Lease - trade in question?

[lam-boy]

well the 03 1.7 EL Is on lease..

I'm just wondering because my parents want to trade in the car into the dealership for a different car. I know they will charge us money, but I'm just wondering if they will allow a trade-in for a new lease vehical? the EL has been leased for about 1 yr and 2-3 months now..

[SwitchBlade]

Do you mean that your going to trade in your current car for a different Acura model? Or are you going to a different dealership for a new lease?

I would imagine that it is possible in either case and that all you would have to do is pay the difference in price between the vehicles.

[pinoyhero]

If your going from Acura to Acura you'll be OK. You will pay money but the dealers are incented to have you sign up for another lease.

[cobber112879]

you can trade it in, but the buyout on your car will be the remainder value of your lease term plus the residual buyout. This will likely put you in the negative by quite a bit. You could try offering someone a cash payment if they assume your lease. If someone bites, you would lose less. Example: offer 1000 dollars for someone to assume your lease, or take a 4000 to 6000 loss on trade. It all just depends on how bad you want out of your car.

[lam-boy]

yeah Acura to Acura.


Cobber - " but the buyout on your car will be the remainder value of your lease term plus the residual buyout"

what do you mean by that? I don't quite understand..

[lam-boy]

or if I traded in the 1.7 for say a used 2000 model lets say like an integra or something (something of equal value), would they want money on top of that? (i know i'll still be paying the money for the lease though.

[cobber112879]

Originally posted by lam-boy
yeah Acura to Acura.


Cobber - " but the buyout on your car will be the remainder value of your lease term plus the residual buyout"

what do you mean by that? I don't quite understand..

Sorry, the lease is a contract for a certain amount of money over a certain period of time at a percentage of interest. Example 300 bucks a month for 48 month at 1.9% interest. To pay out the lease you would take the amount left owing on the contract minus the interest you have left to pay. Also when you lease a car there is an amount of money you can pay to keep the car when your lease contract is over. This amount is called the residual. To get the amount owing in total on a leased vehicle you add the lease remainder and the residual. If you just call Acura the will give you a # to call. They can tell you all this in minuts. Also if you are going from Acura to Acura I am sure they must have some sort of brand loyalty program to eat up some of the cost. Good Luck with your shopping:thumbsup:

[max_boost]

lammer, pull out your lease agreement and call Honda Canada Finance. Find out your exact buyout value.

For example: If your buyout value is $20K and the dealer offers you $17K, do you still want to trade it in?

[LKL]

I have a lease I want to get out of for insurance reasons. As far as offering somebody a cash incentive of 2-4$k to take over the lease (I'm on an 80,000 km lease, have 60,000 on the car, have 2.5 years left), I can do that, but how would I go about it.

I.e... do I have to go down to the dealership to get the car signed over, that sort of thing? And would I be under any liability for anything once the car was signed over, given that the other person is now the lessee and I gave them cash? & also.. whats the best way to not get screwed over out of that, dealing with cash, etc...?

[max_boost]

Basically contact your Finance Manager at the dealer you purchased your car. He/She will arrange a lease take over and pending approval on the new buyer. You can request to have your name completely removed from the lease agreement. It's all legal and you don't have to worry about potential liabilities.

In other words, find someone with excellent credit!!!!!

[benyl]

Originally posted by LKL
I have a lease I want to get out of for insurance reasons. As far as offering somebody a cash incentive of 2-4$k to take over the lease (I'm on an 80,000 km lease, have 60,000 on the car, have 2.5 years left), I can do that, but how would I go about it.



I think that you are going to have a very tough time getting rid of the car. You have used 75% of the mileage in 37.5% of the term. 8000 km/year that is left isn't very much. You are better off buying it out now and trying to sell it rather than a lease take over.

[lam-boy]

well me and my dad are going to Silverhill tomorrow to see what the EL is appraised at and how much the buy out will be and how much they offer us.

