How is a lease affected by my having a trade?

Ask the Hackrs Buy/Finance
1

I am investigating leasing a Volvo xc90. My calculator is below, I figure 10% off msrp is reasonable, there are lots of xc90 Plus in my area with 250+ days on dealer lots. Maybe I can get more?

in my original post I had ballpark figures because I was being a lazy moron. I updated the calculated with the real numbers

What’s confusing me is I have a trade with ~$17500 in equity, and when I add that in to the calculator it gives me a negative number back for my monthly payment. I assume that is not valid.

What is the right way to look at trade-ins when I’m leasing my next car? Does the value of the trade get applied to the cost of the lease like the calculator is trying to do? What happens when it makes things negative? Are there tax efficiencies to be had when leasing similar to when I buy a car and do a trade-in?

2

Keep the trade separate, and sell it to a private party, CarMax, Carvana, KBB or any of the others that can buy it (if it is a brand that will allow if leased). Dealer might give you a good price but keep it seperate.

You don’t want money (equity) down on a lease.

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3

If the dealer matches the best bid then use some of that for MSD and take the rest as cash back via a check.

4

Youre a super supporter, so you have access to the correct information here. A calculator with incorrect rv/mf is useless.

1 Like
5

haha yeah sorry I was being a lazy idiot, but yes I just updated it with the real numbers