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I'm new to the auto loan thing and I'm a bit confused. I'm currently in a lease with a car that has 1,700 left in payments remaning. A dealer has offered to do a lease rollover. The questions start here: Doing a lease rollover means that only the 1,700 left over will be added to the new cars price right? And to do a lease rollover do I have to finance from that dealer? Or could I still finance from a third party source. Meaning that say the car I was looking to buy was 15,000, could the third party just write a check for 16,700 and take care of the rollover that way? Thanks!
Do you absolutely need to do this? This is a double whammy. You're paying several months of payments just to turn it in several months early.
There's two ways a dealership can get you out of your lease. 1) They can term out your lease meaning they would pay all remaining payments and you or they would return the lease to the leasing company. This would leave you suseptible to a disposition fee (if your lease has one) and wear and tear/damage fees. 2) Or they can payoff your lease meaning they would have to determine it's value and pay off the vehicle. The vehicle would then owned by the dealership and be resold as a used car. This could work for or against you because 2a) working for you; the lease trade-in is worth more than the payoff meaning you have positive equity or 2b) working against you; the dealership could "say" the vehicle has significant negative equity and force it into your new loan giving them a cheaper trade-in.
Either way, PLEASE do not give away your money like this unless you absolutely have to.
Well yes I want the car..and I'm running up on my miles and will have to park my current one soon and be without a means of transportation. So I guess the questions remain: If I roll the payments over the only charges extra that will apply will be the remaining payment cost, wear and tear, and early termination fee? And given the example price of the car plus my lease payments rolled in being 16,700 can I get a check from a lender outside the dealer for that amount and pay for it all. Or do I have to get financing from the dealer
I cant answer your questions, but I can offer general suggestions:
Call the company that is financing your current lease. I leased an Acura from Honda financing and I couldnt buy the car at the end of the lease, and I would have liked to be able to do that. They can also tell you what fees would be involved with ending the lease, and what the fee is for going over the mileage so you dont have to park it.
Go to Kbb dot com and look up the value of the car you have now so you're familiar with the prices. Check the tradin and also the private sale and dealer sale prices so you are aware of them
In some cases, for example, if the value of the car is 25k and the residual value is 22k, you can sell the car (or trade it in) and just pay the lease company the 22k, giving you 3k for equity as a tradein.
Your best approach is to be informed of everything so you dont have to rely on what the dealer tells you.
GL