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Can I use the equity in my leased car towards the purchase of my leased car?

anninohioanninohio Member Posts: 6
edited October 2018 in Honda
I am at the end of my lease on a honda pilot. my res value is $24,308 and my trade in value is $28,408 with only 24,000 miles out of the alloted 36,000. This leaves me with approx $4000 in equity. I know i can apply equity towards a new lease or towards purchase of a new car, but I can't find any info regarding whether or not the dealer from who I leased the car will allow me to use that equity to purchase the leased car I've been driving (pringing my purchase price down to about $20,000)

Thanks!
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    kyfdxkyfdx Moderator Posts: 237,185
    anninohio said:

    I am at the end of my lease on a honda pilot. my res value is $24,308 and my trade in value is $28,408 with only 24,000 miles out of the alloted 36,000. This leaves me with approx $4000 in equity. I know i can apply equity towards a new lease or towards purchase of a new car, but I can't find any info regarding whether or not the dealer from who I leased the car will allow me to use that equity to purchase the leased car I've been driving (pringing my purchase price down to about $20,000)

    Thanks!

    Nope... the only way to realize equity in a vehicle is to sell it.

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    anninohioanninohio Member Posts: 6
    Darn☹️
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    anninohioanninohio Member Posts: 6
    Would they cut me a check for the $4000 in equity if I walk away from the car and don't buy or lease from the dealership where i leased the car from? Or is the equity only usable if I use it towards a new lease/new car purchase?
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    kyfdxkyfdx Moderator Posts: 237,185
    anninohio said:

    Would they cut me a check for the $4000 in equity if I walk away from the car and don't buy or lease from the dealership where i leased the car from? Or is the equity only usable if I use it towards a new lease/new car purchase?

    You have to sell the car (by trading it in) to realize any equity.
    You don't necessarily have to sell it to the dealership you leased from.

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    anninohioanninohio Member Posts: 6
    Thank you. Can you also please tell me the MF and residual for a 2018 honda pilot ex-l for the zipcode 44120?
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    kyfdxkyfdx Moderator Posts: 237,185
    anninohio said:

    Thank you. Can you also please tell me the MF and residual for a 2018 honda pilot ex-l for the zipcode 44120?

    AWD?
    36/15
    .00100 MF and 57% residual
    $1300 incentive

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    anninohioanninohio Member Posts: 6
    Yes AWD. Also, forgive the stupid question, but can you explain the ratio and the incentive in a few words? Thank you!
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    kyfdxkyfdx Moderator Posts: 237,185
    anninohio said:

    Yes AWD. Also, forgive the stupid question, but can you explain the ratio and the incentive in a few words? Thank you!

    The incentive is extra Honda-to-dealer money on this model.
    The money factor is a substitution for interest rate, expressed as a decimal to ease calculation in the lease payment formula.
    The residual percentage is a percentage of the vehicle's MSRP, to set a lease end value.


    https://forums.edmunds.com/discussion/12602/general/x/how-to-calculate-monthly-lease-payments

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    anninohioanninohio Member Posts: 6
    Thank you!
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