Lease Ending

mstrlucky

Hello. Not sure where to post this.
So my lease is ending next month on my 2019 Honda Accord Hybrid.
The payoff is $18,000 if I want to buy it and it looks like they are selling for quite a bit more.
I really do want to lease again but I'm thinking that's a bad financial decision since I would have some nice equity in the car of I buy it out. Thanks for any insight.

Michaell

mstrlucky said:

Hello. Not sure where to post this.
So my lease is ending next month on my 2019 Honda Accord Hybrid.
The payoff is $18,000 if I want to buy it and it looks like they are selling for quite a bit more.
I really do want to lease again but I'm thinking that's a bad financial decision since I would have some nice equity in the car of I buy it out. Thanks for any insight.

You can lease another Honda and use the equity from your current lease as a down payment for the new lease.

mstrlucky

Really? How would that work? I mean.... at the lease turn in they would calculate the equity I have?

How is the equity for turning in a lease calculated? Thanks a lot.

Michaell

mstrlucky said:

Really? How would that work? I mean.... at the lease turn in they would calculate the equity I have?

How is the equity for turning in a lease calculated? Thanks a lot.

If you tell the dealer you want to trade in your car (and, you must do this before the lease termination date), they will make you a buy bid and whatever that amount is, over the contracted residual value, is the equity you have.

mstrlucky

Michaell said:

mstrlucky said:

Really? How would that work? I mean.... at the lease turn in they would calculate the equity I have?

How is the equity for turning in a lease calculated? Thanks a lot.

If you tell the dealer you want to trade in your car (and, you must do this before the lease termination date), they will make you a buy bid and whatever that amount is, over the contracted residual value, is the equity you have.

Wouldn't it be over the buyout amount and not the residual? Can I find out approximately what that is? Thanks

kyfdx

mstrlucky said:

Michaell said:

mstrlucky said:

Really? How would that work? I mean.... at the lease turn in they would calculate the equity I have?

How is the equity for turning in a lease calculated? Thanks a lot.

If you tell the dealer you want to trade in your car (and, you must do this before the lease termination date), they will make you a buy bid and whatever that amount is, over the contracted residual value, is the equity you have.

Wouldn't it be over the buyout amount and not the residual? Can I find out approximately what that is? Thanks

If you've made your last payment, the buyout amount is the same as the residual (more or less). If you are trading out of the lease earlier, then the buyout amount will be slightly more.

Michaell

mstrlucky said:

Michaell said:

mstrlucky said:

Really? How would that work? I mean.... at the lease turn in they would calculate the equity I have?

How is the equity for turning in a lease calculated? Thanks a lot.

If you tell the dealer you want to trade in your car (and, you must do this before the lease termination date), they will make you a buy bid and whatever that amount is, over the contracted residual value, is the equity you have.

Wouldn't it be over the buyout amount and not the residual? Can I find out approximately what that is? Thanks

Call the bank. You’ll pay tax on the residual value.