question about leases and cars

Post by **kg1961** » Mon Apr 19, 2010 7:23 am

As alot of you know Im about to have my first kid. I just got my bonus cheque and it was not what i need it to be so I'm thinking about my biggest expenses.
I have a 2008 Acura tl leased for another 31 months at $622 a month.
My question is how does a lease work if you trade it in to buy something for less?
I would not mind a simple civic 4door or a used civic if I can just buy it
I know there will be fee's and a loss on my end but I would like a car and to have it paid for in the same time/money give or take a couple of months more if needed?
I would guess I would take about a 7k loss adding it to the total price..
Is this reasonable to think that about right?
I have no idea what they do when you trade a leased car in. the dealer hads to buy the car and than any differnce would be added to my new item or am I wrong?

Post by **stipud** » Mon Apr 19, 2010 7:36 am

$622 a month? That's a ridiculously expensive lease! You could buy out many equally nice cars for much less than that.

Trading it in is going to suck the big one. They will probably offer you wholesale value, at best. Plus all your closing fees and extra lease bullshit on top.

Unless you're a filthy rich dude who "needs" to get a new car every year, there should be no reason to lease a car, ever.

Post by **kg1961** » Mon Apr 19, 2010 8:15 am

I here ya Tom the only reason I have the car is BMW bs with 2 shity cars
funny thing is this is the cheapest car I have had in 3 years the bmw were both around 750 month
I would trade this in and pay up to 10k more for a 16k civic so 26k over 36 month and just be done. I feal with my company growing and bouns cheques getting smaller as the money is going inot reno ect.I would rather just own it at the end than give it back and start over or buy something
the 622 month is fine I have budgeted for that so as long as my paymne t don't go up for 1/2 the car Im fine to be a owner not a leaser

Post by **ttocs** » Mon Apr 19, 2010 9:24 am

I am confused because I have never leased a car before. You guys are talking as though he owns some part of the car he is leasing?

Post by **kg1961** » Mon Apr 19, 2010 9:32 am

I don't but to break the lease The contract has to be filled by me so if the dealer give me 8 k less than i owe I have to pay for that or add it to what I buy
hope that helps

dontlookatme · Post by **dontlookatme** » Mon Apr 19, 2010 9:48 am

Look at ur contract it's usually a % of the money owed

Post by **joerg** » Mon Apr 19, 2010 10:02 am

My BMW was 4000USD has almost 300000km on it and since last year may i only had to invest 46eur for safety inspection and 100eur for an oilchange!

What´s the purpose of leasing a car anyways if u are a private person? I understand it if u have your own business because u get loads of tax benefits over here, but that´s about it.

Post by **kg1961** » Mon Apr 19, 2010 10:20 am

the Idea of leasing back in the day was to rent the car if it was shit give it back if it was good buy it out. buy a nice car before owing for the kid.
now 3 cars later as 2 were shit

Im 20 month(16k from bmw) Im behind my payment plan and the kid on the way Im stressing out. the kid was early not really planned yet 8 month earlier than we planned.
I don't really need a car i have a work truck im aloud to do what ever i want
I just have to pay gas when i drive it with out work items.
Im just looking at option right now
I know it will cost 7k or more to get out of fine I can live with that
I can pick up a new civic for 19k new so 25-30 than just buy it.same payments almost the same amount of time but I own it..
or if they will let me by used say 10- 16k plus what i owe and be done with it
All i care about is the focal mids/sub/amps

will fit and i can add my tv deck.... or shit pay the 7k and walk away im fine with that also

dontlookatme · Post by **dontlookatme** » Mon Apr 19, 2010 10:44 am

The best thing u can do is find out how much the car is worth and try to sell it for what u owe and the buy out price even if u bite the bullet for 5k it's still better than full price + penalties

dwnrodeo · Post by **dwnrodeo** » Mon Apr 19, 2010 2:27 pm

funny thing is this is the cheapest car I have had in 3 years the bmw were both around 750 month

I don't have any real advice for you, but feel the need to thread jack a bit. $622 a month?!?!?!?! That's a good portion of a house payment! I bought my winter car/daily driver for $1,000 and have had it for 3 years. Granted it's not the most aesthetically pleasing vehicle to drive, it gets me to work and back, gets 30 m.p.g., and does everything I need it to do with little maintenance. Drop the lease, buy a car that's a few years older cuz as soon as you turn the key on a new vehicle the value drops, save your money for where it is really needed, and install your stereo equipment in the car without worrying about a lease.

Post by **joerg** » Mon Apr 19, 2010 2:35 pm

kg1961 wrote: I know it will cost 7k or more to get out of fine I can live with that

Not to be the dick here now but it´s ok for u to throw away 7grand?

Post by **ttocs** » Mon Apr 19, 2010 4:40 pm

that is what I am trying to figure out. If you buy yourself out of the contract and then throw that on top of another car payment, aren't you just paying more now? Now that take and add in the interest rate on the highter amount and you are out even more. Ride out the contract, take care of the car so there are no penalties and when you are done, free and clear then start looking for something to buy. I was taught that if you want to get out of a hole you dug yourself into, the first step before you can thing about climbing out is to stop digging.

I have always been confused on leasing as well and also figured it was for the people that can write it off. I have never leased a car in my life, only bought one new and will never loose that money by doing that again. Today I own two vehicles, the youngest is my 97 ranger but the maint on the two of them(minus go fast parts on the stang) is still MUCH less then your payments now. Hell if I put that much into my cars each month they would be pimped out and purring even better then they are now.........

gridracer · Post by **gridracer** » Mon Apr 19, 2010 5:14 pm

Post on Kijiji looking for someone to take over your lease try in both calgary and edmonton, and don't lease anymore unless it's a write off I think when you were here I mentioned my dad is a car dealer leases are a ripoff for average people that can't use the tax break.

Post by **kg1961** » Mon Apr 19, 2010 5:46 pm

my wife just took the car and i took hers
so i didn't loss 7k
i got a crappy car but its paid for
so now i have some more car audio for sale

Post by **kg1961** » Mon Apr 19, 2010 5:47 pm

my wife just took the car and i took hers
so i didn't loss 7k
i got a crappy car but its paid for
so now i have some more car audio for sale