Reply to Trading up on a lease

Forum Index » Cars and Transportation

Reply to "Trading up on a lease"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]I have an Audi A4 but with two kids it's kind of tight.  24/42 months on my lease are done...what would be the consequence of trading in my A4 for a larger Audi?  They were being stupid at the dealership and wouldn't give me an answer.[/quote]

Unless you absolutely have to - don't do it. You would have to buy out the lease. What that effectively means it pay for Audi for the current residual value of the lease. This is likely pretty inflated and you will lose money on it.

For example, if you bought the car (for lease purposes at 40K). The residual value at lease end in four years is determined to be $25K...the current residual value is probably smack in the middle - $32.5K. This is what Audi will expect you to pay to get out of the lease. If you sold the car to a dealer they might only be willing to give you mid to high 20s for it. If you are willing to eat the difference then go for it. Otherwise wait it out and see if in the final year of the lease you can trade out early. Car companies will often do 6 months or so if you stay with them but 2 years is not tenable.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics