Negative equity: When you are upside down on a car, it means that the amount you owe on the loan is more than the car's market value. This negative equity will need to be addressed when you trade in the car for a lease.
Lease buyout: In order to trade in a car you are upside down on, you will need to pay off the remaining balance on the loan. This can be done by either paying it off in full or refinancing the loan. If you refinance the loan, you may be able to get a lower interest rate, which can reduce the amount you owe.
Down payment: When you lease a car, you will typically need to make a down payment. The amount of the down payment will vary depending on the car, the lease terms, and your credit score. If you have negative equity, you may need to make a larger down payment in order to offset the difference between the car's value and the amount you owe.
Lease payments: Your lease payments will be based on the car's value, the lease terms, and your credit score. If you have negative equity, your lease payments may be higher than they would be if you were not upside down on the car.
Early termination fee: If you trade in a car you are upside down on for a lease, you may be charged an early termination fee. This fee is typically a percentage of the remaining balance on the lease.
Leasing a car when you are upside down on your current car can be expensive and it may not be the best financial decision. Be sure to carefully consider all of the costs involved to make an informed decision.
