Trading in a Lease/Car Buying Question

[animalsarenice]

I am currently leasing a 2010 Jetta and absolutely LOVE the car. However, I really want to buy a 2012 VW Beetle.

I am two years into my three year lease and only have 15, 400 miles on my car. I want to BUY the buggie. Is it to my advantage to trade my car now? I am told by my dealership there would be no penalty to trade in my lease one year early. I owe $14.400 on my current lease.

Thanks!

[disneysteve]

I am told by my dealership there would be no penalty to trade in my lease one year early.

I find this impossible to believe. There must be some penalty to break the lease early. No way they would let people take out leases and break them penalty-free at any time.

[animalsarenice]

I find this impossible to believe. There must be some penalty to break the lease early. No way they would let people take out leases and break them penalty-free at any time.

I found this odd too. I asked if there is a penalty and the man who I spoke to said no....We shall see I guess lol

[disneysteve]

I found this odd too. I asked if there is a penalty and the man who I spoke to said no....We shall see I guess lol

It is possible that the penalty could be made somewhat invisible if you will be buying the new car from the same dealer. They could bury it in the purchase price of the new vehicle or in the financing or in the amount they give you for the trade in. I'd research everything very carefull, read your lease agreement and specifically the terms for ending the lease early and study edmunds.com or other sites to make sure you are getting a fair deal on the new vehicle.

Of course, an even better option since you love the current car, is to keep it for the duration of the lease. Use that time to save up a larger down payment. Then buy a lightly used Beetle when the lease is up. You'll likely save yourself a few thousand dollars in the process.

[animalsarenice]

It is possible that the penalty could be made somewhat invisible if you will be buying the new car from the same dealer. They could bury it in the purchase price of the new vehicle or in the financing or in the amount they give you for the trade in. I'd research everything very carefull, read your lease agreement and specifically the terms for ending the lease early and study edmunds.com or other sites to make sure you are getting a fair deal on the new vehicle.

Of course, an even better option since you love the current car, is to keep it for the duration of the lease. Use that time to save up a larger down payment. Then buy a lightly used Beetle when the lease is up. You'll likely save yourself a few thousand dollars in the process.

Hi Steve,

You have given me some good info to think about. Thank you so much! I may just test drive then and buy next year. In the meantime, I'll play hard to get and see if I like the figures they throw at me and really think things out. Edmunds is a great tool that I will surely utilize. I suspect a dealership would hide something in the "new" car price as they have to make $$ to survive/thrive.