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