Can I turn in my lease a couple months early?

[happy0510]

My very first lease is up in March. I want to lease a new car through Mercedes Benz during their December specials. My current lease is with Toyota. How would this work? Is it possible? Are the December lease deals with MBF good enough to even do this?

[compassion101]

Talk to mercedes they will be glad to help you work it out

[sccredit]

You'll likely have to make your last 3 payments to Toyota

[mynameainttracy]

In my past history of horrible car decisions I found that trading in a lease is very similar to trading in a car that was financed regularly. If you are trading it in before the lease is up there will likely be a balance, or negative equity, that can be negotiated into your new deal. Don't be afraid to ask. People trade in leases early all the time. 

[happy0510]

Hey thanks Guys!

It's only $325 per month so it's not THAT much. We will see what MB says and whether it is worth it to trade it in early or not!

[sccredit]

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@happy0510 wrote:

Hey thanks Guys!

It's only $325 per month so it's not THAT much. We will see what MB says and whether it is worth it to trade it in early or not!

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Know that there is a difference in tradin in a lease and turning it in early.

A leased car is OWNED by the bank and you are, basically, paying a rental fee for it.  Yes you can trade it in on another car but your payoff will likely be a combination of: a)total of outstanding payments; b)residual value; c)disposition fee.  Talk to Toyota about it (since they are your lessor) and see what they say.  MBZ will simply give you a value for the car and pay the bank off.  If you are $325 a mont and you'll have 3 months left come December you may come out better to pay the final 3 payments and turn it in to Toyota.

[happy0510]

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@sccredit wrote:

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@happy0510 wrote:

Hey thanks Guys!

It's only $325 per month so it's not THAT much. We will see what MB says and whether it is worth it to trade it in early or not!

---

Know that there is a difference in tradin in a lease and turning it in early.

A leased car is OWNED by the bank and you are, basically, paying a rental fee for it.  Yes you can trade it in on another car but your payoff will likely be a combination of: a)total of outstanding payments; b)residual value; c)disposition fee.  Talk to Toyota about it (since they are your lessor) and see what they say.  MBZ will simply give you a value for the car and pay the bank off.  If you are $325 a mont and you'll have 3 months left come December you may come out better to pay the final 3 payments and turn it in to Toyota.

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Awwwe that clears it up. I will check my payoff and with Toyota to see what the reality is. Thank you!

[coterotie]

I would probably try to make my best straight up cash deal on the Mercedes and not even bring the yota into the picture, park it in the garage and give them the keys in 3 months.  USAA has a non-driven car insurance policy that covers the car for ~$65/year.  You are only looking at $900 bucks to carry it for 3 months. Now if the Toyota is worth a bunch more than residual value on the lease, I would buy/lease the Mercedes now and try to private party sell the Toyota.  If it doesn't sell in the three months turn it in.

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@happy0510 wrote:

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@sccredit wrote:

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@happy0510 wrote:

Hey thanks Guys!

It's only $325 per month so it's not THAT much. We will see what MB says and whether it is worth it to trade it in early or not!

---

Know that there is a difference in tradin in a lease and turning it in early.

A leased car is OWNED by the bank and you are, basically, paying a rental fee for it.  Yes you can trade it in on another car but your payoff will likely be a combination of: a)total of outstanding payments; b)residual value; c)disposition fee.  Talk to Toyota about it (since they are your lessor) and see what they say.  MBZ will simply give you a value for the car and pay the bank off.  If you are $325 a mont and you'll have 3 months left come December you may come out better to pay the final 3 payments and turn it in to Toyota.

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Awwwe that clears it up. I will check my payoff and with Toyota to see what the reality is. Thank you!

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