Only partially, as pay off is based off of the base payment amount rather than the entire payment.
Right now, if you go off the purchase options, there is $5-6k in equity on the vehicle and the dealer is only paying out $2k of it. The other $3-4k in equity isn’t going to cover the remaining payments, they’re just pocketing it.
In Acura’s leases, the base monthly payment is inclusive of everything. The exception is taxes, depending on location. They are absolutely using most, if not all, of that $3-4k to cover those extra payments that are baked almost entirely into the current payoff.
This was true back in 2015 and 2018… whether it’s true in their leases today, I’m not sure.
This makes no sense at all.
The $5-6k equity is the delta between the dealer payoff and what the market buying price is. There are no payments that have to be paid off after that.
I’d like to see that substantiated. There were an awful lot of mdx leases that were purchased immediate after leasing specifically because this wasn’t the case.
The payoff already includes those payments. Residual + remaining payments.
This isn’t the same as turning in a lease early with no equity where yes, those remaining payments are being baked into the new lease.
Yes you are right. We thought so too. But this is something different. They are ending the lease without obligation to pay also not rolling the remainder into the new new lease. Then just beginning a new 36 month lease in the 2022 MDX. Its all in the math. And the new lease adds up correctly. 0 down just TL&R & obligatory dealer fees. Nothing else added in. No hidden fees found.
Haven’t decided to take it yet. I would like for them to split the equity with me more than they have offered to. Still negotiating. I’m hoping to bring the new payment closer to what we pay now. But we are not working on payment, only price and adjusted cap right now.
No not magically disappear. They are buying out the last 9 mos. The payoff for them it’s 36.+k my lease buy out is 39.7k which has the leftover payments and tax i believe in that amount.
Exactly right
There is no additional payment coming out from them for these payments.
They’re simply buying the car from you for $38.xk instead of the $41-42k others will pay for it.
Yes i know. They are using the remaining payments as a reason, saying they have to pay off those, like as if it was a favor LOL
That’s why I keep at them to give me more of that equity toward my new lease as cap cost reduction.
This is the part of negotiations where I hit them with knowledge and challenge their bs. It will result in me or them saying no.
But im still going to have to do it again at lease end in April if not now.
You’re right. The remaining payments are included in the payoff and the dealer is pocketing the equity. Not sure where my head was at last night 
Why don’t you keep the trade and new lease separate for full transparency? Does AFS allow 3rd party buyout? I can’t keep track anymore.
Breakdown of the base monthly payment math from a 2015 Acura lease contract.
And their explanation of how the payoff is calculated.
They did as of a couple of weeks ago:
I read that as the pay off is based on the adjusted cap cost less the depreciation portion of the payments based on the actuarial basis where the base payment is established by paying the rent charge first.
That doesn’t read to me as the pay off includes the rent charge.
I read it as the payoff (adjusted lease balance) is the (i) remaining portion of the depreciation delta between the adjusted cap cost and the residual, and (ii) the rent charges.
All this says to me is that in the case of this example lease, the Base Monthly Payment is $300. The Rent Charge portion of that payment is $8.74 ($314.64 / 36 months) and the remaining $291.26 ($300 - $8.74) is applied as a reduction to the Adjusted Cap Cost. I don’t see anything here that allows someone to avoid the rent charge. It’s built into the “Base Monthly Payment.”
It looks to me like the payoff, aka adjusted lease balance, is adjusted each month. The monthly payment first goes to cover the rent charge and then the balance is applied to the balance of the lease balance.
That’s why it says the “base monthly payment is applied first to rent charge and any remained is subtracted or added to the balance.”
It’s essentially saying that each month, if your monthly payment is lower than than the set rate, you first pay the rent charge entirely and then any balance adjusts the payoff. Likewise if you pay over, the rent charge is covered and the remained goes to the balance.
Unless something suddenly works out.
We are probably keeping our car until closer to the lease end. Ill deal with it all in 6-9 months. We’ll see how the world is at that time. As we have seen its unpredictable. Things can change overnight.
Take care all…
I think we are keeping the lease for now. The car buying is crazy upside down right now. It’s enough that i have to get 2 other cars that are actually needed.
I was going to keep the 2 lease separate and then sell my current lease and pocket the difference. However the new car prices are not easy to negotiate right now since so many people are willing to pay over msrp!
My payments would be higher than i want to pay.
I never put money down on a lease Without the lease equity on my current car there is no cap cost reduction or down payment to lower the msrp.
Unless I’m missing something? This is the first time i ever thought to sell my lease to 3rd party.
I learn new things each time i buy and sell my cars.
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