Last post on Mar 14, 2013 at 8:32 PM
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Car Buying, Car Leasing
#13 of 45 Negative equity trade- in
Jun 29, 2011 (12:03 pm)
I currently have a lexus with approx. 3,000 in negative equity. I would like to trade in my car and possibly lease to keep my payments lower then financing a new vehicle. Would this would be a good idea? I would be interested in a mercedes c class or audi a4/a5. What would be the best plan of action for this situtaion , so I know what I am getting into when I go to the dealer.
#15 of 45 Re: Negative equity trade- in [tntgirl12]
Jun 29, 2011 (2:03 pm)
I'm sure this isn't what you want to read but the best plan of action is to keep the Lexus and keep paying on it until at least the time at which you're no longer upside down.
When you roll negative equity into the next vehicle it means you're even further upside down on it's loan. It'll take longer still to hit the break even point and actually gain some equity. You will likely also wind up paying more in interest changes and may not qualify for the best loan rates and/or be forced to carry (and pay for) gap insurance.
Financially, it just doesn't make sense.
Of course, finances aren't everything. If the Lexus no longer fits your life - no longer holds the entire family, lost job & can't afford payments, etc. - then trading it in may be the appropriate thing to do.
Personally, I buy cars that I believe I'll be comfortable with for 8 or more years. By doing so I enjoy several years with no payments and have positive equity to use when the time comes to buy my next car. My last car I bought in Feb '99 with 15% down, financed the rest for 2 years so it was paid off in early '01, and kept it until Dec '09. I enjoyed eight and a half years without payments and was never in a negative equity position.
#16 of 45 Re: Negative equity trade- in [fushigi]
Jun 29, 2011 (2:35 pm)
I am considering this option and will try and pay more off on the car in the mean time. That is what I was afraid of not being able to negotiate to get a fair deal because of the negative equity. Thank you for the advice.
#18 of 45 Re: Negative equity trade- in [daniel12304]
Jun 29, 2011 (2:54 pm)
Thank you for the advice. I think I will look into using a car broker to help with the lease. I am in the NYC area. Are they any specific places I can try and sell my car to or get appraisals from besides the dealership I would be leasing the car from? I have considered private sale. I want to put as little money down as possible so Im just researching to be better prepared. When would be the best times of year or moth to lease a car?
#19 of 45 Trade-In Value More Than Lease Pay-Off
Oct 14, 2011 (6:06 am)
I am in a Mercedes E350 lease that terminates in March of 2013. Yesterday, I checked the payoff of the lease and noticed it was less than the trade-in value as shown here on Edmunds. Would a dealer be interested in paying off the lease to obtain my vehicle as a used vehicle in order to sign me to a new lease?
#20 of 45 getting started with search for good deals
Dec 12, 2011 (9:14 pm)
I am getting started looking for good leasing deals for a 2011 BMW 328xi 4dr with premium package and navigation. I also want a convenience package but I haven't heard from any dealers with all three on a vehicle.
I want to lock the deal by end of year but I don't want to visit a lot of dealers, as I have a small child and a long commute to work -- time is short/precious. What's the best way to make sure a dealer is serious before I make a trip out to them? Any tips? I've already driven the car, and I really like the ride, interior and features. Also I've seen prices on here and looked up the invoice and it should be well within my price range. So far the dealers only want to talk MSRP terms on the phone and even the one dealer I have visited in person.
#21 of 45 Re: getting started with search for good deals [apath2]
Dec 13, 2011 (1:00 pm)
First of all the BMW 3 series will change the body style in a few months , so the deals are very good at this time. The best way to shop for a car without leaving your home is an Auto broker - depending on where you live , someone can do the shopping and negociating for you - its like hiring a lawyer when going to court - the broker will deliver the car to your home in motst cases and handle the entire transaction
Just google Auto broker in your area and see what you can find
Best Car Purchase
#22 of 45 Re: Negative equity trade- in [tntgirl12]
Dec 24, 2011 (7:36 pm)
I know a broker that gets great prices on mercedes leases 340 for a c clas mercedes 2012 with 1500 drive off at signing a poaded car with amg package, great broker