Financial Help needed with Purchasing a new car

[stevestojan]

Ok, so my lease is nearing its end, and I am in the market for a new vehicle.

 

I have a question regarding what the best financial move is.

 

I have roughly 8 months left on the lease, but only 4100 miles until I hit the mileage limit (it was a 5 year lease... i know... horrible, but when I signed that deal my credit was slightly better than a 5 year olds -- my credit is 690 now, so much better, but still not excellent) . Now, any big dealer will take the remaining months and "roll" them into a new lease/loan. Leasing has actually worked well for me, so I don't want to start the debate over leasing/buying. I know "leasing" is like renting, etc, etc.

Anyway, what I am thinking instead is paying off the entire 8 months I owe right now. How does this affect my ownership of this vehicle? I know I can always pay a month (or several) in advance, but what happens if I pay ALL the payments that are left? Will I still be "leasing" the vehicle or is it then immediately time for me to have to buy it out? I know this sounds like a simpleton question, but I'm just not sure how it works have a truck that I still don't own, but don't owe money on for 8 months.

 

The bigger question is: would i be better just going into a dealership with some months left on the lease, and have a much larger down payment to work with, seeing as though I wouldn't have paid off those months in advance? This is where I am having trouble finding a solid answer.

 

As a side note, I have narrowed the purchase decision between a Nissan Murano and Mazda CX-7.

[Wacka]

Not a Fit?

[stevestojan]

Not a Fit?

 

No... not a Fit

[Live&DieBillsFootball]

Why don't you go to the dealer and see what kind of price you get with or without the leased vehicle in the mix? Possibly, they will give you some incentive to end your lease now and buy the new car. Especially if you go in near the end of the month when the sales dept is trying to hit their monthly numbers.

 

You can always just let the leased vehicle sit in your driveway and pay the last 8 months as they come due and then turn it in.

 

Another idea is to see what the value of the leased truck is versus what your buy-out option is on it. Depending on what they calculated the residual value to be when you took out the lease, you may have some "equity" in it. Find out what the buy-out price is and then check kbb.com or edmunds.com for the private party value. If there is enough of a difference, put it on Craigslist and see if you can get more than your buy-out. Just don't buy it out until you find a sucker, I mean a buyer.

[erynthered]

Call the lease company.

 

Quick thoughts:

 

You can pay off the 8 months left and turn the car in early. No worries on the .15 cents a mile overage. ( but why not drive it )

 

Drive the car, make your payments or balloon then pay the overage on the mileage at the end of the lease. Your obligation is for the money not the time.

 

Don't roll 8 months worth of lease payments into another lease, 3 or 4 months is OK. With all the incentives on cars right now the incentives would more than likely cover the negative.

 

If I missed anything, ask again.

[tennesseeboy]

What about driving the leased car the 4100 miles (a few months?) and then paying off the lease and turning it in? That is a little delay in getting the car you want and you would have gotten the real value of the lease. I like the idea of sitting down with the dealer of the car you want to buy and seeing what solutions they might have as well. Good luck.

[RayFinkle]

Ok, so my lease is nearing its end, and I am in the market for a new vehicle.

 

I have a question regarding what the best financial move is.

 

I have roughly 8 months left on the lease, but only 4100 miles until I hit the mileage limit (it was a 5 year lease... i know... horrible, but when I signed that deal my credit was slightly better than a 5 year olds -- my credit is 690 now, so much better, but still not excellent) . Now, any big dealer will take the remaining months and "roll" them into a new lease/loan. Leasing has actually worked well for me, so I don't want to start the debate over leasing/buying. I know "leasing" is like renting, etc, etc.

Anyway, what I am thinking instead is paying off the entire 8 months I owe right now. How does this affect my ownership of this vehicle? I know I can always pay a month (or several) in advance, but what happens if I pay ALL the payments that are left? Will I still be "leasing" the vehicle or is it then immediately time for me to have to buy it out? I know this sounds like a simpleton question, but I'm just not sure how it works have a truck that I still don't own, but don't owe money on for 8 months.

 

The bigger question is: would i be better just going into a dealership with some months left on the lease, and have a much larger down payment to work with, seeing as though I wouldn't have paid off those months in advance? This is where I am having trouble finding a solid answer.

 

As a side note, I have narrowed the purchase decision between a Nissan Murano and Mazda CX-7.

 

What kind of new ride are you looking at? Mercury is giving leases away right now.

 

EDIT: I should have read the last sentence.

[BillsFanNC]

Here's what you are looking for. I can't recommend this service highly enough.

 

Fighting Chance.

[Sherman]

If you have already determined leasing is the best option here is what I suggest:

 

1) Do not put money down. Yes you can get a lower car payment but that money is gone. You have nothing to show for it. If you finance to own it is different because you take ownership at the end of the term and have an asset. If you continue to lease and put money down you will throw away thousands of dollars in the course of your life. Would you give Alamo or Hertz extra money to rent a car for a lower payment?

 

2) Drive your current leased car until the milage is expired. Then negotiate with the car dealerships as if you will make those payments until the lease expires and you can drive off the lot with their car today. When you feel like you are at the price you want have them take your car early. If they refuse and you can make the payments do that. If they refuse and you can't determine the difference between the milage overage you expect at lease experation and the difference in the monthly payment. The insurance hit shouldn't be to bad for a few months because the liability will be stretched between two cars.

 

3) When the salesmen asks the price you are looking to get always give them a number $25-50 less than what you want. They will come close to your price.

 

4) Hold firm on the monthly payment you want. There are enough dealerships out there. You will get the price you want.

 

Also, a final note but if your current lease is through a car company they may have added flexibility when it comes to milage overages.

