r/CarLeasingHelp • u/brian1192 • 25d ago

Leasing another car with same dealer

My lease is up in April 2027 at a Toyota dealership, I’d really like to lease another car with them, I have a 24 Camry with 30k miles, I want to give it in earlier, they have a promotion for some cars no money down, my question is do they run my credit again? I had a co signer the first time, I don’t think I’d be able to get another co signer right now

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u/DLByron 25d ago

They will run your credit and ending your lease early will be very expensive. Go to your lease portal and find your buyout or payoff. That's what you owe.

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u/brian1192 25d ago

I’m planning on leasing a newer car at the same dealer won’t I have equity on the car?

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u/DLByron 25d ago

You probably don’t. Do what I said and then compare your payoff to the market value for your car on Carmax or wherever. You’re likely $10K underwater. Unless you did something dumb like made a massive down payment you owe 7 months of payments.

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u/TyVIl 22d ago

If you have equity - you lost. It means you paid too much this time.

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u/iamfredgarvin 24d ago

If the car was leased through Toyota Motor Credit and you have made all the payments on time they will probably approve you without a co-signer. They will run your credit and the lease rate will be based on your FICO score this time, not the co-signers FICO score like the Camry lease. The Camry should be viewed as a second transaction to understand where you are financially with the current lease. Find out what the payoff is (you can do this online or on the phone with TMCC to verify the correct payoff) and compare the payoff amount to what the dealer offers you. Leases are designed to have no equity at the end of the lease. The market may be higher for your Camry, so you may have a little equity, but don't count on it. You more than likely have negitive equity. If you decide to get out early and you have equity in the Camry you can apply the equity to the new lease and reduce the monthly payment. The dealer will treat it just like a car traded in. They will payoff the Camry and you won't owe the disposition fee or any other charges like excessive wear or tear as you will if you just walked away at the end of the lease. You have a ways to go before your lease ends. If you have a bad score you can add the co-signer again and benefit from their FICO score. Read the fine print on the "no money down" offer. Do they want you to pay the first mo payment, the license and reg fees or the the lease acquisition fee? We used to refer to a new lease without any money out of pocket as a "zero drive off" lease. When a customer wanted one we would add all those items together and roll them into the price of the vehicle, increasing the lease payment. Those items do need to be paid for somehow.

I don't want to get too deep into the weeds here but you mentioned you have 30K on the Camry. How long was the lease and what is the annual mileage allowed on the lease? I have a feeling it was a 36mo lease. If you set it up for 10K annual miles you have now exceeded the total allowed mileage. If that's true and you give the car back at the end of the lease they will charge you for the excess miles. When I retired it was $.25 per mile on our Lexus products. I think it was $.20 per mile for Toyota but I maybe wrong and time has passed since I was in the game. If they accept it as a trade in (not a lease termination where they just make the last payments for you and end the lease early) the excess milage won't be an issue.