heasyrider

I really don't know the in's and out's of it, but, I assume I will have to pay for the amount I would still owe on the lease (rolled into the purchase of my IS, I guess). It would also be a different dealer (from an Acura to a Lexus). The car (TSX) would be in good shape, good milage, ect. I believe it is enjoying good resale value as well. Has anyone done this in the past? Can anyone explain to me what I can expect, if I do this? Oh, yeah, and I don't want there to be any blemish on my credit.

Thanks

Wid IS350

You'll hear a lot of people say it's not good to try this, you'll end up upside down financially.

it really depends on the car you've leased, and what you're intending to get. My advice is go talk to the dealer.

A while back, I had a BMW lease with lower than average miles, and 16 months left on the lease. A dealer (not BMW) bought the car outright and gave me $2,000 to put down on another one. They had a large used lot, and said they could do this and sell it, and still make a profit.

My case may be rare, but it's worth looking into.

ff_

Financially, you'd be better off finding someone to take over the lease on your TSX (www.swapalease.com ).

If you trade in a leased car, you will have to pay the difference between what the car is worth, and the outstanding payoff on the lease (assuming you're "upside down" in the lease, as you should actually be). Basically the same type of deal as you would on a traditional car loan, except that with the lease you were only paying for what you used (hence the smaller lease payment).

To find out what your car is worth on trade-in, go to kbb.com, determine the trade-in value under good or fair condition, and subtract $2000 from that amount. That number will usually be close. Depending on who financed your TSX lease, you may also have to pay a fee to get out of the lease. I've heard as much as $1000 from some people.

Getting out of a lease is not usually a smart decision, financially.

cdeslandes

I've done it before.

It's only worth considering if you're over your mileage allowance, and have a few months left on the lease.

One time, I was over the mileage, and I actually saved $4,000 by paying the remaining few months (minus depreciation) instead of putting more miles on my truck.

But you have to look carefully at the terms of your lease. Some are easier/less expensive to get out of than others. Leases from manufacturers are more flexible than those from banks.

Some manufacturers will also help you out of a lease if you get a car from the same brand.

I've gotten early out of SAAB and Jeep leases with minimum damage. But forget about doing so with a LandRover or a lease through Chase bank, for example.

lirandy

iTrader: (2)

It really depends. Like my wife just traded in her leased 06 RX 330 for a 07 RX 350. We only had the 330 for 6 months. The dealer paid off what we had owed on that car and gave us an awesome deal on the new one. And we also save $55/ month on our lease monthly payment.

al503

If your current leased car is keeping its value better than originally projected, you can do like lirandy and trade up to a new model and either keep the same payments or even get lower payments. I've seen this with the G35 coupes also.

Talk to the dealer and find out what, if anything, they'll do for you. Can't hurt and you may be surprised.

Bichon

All the dealers around here use Galves pricing service to evaluate trades. http://www.galves.com You can buy a day of access for $5.

FITYSCENTS

I currently lease a 04 camry

After 30 months the payoff right now is still over what the car cost is worth brand new and obviously signifanctly more than what the car is actually worth.. My payments are low, but there is absolutely now way I can trade this in before my lease expired. Word to the wise. be careful when leasing take a look at the residual value calculated, buyout.... etc... Now I am stuck with three cars between me and my wife unneccsarily.,

heasyrider

Thanks for the input. According to KBB.com, the retail value for my TSX could be as much as 26K right now! I am a little suprised it would be that good, since I think it was only, like 27 or 28K brand new. It says the trade in would be around 20K, however. I currently owe 9K on my lease. I am thinking these #'s are to my advantage, but, I am still a little confused about the whole thing.

ff_

You're forgetting about the downpayment you offered up on the current car, and the downpayment that you'll have to offer up on the new one. That's a significant expense. What about all the "other" fees associated with buying a new car? That stuff isn't free. It's not as simple as "my monthly payment will be the same, or less"

ff_

The only number that you should be looking at is the trade-in value for "good" or "fair" condition. Subtract about $2000 from that, and you'll be in the ballpark of what the dealer is going to give you.

Plain and simple, you're going to take a bath on the deal if you get out of your lease.

Lennox

hey heasyrider -

what year model is your tsx? i got rid of my 04 tsx in march and i was 7 months shy of my lease maturity date. the resale value of the tsx was awesome! i was able to sell it at carmax and ended up paying off the note and still had 2K in my pocket. that then helped me get into my is250. so depending on how far you are away from your end date, miles, etc., you may be able to get a good trade in deal. i've sold 3 cars to carmax because they gave me more money than the dealer. i've never bought a car there--it's really easy.

umpalumpa

i think in this case, since you owe so much, youre gonna get hosed at LEAST a little bit. car companies dont generally encourage that sort of thing. go to the dealer and have them run the numbers. if they cant get to a payment you are comfortable with, then WAIT!
i had a year left on my grand cherokee (no, not a tsx, but still a pretty pricey car w/ v8 limited). anyway, we ran the numbers and they couldnt get my new lease payment to a price that worked for me - my limit was 600 bucks/mo for a new rx330 w/ nothing down. we ended up deciding that i would wait a few months, they told me to come back in a few months. it all worked out for the best as i ended up REALLY liking the is350 and i traded the jeep in 3 months early, the lexus dealer wrote a check to chrysler for the balance of the lease - a little over a grand - and i got my payment where i wanted it to be......ANYWAY, go to the dealer, know the facts, know what you want to pay, and make them talk to you lke a person who needs help, not a sucker. good luck!

ff_

Never, ever deal with your car salesman based on the car payment. Ever. I promise you that you're going to get hosed on the deal going that route. That's one of the oldest "rape the customer" tricks in the book.

Always deal based on price(s) alone. Know what you're going to be paying for the new car, and know what you're being given for your trade. And do your homework before you ever set foot in the dealership.

heasyrider

Thanks, Lennox, It's an 04 too, auto, no Nav, 21k miles. I have noticed on KBB.com that the resale is high. I am projecting out a little bit on all this, as I doubt I will be ready to buy or talk to a dealer for at least 4 more months. That would put me about 10 months shy of my lease maturity. At least I really like the TSX ( except it needs more power).