# can you trade in leased vehicles?



## rcc (Jul 21, 2002)

So if you have a leased vehicle and the KBB tradein value is higher than the residual, can you trade the vehicle in when buying another one without doing the obvious (buy it from CA, pay CA sales tax and wiping out the profit)?

Thanks.

- Ray


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## Jon Shafer (Dec 15, 2001)

Absolutely - people trade-in their leased vehicles all of the time...

What typically happens, though, is that the Trade
ACV Actual Cash Value is _less than_ the lease payoff, 
and the net result is a _negative equity_ position...

Ray, in some rare instances, you can have trade equity
prior to lease maturity - BMW's strong resale value can make 
that happen from time to time...

:thumbup:


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## The HACK (Dec 19, 2001)

Yeah, when my Z3's lease was up, the car was worth $24,000 retail and lease payoff was *$21,500*. Could've sold the car and pocketted the change.


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## Jon Shafer (Dec 15, 2001)

The HACK said:


> *Yeah, when my Z3's lease was up, the car was worth $24,000 retail and lease payoff was $21,500. Could've sold the car and pocketted the change.  *


There's quite a gap, the difference between retail 
(what you can sell it for yourself) and trade ACV.

I agree with Dan - that's the best thing to do.
Not only do you mitigate your damages,
but you stand to possibly even make a 
_profit_...


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