Hi, Guest
09-20-2005, 12:14 PM
okay ....A lease can be a crazy complicated thing......lets try to go simple here...
pretend for a minute you are the dealer and a customer wants out of his leased car and wants to purchase a new one from you....
You would need to know first of all what the wholesale for that vehicle in that vehicles exact condition would be.Okay so you find this out...now most leases have buyout clauses burried into them as a contingent should someone want out...this could be as simple as your end of term buyout plus the total dollars left if you were to add up all of your payments left to get to your end of term.
so if your buyout is say $9500.00 and the number of payments left is 14 at $250.00 this would be 9500+(14x250)=13000.00
so if the wholesale on this vehicle were $15000.00 than there is equity in the buyout.
now this is a gross oversimplification of most lease terms but the theory is usually the same.Now the original down payment, interest charged and what the negotiated original price was all factor into the end buyout and the payments so they also effect the lease equity.....
check the lease terms it will all be there....never do a lease takeover without knowing all the terms....you can win bigtime if the vehicle you purchase holds value well....but do your homework here
pretend for a minute you are the dealer and a customer wants out of his leased car and wants to purchase a new one from you....
You would need to know first of all what the wholesale for that vehicle in that vehicles exact condition would be.Okay so you find this out...now most leases have buyout clauses burried into them as a contingent should someone want out...this could be as simple as your end of term buyout plus the total dollars left if you were to add up all of your payments left to get to your end of term.
so if your buyout is say $9500.00 and the number of payments left is 14 at $250.00 this would be 9500+(14x250)=13000.00
so if the wholesale on this vehicle were $15000.00 than there is equity in the buyout.
now this is a gross oversimplification of most lease terms but the theory is usually the same.Now the original down payment, interest charged and what the negotiated original price was all factor into the end buyout and the payments so they also effect the lease equity.....
check the lease terms it will all be there....never do a lease takeover without knowing all the terms....you can win bigtime if the vehicle you purchase holds value well....but do your homework here
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