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Smart Shopper Owe more than it's worth... I'm upside down and I can't get up!
1160 messages, Last post on Oct 22, 2009 at 7:11 PM
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Replying to: qbrozen (Nov 30, 2006 10:25 am) |
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$581 x 31 = $18,197. How does he/she get $39,000 for the payoff?
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I do suppose this person is somewhat math challenged. Wonder how he got into such a predicament? So which car salesman in here is going to help him out?..... |
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Replying to: lemko (Dec 01, 2006 7:01 am) That is really the only way to get out of a lease.. With 31 payments to go, the bank won't accept the remainder of the lease payments and take the vehicle back.. |
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That makes sense to a degree in that I know banks hate being in the selling cars business, but wouldn't you think there would be something to be said for them to accept $18,197 for a $39K truck? I would have to think there's a buck to be made there. There is the remote possibility that I could be wrong.....
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Replying to: fezo (Dec 01, 2006 7:57 am) Three ways out of a lease.. 1) You buy the car for the payoff.. This is generally the Cap Cost minus the depreciation portion of the payments already made, plus occasionally a penalty portion of the unpaid finance charges. 2) A dealer buys the car for the payoff (through trade-in usually). If the trade-in value is less than the payoff, which it almost always is, the lessee will have negative equity that has to be dealt with, just as in any other negative equity trade-in situation. 3) Get someone to assume the lease. Not all banks will allow this.. If you are in a bad lease, this is almost impossible to do, but if your lease payment is cheap, and you just don't want it any more, this is a viable alternative. regards, kyfdx |
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...is one awful monthly payment for a lease! I paid much lower monthly payment than that to BUY a new Cadillac, (No, I didn't finance it for 60+ months!)
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Replying to: lemko (Dec 01, 2006 10:06 am) Our average Range Rover lease is around 1,200 a month for just 15,000 miles a year. |
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Explains why I don't have a Range Rover! "2) A dealer buys the car for the payoff (through trade-in usually). If the trade-in value is less than the payoff, which it almost always is, the lessee will have negative equity that has to be dealt with, just as in any other negative equity trade-in situation." And that, in a nutshell, is why I never have and never will lease a car! I have a friend who does almost a lease it to himself deal, which is to say that he buys the car when the old one hits 50K. He trades in or sells the old one and throws a couple of thousand into the pot. In the end he has a car loan that approximates a lease payment and a capital investment in the car. A depreciating asset to be sure, but he has equity in it that you'd never have in a lease. I'm thinking of buying his next outcast. The last several have been Subaru Outback wagons and he takes fanatical care of everything he owns. I could live with that. He sold the last one to a friend as well. |
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I have rolled as much $13k into Hyundai Elantra's before. When the car only cost $11k. How does that work? It's called having flawless credit and taking an 84 month term. There are banks out there that will loan close to 200% of invoice. Trading out of a car to lower a payment is about the dumbest thing anyone can do. First off chances are you owe more than the car is worth so you will have to roll negative which will bump the payment more and then how much are you going to lower it $50, $100 big deal. Why roll money and start over brand new payments just to drop it a few bucks. If your payoff is low and you really cant afford the payment look at refinancing the balance to something you can afford. You may pay on it longer but its a lot better than putting negative money ontop of a loan on a depreciating commodity
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