Negotiate Trade In Equity on Leased Vehicle
Question: How do you estimate and negotiate the trade in equity on a leased car? My lease is up next week and the buy out price is $22.700. Kelley blue book value for trade-in value is 27,300.
Does this mean the difference is the equity I can negotiate for a new lease?Answer:
Negotiating the trade in value of a vehicle currently being leased would work the same as with a traditional purchase.
If the Blue Book Trade In Value is $27,300 they'll probably try to offer you somewhere in the $25,000 to $26,000 for it.
Depending on the type of vehicle and it's condition, they may step up right out the gate and give you the full trade value.
If you want to be aggressive however I'd suggest shooting for an amount closer to $28,000.
Depending on what number you finally settle on for your trade that number minus the payoff/buyout would be applied to your new loan/lease as down payment or Cap Cost Reduction.
Hope this helps,