Lease Trade In - Toyota GR86, 86, FR-S and Subaru BRZ Forum & Owners Community

yannerd · 08-23-2012, 02:47 PM

So my lease is coming up and I will likely be picking up an FR-S. I see tons of info on this in the US but I wasn't sure if this was common in Canada. My residual is quite a bit lower than market/trade in value. Has anyone had any experience working out a deal where you trade in a leased vehicle with a lower residual in the past?

truenosan · 08-23-2012, 09:07 PM

Is that you Yan?

yannerd · 08-24-2012, 02:21 AM

LOL funny seeing you here Johnny

truenosan · 08-24-2012, 01:05 PM

I'm here because I'm waiting for the new toy to arrive

Stu baru · 08-24-2012, 01:16 PM

If the residual is a lot lower, you might finance buying the vehicle outright and then selling it privately for market value so you can apply the profit to your new ride. Depends a lot on the difference, the demand for your current ride (and therefore the likelihood you'd be able to sell it quickly and for what you expect), etc. Just a thought.

delsol97 · 08-24-2012, 08:51 PM

Buy it out, sell privately. Pretty simple...

JoeyV · 08-24-2012, 08:59 PM

There are 2 key things here that I need to say...

1) Keep in mind you residual value is taxable and will therefor be 13-ish% higher than the number you see. For you not to lose any money, you would have to sell the car for that new amount...which the person buying it from you would have to again pay taxes on. At which point, the car would no longer be under market value.

2) that aside, what kind of car do you drive that has a residual value lower than the current market value? (Assuming you took a regular or low-mileage lease - if you took 35K + lease, than it's understandable) I work in sales and have never seen a car actually worth more than the residual value.

With answers to these questions, I might be able to help you out a little easier. Cheers.

08-23-2012, 02:47 PM	#1
yannerd Member of Junior Join Date: Mar 2012 Drives: 2013 Subaru BRZ Location: Vancouver Posts: 20 Thanks: 3 Thanked 1 Time in 1 Post Mentioned: 0 Post(s) Tagged: 0 Thread(s)	Lease Trade In So my lease is coming up and I will likely be picking up an FR-S. I see tons of info on this in the US but I wasn't sure if this was common in Canada. My residual is quite a bit lower than market/trade in value. Has anyone had any experience working out a deal where you trade in a leased vehicle with a lower residual in the past?

08-24-2012, 01:16 PM	#5
Stu baru Official Cobb beer knurd Join Date: Jul 2012 Drives: 2013 BRZ-L MT SWP Location: USA Posts: 168 Thanks: 45 Thanked 34 Times in 28 Posts Mentioned: 0 Post(s) Tagged: 0 Thread(s)	If the residual is a lot lower, you might finance buying the vehicle outright and then selling it privately for market value so you can apply the profit to your new ride. Depends a lot on the difference, the demand for your current ride (and therefore the likelihood you'd be able to sell it quickly and for what you expect), etc. Just a thought. __________________ Don't text while driving, everyone around you will appreciate you not endangering their lives.

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08-23-2012, 09:07 PM	#2
truenosan Senior Member Join Date: Jun 2012 Drives: 13 Firestorm FRS Location: Vancouver, BC Canada Posts: 219 Thanks: 7 Thanked 44 Times in 33 Posts Mentioned: 2 Post(s) Tagged: 0 Thread(s)	Is that you Yan?

08-24-2012, 02:21 AM	#3
yannerd Member of Junior Join Date: Mar 2012 Drives: 2013 Subaru BRZ Location: Vancouver Posts: 20 Thanks: 3 Thanked 1 Time in 1 Post Mentioned: 0 Post(s) Tagged: 0 Thread(s)	LOL funny seeing you here Johnny

08-24-2012, 01:05 PM	#4
truenosan Senior Member Join Date: Jun 2012 Drives: 13 Firestorm FRS Location: Vancouver, BC Canada Posts: 219 Thanks: 7 Thanked 44 Times in 33 Posts Mentioned: 2 Post(s) Tagged: 0 Thread(s)	I'm here because I'm waiting for the new toy to arrive

08-24-2012, 08:51 PM	#6
delsol97 Member Join Date: Jun 2012 Drives: none Location: Kelowna Posts: 40 Thanks: 3 Thanked 7 Times in 6 Posts Mentioned: 0 Post(s) Tagged: 0 Thread(s)	Buy it out, sell privately. Pretty simple...

08-24-2012, 08:59 PM	#7
JoeyV Member Join Date: Jun 2012 Drives: Scion Location: Montreal Posts: 43 Thanks: 7 Thanked 11 Times in 8 Posts Mentioned: 3 Post(s) Tagged: 0 Thread(s)	There are 2 key things here that I need to say... 1) Keep in mind you residual value is taxable and will therefor be 13-ish% higher than the number you see. For you not to lose any money, you would have to sell the car for that new amount...which the person buying it from you would have to again pay taxes on. At which point, the car would no longer be under market value. 2) that aside, what kind of car do you drive that has a residual value lower than the current market value? (Assuming you took a regular or low-mileage lease - if you took 35K + lease, than it's understandable) I work in sales and have never seen a car actually worth more than the residual value. With answers to these questions, I might be able to help you out a little easier. Cheers.

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