I’m trying to educate myself on where I messed up on my first lease (which I know I did badly) and how to proceed.
Current situation: my lease ended in January. In 1-1.5 years im planning to buy my dream car so I just need my current vehicle for less than 2 more years. I’m debating continuing the entire year on lease extension and then making due a couple months until I can buy the dream car versus buying out the car and selling it when I’m ready for the new car
One factor I was comparing is the interest rate. To buyout, they’re charging 7.5% interest. I tried calculating MF/APR for my lease and I don’t know if either I’m calculating it wrong or I got extremely screwed over because I’m getting a MF of .009.
Plz help me figure out what the MF was on my lease and any advice on how I should proceed
(The contract shows something slightly different but we did zero drive off)
Got it thanks it makes sense now. When I used Google it defined lease charge as the amount of lease over the term so I thought it meant basically your monthly payment.
In this situation where I either have to buyout at 7.5% interest versus just extending the current lease, is there any benefit (or drawback) to either situation?
Yeh I realized the difference in the interest rate. I just meant more specifically if there is any other pro or con to either decision, like if there are any other charges added on to the lease extension but I figured it out. They just charge a $28 service fee but it’s still obviously less than the difference is pay in interest
Holy crap! Why are you paying 545 for GAP? That’s outrageous! Did you contact your insurance carrier? Most insurers charge about .050% of the MSRP annually for a GAP Rider. In your case, that would be about 16. The 495 excess wear/tear coverage is BS. Why is there a 19.50 CCR tax when there is no CCR?
Why does it matter what the MF is for your decision to extend or not? If your current lease is $500/mo ($250 for depreciation and $250 for rent) or ($450 for depreciation and $50 for rent) or any other variation, why does this matter?
I told them no gap but somehow I didn’t realize they stuck that on there. I think by the time we got this deal done I was exhausted because of indecisiveness and we were using 1 car for our entire family so I was a chauffeur and just needed another car at that point
Because even though my plan is to buy my dream car in 1-1.5 years, life can change. I want to keep the door open for potentially buying out and keeping the car for the long run if for any reason financially things don’t go the way I hope. So I want to basically know all of my options and choose which one gives me the least potential loss/most potential gain. If I do a lease extension, the interest rate/MF would remain the same for the year of the extension so more of my money goes toward the equity of the car. If I buy out now I’d pay more in interest and less to the equity. That’s why I wanted to know what the MF was on the original contract which is what it would continue to be on the extension, so I can compare to the interest rate buying out now….and take any other factors into consideration like the service fee etc.
Not all banks will lower the RV for extensions. Even if you are paying more depreciation, the buyout price at the end of your extension may still be the original RV.
Mazda financial said the payments will drop the RV the same as in the original payment contract . Only difference is the monthly increases slightly because the tax would be added on (Ohio so original lease contract sales tax was upfront)