Question for Marv.

[brewmastr]

ok so here is my deal i have a 2005 Dodge Durango, 131,000 miles, i pay an insane amount on this vehicle a month about $500 as it was a subprime car loan that i got at the time, Fast forward to today im looking at wanting to get into a lease for a brand new durango as a leasing outfit around me has some great deals going on that would be far more affordable and it would be a brand new car, here is my deal however I am upside down in my current car but not by much about 2 grand, How does this work with a lease, is the value rolled over into the lease payment as it would be when buying a car or am I SOL on the deal?

[gamecockcountry]

ok so here is my deal i have a 2005 Dodge Durango, 131,000 miles, i pay an insane amount on this vehicle a month about $500 as it was a subprime car loan that i got at the time, Fast forward to today im looking at wanting to get into a lease for a brand new durango as a leasing outfit around me has some great deals going on that would be far more affordable and it would be a brand new car, here is my deal however I am upside down in my current car but not by much about 2 grand, How does this work with a lease, is the value rolled over into the lease payment as it would be when buying a car or am I SOL on the deal?

What do you mean by "leasing outfit"? If it is a 3rd party leasing company I would stay away. I'd only lease from the captive source (Toyota finance, Ford Credit, etc). It looks like Chrysler Capital is the captive for leases for Dodge so I'd only go through them if I was planning on leasing a dodge.

 

I had about that much negative equity when I traded a vehicle with a loan in on my first lease. It was rolled into the deal and my lease payments were higher. It's not something I'd do again.

[MarvBear]

You can roll negative equity into a lease, however on a 36 month term it tends to dramatically increase the payment.