General lease question

prowler_mq5qm_

I am currently 4 months into a 39-month lease ('16 Honda CR-V). I really like the vehicle and may want to go with the purchase option at lease end. I'm thinking about adding an extra $50 to each of my remaining lease payments in hopes that the car's pay-off will be lower than the residual value noted on the lease agreement. Is this a good idea, or am I just throwing money out the window? Near lease end, if I have changed my mind about purchasing, at least I'll be about 5 months ahead on lease payments.

kyfdx

prowler_mq5qm_ said:

I am currently 4 months into a 39-month lease ('16 Honda CR-V). I really like the vehicle and may want to go with the purchase option at lease end. I'm thinking about adding an extra $50 to each of my remaining lease payments in hopes that the car's pay-off will be lower than the residual value noted on the lease agreement. Is this a good idea, or am I just throwing money out the window? Near lease end, if I have changed my mind about purchasing, at least I'll be about 5 months ahead on lease payments.

The lease payments are set, and I'm not sure you'd even get any interest savings from paying extra. Just put $50/mo. in a savings account, each month. Even if it earns zero (which is pretty close), you'll still have $1700 extra saved by lease end, and then you can make the decision that makes the most sense, regardless of the payoff on your current lease.