Lease Question

[Anonymous]

My DW has a 2015 Audi Q3. We are in year 1 of a 4 year lease. We have $10K (residual amount) left on the lease. She wants to upgrade to a Q5. Does a lease work the same way as trading a car? Does the “value” left on the lease …gets rolled into the new lease?

[faze2988]

It depends. The dealership will look for the cheaper option. Either roll all your leftover payments into your new lease or they will find out your payoff for them to buy the car vs how much the car is worth to see which option is cheaper.

[Anonymous]

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@Anonymous wrote:

My DW has a 2015 Audi Q3. We are in year 1 of a 4 year lease. We have $10K (residual amount) left on the lease. She wants to upgrade to a Q5. Does a lease work the same way as trading a car? Does the “value” left on the lease …gets rolled into the new lease?

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Doesn't quite work like that.  You would need to roll in the $10K and the remaining payments or just pay off the remaining payments and be done with current lease.  Very difficult to get out of a 4 year lease after one year.  The state you live in also affects how the transaction because some require you to have to purchase the leased vehicle and pay taxes on it before you can use it as a trade in.

In short, your options are very limited and to do it, would be very costly.

[Anonymous]

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@Anonymous wrote:

My DW has a 2015 Audi Q3. We are in year 1 of a 4 year lease. We have $10K (residual amount) left on the lease. She wants to upgrade to a Q5. Does a lease work the same way as trading a car? Does the “value” left on the lease …gets rolled into the new lease?

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Your best option will be to try to get the payoff for the car and try selling it to pay the owed amount. If you got the lease through a broker, they are very good at getting people out of a lease before the lease ends by selling without you losing money.

And no, the lease does not work as trading in a car.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

My DW has a 2015 Audi Q3. We are in year 1 of a 4 year lease. We have $10K (residual amount) left on the lease. She wants to upgrade to a Q5. Does a lease work the same way as trading a car? Does the “value” left on the lease …gets rolled into the new lease?

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Doesn't quite work like that.  You would need to roll in the $10K and the remaining payments or just pay off the remaining payments and be done with current lease.  Very difficult to get out of a 4 year lease after one year.  The state you live in also affects how the transaction because some require you to have to purchase the leased vehicle and pay taxes on it before you can use it as a trade in.

In short, your options are very limited and to do it, would be very costly.

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We live in SC...it looks like we will be keeping this car a bit longer.

Thanks Irish80

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

My DW has a 2015 Audi Q3. We are in year 1 of a 4 year lease. We have $10K (residual amount) left on the lease. She wants to upgrade to a Q5. Does a lease work the same way as trading a car? Does the “value” left on the lease …gets rolled into the new lease?

---

Your best option will be to try to get the payoff for the car and try selling it to pay the owed amount. If you got the lease through a broker, they are very good at getting people out of a lease before the lease ends by selling without you losing money.

And no, the lease does not work as trading in a car.

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Nope we got it through the dealer.

I guess my DW will be keeping this car for now.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

My DW has a 2015 Audi Q3. We are in year 1 of a 4 year lease. We have $10K (residual amount) left on the lease. She wants to upgrade to a Q5. Does a lease work the same way as trading a car? Does the “value” left on the lease …gets rolled into the new lease?

---

Doesn't quite work like that.  You would need to roll in the $10K and the remaining payments or just pay off the remaining payments and be done with current lease.  Very difficult to get out of a 4 year lease after one year.  The state you live in also affects how the transaction because some require you to have to purchase the leased vehicle and pay taxes on it before you can use it as a trade in.

In short, your options are very limited and to do it, would be very costly.

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We live in SC...it looks like we will be keeping this car a bit longer.

Thanks Irish80

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You're welcome.  Unfortunately you have to be farther into the lease to make it even close to financially doable without breaking the bank.    Q3 is a nice vehicle so it could be worse :-)

[Anonymous]

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@Anonymous wrote:

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And no, the lease does not work as trading in a car.

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not correct. Trading in a lease works the same as trading in a car w/ a loan. The vehicle has a current market value (KBB, whatever) and it has a current buyout amount. 

If they're the same, you can trade it in and not lose any cash. (very very rare). If the current buyout amount is higher than the car's worth, you need to pay that amount. You can either pay it out of pocket, or roll it into the new loan/lease (assmung you don't exceed the LTV requirements)

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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And no, the lease does not work as trading in a car.

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not correct. Trading in a lease works the same as trading in a car w/ a loan. The vehicle has a current market value (KBB, whatever) and it has a current buyout amount. 

If they're the same, you can trade it in and not lose any cash. (very very rare). If the current buyout amount is higher than the car's worth, you need to pay that amount. You can either pay it out of pocket, or roll it into the new loan/lease (assmung you don't exceed the LTV requirements)

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I think I didn't make myself clear in the first post.  I still stand by what what I said. Trading in a lease is not the same as trading in a car purchased. This should clear things up for you. http://www.leaseguide.com/articles/trade-leased-car/

[Anonymous]

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."