I mean if its appriased at 20k and they offer 17k I don't really want to bite.

[Skyline_Addict]

Originally posted by max_boost
Basically contact your Finance Manager at the dealer you purchased your car. He/She will arrange a lease take over and pending approval on the new buyer.


dealerships offer this sorta service?

[max_boost]

Originally posted by Skyline_Addict


dealerships offer this sorta service? That's the finance manager's job......the same people who collect your credit information and process the sale.....

Not sure what you are getting at but if you are thinking you bring your Mazda to a BMW to get the lease take over, then of course it won't work. :D

[Skyline_Addict]

Originally posted by max_boost
That's the finance manager's job......the same people who collect your credit information and process the sale.....

Not sure what you are getting at but if you are thinking you bring your Mazda to a BMW to get the lease take over, then of course it won't work. :D

alright, another question regarding finance/lease takeovers...

so the same people who collect your credit info and process the transaction are the people (from the dealership from which you financed/leased your vehicle) who would be able to "hook you up" with a finance/lease transfer?

is this a common transaction? how easy is it (on a general overlook) to find a willing transferee to take over your finance/lease?

[G]

Originally posted by lam-boy
well the 03 1.7 EL Is on lease..

I'm just wondering because my parents want to trade in the car into the dealership for a different car. I know they will charge us money, but I'm just wondering if they will allow a trade-in for a new lease vehical? the EL has been leased for about 1 yr and 2-3 months now..

Since you are only 1 year and 2-3 months into your lease you will take a major hit. I bet you any money you are not willing to pay that much to buy out your lease.

So the math goes like this:

If you have a 4 year lease with payments at $500 per month and the buy out is $15000 and you already payed 14 months then you will owe

34 months x $500 = $17000
plus buy out of $15000 = $32000
plus GST on the $15000 = $1050
plus any potential penalties for breaking your lease early.

These are made up numbers you can figure out what you owe roughly.

[G]

Originally posted by Skyline_Addict


alright, another question regarding finance/lease takeovers...

so the same people who collect your credit info and process the transaction are the people (from the dealership from which you financed/leased your vehicle) who would be able to "hook you up" with a finance/lease transfer?

is this a common transaction? how easy is it (on a general overlook) to find a willing transferee to take over your finance/lease?

Generally speaking the break even point of your lease will be about 2 years on a 4 year lease. Break even means you can sell the car for a price that will cover your cost of buying out the lease.

Never keep the car until the lease is up and just walk away from the car. The residual value is structured in such a way that it is below market value of your car. Dealerships get so fat from people who just return the car after the lease expires.

Sell it your self and make a few grand back.

[Skyline_Addict]

Originally posted by G


Generally speaking the break even point of your lease will be about 2 years on a 4 year lease. Break even means you can sell the car for a price that will cover your cost of buying out the lease.

Never keep the car until the lease is up and just walk away from the car. The residual value is structured in such a way that it is below market value of your car. Dealerships get so fat from people who just return the car after the lease expires.

Sell it your self and make a few grand back.

oh? but how do you sell a car that is not under your title....that sounds a little intangible.... but that's probably because I don't understand.
so, come 2 years, if I were to want to get rid of a leased car....wait...I am starting to get this.
so you sell the car to some entity which is other than the dealership/company from which you bought you car...
essentially what's happening here is that you're simultaneously buying the car from the dealership and then getting the money back by selling it to someone else? and the 2 year period of a 4 year lease is where
money to purchase car (aka buy out lease) =
market value at which to sell car (aka, money someone pays you for the title of the car)?

i hope i'm right so far.

but I don't know how you can actually make money off this...maybe you can enlighten me.

