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I leased a car in 2014. My residual value coming up at the end of the year is $11k. My mileage agreement was 10k a year. So, within 4 years I should have 40k.. but that is not the case. I currently have 108k and thats because i actually thought i wanted to buy the car. But i've changed my mind and i am over having my car. I want something different. Right now, a lot of dealerships are having large incentives for the 2017 models as they prepare for 2018s... I am interested in a car that retails at $27k... and has an incentive of $4k off. My lease on the other hand will have the residual at $11k If i trade it in, and they most likely will offer me $4,500-ish.. that will leave a balance of $6,500..

My question is- because the new car has $4k off... will that now leave my balance to a negative equity of $2,500? and i could pay that as my downpayment.. Is this how trading it in would work? I also have to include tax at 8% and the DMV license fees.

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have you actually talked to any dealerships? will a dealership take a leased car in on trade? what about the overage in mileage? does your lease company charge extra for the extra miles? if it were me, that's the first thing I'd do to see where you stand.
 

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Yes, i've talked to them before. But i'm unsure how the negative equity and incentives go.

There will be no overage charge on miles. You only get charged if you turn back the car. And anyone can trade a leased car in regardless if you've only had it for 6 months or 4 years. You just have to request the payoff quote.
 

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"I am interested in a car that retails at $27k... and has an incentive of $4k off. My lease on the other hand will have the residual at $11k If i trade it in, and they most likely will offer me $4,500-ish.. that will leave a balance of $6,500..

My question is- because the new car has $4k off... will that now leave my balance to a negative equity of $2,500? and i could pay that as my downpayment.. Is this how trading it in would work? I also have to include tax at 8% and the DMV license fees."

to be fair to you, no one on a forum can answer that, only the dealership. lay it out to them and what the bottom line is.
 

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I leased a car in 2014. My residual value coming up at the end of the year is $11k. My mileage agreement was 10k a year. So, within 4 years I should have 40k.. but that is not the case. I currently have 108k and thats because i actually thought i wanted to buy the car. But i've changed my mind and i am over having my car. I want something different. Right now, a lot of dealerships are having large incentives for the 2017 models as they prepare for 2018s... I am interested in a car that retails at $27k... and has an incentive of $4k off. My lease on the other hand will have the residual at $11k If i trade it in, and they most likely will offer me $4,500-ish.. that will leave a balance of $6,500..

My question is- because the new car has $4k off... will that now leave my balance to a negative equity of $2,500? and i could pay that as my downpayment.. Is this how trading it in would work? I also have to include tax at 8% and the DMV license fees.

Thanks
If there is no necessary capital, then you can take a car on credit. This is a simple procedure and almost anyone can take a loan of up to 50,000 bucks. Many do so. For example, I know that my former classmate took about a loan of up to 65,000 euros about 7 years ago and bought an expensive cadillac. For 7 years, he was able to fully repay the loan. I personally do not like credit, because during the loan I feel like a hostage to the bank ..
How do you feel about this? For example, would you take a loan from https://foxycredit.com/dk/extracash-lan?
 

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From Dave Ramsey...

"A car lease is a rip-off.

It is the most expensive way to operate a vehicle.

When you give the leased car back, you will have paid the car company more than the car has depreciated during that time. During the lease, you’re also maintaining the car as if you owned it, but you’ll get charged fees for excessive wear and tear, or if you put too many miles on it. For example, if you paid $24,000 over the life of the lease, and it went down $15,000 in value during that time, then it cost YOU an extra $9,000 to lease the car for that period of time. That's their profit.

Another thing is that the interest rates on a vehicle lease are not disclosed because the Federal Trade Commission doesn't define a lease as a debt, so there is no federal disclosure required. Therefore, you have no truth in lending disclosure sheet provided. The interest rates you get charged are unbelievably high. That’s where you’ll realize you got screwed over.

People get sold automobile leases because they are told that it’s what sophisticated people do.

Don't fall for it! Pay cash for a car you can AFFORD."
 
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