hi all. am contemplating upgrading from my S to an R. i leased my S about 2 months ago. have any of you made this switch? do you know how that would work, financially speaking??

 

Yes. Hand over your bank account.... NOW!! hehehe

 

🙀

 

Trading in a leased vehicle follows roughly the same process as trading in a purchased vehicle, its just more costly. You can get an idea of the costs and early termination fees by contacting your leasing company to get the payoff price on the vehicle.

How the trade-in process works depends on how the new car dealership handles things. Typically the dealership has two options:

1. Buy the car from your lease company by paying off the lease, or
2. Return the car to the lease company and pay the early termination costs

Since your lease is so early in its term, the cost of ending the lease will likely exceed the current market or trade value of the vehicle, which means you will have high negative equity and no trade credit.

If you intend to finance or lease the R, you might be required to make a down payment to offset the negative balance. Some companies allow you to finance more than 100% of the vehicle cost, in which case they will roll the extra costs into the payment plan. You will of course also be required to pay any taxes and registration fees again as well.

In general it doesn't make a lot of financial sense to trade in a leased vehicle unless you're close to the end of the term, but other considerations often trump costs. If your heart is set on the R then it may be worth it to you.

 

thank you. I wouldn't say I am hellbent on the R, already yet, but it would be a nice upgrade. will get in touch with a jaguar dealer and see how easily it can be done.

 

If it works there the same as it works here you will take a bath.

Unlike a home loan which basically charges you interest each day on your remaining balance and if you pay it out early you save interest. A lease or hire purchase calculates the total interest over your contract period and then loads it all up front so you don't start paying down capital until the contract interest is paid in full and if you close too early you will need to pay the capital plus any remaining contract interest, it may be more than the total purchase price of the car. I would suggest over a three year contract you probably won't have cleared the interest until towards the end of the first year.

This is also a trap for insurance, you need to make sure your insurance covers you for the interest as well as he capital in the case of a write off otherwise you might still be left with a bill.

 

hmm..thanks.

 

Years ago I traded a leased car for another I was several years into the lease. It was a 4 year lease (I was young and stupid). Several weeks later I had to write a big check (to me at the time) to the dealer of the car I traded too, for the early termination fee and what ever other fees they tacked on. And this was a cheap car compared to yours. I know you can try and have someone assume your lease if they qualify. That may be the way to go. I know there are companies that specializes in this. I don't know the names, but if you Google it, those type companies should be easy to find.

 

How about sales taxes in your state? Do you pay the tax on the full value? If so, you could get hit a second time, for the second lease, unless they can show it as a "trade".

 

very useful info..thanks!