A leasing question for any of you out there with leasing/finance experience.

I have a '07 Mini Cooper S on a 3 year lease. I was considering trading in the car for a new Clubman... the additional space has become a consideration and I've always liked the clubman.

I'm not 100% sure how lease "equity" works, but AFAIK it's possible to be "ahead" on your lease (if the finance company overestimates the depreciation or I paid a lot up front) and have some extra money in the car. Is that correct?

Additionally, I wanted to know how I can calculate the "equity" in my current car, i.e., how much money it would generate towards a new car down payment if I turn it in now vs. when the lease is up. Thanks!

 

You are correct. What your MINI is worth less what you owe. If it's worth more then the lease pay off you have equity. If not you will have to pay the difference. Try http://www.kbb.com/ and http://www.nadaguides.com/
They may be off a little however it will give you some idea. Hope that helps.

 

yup
you will never have equity.. well maybe the last week of the lease

find out what the payoff is.. just like a loan..
don't tell them its leased when you go in.. let them make you an offer for trade..
they will say.. well. the lease pmt is 400 you have 10 months left.. so 4,000 .. don't let them start that way.
just get an offer..
go to a carmax and see what they will pay you for the car. mini dealers are really bad at giving you money on a trade..


they hold such good value.. that it hurts the used prices.. why not buy new ? they say.

i have a buddy that went to the dealer.. couldn't deal.. went to carmax..sold the car.. got a ride back to the dealer.. and bought a new mini..LOL

sound weird..but true

 

Ok, so according to my financing, I own a remaining $4400. Now... how do i figure out the total amount owed, is that 4400 + end of lease value?

 

Anyone?

 

call the mini finance phone number and ask what the buy out on the lease is as of today .

you will get a payoff.. just like a loan

 

Close probably. Lease payoff will be the residual value plus any remaining payments, plus any predetermined fees specified in the contract. There may be a break on the interest owed since you're paying off early. In general though, you are almost always upside down on a lease since you are only financing the depreciation of the car.