What does "estimated trade in value" mean? and how does it affect payments on a car (leased).?
Hey, when on a lease/financial calculator when buying a car, what does "estimated trade value" mean and how am i suppose to determine it?
i went on the mercedes benz website and was using the lease calculator on the ml350 (msrp: $40,525)
when i enter down payment as: 15,000
estimated trade in value: 10,000 (im taking a stab at what it means)
length of lease: 48 months.
miles per year: 15,000
the monthly payments come out to be only $31 a month.
somehow i just dont see that as being correct.
however if i change the estimated trade in value to 0, the monthly payments is 269.
i just wanna
know what "estimated trade in value" is. my guess is: it is the value of the car when the lease ends.
Answer
A trade-in basically means when u trade one car for another one, so when you are asked what is the (estimated trade-in value) you are estimating the value or the cost of the car you are trading in and that goes towards your down payment example: u put $15,000 down paymentyour trade-in car is worth: $10,000your actually putting $25,000 down paymentand the way it affects your payment, the more down payment u give, the lower the monthly payments are.