I need some advice from clutchfans smarter than I. I have a lease that is up in Decemeber. I am under my mileage, and the damage on the car is minimal. My buy out price is a little less then what the car is worth ( equity). So the dilemna is: Do I go ahead and get finanacing and buy the vehicle? Or should I just turn it back in and get another one. I was leaning toward just buying it becasue I like the car, have had no issues with it, and have a little equity in it. However, after talking to a few people I am afraid of the sales tax i'll be paying on it when I do. I have had several people just tell me to turn it back in and get another car, but I dont think I could get the same quaility of car for the amount of what this buy out is. Any advice or experiences would be greatly apprecieated!!!
Fixed. Use the word "me" as an object here, not as a subject "I." I KID (even though that's the correct usage). How does your credit look? If the finance rate is going to be extremely low, it may outweigh what your sales tax and extra fees will be, so you may end up paying less in the long run. Speak to the finance department and don't forget that when they check your credit (if they do have to do it), they will bring your score down again just because of the recheck. I have never leased before, and I don't know what the exact stipulations are on your lease contract. There may be some details there that might help determine if you end up paying more or less by buying it rather than giving it back.
Thanks for the grammar correction. I actually always do that, so I will pay a little more attention to that now... I have excellent credit, and I am sure I can get decent financing. I have started looking yet because I dont want people running my credit if I'm not going to buy it. The finance department at the dealership as advised me just turn the car back in because I will save on sales tax. If I do end up buying the vehicle they told me to go through someone other than them.
I want to ask you this, how did you manage to negotiate the buy out price at the time of lease to have the it lower than what the car is worth at the end of the lease? Either you got a terrible lease or you are bad ass at negotiations, care to share some details about your vehicle? I am really curious... you can PM me if you're not comfortable disclosing in this thread. Thanks a lot! Also, I would get a new vehicle just because I like new cars... if you have the itch to get flip cars every few years, then just get a new car.
Car payments are one of the things that are squeezing the middle class. Buy it out and drive it out until its dead.
The ex-wife's car payment was the one thing I hated dealing with every month. It seemed to never end. I'll just emphasize the point about buying the car so you can stop with the payments, once it's done you'll realize how much extra money you'll have each and every month. Spoiler
Its a combination of being under the projected miles, and the fact that Honda Accords are high in price right now. I went to the dealership a few months ago and they only had 5 accords on the entire lot. The Tsunami really hurt production in my opinion. All that being said Kelly Blue book list the trade in value at about 16,500, and my buy it price in the contract is a like 14,700 or something like that. Leasing another vehicle really isn't an option now because I drive a lot for my job. Has anyone had experience with selling a leased car to a different dealership? Is this even possible? Say they give me 16,500 and my total amount owed on the car is 14,700 so I put whats left over along with my down payment..I know its never that easy..its just a thought. My gut reaction is to just purchase the vehicle.. I'm just worried about the sales tax. From what I hear Texas charges the S**t out of you on lease purchase vehicle Thanks for the help guys.
Here's a thought with the payments. If you have a $375 lease payment, thats $4500 a year. If you pay off the car and keep it for 5 more years, take the payment and put it in a mutual fund with a 7% return, you'll have $27,689.80 at the end of 5 years. Take $10,000 out, trade in the car and pay cash for another car and drive it for another five years, putting the $375 back into the mutual fund each month. At the end of that five years, you'll have $54,661.41. You can take out $15,000 for another car, put the money back in each month..and after 5 more years you'll have $104,336.73. 15 years of Leasing cars on $375 a month = $67,500 you paid out 15 years of owning a car while putting back $375 a month = $104,336.73 you Earned Sure thats the best case scenario, but its definitely something to think about when dealing with cars.
