Quote:
Originally Posted by Thrak
Not sure if I understand this part. If I put down, for example, $10,000 in cap cost reduction, that would lower my payment by a significant amount. In my particular case, it would drop my payment from $913 to $648.
Why would there be a cap cost reduction left if I already paid $10k up front? Or are you saying that in order to not waste a significant amount of money, I'd be advised to ask anyone taking over the lease to pay me a pro-rated portion of the $10k in order to keep their monthly payment at the $648?
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Yes exactly. A lease amounts to paying for the depreciation of the vehicle while in your hands (+interest and fees). How you decide to pay it is up to you. You could essentially put the whole lease cost down in one up front payment and drive around for free. If you did that and halfway through he lease wanted out, you would want a prorated amount back. You wouldn't want the person taking the lease over to drive around for free. The one taking over the lease would not want to pay you anything. The lease holder has less leverage because they are on the hook for the lease term unless someone agrees to take it over.
So in your example the $10k is your money you used to help finance borrowing the vehicle for a set period. You would want the prorated amount back if you don't use the vehicle for the whole time. Now you have to find someone willing to give it to you. If you put no money down, its just a matter of taking over the monthly payment.