I’ve seen a few people here mention trading out early when the equity makes sense. For those of you who’ve done it, how do you usually decide when the timing is right? Do you wait until you’re close to break-even, or just track used market trends?
Just trying to learn how the veterans here think about it.sss
I leased 12 cars in the past 10 years and just returned 2 of them; I traded in the rest.
Of the 2 returned leases, one of them was an early termination, which, with a pull-ahead, I ended up paying $700 out of pocket. While people have different approaches, what I learned is that sometimes a good deal cannot be replicated the next month. If I have equity, I am more in the market, and if I am negative, I throw numbers to the dealer with the retail value for my trade-in, and surprisingly, it worked twice.
What worked? They gave you less of discount to cover your negative equity? I hope on all these deals you calculated your own target lease payment/DAS. If not, even if you have leased 12 times, it means you most likely left a bunch of $ on the table.
all they do is give you more money on the trade in, then raise the MF or give you less discount.
It works, for them and you feel you got a good deal.
Feelings don’t matter…only how the deal compares to educated target lease payment/DAS data. 
I was being nice…lol
Did you really want me to say
You got bent over, whacked with a board and said ‘Thank you sir! May I have another’?
Dealers have many tricks to get you and if you add a Trade In, you gave them a few more ways.
LOL
Yep you should! I hate when people say it feels high…or it feels whatever…based on what exactly?!
Need the numbers, do the numbers!
That hasn’t been my experience personally, but I’d be sorry if it’s happened to someone else.
I’ve never put any money down on a lease, and I’m strongly against doing so—unless it’s for MSDs. For me, the real advantage comes from knowing the numbers, having enough time to work through them, and connecting with the right person at the dealership. I’ve shared most of my deals here to be transparent and help others see how that approach can work.
? There is a difference between down and DAS you know…
What does this mean? You don’t have any idea how to calculate payment/DAS but you just know a good payment when you see it? Sorry dude but you have left lots of money on the table then.
I appreciate your input, but I’ve already backed my statement with actual results and data. Your question doesn’t seem to add much value to the discussion.
Is that so?
That’s actually really helpful to hear.
I’ve seen a few people mention that same thing that sometimes a good deal just doesn’t come back the next month, so it makes sense to jump on it when you can.
And I like the idea of just putting numbers out there based on retail value; I wouldn’t have thought that could work, but sounds like it really does in some cases.
Didn’t think of that.
That’s actually a good point. I think a lot of people (me included) might not always calculate the full target payment and DAS before talking numbers. It’s easy to just focus on getting out of the negative equity without realizing what’s being left on the table. I’m curious now, do you usually have a go-to method or formula for figuring out the ideal payment before negotiating?
Learn how to use this to put a payment/DAS together…it is simple…you need to have a target discount off MSRP and use base MF and RV for your term/miles. You can just treat negative equity as negative down payment in the calc too. Pay attention to the difference between down and DAS on the calc. Play and learn!
OK, so you don’t know math…the value added to actually knowing the lease payment/DAS math is immense!
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Rolling negative equity into a lease payment is not a good idea unless incentives or payments make sense.
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The easiest way to know your car’s value is Carmax or Carvana. If equity exists, you can use them, or use them as a point of reference for negotiation.
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If you want to take a step higher to sell it at market value, more research is required. Data like MMR and ACV are very helpful to know the wholesale value. I look at the comparable cars within 100 miles to find the average market value. Other factors like “market day supply” are very important for franchise dealers for cash flow. These data are helpful, especially when you have a high-demand car.
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The last step is to find the car you’re looking for, and I use Edmunds to find the MF, RV, and incentives, and aim for between 8-10% off MSRP, and prepare a proposal with the monthly payment. And usually, I just share my trade-in information and target monthly price.
I followed these, and I got a good result with a dealer that I could never think I could deal with. Believe it or not, used cars bring more profit to most dealers (with finance and extended warranties) with traditional operations. This is not easy, and as I said, it just worked two or three times out of all of my attempts and needs a lot of patience.
I’ve already run the numbers, and the results are clear. You’re arguing without a single fact to support your point — not exactly a productive approach. But thanks for the lecture.
I would clarify that it’s a target pre-incentive/pre-rebate discount off MSRP and knowing what rebates/incentives are available to you.