I currently own a 2020 Volvo XC60 Inscription with fewer than 35,000 miles and am considering using it as a trade-in toward a new Volvo PHEV lease, or comparable vehicle, in Louisiana. I’m looking at a 39-month lease with 12,000 miles per year. Given that the trade-in value may be higher than the total lease obligation, how is the remaining equity typically handled? I have A-plan and Costco executive membership.
Our long-term plan is to move to a single-vehicle household within the next 3–4 years, so we’re interested in maintaining a newer vehicle that stays under warranty during that period.
On a lease just pay first, doc and TTL…and ask for a check on the overage. Check Carmax, etc for value on trade too. Make sure you research and calc your own target lease payment/DAS yourself…make educated aggressive offers instead of acquiring quotes.
9 times out of 10 it will make more sense to separate the two transactions. Not to mention if you don’t know all the details/math on the new lease you’re a prime candidate to get ripped off.
If you are implying that you will use your current car to make the equivalent of a huge down payment, I think that is not a good idea since you lose your down payment, in the event that the car is totaled. Maybe do a one pay instead?
I agree w/ the post above to keep the transactions separate.
Thanks for the input. My first inclination keep the transactions separate. I have a little time to do some more digging.
