Quick question guys, I just leased my Telluride SX prestige Green Moss with Mahogany interior 4 months ago. Fiancée wants to trade it in for a Jeep GC 4xe or GC L. Trade in value with excellent condition is 54.5k at the moment. Does the dealer look at Buyout or Residual when purchasing a leased car?
Fiance is nuts…why would they want a nice riding 3 row SUV vs a hard riding very unreliable jeep?
And Dealer looks at buyout so you are probably underwater right now.
Your online portal should generate a buyout price; there may also be a different buyout price (and rules) for dealers.
Residual Value would be the cap cost of the buyout at the end of your lease term.
Dealer looks at how much profit they can make.
You look at how much money the trade offer is vs your buyout.
You would then evaluate the GC lease or finance deal independent of the trade.
When you combine the two transactions, the dealership can move a lot of numbers around and if you aren’t doing this regularly, you typically will have a bad result.
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Ditto
10char
The biggest challenge here is going to be finding someone that’ll buyout a Kia lease.
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Dealer looks at whatever valuation they want. You will just want to make sure your buyout value isn’t completely misaligned. Also note some lenders don’t allow third party buyouts and those that do could have a higher third party buyout than the one you request.
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