Trading in a lease to another brand

xaphan

My current Toyota Corolla lease is about to expire and i'm in the market for a new lease with a Honda. Of course they say they can take over my last couple of payments and I hand over the car to them, my question is, does that count as a trade in and therefore I should consider the current value of my car?

At the dealer they told me they were just going to return the car for me, but i've heard that they can also pay it off and sell it to make a profit.

I would love to be informed before making a deal for a new lease so any information/guidance is highly appreciated.

kyfdx

xaphan said:

My current Toyota Corolla lease is about to expire and i'm in the market for a new lease with a Honda. Of course they say they can take over my last couple of payments and I hand over the car to them, my question is, does that count as a trade in and therefore I should consider the current value of my car?

At the dealer they told me they were just going to return the car for me, but i've heard that they can also pay it off and sell it to make a profit.

I would love to be informed before making a deal for a new lease so any information/guidance is highly appreciated.

I'd worry about a dealer making the payments and turning the car in. That leaves you on the hook for any lease-end charges with the bank. And, if they happen to be substantial, due to early turn-in, you have no redress.

I'd much rather trade the car in. If the dealer won't do this, then the buyout is likely more than the car is worth.
In that case, I'd wait until the end of December, turn the car in yourself, and lease something then.

xaphan

kyfdx said:

xaphan said:

My current Toyota Corolla lease is about to expire and i'm in the market for a new lease with a Honda. Of course they say they can take over my last couple of payments and I hand over the car to them, my question is, does that count as a trade in and therefore I should consider the current value of my car?

At the dealer they told me they were just going to return the car for me, but i've heard that they can also pay it off and sell it to make a profit.

I would love to be informed before making a deal for a new lease so any information/guidance is highly appreciated.

I'd worry about a dealer making the payments and turning the car in. That leaves you on the hook for any lease-end charges with the bank. And, if they happen to be substantial, due to early turn-in, you have no redress.

I'd much rather trade the car in. If the dealer won't do this, then the buyout is likely more than the car is worth.
In that case, I'd wait until the end of December, turn the car in yourself, and lease something then.

thanks for your answer. You are talking about trade in but does that apply to a leased car? trade in sounds like it would only apply to a car owned.

I share the same worries as you with having to be liable for the car after i turn it in to Honda, specially with only 2 payments left which comes to under $500.

kyfdx

xaphan said:

kyfdx said:

xaphan said:

My current Toyota Corolla lease is about to expire and i'm in the market for a new lease with a Honda. Of course they say they can take over my last couple of payments and I hand over the car to them, my question is, does that count as a trade in and therefore I should consider the current value of my car?

At the dealer they told me they were just going to return the car for me, but i've heard that they can also pay it off and sell it to make a profit.

I would love to be informed before making a deal for a new lease so any information/guidance is highly appreciated.

I'd worry about a dealer making the payments and turning the car in. That leaves you on the hook for any lease-end charges with the bank. And, if they happen to be substantial, due to early turn-in, you have no redress.

I'd much rather trade the car in. If the dealer won't do this, then the buyout is likely more than the car is worth.
In that case, I'd wait until the end of December, turn the car in yourself, and lease something then.

thanks for your answer. You are talking about trade in but does that apply to a leased car? trade in sounds like it would only apply to a car owned.

I share the same worries as you with having to be liable for the car after i turn it in to Honda, specially with only 2 payments left which comes to under $500.

No, a leased car can still be traded in. Every lease has a payoff amount, no matter how far along you are. That amount can be different for you, for a Toyota dealer, or for another brand dealer. Usually, payoffs are higher than the actual value though.

I wouldn't be in a hurry.