If I have a late model car worth 30k to 36k and it’s paid off, is it wise to trade in on a EV lease.?
No.
10char
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Absolutely not!
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Omg, really?
Why?
Not even in a non lease?
I bought it new in 2018 as a new 2019.
It was New Year’s Eve and the dealer marked down all cars 10k.
Got a 37k car for 27k.
Now in 2023, private party I can sell for 36k.
Trade in 30 to 34k.
The new car I was looking at to lease was almost 60k.
At a 54 residual value and 0.00250 money factor, no money down and a couple thousand discount off msrp was 760 a month for 36 months 12k miles.
No money down or DAS.
By entering trade on the calculator my monthly payment is low.
Keep the two transitions separate. If you want to sell your current car, go for it. But put that money into a bank account instead of into a new lease.
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Do a search on what might happen if put a lot of $ down on a lease and end up w/ a total loss in a crash. There’s been lots of discussion about that.
Putting that much $ down if you finance does not result in the same potential loss, I would imagine.
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Good lord, everyone, calm down.
Look into a one-pay.
More often than not, that will save you a fortune on rent charges.
But regardless, you’re more likely to do something smart if you don’t look at this as “car money.”
It’s just money, like any other money you may or may not have.
Without irony I had an Audi salesbimbo tell me what a great lease she got for another customer on an e-tron GT. “Under $600 when I showed him what he could do with his $37,000 trade-in he’d already paid off.”
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Thank you everyone.
I understand now.
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MF= 0.00225
Residual = 54%
No money down no DAS
Sales tax rolled into monthly
$500 Military discount
$7500 rebate taxed incentive
$1100 off MSRP
See leasehakr:
The MF has been marked up, so you are getting the car at MSRP. See here with $0 discount and base MF. It’s the same thing:
Also, since it’s a VA dealership, the doc fee is $800. I can get you 5% off an eDr40 in Maryland, where the doc. fee is $500, and I can see what is around in terms of eDr35, but either way, I can save you a ton of money. Please don’t even think about this deal. This isn’t even about me wanting to make a sale/get a broker fee. This deal is just really bad all-around. I can help with your trade, too.
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Change that discount to 6.5% and I’ll do that deal for you with a lower doc fee too, but i4 eDrive35 stock is almost non-existent, so we’d need to order.
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Really depends on what your motivations are.
Please excuse my ignorance.
But I want to make sure I understand the difference per the title.
Am I correct in understanding my actual monthly payment is the “Pre-Tax Monthly Payment” and the Effective Monthly Cost is “in effect” but not actually?
So confused.
The effective shows your actual cost including the DAS you’re paying upfront.
The monthly payment on a contract can easily be lowered by putting more upfront. That doesn’t make a deal better.
To answer it another way, your Effective Monthly Payment is the actual monthly payment, including tax, plus what is due at signing beyond the first month’s payment divided by the term of the lease.
As you mentioned the MF, they won’t budge, unless of course after they run your credit and find an excuse to raise it
Correction, the Residual is 55 at 7500 36 months
Chasing people who make late payments, repossessing a vehicle, etc., are very expensive for the finance company.
So it’s not an excuse.
Credit history / credit scores are highly predictive of a consumer’s probability of defaulting on the agreement.
The other rational option would be to decline the lease application, but then no one gets anything.
Tell me more please