ADAMnQuickRDX

So last night I just picked up a new RDX with the tech package. They are currently running a lease promo that gives you the Tech Package for free. It's $399/mo (+ tax) for 36 months with about $3700 down....NOT BAD! Until I factor in my trade which I'm currently upside down in (negative equity) anywhere from $5,000 to $10,000 depending what value the particular dealerships decide to put on my trade. So I told them that I wanted to roll in no more than $5k negative equity into the new lease. But I only had $2000 cash to put down, so that adds another $1700 since the program calls for $3700 cash down, for a grand total of $6700 roll over. That brought my payment from about $425/month AAAAALLLLLLLL the way up to $675/mo, after talking them down from $755/month.

So does anyone beat me? Got a higher lease than $675/mo?

Man I feel like I got a$$ raped.

chicagoTL

man what the heck did you trade in that had (10,000) equity?

CGTSX2004

iTrader: (1)

Wow...that was a really bad idea...

What car did you trade in an why were you upside down by $10k?

Honestly, as much as I like to lease, even I would not have taken that deal. And for the record, you should feel like you got raped in the ass because that's exactly what happened...

LuvMyTSX

Yikes. I suggest you stick with this vehicle for a while.

Ruserious

iTrader: (2)

Werd. If you trade it in again, it will just make it worse...

And believe me you think $675 is bad I've seen worse... Stick with it. You got the cash!!

sl_33

Nothing personal against Adam, but this is insane.

This sort of "I need a new car now" attitude is precisely why this country is having a serious credit/mortgage crises at the moment.

Maybe Adam is in a predicament where he needed a new car (got in an accident or something?) but anyone who voluntarily takes on this kind of debt needs to think twice about it before they blink and they're bankrupt.

phoward_15

sl_33 I couldn't agree with you more. Even if this person absolutely needed a new car there is no reason to buy an RDX especially when you're that much in debt. I'm sorry but get yourself out of debt first and buy something way cheaper and then build up to the Acura. Like you said this is exactly why this country is in so much debt and credit crazy. Good luck on the lease. I really hope you can pay it off over the long run and get yourself out of debt.

GCB-RDX

How did you not think you were getting butt raped BEFORE signing the lease????

catnippants

Nothing personal against Adam either, but I'm a little weirded out that he'd want to tell us about this - especially given the somewhat obvious reactions above.

I remember all too well having too much debt when I was younger, and frankly, it was embarrassing. I didn't WANT anyone to know...

Mike

ADAMnQuickRDX

Well the mistake was buying a Domestic car, first and last time I'll ever make that mistake. My trade was a 2005 Chrysler 300C which depreciated like a rock, sticker price was $40,000 3 yrs ago, and dealers were offering me anywhere from $14k to $16k on trade, I owed $23.4k still on the finance. The reason I needed to get out of it was because (a.) was starting to have problems with the car (b.) the RWD is simply dangerous (c.) 14 MPG gas mileage and current gas prices and. I figured that I would cut my losses early instead of ending up with a car thats worth NOTHING after spending another 4 yrs paying down the $23k balance. I would much rather pay the same amount for my lease and be in a nicer/newer car with a warranty. So to me, it made perfect sense, though of course it is unfortunate that my payment is so high, but I can assure you they didn't make much on the deal. I spent 2 hrs with the sales mgr bargaining over the last $10/mo, he kept begging me to put another $200 cash down but I refused and finally got my way.

ADAMnQuickRDX

Thanks for your input but your reasoning is backwards, how about applauding me for actually making a large purchase during a recession....haha....btw $675/mo is not going to bankrupt me, that's roughly 2 days of work.

ADAMnQuickRDX

Oh and don't worry, my next posts will contribute more to the forums, once i catch the mod bug, usually starts around day 2.

catnippants

Hehe...Ok Adam. Just to reiterate, my comment was not meant to be taken personally. I truly feel your pain and hope everything works out for the best in the end. FWIW, I think you will enjoy your RDX. I've had mine for almost 2 years now, and my purchase payments are quite high as well - but I don't regret them at all. My feeling is that the enjoyment I get out of a car should be worth the payments I'm making. If I ever get the "I'm paying how much for this?" feeling, I'm in the wrong car. The RDX has lived up to my expectations wonderfully. As I've said in a few other posts, I'm not crazy about the drivetrain, but the rest of the car fits me and my lifestyle perfectly.

Mike

White92

I had a guy last year that was about $25k tipped in his Escalade. He rolled every penny of it into his MDX lease, which ended up being close to $1300 per month.

ADAMnQuickRDX

wow, that actually makes me feel better....haha...

