We leased a 2014 Honda Odyssey Touring-Elite in the U.S., and will be maturing our lease with right at the agreed mileage (36,000). We signed our lease with an estimated residual value of $23,000 -- Edmunds suggests that a trade-in would get us a value of about $28,000, netting roughly $5,000 in equity.
If we only consider two options: (a) buy-out the current 2014 model, or (b) trade it in for a 2018 model (not leased), how does the value of our current van get applied? What I'm trying to understand is, if we assume the MSRP was $45,000 of the 2018 model we want, are we effectively talking about a difference in:
- Buying the 2014 model we're using now, for $23,000
- Buying the 2018 model for $45,000 - $5,000 => $40,000
Where does the difference go in these two scenarios? Is it completely eaten up simply by the fact that it's a 2018 vs a 2014? Or am I misapplying my trade-in value?