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Can You Trade in For a Lease?


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Just remember if you lease you will have nothing to trade if you ever decide to buy a car after leasing. That can put you in a situation when your lease expires and you're forced to get another car with no trade.

 

Buying is always better than leasing IMO, even if you have to settle for lesser car.

Edited by FusionDiffusion
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I traded my 2010 Sport for single-payment 2012 Sport AWD lease. That way, I have no payments. The 2010 was financed at zero interest from Ford and paid off. It was a simple transaction. You can also use your trade-in to pay-down the lease to reduce your monthly payment if the trade-in value won't cover the entire lease payment (which is most likely the case with a 2006). My advice is to visit several dealers as I found their trade-in valuations were very different.

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Leasing is particularly advantageous when the residual values of the vehicle is high, there are good incentives on the one you want or you want a new vehicle every 3 years or so. If, after the term of the lease you decide you no longer want the vehicle, you can walk away from it. If it is worth less than the preset residual value, no loss to you. If you bought it and it was worth less than what you owed when you wanted to trade, you loose the difference. Often there are special incentives for leases through Ford Motor Credit.

When they were closing out the Mariner Mercurys, we leased two of them with $2,000 trades for under $200 a month for 27 months. One we bought off lease for a family member, and the other we walked away from. The residual value is set on MSRP so if you get incentives, rebates, negotiate a better price, all those savings reduce your lease payments for the lease term. It is like getting them up front instead of over the length of a purchased car loan. $2,400 svings on a two years lease is $100 less per month. $2,400 savings on a 60 month car loan is $40 less per month.

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Leasing is all based on the math. Sometimes it pays off. Has its ups and downs..

 

I was going to lease a new 2013 Fusion Hybrid but even at 47 city and 47 highway.. my monthly lease payments were much higher than the monthly payments of my current fusion. And the MPG didn't make up the difference enough to lease over purchase.

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