Can I simply go from one lease to another if I'm buying from another dealer? Ex: A) I have 1year+ left on my Car1 lease, to own the car outright today it would cost me $70K. B) The residual at the end of the lease on car1 $61K C) I'm looking at leasing a car2 $72K but DON'T have the money to purchase my Car1 $70K outright at this time. Can the dealership with the $74K Car2 lease car take my Car1 lease over and switch me cars???? Possible... or do I still have to buy out my Car1 lease??
The answer is yes to everything........and if there's a difference to be paid to get you out of the lease.........you just write the cheque for it to the dealership. If you are trying to avoid paying a difference, then you obviously keep your existing car if it is not worth the lease buyout today from the dealership's/marketplace's standpoint. I do it all the time. The dealer will payout the old lease for you and book the car into their inventory for resale at retail, or thru the auction...and you drive away in the new one. If you've already talked to a salesman in a store who says they can't, then I've missed the point of your question.
KDS is right. Trading in a leased vehicle is no different from trading in a vehicle that is financed conventionally. It will work like this: If you owe $70K on your car, chances are that it's worth $60K or less. Most likely less. Remember, you haven't been paying on a large chunk of the principal (the residual), so you're going to owe quite a bit more than it's worth, especially to a dealer on trade-in. Let's say it's appraised value is $55K. Value: $55K Payoff: $70K Net trade-in value: -$15K This negative equity can either be paid in cash by you to the dealer (who must pay off the car in full in order to transfer title) or can be added to your new lease or loan, up to a certain amount depending on the lender, or a combination of the two. It can definitley be done, as it's done all the time. It will either increase the down payment, the payment or both on the new car, though. That is, unless the dealer thinks your car is worth $70K (highly unlikely). Hope this was helpful.
If you look at what Wayne said, you can see that this may not be a good idea. You're effectively adding an extra 10k or more to the retail of a new car, which you will lease, and then, when that lease is over, you'll owe more than its worth. Never ending cycle, guaranteed to never provide any equity in the car, and cause you problems later. I don't recommend that solution. Art
Totally agree with Art. Assuming Wayne's numbers, you've bought a car that you are 15k upside down on. You buy another car and roll that $15k into it. So if you get into a similar situation to your current one, you could upside down ANOTHER $15k, for a total of $30k. I realize you didn't ask for advice, so feel free to ignore it, but why not just tough it out one more year in your current car?