is trading in a lease for a lease car before the end of the term a bad move?

Question

we are trading in an '05 nissan suv for an 07' murano- and are paying 3000 to get out of the lease which is what we would be paying if we owned it still. the nos. seem to work- and murano is much better on gas- and more comfortable for my husband who is 6'5. the payments are just 10.00 more per month.

Answer 1

That's sound like a fair deal. You always have to pay something to get out of a lease, and since you're going from an '05 to an '07 (new model), 10.00 is a small price to pay. Enjoy your new vehicle!

Answer 2

I'm a bit lost. Did you mean that you would pay $3K at inception? Or, is the $3K rolled up into the new lease? If it's the latter, it sounds like an awdully sweet deal to me.

1.To test it out, add up all the new lease payments (including the $3K.) Then subtract the cost savings from gas, etc., if there are others.

2. Now, add up the future payments for the older car, including the buy-out at the end of the lease. Remember that $3K today is worth much more than $3K in a couple of years. Theoretically, you should discount all of the expected payments at 8% per annum (year,) particularly if you have to shell out the $3K now.

Compare the costs and see which one works out the best for you.

Answer 3

Leasing is a superb way tocontinual greater vehicle than you need to usually arise with the money for on a purchase order, in spite of the undeniable fact that the flaws to contemplate are; annual mileage allowance ( be sure you have adequate, a minimum of 15 ok according to year), and residual cost (will you opt to purchase the vehicle after the hire end?).

Answer 4

The first answer was very good regarding relative cost. If you are asking about the impact on your credit score, it should be minimal. You are buying out the original lease according to the original terms, and at the same time entering into a new lease. Neither is considered a negative for credit reporting purposes.