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Accounting for a car lease final buy-out with asset trade in

In 2011 I paid cash ($8573) for a 2005 used Altima and created an asset for it with that value. I just traded it in and got $5000 toward a 3 year lease of a 2019 Tucson. They also applied a $2000 rebate. Then I had to give them an additional $4445.24 cash for:
Capitalized Cost Reduction 9066.50
Sales/Use tax on capitalized cost reduction 284.66
First monthly payment 445.24 (29.13 of which is monthly tax)
Initial license, title & registration fees 188.04
Sales/Use Tax 92.30
Doc fee 1311.50
Tire fee 7.00
Filing 50.00
So total at signing = 11445.24.
So, how do I account for the Altima trade in of $5000 and the asset now being gone. I understand that the lease is just an expense with no asset/liability account involved, but if I buy the car at the end of the lease I want to be able to account for the total I paid for it, including the amount upfront, the 3 years of payments, and the final buyout amount.
Additional info from the paperwork:
Gross Capitalized Cost 37029.00
Residual Value at end of lease 15954.55
Depreciation & any amortized amounts 12007.95
Rent charge 2972.01
Total of base monthly payments 14979.96
Total monthly payment 416.11 + 29.13 tax = 445.24 = 16028.64 over 36 months.
Any assistance you can give for this would be greatly appreciated. Bottom line is I'm trying to keep my net worth as accurate as possible.
Thank you!

Best Answer


  • Thank you, I think I get it.
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