I have a leased 07 FJ Cruiser with 12,500 miles. It's a 4x4 6 speed with 17" alloys, hitch, Sonar, & Convenience Pack. The Payoff/Buyout according to Toyota Financial is $20,500. I would really like to trade it in on a 07 Tundra. Is there any penalties for trading it in? I realize I don't really "own" the vehicle, but if the book value is higher than my payoff can I use that equity towards the new vehicle? What is a decent trade in value on my FJ?
There's usually no penalty for trading in a lease early. All the bank is concerned about is getting the payoff. You'll have to go Kelley Blue Book to check out current trade-in values. Keep in mind that those numbers are just estimates, as dealers go off "wholesale" value for your trade.
If the dealer allows more for your trade, then absolutely, that "equity" will be applied as a down payment on your new Tundra. Most people who lease though, are seldom in equity positions because of low or no money down at inception.
Also, since the FJ's are/were really hot, I'm guessing they didn't negotiate much off MSRP??? Bottom line, if you didn't put down a sizeable down payment (cap cost reduction, in leasing terms), you're probably still upside down.
Now, if they allow close to what you owe on the trade, you'll have to decide what to do about the remaining negative equity. Most people roll it into the new lease.
Now wishing we’d waited for the Tundra. Luckily, I do have equity from my F150 trade on the lease so we’ll see what happens…
