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Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
You are in the Smart Shopper-Archives Forum. Your Hosts are kirstie_h & tidester
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You're welcome, explorer025. The problem with your calculation is that the bank that you are leasing your Explorer through owns it, not you. Even after you have paid all of your remaining lease payments, you still will not own your truck until you pay Ford Credit its purchase price. The total of its purchase price and your remaining payments will likely be well above your truck's current value on the open market. As a result, rather than getting $3,000 back by breaking your lease you likely will owe thousands of dollars. Car_man Host Smart Shopper Message Board |
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I am sorry to hear about your unfortunate situation, rosebud1. As long as your leased vehicle is repaired properly, preferably with OEM parts, you can not be charged for excess wear and tear because of this accident by the bank that you are leasing it through when you turn it in at the end of your lease. This is actually one of the beautiful things about leasing. If you actually owned your Sentra and had it repaired after it was in an accident it would have diminished value compared to a similar car that was never hit. As a lessee, you can avoid this diminished value hit by simply turning in your vehicle at the end of your lease. As long as your car has been fixed properly, the bank will have to absorb the diminished value hit, not you. The fact that your car was in an accident does not allow you to terminate your lease early though. Car_man Host Smart Shopper Message Board |
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Hello sungod067. If you owe $3,000 more on your current vehicle than it is currently worth you will have to either pay that money out of your own pocket or roll this negative equity into your next loan or lease to sell your car right now. Most banks will not loan more than a little over a vehicle's full MSRP, so in order to put $3,000 in negative equity into your next loan you would have to purchase or lease a vehicle that has more than a $3,000 difference between its full MSRP and selling price. This should not be a problem in today's competitive market where automakers are providing tons of incentives. Having said this, rolling negative equity into your next loan or lease is not really a good idea because rolling negative equity into your next vehicle will cause you to be even more upside down on your SUV than you were on your car. If I was in this situation and I could not afford to pay the negative equity on this car out of my own pocket, I probably would wait until I was less upside down on it to get something new. On a side note, consumers are often able to get more for their vehicles by selling them on their own than they are by trading them in. This is especially the case with less expensive vehicles that most dealers would sent to auction rather than selling on their lots. You may be able to reduce your negative equity by selling your car privately. Car_man Host Smart Shopper Message Board |
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No problem, sergkn. Banks offer the no security deposit option because many consumers are interested in driving off in their leased car or truck having to pay as little money as possible at lease signing. I personally would rather pay a security deposit that I will eventually get back than have a higher money factor used to calculate my lease payment, causing it to be higher. Car_man Host Smart Shopper Message Board
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Hi gold233790. Audi's October lease program is scheduled to run through today, November 3rd, and Infiniti's October lease program just expired. I have not had an opportunity to see their new November programs yet, but would be more than happy to try to give you an idea of what they are like if you check back with me in a few days. Post a quick reminder for me then and I'll let you know what I have been able to find out for you. Talk to you soon. Car_man Host Smart Shopper Message Board |
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Congratulations on your new car, dprosa. It sounds like you did very well. Enjoy your new ride. Car_man Host Smart Shopper Message Board |
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Car_man, It's me again. The MSRP on the 2005 doesn't seem to be that much different from the 2004. Am I to assume that the residual would be higher on the 2005 and therefore alter the payment or am I way off base? In your opinion should I go for the 2004 or should I wait to see what the 2005 numbers look like? Also, I have a 2001 Jetta with 29,000 miles on it that I will be selling/trading. In your opinion should I trade it in against the lease or sell it as a separate transaction? My first instinct is to sell it. KBB says its worth around $10,000 and I only owe $6,000. Thanks again! |
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Car_man, Do you have any idea if the money factors on the 2005 Civic (LX or EX) have changed now that we're into November? Anything else changed with the new month? I'm looking at a 24 or 36 month lease. Thanks. |
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Replying to: rroyce10 (Nov 02, 2004 6:39 pm) Hi Terry. While that's true, someone upside down on a loan/lease is going to be in a much less favorable bargaining position. There's a reason someone is upside down on a loan and rolling the balance onto another vehicle; they don't have any money! Someone in this situation and shopping for a payment is going to have limited options and the dealer will sniff that out right away. And the sales agreement will be really fun to decipher when it's getting rolled into a lease. This is why you see Camrys leased for 60 payments of $400.
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Replying to: Car_man (Nov 02, 2004 4:39 am) |
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