Assuming lease from parent, buying car out and trading current car in simultaneously can it be done?

jsquared123jsquared123 Member Posts: 9
edited November 2019 in Lincoln
Not sure if I'm posting in the right spot but here goes.. My mother currently leases a 2017 Lincoln MKC which she babies. It currently has 18,xxx miles and in pristine condition. Her 3 year lease is up next July.

I love the car and would like to assume the lease when it is close to being up. I noticed that Ford/Lincoln allows you to swap leases at any time for a $75 credit app fee as their only cost (correct me if I'm wrong).

I currently drive a 2016 Audi A3 with approx 55k. The car is nice but I need more space and something a bit cheaper to maintain. By time next summer rolls around, I will still be a few thousand in the hole on the payments which is understandable since I did not put much down on the purchase, not the wisest I know.

My question is, if I assume the lease in May/June and then go to the dealer to buy the car, will they take the trade in as well and roll any overage into a new loan? Or am I missing something? Any help would be appreciated!

Thanks,
Joe

Comments

  • kyfdxkyfdx Moderator Posts: 212,199

    Not sure if I'm posting in the right spot but here goes.. My mother currently leases a 2017 Lincoln MKC which she babies. It currently has 18,xxx miles and in pristine condition. Her 3 year lease is up next July.

    I love the car and would like to assume the lease when it is close to being up. I noticed that Ford/Lincoln allows you to swap leases at any time for a $75 credit app fee as their only cost (correct me if I'm wrong).

    I currently drive a 2016 Audi A3 with approx 55k. The car is nice but I need more space and something a bit cheaper to maintain. By time next summer rolls around, I will still be a few thousand in the hole on the payments which is understandable since I did not put much down on the purchase, not the wisest I know.

    My question is, if I assume the lease in May/June and then go to the dealer to buy the car, will they take the trade in as well and roll any overage into a new loan? Or am I missing something? Any help would be appreciated!

    Thanks,
    Joe

    One note: The bank (Ford Credit) is under no obligation to extend you financing on a lease buyout, even if you are the current lessee. The dealer, assuming they want your car in trade (for which they have no motivation, they aren't selling you the Lincoln, the bank is), might not be able to obtain financing on a used car, where there is negative equity to roll in.

    To recap: Ford Credit has no motivation to help, the dealer has no motivation to help. You aren't buying a new car, so there isn't much room to "bury" any negative equity.

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  • jsquared123jsquared123 Member Posts: 9
    That's what I was afraid of. I was figuring they could make money on my trade which I expected them to try. The dealer needs to "eat" for lack of a better word. I imagine if I wanted to roll it into a new lease, it would be a whole new ballgame but at that point, I'd just let my mom return hers and work with my Audi separately.
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