Toyota Nation Forum banner

1 - 9 of 9 Posts

·
Registered
Joined
·
33 Posts
Discussion Starter #1
I leased my 2020 Toyota Corolla Hybrid one month ago and drives pretty good. But I am thinking like getting the RAV4 hybrid because ultimately I like SUV and off road capability..

I don’t know if it’s possible to upgrade the lease car during the lease period?? Or should I wait until the end of lease period to upgrade?? What do you guys think??
 

·
Registered
2019 Camry SE
Joined
·
39 Posts
sdspeed is correct. If you want to get out of a lease early you are simply trading in your car. Since you leased a month ago you are likely upside down on the trade in value vs. payoff amount. I would wait at least two years and see where the value is at. I just got out of my lease early on my 2018 Civic. I had 9 payments left, but the car was worth in trade in value what my payoff amount was. I was able to get out of the lease early without rolling over or having to pay any negative equity.
 

·
Administrator
2006 Corolla XRS
Joined
·
9,520 Posts
The other option is to sell the car for what is owed or sell to take over the lease.

People do it often with leases. If you financed through Toyota, you need to ask if there's a payoff penalty for ending the lease early.
 

·
Registered
Joined
·
33 Posts
Discussion Starter #6
sdspeed is correct. If you want to get out of a lease early you are simply trading in your car. Since you leased a month ago you are likely upside down on the trade in value vs. payoff amount. I would wait at least two years and see where the value is at. I just got out of my lease early on my 2018 Civic. I had 9 payments left, but the car was worth in trade in value what my payoff amount was. I was able to get out of the lease early without rolling over or having to pay any negative equity.
Ok so generally wait at least 2 years until the market value of the car is greater than the payoff amount?? So you don’t pay anything out of your pocket right? There is the “lease end value” so I don’t have to pay that right?? So for example I am on a 4-year lease term and decided to trade-in in 3 years, so if I can get trade in value for my car which is greater then the payoff amount(1 year left) so it’s worth it right??
 

·
Registered
2019 Camry SE
Joined
·
39 Posts
Ok so generally wait at least 2 years until the market value of the car is greater than the payoff amount?? So you don’t pay anything out of your pocket right? There is the “lease end value” so I don’t have to pay that right?? So for example I am on a 4-year lease term and decided to trade-in in 3 years, so if I can get trade in value for my car which is greater then the payoff amount(1 year left) so it’s worth it right??
Correct. At any point during your lease you can check your account (online or over the phone) to get the "payoff amount". That's the total amount Toyota needs for the car. At the end of your lease term (3 years lets say) the "payoff amount" will be the same as the "residual value" noted on your lease contract. If at any point during your lease term the market value of your car is equal to or exceeds your payoff amount it financially makes sense to upgrade. Before this point you will either have to pay the difference (called negative equity) or roll it into your monthly payment. I don't recommend doing this. Keep this in mind - sometimes the vehicle is always upside down. For instance... My wife and I leased a Nissan Rogue 4 years ago. They over inflated the residual value to give lease "specials" to their customers. The car was always worth less market value what the payoff was. We just gave the vehicle back to Nissan at the end of the lease and paid the disposition fee. We then went and leased my wife's current Camry. I don''t think this will be an issue on a Toyota. They don't over inflate the residual value, and the vehicles tend to have a high resale value.
 

·
Administrator
2006 Corolla XRS
Joined
·
9,520 Posts
A car won't appreciate in the immediate future. Whether leasing or purchasing.

Rolling neg equity into the new loan will cause headaches later on when there's a balloon payment on the back end of the loan. This is where the neg equity will be paid for. It's never paid at the beginning of the loan.

The best situation for op is to sell it out right and payoff or sell for lease take over. Limitations on any lease agreement is mileage cap and damage coverage (wear and tear). I don't lease vehicles. As I don't change vehicles often.
 

·
Registered
2019 Corolla Hatchback XSE
Joined
·
56 Posts
If you have good relation with the dealer, they usually call lease customers few months early of lease term to sell them new car. You can try few years early, but strongly doubt they will pay the difference of your contract if your corolla is in negatives.

I returned my lease 6 months early and purchased a new car few years back. Main focus on my sales rep was to sell me a new car, even if the old car had nick and scratches, they didn't care.
 
1 - 9 of 9 Posts
Top