How to incorporate equity of trade-in to new car lease calculation

allnew3allnew3 Member Posts: 35
edited April 2019 in General
I have a trade-in with equity of $8k. I am assuming I would save on sales tax and perhaps other benefits however unclear how to account for this in the standard lease calculation, see attached photo. Where do I claim the trade-in of $25 with $17k remaining loan balance? I was going to deduct the money down from the equity and the balance to be paid back to me in cash. Other ways to work it out?

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  • kyfdxkyfdx Moderator Posts: 207,907
    allnew3 said:

    I have a trade-in with equity of $8k. I am assuming I would save on sales tax and perhaps other benefits however unclear how to account for this in the standard lease calculation, see attached photo. Where do I claim the trade-in of $25 with $17k remaining loan balance? I was going to deduct the money down from the equity and the balance to be paid back to me in cash. Other ways to work it out?

    Figure out how much of the equity you want to put towards the vehicle, and use that in the last column.
    The dealer can cut you a check for the rest of the equity.

    And, that way, you can leave the equity out of the calculation, altogether.

    In the example above, you use $4045.31 out of the $8000 to pay the Due at Signing, and the dealer cuts you a check for $3954.69.

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