[aerostar]

You can trade it in for the car value? Directly to the dealership?

[David70]

Originally Posted by aerostar

You can trade it in for the car value? Directly to the dealership?

If you can own the car for $20k and it is worth $25k you can buy it and do anything you want with it. The dealer might be interested in it, like any other trade, but he isn't required to do anything (or give you a set amount), or some other dealer or individual may also be interested in buying it for some amount more than what you bought it for.

The advice is if it is worth more than the residual it might make sense to buy the car and do something with it, depending on the numbers and how much you are interested in making some amount of money.

[SooperGook]

Originally Posted by aerostar

You can trade it in for the car value? Directly to the dealership?

you can do whatever you want as long as you satisfy the balance. it's just like financing. you can call and get a payoff, and as long as you pay the balance they'll send you the title (or the dealer who buys it etc)

[aerostar]

Originally Posted by SooperGook

you can do whatever you want as long as you satisfy the balance. it's just like financing. you can call and get a payoff, and as long as you pay the balance they'll send you the title (or the dealer who buys it etc)

Ah, okay.

So if my car's worth $29,000 at the end of the lease and my residual was $28,000, I can trade in the $1,000 towards a new car?

[Draper]

Originally Posted by David70

If you can own the car for $20k and it is worth $25k you can buy it and do anything you want with it. The dealer might be interested in it, like any other trade, but he isn't required to do anything (or give you a set amount), or some other dealer or individual may also be interested in buying it for some amount more than what you bought it for.

The advice is if it is worth more than the residual it might make sense to buy the car and do something with it, depending on the numbers and how much you are interested in making some amount of money.

This, though keep in mind in most states you're on the hook for sales tax on the residual if you decide to buy. Trading in to a dealer avoids this.

[SooperGook]

Originally Posted by aerostar

Ah, okay.

So if my car's worth $29,000 at the end of the lease and my residual was $28,000, I can trade in the $1,000 towards a new car?

exactly! now it's not often that you have positive equity, but if you're way under your miles there's a good chance. or some cars like my tacoma are always worth more than the payout