I have some time to go before my current lease expires, so this is somewhat premature. But I like to plan ahead
Current lease is my first one in a while, so I haven’t had to replace a car with a ticking clock in some time. Obviously when you own you can replace it “whenever” but not so now I guess.
So…when do folks usually do this? Does it depend only on supply/time to delivery of the replacement car? Are there brands more known for being willing to buy you out of an existing lease? What happens if I need to extend slightly (i.e. replacement car doesn’t arrive before current lease ends)? Anything else I should know?
Month-end and year-end are good time for a lease. There are a few brands such as GM and Hyundai that often offer conquest cash if you switch from a competing car-maker.
Trading in a lease early is a lot like trading in a car you still have a loan on - you’ll get a payoff quote from whoever you are leasing from and the company you want to buy your next car from will tell you how much they’ll offer you for it. In most cases, you’ll have little or negative equity in the car. If you are only a month or two from the end and have significant negative equity, sometimes they’ll just make the last payment(s) for you and trade it in for you, adding that to the cost of your new car.
I’m in the same boat - I’m 32 months into a 39 month lease, but a low residual, high payments, and a few other factors are making me start looking around right now. I seriously doubt I’ll find anything compelling for 3-4 months or more, but I like to at least know what I want and what kind of deal I’m looking for so I can jump on it if I see it. I have traded in a lease 12 months into a 36 month lease and definitely don’t recommend that, and I don’t think most people trade them in more than a few months early, if at all.
Most dealers will do this. Some brands even offer bonuses if you are coming from a competitor. I’ve found, though, that you often get the highest trade-in offer from the same brand you are trading in (Audi quoted me about $3k more for my SQ5 trade in as the Mercedes and BMW dealerships), and the bonuses from competing brands close the gap, at most.
If you don’t have a car before your lease ends, some companies let you extend the lease on a month-to-month basis. I don’t know offhand which ones do this, but I do know that it usually doesn’t change the residual, so you’re going to be turning it back in for sure if you do this. You’d want to check with whoever you are leasing from to see if this is an option and what the details are.
Many thanks for the thorough reply. Very interesting that existing brands usually offer the most. That’s not bad for me, as I like several models offered by my current brand. That said though, there are models from other mfrs that I will consider when the time comes.
