When to turn in - is there value?

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  kyfdx Moderator Posts: 237,287

  August 2017

  mudwick said:

  I currently have a little over 1 year left on a 3-year lease of my 2015 Murano. When leased, I was able to pay down a vast majority of the principal, to the point that my current monthly payment is only $40. Does this fact lend itself to turning the vehicle in earlier? IE...would this allow me to lease a new car at a cheaper rate?
  
  I tend to think not, but I am not as clear on how lease's work compared to buying outright.

  Since you paid a lot of depreciation upfront, your current buyout will be lower, but not by the same amount, as the small payment you've been making is catching you up to those who put nothing down.
  
  So, while you could trade out of the vehicle, and realize more equity, it's only because you've paid for it, upfront. It's not a real savings. Also, you can't just turn your vehicle in early. There are plenty of penalties for doing that. The only way to get out early is to trade in the vehicle.
  
  But, why do that, when your payment is only $40/mo.? As noted above, there is no real savings in it.

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  isellhondas Member Posts: 20,342

  September 2017

  Good answer! Right on the money! Wow, a 40.00 lease payment! Must have been a 15,000 Cap Reduction!

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