Lease Question

[Anonymous]

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@Anonymous wrote:

that article says what i said - "The dealer pays off your old lease balance, buys the car from the lease company for his used car lot, gives you trade-in credit for the car, and either adds or deducts any difference to your new purchase or lease."

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There some factors one needs to consider before going to the dealership and trading in a lease.  It is not simple and straight forward. That is what I am arriving at.  I am sure OP knows they can go to a dealer but is that just it?

Methinks they want to know more about what is involved in doing so-

[Anonymous]

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@Anonymous wrote:

that article says what i said - "The dealer pays off your old lease balance, buys the car from the lease company for his used car lot, gives you trade-in credit for the car, and either adds or deducts any difference to your new purchase or lease."

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It doesn't just work that way in many cases and states.  Some states require you to repurchase the off lease vehicle as a used car, pay sales tax and fees before you can trade it in.  It definitely does not work like a trading in a financed car.

[Anonymous]

Thanks for all the feedback. We were just trying to see what the most financially sound way of getting an upgrade. Maybe I need to see what the rules are for trading a car in SC.

[jkjklkjkl]

Why not just go to the horses mouth, and ask the dealership(s).  You can email them the details, and ask how it would be handled. Easy-Peasy!

[Luscher]

I remember when I leased my car, the guy kept emailing me every once in a while and checking up on how I liked the car yada yada. Why not just email or call the same guy you leased from and say hey, I am looking at this new car and want to end my lease early, what can you do for me?

We can speculate on here all day, but its easier if you just pick up the phone and call, or go in a see somebody. They want your money as much as you want to spend it.

[Anonymous]

Good point Luscher. I think I will do just that.

Thanks

[creditnocash]

i leased my camry and then ended up financing after 3 years because i liked the car. 

my mom has leased 4 cars now in 2/3 year terms all toyota. she hardly puts miles so in 3 years she usually has 15/20k miles on her cars. 

she had 4 months left on her last lease and traded in her car from a 12 rav4 to a 15 venza. 

the dealer bought the car from the lease company because it only had 16k miles and all the features. she got the difference from kbb and payoff amount put towards the new lease and it lowered her payments a little(kind of like putting cash up front)

we live in mass, ymmv based on condition of car. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

that article says what i said - "The dealer pays off your old lease balance, buys the car from the lease company for his used car lot, gives you trade-in credit for the car, and either adds or deducts any difference to your new purchase or lease."

---

It doesn't just work that way in many cases and states.  Some states require you to repurchase the off lease vehicle as a used car, pay sales tax and fees before you can trade it in.  It definitely does not work like a trading in a financed car.

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Irish, in your situation it is the same or worse.  If you finance (or purchase) the car, you're paying the full amount of tax up front and even worse is you're paying interest on it.  Leased vehicle tax is deferred until you make the payment.  In my situation (in Hawaii), if you trade in a leased vehicle, the dealership only pays a half percent tax as opposed to the standard 4.712% general excise tax.  

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

that article says what i said - "The dealer pays off your old lease balance, buys the car from the lease company for his used car lot, gives you trade-in credit for the car, and either adds or deducts any difference to your new purchase or lease."

---

It doesn't just work that way in many cases and states.  Some states require you to repurchase the off lease vehicle as a used car, pay sales tax and fees before you can trade it in.  It definitely does not work like a trading in a financed car.

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Irish, in your situation it is the same or worse.  If you finance (or purchase) the car, you're paying the full amount of tax up front and even worse is you're paying interest on it.  Leased vehicle tax is deferred until you make the payment.  In my situation (in Hawaii), if you trade in a leased vehicle, the dealership only pays a half percent tax as opposed to the standard 4.712% general excise tax.  

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It really depends on where you live. It finally changed here in Illinois on the first of the year, but prior to that when you leased a car the entire purchase price of the car was used to charge sales tax. Now you only pay tax on the the purchase price minus the residual. But that tax is rolled into the lease upfront so you're paying interest from day one. The city of Chicago also charges a lease tax. Your monthly payment has 9% added to it.  

[Anonymous]

I am in a similar situation but confused as to how to proceed. I am currently in FL and have a 2014 leased for 36 months through ally with 27 months remaining and $9500 in payments, I put 1500 down. I am trying to figure out the best way to get out of the lease or move to something with a lower monthly payment which is currently $380. Ally's website gave me a payoff estimate of $7850 but not sure what this means or what other information I need or am missing.

Any help would be greatly appreciated. Thank you!