O/T Advice on car...

[Rubicks13]

Hello all first post. I have a question about my car. It has to do with the price and that I will be selling it. If any car salesmen are present on the forum they may be able to help! I have a leased car Honda 2001 LX. It was leased for 39 months. I am going to purchase it in feb after the lease is up. It has 20k in miles!!! Does all the payments for the lease about 9K worth go toward the equity of the car? The sticker was $13,500 when I leased it. Any advice would be appreciated! If this is not in the correct forum or voilates any rules here, please feel free to delete it.
thanks

CUBE

[turboMiata]

On the lease, you will have to see what the residual value is. That's what you have to pay the bank to keep the car. Just ask your leasing company.

[Redlyne_mr2]

Lease payments doesnt really build equity as do finance payments. There will be a residual price however which is a basically the buyout price at the end of the term and is a guestimate of what the vehicle is worth at the time of the maturity date. it will be substantially lower than the orginial price obviously because you have been putting money into it but it isnt calculated the same as a finance which is a based on direct deductions off the total note after each finance payment. Check your contract it shoudl say what the residual is thats the amount youll have to come up with to buy out the vehicle.

[TalonVelocity]

:werd:

[Rubicks13]

Ok my residual value of the car is $9263.00 So if the sticker was $15,000 and I paid $9000 already in lease payments, + $1,000 down that means I would be paying almost $19,000 for a $15,000 car when its all said and done? If that is the case, how does one make a profit off the car if he/she decides to buy it at the end of the lease and then sell it. Seems a little fishy, seeing how the car dealership that I purchased it at is begging me to turn it in at the end of the lease! Probably cuz its in mint shap with only 20k on it since 2001. thanks

CUBE

[Weapon_R]

Welcome to the wonderful world of new car purchases :)

And yes, you always end up paying a few thousand more at the end of the lease when you buy the car out in full than had you purchased the vehicle outright when you originally purchased it.

And the dealership would like to have you turn your car in because you've already paid 2/3 of the cars original value, and they can turn around and sell it for a second profit, and end up making a lot of money on the car.

[Rubicks13]

So what would i have to sell if for to make a profit? Or is that not possible...thanks

CUBE

[Rubicks13]

based on the above figures....

[Weapon_R]

I guess anything over $10,000 ($9,000 in lease payments, $1,000 deposit) would net you a profit, although it's highly unlikely that this scenario would work for you as depreciation probably took its toll on the car and it wouldn't be worth 10k after 3 years...

[Redlyne_mr2]

Yah its hard to determine as I m not sure what the vehicle is worth in the used car market in your area. I wouldnt really consider the 1000 you put down equity until you decide to buy out the vehicle. That $1000 is merely a security deposit in case you decide to bring the car back and theres damafe or its overmiled. Its very hard to make money when leasing a car best of luck to you