07-22-2014, 10:00 PM | #1 |
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Lease with a Trade-In
Hi everyone,
Long time lurker, first time posting a thread...and I have a question that I'm hoping you guys could help answer. Here's my situation, we purchased a used 2007 FX35 in 2010. Low miles, liked the car but now with a kid, it's not really big enough. If my math is correct, I should have some equity since we purchased with a low interest rate (2.99%) and made extra payments monthly. I owe about 8K on the car, but are looking to trade it in to lease an F15. KBB has it "valued" at about 15K, roughly. Would I be able to use that equity toward MSDs? Because you don't put money down on a lease! And then, if I had any additional money left over, what could I do with that? I doubt they'd cut me a check. Thanks in advance for any help! |
07-23-2014, 04:27 AM | #3 | |
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That said, I totally agree with this advice. Go to CarMax, they will cut you a check on the spot and give you an offer that's good for a few days. Then go to your dealer and see if they what offer they will give you on your car. They should have no problem at all cutting you a check; in fact, to make the transaction simple (IE, less places for them to try to slide in some extra profit), I'd recommend you split the transactions. Sell them your car for 10K, and then put down 7 security deposits out of your pocket. Take the check they cut and put that in the bank. The more "rolling it in" you do, the more confusing it gets. And the more confusing it gets, the more the dealer is able to take advantage of you. Work the sale price first, then work the financing/leasing terms based on that sales price. Know what the number should be ahead of time (use a lease calculator to figure it out). And keep negotiating towards the number that it "should be". They will almost always try to pad the money factor or the origination fee, those are the standard games. But, just trust your math; if the lease calculator tells you it should be 1,105 a month at your negotiated price then just keep negotiating to that number. |
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07-23-2014, 10:25 AM | #4 | ||
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Thank you both for the helpful advice! |
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07-23-2014, 11:05 AM | #5 |
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I made a mistake when I first leased my BMW and traded in my car to reduce the cost of the MSRP... huge huge mistake... I would sell your car privately or to CarMax and keep the money in your bank... never put down any money on a lease unless you are doing multiple security deposits to reduce the Money Factor which you get back at end of lease.
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07-23-2014, 12:17 PM | #6 | |
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In other words, try Carmax if there is one near you.
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07-23-2014, 01:16 PM | #7 | |
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07-23-2014, 01:51 PM | #8 |
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07-23-2014, 02:01 PM | #9 |
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