cancel
Showing results for 
Search instead for 
Did you mean: 

Trading in leased vehicle and purchasing new vehicle.

Estimate your FICO® Score range for free

FICO® Score Estimator

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Visitor

Trading in leased vehicle and purchasing new vehicle.

I'm currently 16 months in on a 48 month lease ( bad move on my part.. I know) and I desperately want to get out of it. My current payments aren't an issue at 250/month but I know I can definitely afford more at this point and I'm just super bored of my lease. Not to mention I 23.7k miles in on a 40k mile lease with 32 months to go. I had my car appraised today by 3 different places. One offered me only 10.7k but carmax and another dealer offered me 11.5k and 11.9k which definitely helps a little. My current payoff is $17,323 So I'm roughly 5.4-5.8k upside down.. I'm in a position to put 3k down on a new purchase which definitely lessens the blow. The car I'm looking to get is 30k after incentives and with the trade it brought my net down to about 19k. With the remaining 2500-3000 I was thinking my new balance would be 22k. I understand I have no equity in the lease but the balance they gave me was 36k. At the end of the day they're still paying market value for a car they're going to resell for a profit and I'm paying the difference between the payoff and trade amount... so why would I be financing 36 grand on the new car? If someone could clear this up for me I'd be very grateful. Thanks!

Message 1 of 4
3 REPLIES 3
Valued Contributor

Re: Trading in leased vehicle and purchasing new vehicle.

Yoi want to buy a $30k car and are $6k underwater on your current one. That's $36k.

You mentioned putting some $ down which would probably cover taxes, dealer fees, extras, etc.
Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards/PenFed Pathfinder AMEX - $60k total revolving
EQ/EX/TU: FICO 8's Sept 2019: 696/676/670, 25% utilization, INQ's: 0/0/1
New approvals based on this data: Costco Anywhere Visa $5500, NFCU Platinum $25k
Message 2 of 4
Highlighted
Contributor

Re: Trading in leased vehicle and purchasing new vehicle.

To help clarify this situation I will provide you the breakdown of what you would be financing...
$30,000 (Sale Price)
-$11,900 (Top Offer for Trade)
-$3,000 (Down Payment)
-------------------------------------
$15,100 (Trade Difference - Cash Down)
+$17,323 (Lease Buyout Amount)
--------------------------------------
$32,423
+Tax Title License
+ Lease Termination Fee (If applicable)

Without more information it is hard to tell what the exact amount financed would be. There are some states that don't offer trade tax credits when going from a lease to a purchase which doesn't help in this situation.

Message 3 of 4
Valued Contributor

Re: Trading in leased vehicle and purchasing new vehicle.


@nissanrep wrote:
To help clarify this situation I will provide you the breakdown of what you would be financing...
$30,000 (Sale Price)
-$11,900 (Top Offer for Trade)
-$3,000 (Down Payment)
-------------------------------------
$15,100 (Trade Difference - Cash Down)
+$17,323 (Lease Buyout Amount)
--------------------------------------
$32,423
+Tax Title License
+ Lease Termination Fee (If applicable)

Without more information it is hard to tell what the exact amount financed would be. There are some states that don't offer trade tax credits when going from a lease to a purchase which doesn't help in this situation.


This is a good summary of the costs.

 

Your original numbers seemed to have ignored the buyout price, which must be included to even be able to trade in the car. You know you have no equity in the car, so you can't factor in the trade-in value without also factoring in the buyout price.

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.