LS430FL

Wow that is such an interesting concept. This was actually my first lease. I always buy my cars so I was not familiar with this idea. I am definitely going to take it for a Carmax appraisal about 6 months out and see if I can make some money.

bitkahuna

iTrader: (20)

if you do it 6 months out and it's not a trade on the same brand of car then the leasing company will likely not only want the payoff but also the remaining 6 lease payments, so be careful.

SW17LS

The payoff is basically the residual plus all the remaining payments. That will be the case if it’s the same brand car or a different brand.

With the Pacifica, the payoff was $25,100, the residual was $22,500.

coolsaber

With the shortage of used cars, just drive down to any ole used car selling service like carmax, and get it appraised ahead of time now. You never know you might end up with a payout that covers both the remaining months and remaining payments or get very close to making it worth your time.

SW17LS

I stopped by Carmax yesterday just for fun to walk the lot. The lot was half empty...never seen that before.

tex2670

I just read yesterday that the average age of cars on the road is 11.9 years, which is a new high. The pandemic was cited as the reason, but it seems odd that the past 4 months had more impact than a years-long recession after 08. Seems like the average age of cars on the road was already near record level, and this pushed it over the hump quicker.

wasjr

Out of curiosity I looked online at my MDX payoff. Acura must use a present value calculation as my payoff is about $7k less than the residual plus remaining 31 payments.

SW17LS

Your payoff doesnt include interest paid on the remaining payments, so its a little less, or could be a lot less depending on how high the MF is on your lease. Some lenders also have different payoffs depending on whether or not you are buying it yourself, trading to a dealer of the same make, or trading to a different make's dealer. Those aren't typical though.

But there's no present value calculation, at lease maturity the payoff will be the residual.

coolsaber

Appraise it asap, as the market will change with the news cycle (the biggest being hertz needing to move 200k by the end of the year).