not understanding financing... (F150, lease, vehicle, 2013)

[thespykidinseattle]

I have a 2013 Nissan Juke SL that was appraised at $14,500 at CarMax. I'm currently leasing.

The car I want is a 2016 Dodge Challenger SXT, which I also want to lease.


I was offered financing through CapOne for $15,000. I know it's sucky... my credit is getting fixed now.


This is the part where I get confused... so please, no harsh comments.


If I owe less than $3,000 on my current lease, and my car is valued at $14,500... does that count as a trade in...?

[PeachSalsa]

If you are LEASING, you do not OWN it. Leasing is like renting...no ownership, no equity.

[thespykidinseattle]

Originally Posted by PeachSalsa

If you are LEASING, you do not OWN it. Leasing is like renting...no ownership, no equity.

gotcha.

[North Beach Person]

Aren't you also trying to juggle an Equinox for a F150 trade?

[thespykidinseattle]

Originally Posted by North Beach Person

Aren't you also trying to juggle an Equinox for a F150 trade?

That's my partner. we didn't want to make different accounts.

[LeagleEagleDFW]

Originally Posted by PeachSalsa

If you are LEASING, you do not OWN it. Leasing is like renting...no ownership, no equity.

This is partially true, and partially false. A lease has a payoff like any other type of financed vehicle. If the payoff is $3,000 (highly unlikely) then the lessee is entitled to any sum over and above the payoff amount. OP needs to get a payoff quote.

[notnamed]

Originally Posted by PeachSalsa

If you are LEASING, you do not OWN it. Leasing is like renting...no ownership, no equity.

You can sort of get equity. If your residual value/buyout is less than market value you can buy it out and sell it in a single transaction to a dealer like Carmax. That way you capitalize on them undervaluing the residual. Even more if you just buy it out then sell privately.

[thespykidinseattle]

My car was appraised at $14,500 but my payoff is about $17,400.
I have $3000 left to pay on my lease.

I thought I'd get something out of it because my car is way under miles (just hit 20,400) and in almost mint condition.

[notnamed]

Yeah you're not getting anything out of those numbers. You owe money. Better off just riding the full lease term out and turn it in then get your next car.

[Rabrrita]

First things first, what is the residual or buy out price for the vehicle you are leasing? That is the amount you "owe" on the vehicle, not what you have left in lease payments. So if the buy out price is $17,000 and their trade in value is $14,500 your entering the new transaction $2,500 upside down plus the full appraised value they gave you just to satisfy the lease. I really think you have to ask why you are jumping into more debt (especially if you have already made bad financial decisions in the past) when the deal is bad for you from the start.