 

Hope that helped.

[VABills]

Get on the bus Gus.

[stuckincincy]

Get on the bus, Gus.

 

[stevestojan]

If you have already determined leasing is the best option here is what I suggest:

 

1) Do not put money down. Yes you can get a lower car payment but that money is gone. You have nothing to show for it. If you finance to own it is different because you take ownership at the end of the term and have an asset. If you continue to lease and put money down you will throw away thousands of dollars in the course of your life. Would you give Alamo or Hertz extra money to rent a car for a lower payment?

 

I had never considered no down payment. After you stated that, I searched the web for more info on that, and even the financial guru at edmunds.com stated that you shouldn't put ANY down payment on a lease. Very interesting. Thanks for that advice.

[KnightRider]

If you can deal with driving a reliable beater car for a while, why not get ahead and pay cash for the beater and put what you would have had as a monthly payment (both the lease payment and the collision insurance) into a broad market index fund? You'll find that pretty quickly, you can build up enough to buy a nicer vehicle for cash. Four years ago I junked the 91 Prelude for a 2001 Audi A6 that was off lease for just under 20k. By auto-investing $50/week, I'm well on my way to having enough to buy another 20k car. By auto investing $100/week, I could afford more, now...

 

BTW, having no car payments looks good when you apply for a mortgage, too.

[BillsFanNC]

I would again recommend that anyone considering buying or leasing a new car try the Fighting Chance package. From their website:

 

Perhaps most important, you'll be able to do all your negotiating

using our "Fax Attack", without going anywhere near a car store!

(Complete details included, with sample faxes for buying and

leasing.) We concluded a long time ago that only a fool would

actually walk into a car store to negotiate the price of a car. Most

customers tell us the "Fax Attack" information alone is worth the

price of the entire package because it teaches them how

to buy a new car the smart way for the rest of their lives.

 

I used their "Fax Attack" method to purchase a 2007 Toyota Tacoma. I never set foot in a car dealership and had seven solid offers within 24 hours. I eventually got the truck I wanted for $100 under invoice. I didn't even have to go to the dealership to pick it up! The dealer was about a two hour drive from my house so they offered to drive it out to me.

[Chilly]

I would again recommend that anyone considering buying or leasing a new car try the Fighting Chance package. From their website:

 

 

 

I used their "Fax Attack" method to purchase a 2007 Toyota Tacoma. I never set foot in a car dealership and had seven solid offers within 24 hours. I eventually got the truck I wanted for $100 under invoice. I didn't even have to go to the dealership to pick it up! The dealer was about a two hour drive from my house so they offered to drive it out to me.

 

Heh, I did a similar thing when I bought my car earlier this year: I emailed the dealerships with the model/options that I wanted, played them against each other, and got a really good deal on my new car. I had the price negotiated before I went to the dealership, just had to go do paperwork and pick it up. I ended up paying well below what my credit union claimed invoice was.

[Just Jack]

I would again recommend that anyone considering buying or leasing a new car try the Fighting Chance package.

I'll have to remember that next time I'm looking for a car. Dealers love me because if a price sounds reasonable, I'll pay it. without researching anything.

[BUFFALOTONE]

Ok, so my lease is nearing its end, and I am in the market for a new vehicle.

 

I have a question regarding what the best financial move is.

 

I have roughly 8 months left on the lease, but only 4100 miles until I hit the mileage limit (it was a 5 year lease... i know... horrible, but when I signed that deal my credit was slightly better than a 5 year olds -- my credit is 690 now, so much better, but still not excellent) . Now, any big dealer will take the remaining months and "roll" them into a new lease/loan. Leasing has actually worked well for me, so I don't want to start the debate over leasing/buying. I know "leasing" is like renting, etc, etc.

Anyway, what I am thinking instead is paying off the entire 8 months I owe right now. How does this affect my ownership of this vehicle? I know I can always pay a month (or several) in advance, but what happens if I pay ALL the payments that are left? Will I still be "leasing" the vehicle or is it then immediately time for me to have to buy it out? I know this sounds like a simpleton question, but I'm just not sure how it works have a truck that I still don't own, but don't owe money on for 8 months.

 

The bigger question is: would i be better just going into a dealership with some months left on the lease, and have a much larger down payment to work with, seeing as though I wouldn't have paid off those months in advance? This is where I am having trouble finding a solid answer.

 

As a side note, I have narrowed the purchase decision between a Nissan Murano and Mazda CX-7.

Weird I am looking at the same 2 vehicles for my wife. WoW.

[stevestojan]

I would again recommend that anyone considering buying or leasing a new car try the Fighting Chance package. From their website:

 

 

 

I used their "Fax Attack" method to purchase a 2007 Toyota Tacoma. I never set foot in a car dealership and had seven solid offers within 24 hours. I eventually got the truck I wanted for $100 under invoice. I didn't even have to go to the dealership to pick it up! The dealer was about a two hour drive from my house so they offered to drive it out to me.

 

 

My question about that. First, you pay for EACH model of car you want their service on, correct? So I should be pretty sure between the one or two models I want?

 

Also, you got offers from 7 dealers? Didn't this require 7 hits on your credit? I'm very cognizant of my credit score now, and I wouldn't want 7 hard hits all at once.

[EndZoneCrew]

My question about that. First, you pay for EACH model of car you want their service on, correct? So I should be pretty sure between the one or two models I want?

 

Also, you got offers from 7 dealers? Didn't this require 7 hits on your credit? I'm very cognizant of my credit score now, and I wouldn't want 7 hard hits all at once.

 

Steve...best damn MPG on the market!!!!!

[USMCBillsFan]

Steve...best damn MPG on the market!!!!!