What's the catch? How does the trade-in value factor into the cost of the new car? I'm really confused about this. We were planning to just apply for a new loan with our bank at the end of our lease and go about the traditional "car buying" experience but this threw me off guard. The dealer is offering to take $800 worth of payments on our lease to put us into a new car but how does this really work?????
2007-05-20 01:48:06 · 4 answers · asked by oblivious m 1 in Cars & Transportation ➔ Buying & Selling
Manufacturer supported leases ( IE: GM-Smart Lease & Ford-Red Carpet Lease) often offer early termination incentives in order to help you into a new vehicle sooner.
You will have to use their lending source again though.It wouldn't make sense for them to waive payments so that you can use your own lender for your next purchase.
Beware of scams though!
If you are being solicited by a different dealer than you bought/leased from originally, it could be a scam. They can 'bury' your outstanding payments in the price of the new vehicle or use available rebates to pay those payments instead of YOU taking the money.
TIP:
If it is a legit offer, your lease termination is NOT considered a 'trade in'.
So if another dealer or another manufacturer is offering this 'perk' ...they will treat your current vehicle as a 'trade-in' & include a 'pay-off' figure to your new purchase. SCAM
2007-05-20 17:24:57 · answer #1 · answered by Vicky 7 · 2⤊ 0⤋
If it's the same make as you have now, the mfg, not the dealer, offers pull-ahead programs, were you turn your car in early for a new one of the same make. Most mfg's have this program, some will do more months than others, but it's a great thing for the buyer and the mfg if you plan on leasing the same brand again. And the best part is, the dealer isn't adding the payments to your new lease.
2007-05-20 10:49:22 · answer #2 · answered by jay 7 · 0⤊ 0⤋
Because the dealer will eat the payments to make the next sale. GM does this all the time where I live they advertise if your lease expires in the next 6 months they will pay it off. Just make sure your not getting jacked on your new ride to make up the difference.
2007-05-20 08:54:20 · answer #3 · answered by waddell73 2 · 0⤊ 0⤋
they pay your payments, but you have to lease a car from them
2007-05-20 15:27:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