New Car Lease--what woudl payments be if turned in early?

(2012-02-04 15:30:09)

1. footballfan Says: I am trying to lower my payment. If I turn my lease in early (I have about a year left), what type of payment would I be looking at. My current car has a residual value of 10,900, I have 5,815.36 in unscheduled payments to be made. the purchase option fee is 350. purchase option taxes are 35. total amount due is 16586.03.

If I lease a new vehicle with a sticker of 25,000 at a standard apr, and put 1500-2000 down, what type of payment would I be looking at?

2. Car Guy in Pgh Says: It is doubtful that you could lower your payment. The residual value of your current lease is only a reference point to what the market value is estimated to be at the end of the lease.

To determine how to structure your new lease, in addition to knowing your current obligation of remaining payments ($5,815), you also need to have the lessor provide you with a dealer buyout quote (for their inventory--- usually does not include the lease purchase option of $350). Then, have the dealer(s) appraise your current vehicle. If the difference between the trade value and the dealer buyout value is less than $5,815, use that value. Otherwise, your pay-off (i.e. early lease termination) costs will be the $5,815.

There is a very comprehensive lease calculator that can help you work with the different variables of a new lease (and also factor in the current lease term costs).

Use the Lease Calculator at http://www.thebookoncarbuying.com/index.html?d=74x534v4k4u5i454l4i554e5h434l4j424y5f4i4y5u206x4x5

For the lease termination cost, enter the value in the "Trade Pay-Off" field.
For your total down, use the "Amount to be Paid in Cash" field.
To be accurate, you will need to know for the new lease the following: term, MSRP, Selling price, any lease incentives, APR or money factor, etc.

Good luck!