Should I lease another (cheaper) car, after this one? Please read:
I know the knee-jerk answer right now is to buy out your leased car, in this climate, because you’ll have equity in it, and dealers still aren’t discounting new cars, so you’ll get hosed on a new purchase/lease, and buying it is what I’m planning to do, but I thought of a new wrinkle to this whole thing:
Leasing a less expensive car when my lease is up.
So, I drive a 2020 Volvo XC60. The buyout amount (in February) will be $30,250 + interest rate/fees/extended warranty, etc. At 60, or even, gulp, 72 months, (which I DON’T want to do), that’s going to be well over a $500/$550 payment, maybe even $600+ (I got a great deal before the pandemic and my payment is well under $500.00)
I don’t want to do that, if I can help it. I also don’t need this particuar car anymore. I don’t need a crossover, and I don’t need this “level” of vehicle. A well-equipped Honda/Toyota/Hyundai/Kia midsize sedan would be just fine.
So, I was thinking, would I make out a little bit better if I were to buy my lease out, and trade it in on a new lease, on say, a Honda Accord Sport or a Hyundai Sonata/Kia K5 GT, at $32k +/-? The trade in value on mine will be around $37k at the end of the lease, so maybe I could use the equity as a down payment on the lease of a cheaper vehicle, and bring those payments down.
Even if there isn’t a ton of equity, there will be SOME, and I could also easily add cash if I had to, but I’m trying to keep my payments below $500/month with no MSD’s if possible, so I thought maybe going cheaper would do the trick.
What say you?