I've gone to a couple of dealers and the topic of trading in my leased TL has been discussed.
A couple have asked the RV number. I know it's low compared to the actual value but, I'm reluctant to give them the RV.
Is this prudent? Obviously, I don't want to give them any better negotiating edge.
It seems their offer should have no bearing on the RV.
I've never seen this topic discussed and perhaps I'm reading this wrong?

 

If you are just negotiating price of the new car, then correct, residual has no factor really. But if they are coming up with a complete package price because they have to buy out the rest of your lease, then yes it does matter.

In general, you come out behind trading in early on a lease because you owe the residual value + any remaining payments on the lease contract at the time you want to trade in. Unless you are really close to the end of your lease (like a couple of months), that combined price is usually at best a wash compared to the actual value of the car at the time. More often than not, that combined price is higher than the value of the car in which you have to make up the difference. You're better off just to keep driving the car until the lease ends.

Also, the residual is not really a secret. For a certain model car, Honda Finance usually just has a simple % of MSRP that they use for various term leases based on mileage. The dealer can easily find that out if they wanted to. They're probably just asking you to avoid having to do that and to get your actual figure.

 

If they are interested in "buying out" your lease, then they don't need the RV. All they'll need is your monthly payment x months left to get the final buy out. However, some manufactures offer their dealer a lower pay-off, but that's another story.

 

What about a non-Acura dealer?

 

A non-Acura dealer would even more likely want the RV because they can't simply buy out the lease payments and take possession of the car (as if you turned it in after lease) like a Honda or Acura dealer can. They would have to pay all your remaining payments AND the RV to get the car title from Acura. And the way RV is calculated by Acura would be harder for them to find out.

 

Actually, Residual value + remaining payment is typically right on the dot but the easy way to figure it out is just look at the "PAYOFF" amount. Normally you will see it right under monthly payment due amount in your monthly statement. Dealerships will go by that amount. So lets say your payoff is 20,000 for your lease this month (on your statement) that number is usually good for X amount of days, when you trading in a lease vehicle, you want to ask the sales person how much are you giving me for my car. If they are giving you 22,000, you will have 2,000 in your pocket! typically this is not the case, normally your car is worth less than the payoff amount. so let say they give you 17,000 for your car, that means you are negative 3,000 dollars and that negative equity will go towards your new car if you are purchasing or leasing it.

 

You've described the crux of the issue. I sense they're offer would be different if they know the payoff

 

nice use of crux... this is great convo... but I'm just curious, why is this in the RL forum?

 

Oh, I hope to upgrade to an RL. Debating new or late used to give the RLX time to hit the street.
Also considering E350 4matic or GS350 AWD. I've been very impressed with Acura and although the RL is somewhat dated, seems to give the most "bang"

 

Right on, I would expect coming from the '10 you have now to a gen2 would be a step backward... but the used RLX market could be a good plan.

Good luck.

 

First figure out best price or monthly payment on all three of those cars in the trim level you would want and then tell the dealership your not trading in a car. (unless that manufactur has a special incentive or conquest rebate)

Than after you get the best price, ask how much they would give you for your trade, say its paid off.

Whatever numbers you get from those dealerships take it and substract the real payoff, there goes your positive or negative equity. if it is positive equity that would act as a down payment.
if it is negative, either pay the difference or expect a higher monthly payment.

 

That puts it in terms even I can understand!

Thanks