Early lease termination

Polo

I am looking to lease a Hyundai Kona SEL 2020. I want to trade-in another lease that I have 12 months left. It is a Toyota RAV4 XLE, and lease is for 36months/54K miles year. I requested a payoff amount, and the amount came up to $25K, but the actual value of the car from comparisons in websites is between 15k to 18K. Could someone please explain how these numbers work? Thanks

Michaell

Polo said:

I am looking to lease a Hyundai Kona SEL 2020. I want to trade-in another lease that I have 12 months left. It is a Toyota RAV4 XLE, and lease is for 36months/54K miles year. I requested a payoff amount, and the amount came up to $25K, but the actual value of the car from comparisons in websites is between 15k to 18K. Could someone please explain how these numbers work? Thanks

What it means is that it will be prohibitavely expensive to terminate your current lease early - $7-10K means your new lease will have $200-300/mo added on to the payment. For a car you aren't driving.

Your best bet is to keep the RAV4 until that lease is up, then shop for your next car.

Polo

Thanks for the response. The price depreciation between 7k and 10k is quite drastic in a year span. Based on your response, it is how the lease works. Thanks