Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
Option 2: Lease-end Buy-out into new lease
Remaining lease pmts: $2k
disposition fee: $0
buy-out: $9500
trade in value: $11k (should be a bit less 8 mo from now)
equity: $1,500 (less sales tax at buy-out)
Summary: Spend (net) $500+(buyout sales tax) to drive current car for 8 more months and start over in new lease.
---------------------------------------------

This option is such that I would buy the car outright at lease expiration, then use if for trade in on a new lease?

I am assuming the value would be used toward lease initiation costs including paydown (ie, they wouldnt cut me a check, right?)...

This is a fascinating option. Really hadnt considered it. I wonder if there is a way to ensure the new dealer will set up a deal guaranteeing the trade in value...
Print the post  

Announcements

Beware Flood-Damaged Cars
Know what you are getting, don't get stuck with a Katrina victim. Check these links before you buy.
Disclaimer - Please Read
A message about professional advice.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.