Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Did you get a great deal? Let us know in the Values & Prices Paid section!
Meet your fellow owners in our Owners Clubs

Can I use the equity in my leased car towards the purchase of my leased car?

anninohioanninohio OHPosts: 6
edited October 2018 in Honda
I am at the end of my lease on a honda pilot. my res value is $24,308 and my trade in value is $28,408 with only 24,000 miles out of the alloted 36,000. This leaves me with approx $4000 in equity. I know i can apply equity towards a new lease or towards purchase of a new car, but I can't find any info regarding whether or not the dealer from who I leased the car will allow me to use that equity to purchase the leased car I've been driving (pringing my purchase price down to about $20,000)

Thanks!

Comments

  • kyfdxkyfdx Posts: 130,976
    anninohio said:

    I am at the end of my lease on a honda pilot. my res value is $24,308 and my trade in value is $28,408 with only 24,000 miles out of the alloted 36,000. This leaves me with approx $4000 in equity. I know i can apply equity towards a new lease or towards purchase of a new car, but I can't find any info regarding whether or not the dealer from who I leased the car will allow me to use that equity to purchase the leased car I've been driving (pringing my purchase price down to about $20,000)

    Thanks!

    Nope... the only way to realize equity in a vehicle is to sell it.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • anninohioanninohio OHPosts: 6
    Darn☹️
  • anninohioanninohio OHPosts: 6
    Would they cut me a check for the $4000 in equity if I walk away from the car and don't buy or lease from the dealership where i leased the car from? Or is the equity only usable if I use it towards a new lease/new car purchase?
  • kyfdxkyfdx Posts: 130,976
    anninohio said:

    Would they cut me a check for the $4000 in equity if I walk away from the car and don't buy or lease from the dealership where i leased the car from? Or is the equity only usable if I use it towards a new lease/new car purchase?

    You have to sell the car (by trading it in) to realize any equity.
    You don't necessarily have to sell it to the dealership you leased from.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • anninohioanninohio OHPosts: 6
    Thank you. Can you also please tell me the MF and residual for a 2018 honda pilot ex-l for the zipcode 44120?
  • kyfdxkyfdx Posts: 130,976
    anninohio said:

    Thank you. Can you also please tell me the MF and residual for a 2018 honda pilot ex-l for the zipcode 44120?

    AWD?
    36/15
    .00100 MF and 57% residual
    $1300 incentive

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • anninohioanninohio OHPosts: 6
    Yes AWD. Also, forgive the stupid question, but can you explain the ratio and the incentive in a few words? Thank you!
  • kyfdxkyfdx Posts: 130,976
    anninohio said:

    Yes AWD. Also, forgive the stupid question, but can you explain the ratio and the incentive in a few words? Thank you!

    The incentive is extra Honda-to-dealer money on this model.
    The money factor is a substitution for interest rate, expressed as a decimal to ease calculation in the lease payment formula.
    The residual percentage is a percentage of the vehicle's MSRP, to set a lease end value.


    https://forums.edmunds.com/discussion/12602/general/x/how-to-calculate-monthly-lease-payments

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • anninohioanninohio OHPosts: 6
    Thank you!
Sign In or Register to comment.