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ok so lets say i have a lease payment of 300 month for 4years so i am responsible for 14, 400 dollars over that course. If lets say i want out after two years i still have to pay 7200 as the remainder? Even if I trade it for another vehicle? I also dont thnk they would have "negative equity " for leases since i am not paying it off just leasing. I wish i would have been smarter with the math when i was younger.
ok so lets say i have a lease payment of 300 month for 4years so i am responsible for 14, 400 dollars over that course. If lets say i want out after two years
Credit-wise, it's easier to finance. You need rock-solid credit to qualify for the money factors used in the lease specials automakers offer at various times throughout the yr.
What would be a credit score to qualify for Theses offers?
ok so lets say i have a lease payment of 300 month for 4years so i am responsible for 14, 400 dollars over that course. If lets say i want out after two years i still have to pay 7200 as the remainder? Even if I trade it for another vehicle? I also dont thnk they would have "negative equity " for leases since i am not paying it off just leasing. I wish i would have been smarter with the math when i was younger.
yes you are responsible for the lease payments if you want out early. sometimes the manufacturer will offer deals to get out early.
bmw ate our last 3 lease payments if we took another.
the problem is the car is actually bought by the bank and leased to you. they own it and when they get it back they generally wholesale it off . they dont get top dollar for it most of the time so you pay for that fact.
Leasing is a long term contract and you shouldn't sign on the dotted line unless you know FOR SURE that you can cough up the $400 or $600/month without fail. If there's any hint that you could be laid off or switching jobs in the next 3 yrs, don't lease. It's not worth the hassle or headache of trying to unload your car & get out of the agreement.
today buying is no better.as soon as you drive out the door your under water and if you cant make the payments you wont be able to sell the car for what you owe.especially with todays 60 month auto loans.
i would venture to say without a hefty down payment it will cost you money to get out early in either case.
I avoided car payments over the years by buying good used cars with whatever cash i had available, early years it was cars in the $1K range and as i aged the quality and prices i could afford to pay rose accordingly. now at 60 i can pay cash for a new car under $20K but usually avoid the initial depreciation by buying 2-3 year old used cars, at the moment the stable consists of an 08 Yaris,an 05 Echo,and a 99 Miata, all bought and paid for with cash.
My system may not be for everyone but it sure is nice not to have to fork out car payments every month..
If you lease a vehicle that is desireable and is keeping it's value, you can usually get out of the lease with no costs/fees. I've known several people that had equity in their leased vehicle and one that sold it to CarMax and pocketed $1400 in cash, and got out of his car 4 months earlier (G37).
I leased a 2011 Kia Optima with 50% residual (not great for a lease). I'm paying $300/month towards the depreciation. After 24 months, I'll have $3,600 (12months*300) left to pay. The buyout is $11,900. So in another 20 months, I'm hoping my Kia with under 32k miles will be worth around $15,000 (MSRP is $23,700) and I can lease a new Subaru Legacy (miss AWD already!). But if it isn't, I'll just keep driving it until I get can get out of it without paying a dime.
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