Automotive

Lease mid term options to get into new car

  • Last Updated:
  • Oct 31st, 2016 12:39 am
[OP]
Sr. Member
Nov 21, 2007
645 posts
85 upvotes

Lease mid term options to get into new car

I have a Hyundai Elantra that's we are leasing over 60mth.
What are my odds at getting into a new Tucson at relatively similar monthly payments?

Currently got 40k on the Elantra, at $250/mth and it's in excellent condition, base with auto, ac, pw, pd...
6 replies
Member
Jun 10, 2008
498 posts
375 upvotes
Halton Hills
Why don't you go to the dealership and ask them? Since you're looking for another Hyundai thy may give you a break.
Sr. Member
Nov 23, 2012
522 posts
192 upvotes
Toronto
I don't think you can get similar monthly payments unless you put a large down payment. Tucson is like 50% more expensive than Elantra.

And you are only half way at your lease and I don't think you can get out of it without paying the dealer some money or transfer the lease.
Deal Expert
Jan 15, 2006
18769 posts
18329 upvotes
Richmond Hill
60 month lease??? WOW!

At this point you will be upside down, so it will COST you a lot to get out of the lease.
Deal Addict
Dec 28, 2002
3023 posts
328 upvotes
read the lease agreement. if your mileage is lower than usual and your car is in good condition, the trade-in value may be higher than how much you have paid. in this case then the dealership may be willing to buy the vehicle.

otherwise, you would have to pay the difference on the resale and how much you have paid for the car.
[OP]
Sr. Member
Nov 21, 2007
645 posts
85 upvotes
Thanks everyone.

I think we will just keep the elantra... :(
Deal Addict
User avatar
Jul 5, 2011
2180 posts
2379 upvotes
Toronto
kareshi wrote: read the lease agreement. if your mileage is lower than usual and your car is in good condition, the trade-in value may be higher than how much you have paid. in this case then the dealership may be willing to buy the vehicle.

otherwise, you would have to pay the difference on the resale and how much you have paid for the car.
Not likely the case - but the right idea.

At any point in a lease, you will have what is called a "contractual obligation" - simply put, this is the buy back amount plus your remaining payments.

For example, if the buy back was $10000, and you had 10 payments left, your obligation would be 10000 + (10*221.23) = 12212.39 + HST. I've used OPs $250 payment as the example.

Now, to get you out of the lease the dealer has to figure out if it's better to buy the car from Hyundai (paying the obligation pre-hst), or to make the remaining payments and send it back to Hyundai. If in the case where your car is worth more than the obligation, you would have positive equity which could be used as cash down... but it's far more likely that you would have negative equity - the case where your vehicle is worth less than the obligation.

I always say it's worth checking out anyway - at worst all you do is spend some time and decline to make the change. The dealer might be able to combine loyalty promotions, discounting, or any other tool to generate a payment that you might be comfortable with (including the negative equity).
2013 Wins - $1320 - Woohoo!

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