if i were to for example take over a lease on a jeep with 340$ monthly payments and 15 months left and i decided at the end i wanted to own it, would i have to pay the entire amount? i know with a lease i m paying (value now-estimated value at end of lease) and then if i decided to own i would pay the rest....
Your lease-end purchase price is the residual value in the lease contract. That value was set at the beginning of the lease and doesn't change if you take over the lease.
A lease is a RENTAL. The agreement gives the final payment to buy it.
The agreement may or may not allow yiu to take over.
There is no value left in a lease car at the end.
There are charges for excess miles and any marks or damage.
The first place to go is to talk to the leasing company.
I wish you knew how to write. I pray for your continued improvement.When referring to money, use numerals. For cents or amounts of $1 million or more, spell the words cents, million, billion, trillion etc. Examples: $26.52, $100,200, $8 million, 6 cents.
The terms of the lease and the buyout at the end have already been negotiated. You would pay whatever the buyout amount is.
Taking over leases is for grown ups with fantastic credit & good full time jobs and even then its a really bad idea.
The buy price at lease end is exactly the same as it would be if you leased it brand new back then. Nothing changes. Their buy price plus tax becomes your buy price plus tax, IF you qualify.
You're NOT going to "take over" a lease, Skippy. The company that financed the contract won't let you. If you don't have the credit rating and financial history to get a lease on your own, you'll just have to find some other way to finance your car.
And the word is PAID, not "payed". LEARN TO SPELL!
If you are able to take over an existing lease, then when that lease ends, you have the same option to buy the vehicle as the original lease holder did.
The bank calculates that value at the start of the lease. So say the car was worth $30k, and after 3 years, it's now worth $15K. Lease payments have paid off the $15K, plus interest on the money invested. Now the lease company need to sell the vehicle and recoup that remaining $15K.
Now the simplest option is to sell it to the current lease holder, then it's an easy transfer of title / new loan etc. If they take the car back, then they have to auction it off to a dealer, and will probably get less for it. Hence they are happy to sell it you, at a value slightly less than retail, but more than they would get selling it wholesale.
When you sign a lease, you pay the difference between what a car is worth today and what it is expected to be worth at the end of the lease, plus a monthly fee to the finance company. In leasing language, today’s value is called the “capitalized cost.” Tomorrow’s value is called the “residual value.”
When you "assume" an existing lease, most often the terms and conditions are exactly the same as the original. Unless you and/or the leasing company (bank) negotiate different terms and conditions. So, somewhere in the original lease agreement, there is a figure corresponding the residual value. The original lease will usually also have a "purchase-option" fee, most often in the range of about $300-600. Add the purchase-option fee to the residual value and that's what you pay for the vehicle if you decide to purchase it at lease end. Regardless of who paid how much.