tommyguy

ok so in '02 I got a 2003 TL premium for 29460. I leased it with 3 grand down and $358 a month for 48 months. The lease is up in 2 months. I went into a local dealer with a mind to finance whatever is left with my monthly payments being less, or equal to what the are now. Well after a brutal hour, I found out that the "residual" is 17,600, and that they would finance it with 389 a month for 60 months. It seems like I'm getting raped here.

1. guys I thought that with a lease the remainder would be what ever is left after 3,000 down + all my 48 payments of 358/month? that comes out to 12g's or so, not 17600, which looks more like the trade in value.

2. could you guys figure out a way that I can finance and go on paying 358/month or less?

3. do you guys think its a good idea to try and purchase a leased car, by financing the rest?, or does it make more sense to lease something else at this point.

your advice is appreciated.

FiftyFive

ibmcartalk

Eggplant-EX

they are zapping you approx 11% interest on the Loan. Start shopping and see what interest rates you can get from your Bank. (that's for the 60 months payment of $389).

This is why I do not agree with leasing. It's like you are buying the car twice.

Eggplant-EX

" 1. guys I thought that with a lease the remainder would be what ever is left after 3,000 down + all my 48 payments of 358/month? that comes out to 12g's or so, not 17600, which looks more like the trade in value. "


this works out to be about 8.5% on the Loan.

Eggplant-EX

Another thing that I will reply to on a different reply, don't only focus on the payment amount but also know what rates you are paying. Know what rates you can get from the Bank before yoou agree to go with the dealer gives you.

Ron Burgundy

should have negoiatated these terms before hand....

tommyguy

eggplant, whats the math, for figuring out monthly payments from intrest rates? so if they gave me 2.9% instead of 11%, what would my monthly payments look like? I'm all over the bank idea. I wonder what rates on a loan for approximately 18K look like right now?

proaudio22

Just search online for loan calculators to figure out a general idea. Keep in mind it won't be exactly the same depending on how the intrest compounds, etc but it's close enough to give you an idea.

This is how dealers screw people. They sit you down and give you a monthly price, usually for the longest time period. Fuck the monthly price - you need to look at bottom line total for the car (not with interest, etc) then go from there.

*Decide on a total car price - JUST THE CAR! Not payments, total price.
*See what kind of interest rate the dealer will give you (sometimes it can be very good, they just don't want to tell you that if you seem dumb enough to buy into a 10+% loan - $$$ for them).
*See what your bank/other banks will give you. You can DEF do better than effing 11%!!!!

Eggplant-EX

$322 for 60 months.


I use a Business calculator but you can google any real estate site.

agean

you're forgetting about the finance charges worked into the lease. I'm paying 439/month on an '03 tl-s, and it has a 21,000 residual value i believe.

so if i planned to buy it out at the end of the lease, it would be $42k without even considering the additional financing charges.

it makes no sense to finance at the end of a lease, if it was your intention to buy the car, you should have financed it from the beginning.

the only reason i'd ever buy out a car at the end of a lease is if i could pay it in cash, and it was worth more than the residual.

bgsm1th

If you would like my advice, it's to NEVER lease again. Find a nice used car and take out a loan on that instead...
Now you've been making these $359 payments for the last 4 years and you basically have NOTHING to show for it...
FYI: Credit Unions usually offer the best used car interest rates out there. And I believe you will be VERY hard pressed to find an interest rate for a used car for 2.9%, maybe new, but I really don't know. I'm paying 3.25% on my used car and I think that is pretty damn good...
Use the link below (my credit union) for a good calculator.

http://www.thinkcu.com/CGI-BIN/lansa...EC+NONFN11+WNS

http://www.thinkcu.com/

Best of luck...

CL Platano

Your best bet is to turn it in and get into an 06, they should be able to do that at a respectable rate for a return customer from a lease return. If not take your business elsewhere.

RandyMax

Why finance a 4-year old car for another 5 years??

If you can't afford the car, get a less expensive one. There are better options out there.

Deity711

This is top car buying advice. Don't ever let a dealer pull a "four square" out on you.

I would just walk away from your current lease and start looking for a new car. Start fresh.