain about a couple hundred bucks over a few months? :rofl:

Yup, I hear what you are saying and that is what makes this THE land of consumption!

PS, I have my wife trained to not indulge in frivolous charges... :rofl:

[jw]

PS, I have my wife trained to not indulge in frivolous charges... :rofl:
I'm open to any suggestions!!!!!!

[blueguydotcom]

Anybody with a lease (unless you really have $ to burn or are REALLY stupid) NEVER 'just make the remaining payments on the lease to satisfy the terms of your contract, and then just return the car to the leasing company'.

Get the other car but you may as well just keep the leased car as an extra since you are paying for it anyways.

When I dumped my POS Jetta I had 5k worth of payments still to make. I took a 2k bath to part with that wretched car. 2k v. 5k. Hmmm, I'll pick two k now v. 5k over a year.