[G]

Originally posted by Skyline_Addict


oh? but how do you sell a car that is not under your title....that sounds a little intangible.... but that's probably because I don't understand.
so, come 2 years, if I were to want to get rid of a leased car....wait...I am starting to get this.
so you sell the car to some entity which is other than the dealership/company from which you bought you car...
essentially what's happening here is that you're simultaneously buying the car from the dealership and then getting the money back by selling it to someone else? and the 2 year period of a 4 year lease is where
money to purchase car (aka buy out lease) =
market value at which to sell car (aka, money someone pays you for the title of the car)?

i hope i'm right so far.

but I don't know how you can actually make money off this...maybe you can enlighten me.

Last June I was 2 years into my G35 lease. The buy out was $35K but I sold it privately for $36500 to some guy. We both went to the dealership and he had a cheque for the dealer for $35000 to buy out the car and a cheque for me for $1500. The dealer will not buy your car at the buy out price even if you offer to buy another car from them.

You cannot legally sell a car that is not under your name or your company name.

[Skyline_Addict]

Originally posted by G


Last June I was 2 years into my G35 lease. The buy out was $35K but I sold it privately for $36500 to some guy. We both went to the dealership and he had a cheque for the dealer for $35000 to buy out the car and a cheque for me for $1500. The dealer will not buy your car at the buy out price even if you offer to buy another car from them.

You cannot legally sell a car that is not under your name or your company name.

alright, i am starting to understand now.
for the same car, whether it has been leased/financed/purchased will have the same market value after a certain period of time?

is the 2/4 year lease "formula" mathematically consistent?
for all cars under this lease, essentially around/exactly at 2 years into the lease, the "buy out" = market value?
does the "buy out" include the remainder on the lease? must this be paid off as well?

[max_boost]

Originally posted by Skyline_Addict


alright, i am starting to understand now.
for the same car, whether it has been leased/financed/purchased will have the same market value after a certain period of time?

is the 2/4 year lease "formula" mathematically consistent?
for all cars under this lease, essentially around/exactly at 2 years into the lease, the "buy out" = market value?
does the "buy out" include the remainder on the lease? must this be paid off as well? There are so many factors that contribute to it.

Just to name a few:

Mileage
Market Value
Market Demand
Residual Value
Down Payment (If applicable)
Accident Claims
Modifications

Also an important one is, the car itself. We all know high end Euros depreciate much quicker but for this specific conversation, we'll relate it to vehicles $50K and lower.

My RSX is here to stay for the next 3 years because it is virtually impossible to sell anywhere near the buyout price due to the recent accident.

As for my 330, at the end of two years the buyout is probably around $45K. I don't know how easy it would be to sell at that price.

So unless I find someone to take over my lease, no 911 anytime soon!
:cry: :rofl:

I'm one of those guys that will be leasing for life.

Cars=Expense

[Skyline_Addict]

Originally posted by max_boost
There are so many factors that contribute to it.

Just to name a few:

Mileage
Market Value
Market Demand
Residual Value
Down Payment (If applicable)
Accident Claims
Modifications

Also an important one is, the car itself. We all know high end Euros depreciate much quicker but for this specific conversation, we'll relate it to vehicles $50K and lower.



how would a well taken care of, great condition, very low miles acura fare? :)

[max_boost]

Originally posted by Skyline_Addict


how would a well taken care of, great condition, very low miles acura fare? :) Assuming 0 downpayment, it should equal break even. Basically the more you put down, the less your residual, therefore easier for the buyout to equal market value. Get it?

[Skyline_Addict]

Originally posted by max_boost
Assuming 0 downpayment, it should equal break even. Basically the more you put down, the less your residual, therefore easier for the buyout to equal market value. Get it?

got it...
that's awesome, thanks guys!
especially G and max_boost!

[G]

Originally posted by Skyline_Addict


alright, i am starting to understand now.
for the same car, whether it has been leased/financed/purchased will have the same market value after a certain period of time?

is the 2/4 year lease "formula" mathematically consistent?
for all cars under this lease, essentially around/exactly at 2 years into the lease, the "buy out" = market value?
does the "buy out" include the remainder on the lease? must this be paid off as well?

I know that this rule will not apply to domestics since they seem to depreciate like mad.