ADAMnQuickRDX

Loving it so far, but there are definitely things i *will* improve upon.

catnippants

So you're going to mod a lease? I've never understood why people do that. I've never leased so I don't know - do you have to undo it all before you give it back?

Mike

ADAMnQuickRDX

yep, and yep....unless i decide to buy the car at the end of the term ($19k) we'll see what the current value is at that time and i'll decide.

creativeguy

Wow. You need to break out of this cycle of bad financial decisions, but thinking of buying the car when the lease is up is not going to help. Renting to own is a bad deal. Renting or owning is really a decision that needs to be made BEFORE signing the deal.

And I won't even comment on flushing 40k away on a Chrysler! OMG! ... oops, guess I just did.

aplato

Its all mathematics. There is no mystery to the process. There is only so low they can go on interest rate (money factor), trade in value, etc.

If you are upside down in your current car then there really isn't much you can do. They are not going to wipe out that debt just to get you into a new car.

When I go to lease a car, I negotiate the selling price of the car first. The money factor second. And then the down stroke. Residuals are based on a percentage of MSRP, so the more you can negotiate them down, the better deal you will get. But in the end, you can't make money disappear.

In general, when you're upside down in a car, its dumb to get out of it. Even with higher gas prices.

Let's say your gas bill is an extra $25 a week. Well, that's a $100 a month. $1200 a year. If you put down $3700 on a lease, then you didn't save a dime. You actually spent about $2500 more than if you had just kept driving your old car with crummy mileage. You could have dumped $1500 in repairs into your old car and it would have STILL cost less than the new lease.

Its almost ALWAYS cheaper to fix a broken car and pay a little more in gas then buy a new car. So on a purely financial basis, leasing a new car does not make sense.

ADAMnQuickRDX

I didn't flush 40k away on a chrysler, that is EXACTLY why I wanted to get out of it early....I had only owned it for 10 months, so basically I flushed away $7k on the chrysler...Since I know now it was a mistake to buy the Chrysler in the first place, I wanted to cut my losses early. Now when the Acura lease is done I'll be back even.

ADAMnQuickRDX

Find me a transmission for a Hemi for $1500 and I'll agree with you.

CGTSX2004

iTrader: (1)

Well, as long as you're enjoying the car and are able to make the payment, then good for you. Just make sure that you don't fall into the same trap again with your next car.

aplato

Even if the transmission was $5000 it would still be cheaper in the long run. Because you're increasing your monthly payment as well and taking on new debt. And you're not going to own that RDX at the end of the lease

Like I said, there is no mystery to the process. Its all math.

Agent Smith

Wait a minute - you owned a 2005 300c for only ten months??? And you were that far upside down even (I'm assuming) buying used?? Yikes buddy! What did you originally pay for the car? How many miles were on it? That would shed a lot of light as to what's really going on. In any event, changing your mind that quickly is a very expensive thing to do. Hope you're not planning on making up a lot of money in gas savings from the C to the RDX. Oh and rethink modding a leased car.

ADAMnQuickRDX

I paid $24,900 for it last may after searching for the best deal for three months. It was MINT and only had 14k miles after 3 yrs of ownership. That's what they were selling for last year everywhere. According to the dealerships the reason its only worth $14-18k now is because the market is flooded and the gas prices hurt the Hemi resale. That was the first Domestic car I've ever bought and guaranteed to be the last! Expensive mistake. The gas mileage is only one of the reasons and I've already noticed i'm getting much better mileage and I'm only 1/2 way thru the first tank.

saw1

When your lease is done! I'll bet you do not keep this car for the life of the lease.

I will predict that in 1 year you will try to get out of this lease and try to get into the 4gTL. You will still be carying 5-8K in negative equity and your payment will go up to $800 per month. But hey, that is only 3 days of work for you, right?

ADAMnQuickRDX

Don't act like you know me. The 300C was the first car I have ever been negative equity in, and the first domestic car I've owned. Yes it was a mistake to buy it, hindsight is 20/20. At least I got out early and cut my losses.

AmyP

Adam- my husband has a 2006 300 Limited and he and I both love it. It is actually a really good car for him. I have rolled negative equity over before, sometimes its necessary and not a huge or permanent deal!! As long as you love the car, you make it work.
I just got the lease deal on the tech and love it, but never had a car for 3 straight years, i will itchy after about 24 months i am sure. hopefully can control it !

saw1

I don't know you, but I do have a history of your actions. You did not cut your losses by getting out early. In fact, you maximized your losses by getting out early. To cut your losses you should have kept the car for 2-3 years and waited until the car was worth at least what you owe.

The problem you have now is that it will be nearly impossible to get out of your lease without having more negative equity so you are stuck with your high payment for the next 3 years.

It was not a mistake to buy it, it was a mistake to sell it so quickly!

Good luck!