dr_brains510

So the dealer contacted me the other day and wanted to know if I'd be trading in my car or if I was going to buy it. I told them I am going to buy it. My 3-year lease is up on Feb. 19, 2010. Now they told me that it is better to buy it now than wait until the lease is up. Now the part I don't understand is how they determined the monthly payments. So here is what they told me:

Payoff amount as of today: $26,238.11
Sales Tax (9.25%): $2,427.03
Interest on Loan (8.99% w/ my credit): $2,358.80
Total price: $31,023.94

Now they told me if I did a 6-year buy, my payments would be between $530-540. How is that possible if a 5-year buy with this price comes out to $517.06? I did not hear them incorrectly. They kept saying for 72 months your paymens are going to be between $530-540. Now is there something I overlooked regarding the tax and interest on the loan? Any input would be great. Also, if my residual on the car is $22,890, wouldn't it be better to wait until the lease is up and then finance it considering the difference off the total price of the car and the monthly payments that I would potentially have? I just feel like the dealer is trying to rip me off. So again, any input is appreciated.

CocheseUGA

Six year loans almost always have a higher interest rate than five year loans.

But I don't know why it would be more money per month.

lusid

yikes, 9% interest!

Sorry that's all I got.

georgegiorgio

something is not right....

if you're leasing, that means when your lease is up, that'll be a pre-owned car, right?

so, why would a pre-own car still cost that much?

something is not right, besides, they want you to make a decision now? c'mon, gee, why people are so easy to manipulate?

all they want is your money today which worth more for them than tomorrow... the longer you wait the more power for bargain you'll have...

just tell them back off, you'll contact them when the time is right... besides, you got almost a year to decide...

detailinguy99

iTrader: (1)

I can work out everything on my computer at my dealership at work for you if you want. Just let me know how much you want to put down and all the specifics. You're probably better going to through a credit union.... better rate.

skd2k1

iTrader: (1)

If you're still in school get a student loan.

dr_brains510

You're absolutely right. My dad told me the same thing. I've got almost a year left and by then hopefully my score would be higher.

The price they gave me was with no money down. I'd appreciate it if you could do that for me. You can pm me if you need the specifics.

ze2o

Interest on Loan (8.99% w/ my credit): $2,358.80

no way for 6 years ...

when you finance a car the longer the term the more interest you will pay... so basically you will be paying interest the first 1-2 years then the actual car rest 3-4 years

try to put a big down then pay it off ASAP

Acura Cake

its not considered a pre-owned vechile becasue he has to pay the residual value of the car plus the remaining payments and usually a transfer fee (which will vary based on the lease agency).

what really sucks is that you get double taxed for this, you paid tax when your leased the car, or in some states each monthly payment adds an addition tax, and now you have to pay tax again becasue you are buying the car out

Cerezo

He isn't being double taxed because the tax in his payment is not for the full price of the car.

Payoff amount as of today: $26,238.11
Sales Tax (9.25%): $2,427.03
Interest on Loan: $8527.30
Total price: $37,192.30
Monthly payment: $516.56 for 6 years

Jiggy2dmax

iTrader: (1)

I would honestly hand it back to them rather than buy it out for that price. I'm assuming it's a 07 so if you factor in the prices being paid in your area for a similar Type-S, they are getting the better end of the deal.

With interest and the lease payments made already, your around $50k.

Now, if you can negotiate the payoff amount to a more realistic fiqure for today's economy then go for it.

CocheseUGA

I'm not sure why people continue to say this. The used car market is actually doing better because people aren't buying new cars.

Bad economy =/= bad used car economy.