Is it “normal” for the lease agreement to not list a trade in? Dealer bought out my existing lease and gave me credit for approximately $5,000 net equity after buyout. Brought down the monthly payment by $150/month. However, the Trade In Allowance is Listed as “N/A” (zero). So to make the deal work the residual value seemed to be quite high.
Shouldn’t the net equity be listed on as the Trade In Allowance and therefore the residual value decreased?
The MSRP looks right and the monthly payment is what was agreed to so I’m confused.
It doesn’t ever change the residual. Trade in allowance would be essentially used as cost cap reduction.
They may have done the deals separately, leased your Nissan, and bought your lease instead of one transaction. Then gave you a higher discount of say 5k to compensate.
What is the total amount due at signing? That should include the $5000 in equity. I would assume there is no trade-in showing since they bought out your lease, which isn’t a trade.
Yes, it wouldn’t have been a bad idea to have asked for a check instead of using the equity on my old lease to reduce my payments. However, I did save a few hundred $$ in sales tax as a result.
The amount due at signing was the $503 1st month payment and $1200 in Line 4a (“Capitalized Cost Reduction including any trade in allowance”). However, I think that should have been the net equity on my “trade in” or sale (approximately $5000).
It would appear that if they actually rolled $5k in equity in, they sold you the vehicle for 10% over msrp. As written, they sold you the vehicle for 3% under msrp and no trade ever existed.
I hate to admit it but I negotiated the initial monthly payment and the trade in but not the price. The initial monthly payment was actually the lowest based on half a dozen quotes I obtained. The trade in price was decent but not at CarMax levels. But CarMax would have meant buying out the lease and waiting for a clean title from NY DMV which I heard is really backed up. So bottom line I guess it wasn’t as good a deal as I thought. Thank you.
of the equity as a check.
