Leasing question

[Livestrong16]

The two cars I've had in the past were financed to own so I'm not very familiar with leasing. I went into the dealership Saturday and after running my credit he was telling me I'm getting a terrible interest rate to finance (12%) :-O and told me a co-signer wouldn't help either(which was ??). He basically said the lease would give me the monthly payments I wanted.

 

The lease included my trade in of $3500-$4500 but after going home and doing some research I learned to NEVER put any cash down on a lease.

 

I'm so in the dark about leasing and what to do? If I withdraw the whole trade in then my monthly payment will jump, not to mention now I gotta worry about trying to sell it on my own. From anyone's experience... are there any other loop holes here? Anything I could try...?

 

In the meantime I did apply for an auto loan with my credit union but of course it is the holiday weekend so I'm on hold till tomorrow.

[akirby]

The two cars I've had in the past were financed to own so I'm not very familiar with leasing. I went into the dealership Saturday and after running my credit he was telling me I'm getting a terrible interest rate to finance (12%) :-O and told me a co-signer wouldn't help either(which was ??). He basically said the lease would give me the monthly payments I wanted.

 

The lease included my trade in of $3500-$4500 but after going home and doing some research I learned to NEVER put any cash down on a lease.

 

I'm so in the dark about leasing and what to do? If I withdraw the whole trade in then my monthly payment will jump, not to mention now I gotta worry about trying to sell it on my own. From anyone's experience... are there any other loop holes here? Anything I could try...?

 

In the meantime I did apply for an auto loan with my credit union but of course it is the holiday weekend so I'm on hold till tomorrow.

 

Who told you NEVER put cash down on a lease? It depends on what you're trying to do.

 

Do you plan to keep the car after the lease (buy it out) or turn it in and walk away?

Will your financial situation be better in 3 years?

[Livestrong16]

Who told you NEVER put cash down on a lease? It depends on what you're trying to do.

 

Do you plan to keep the car after the lease (buy it out) or turn it in and walk away?

Will your financial situation be better in 3 years?

 

I read some things online through forums and articles and also word of mouth. Mainly what I've been told is if god forbid the car was totaled that down pmt is gone and will never been seen again.

 

Yes my plans are to keep the car. I went in there with a finance only state of mind. Not looking to get into a new car after the lease terms are up.

[akirby]

I read some things online through forums and articles and also word of mouth. Mainly what I've been told is if god forbid the car was totaled that down pmt is gone and will never been seen again.

 

Yes my plans are to keep the car. I went in there with a finance only state of mind. Not looking to get into a new car after the lease terms are up.

 

That is possible depending on how much you put down, how much you've paid up to that point and how much the vehicle is actually worth.

 

Take the $0 down lease (or close to it). The dealer can still buy your car for the trade-in price and give you the cash. Use the money to reduce your monthly payments during the lease if you need to. If not you have extra money to put down on the loan to buy the car after the lease.

[Livestrong16]

That is possible depending on how much you put down, how much you've paid up to that point and how much the vehicle is actually worth.

 

Take the $0 down lease (or close to it). The dealer can still buy your car for the trade-in price and give you the cash. Use the money to reduce your monthly payments during the lease if you need to. If not you have extra money to put down on the loan to buy the car after the lease.

 

Hopefully I can get some kind of loan from my credit union and avoid all the rest. Plus I still haven't seen an official pricing break down b/c the car is coming from another dealership. He swears it's invoice price......it's so hard to trust a car salesman!

[akirby]

Hopefully I can get some kind of loan from my credit union and avoid all the rest. Plus I still haven't seen an official pricing break down b/c the car is coming from another dealership. He swears it's invoice price......it's so hard to trust a car salesman!

 

Ask to see the invoice. Look up the vehicle options at kbb.com, take their dealer invoice price and add $500 - this will be within $200 or so of the actual dealer invoice (kbb.com and other internet pricing sites don't include the advertising fee which is a legitimate part of the actual dealer invoice - thus the extra $500). Ask about the documentation fee - this is additional profit and generally runs $300-$400 but could be much higher.

[Livestrong16]

Ask to see the invoice. Look up the vehicle options at kbb.com, take their dealer invoice price and add $500 - this will be within $200 or so of the actual dealer invoice (kbb.com and other internet pricing sites don't include the advertising fee which is a legitimate part of the actual dealer invoice - thus the extra $500). Ask about the documentation fee - this is additional profit and generally runs $300-$400 but could be much higher.

 

I saw the invoice, he showed it to me on the screen 33,360.

 

KBB says 32,799 which +500 gives a round about dealer invoice. So his numbers to finance does make sense w/the interest rate he said I would get. Next I must call marketing dept and see if they can research my requested brochure's... that $750 coup would be nice )

 

This is all so overwhelming lol...