Including “trade in” equity in LH Calculator

howdy- I am working on a CX-5 deal for a family member and am trying to understand my numbers.

I have $2,079 equity value of my previous lease that I plan on rolling into the Lease.

I technically want to see a “Zero Drive Off” price in the LH calculator after considering the equity. Should I uncheck ZDO and put the equity as the down payment?

2021 CX-5 Touring AWD

There are two options on how to handle this, depending on if you’re trying to establish cost or cash flow. The calculator FAQ walks through both in detail.

1 Like

Thanks- I should have checked there first; I will update if I have any further questions

1 Like

As a note, I rolled the $2,079 into the Selling Price of the vehicle following the FAQ and updated the original link.

We are working on this CX-5 Touring AWD for $318 a month “ZDO” after the equity for anyone else researching the Utah market. Deal is not finished but hope to close today (with additional roof rack & installation included ~$600 value)

That is certainly a way of doing it and is definitely useful for validating a dealer offer/contract.

For shopping, however, I think it’s not the best approach as it conflates the only really useful value; the pre-incentive discount. Have you already established the quality of this deal without the trade in as part of the conversation?

1 Like

You should just take it as a check.

Aside from making your calculations simpler, there’s no good reason to put $2,000+ down on a lease.

Thanks for the input- I agree that the $2K should have been taken as a check and applied to payments later on.

My sibling was concerned about the “higher” monthly payment. From her perspective, since the extra $2k equity from the previous lease was unexpected, she put it towards the car for a lower payment.

Ended up 7% off MSRP which was middle of the road for what I saw during research. It wasn’t the best deal but there are not many dealers in the Utah area- there wasn’t much movement over our past month research/negotiations

Thanks for your assistance