Leasing 101

[gutbomb]

Originally Posted by noobcake

How lenient are companies to trade in leased vehicles for another early? I will give you an example, We leased a 2012 lancer and its been 2 years into the 4 year lease. Mitsubishi gave me a call if I wanted to trade my vehicle in early for something else, I denied, but thinking about it, I have 2 more years on my lease? Why would they want it back? will they just tack on the amount I owe towards a new vehicle such as a EVO? Should I wait one more year until I do decide to trade it in. I have done this with Honda in the past, but I just turned the vehicle in 3 months early instead of a year or two as long as I leased another vehicle from them it was ok.

You're thinking about it the wrong way. You don't "owe" anything. What they are doing is called a lease pull-ahead. They want a low mileage used car they can sell as certified (your current car) and are willing to end the lease now to get you into a new lease now. It give them 2 things they desire. Thing 1: they get to keep you as a customer. Thing 2: They get a car that's easier to sell than a new car and they can make money.

Your remaining payments aren't contributing to the value of your current car, they are lease payments, basically rent. If your landlord came to you and said "hey, I'll let you out of your lease here if you want to move into our new better building and sign a lease there" you wouldn't expect to have your remaining rent payments be tacked on to the new place, right? Same deal with the car.

If you're actually considering leasing an evo and want to lease it the time to act would be now. It's the last year of the evo and if you wait a year there might not be any available to lease.

If leasing it isn't important to you you might be able to find a used one to buy next year.

[eikond]

Originally Posted by noobcake

How lenient are companies to trade in leased vehicles for another early? I will give you an example, We leased a 2012 lancer and its been 2 years into the 4 year lease. Mitsubishi gave me a call if I wanted to trade my vehicle in early for something else, I denied, but thinking about it, I have 2 more years on my lease? Why would they want it back? will they just tack on the amount I owe towards a new vehicle such as a EVO? Should I wait one more year until I do decide to trade it in. I have done this with Honda in the past, but I just turned the vehicle in 3 months early instead of a year or two as long as I leased another vehicle from them it was ok.

The residual value moves downward as your progress through the lease. The value is published in your paperwork as the ending residual, but they don't share what that value is at other stages in the process.

You can call Mitsu and ask them what your current residual value is and then talk to the dealership to see what your current trade value would be. If they are close together then you can get out of your lease early. Though you may have a few hundred dollar fee tacked on for an early-termination cost. Mitsu might not charge that if you go to a dealer though.

Point is. You can buy out your lease at any point in the process. You just need to call and ask them what your current buyout would be.



BTW.. @ruskymx This is the best leasing thread I've ever seen. I can't remember seeing any thread on leasing that i haven't had to comment on and correct some of the finer details. But, you've nailed it! Nice work!

[zc06_kisstherain]

nice thread. personally leasing is not for me but i might get a lease European cars for my wife. 2-3 years of luxury enjoyment then return the car. dont want to deal with expensive maintenance cost

[srt4evah]

Just in case anyone from Texas is considering a lease, it's extra crappy out here. The sales tax (6.25% on vehicles) is charged against the FULL MSRP of the vehicle, not the monthly payment or the total lease payments.

Most states just charge you tax based on the payment amount. Lame, Texas, lame...

[USDM TOYOBARU]

How about buying out someone else lease FR-S?
Any advantages of buying out the lease vehicle?

Thanks!

[Sandy209]

Hey Rusky since you're so knowledgable on this topic, do you mind helping a stranger in need? Any help would be greatly appreciated. Thanks!
Here's my situation:
http://www.ft86club.com/forums/showthread.php?t=73929