I made a mistake leasing my last Subaru and want to know if it is possible to get out of it. I took it to Carmax and I owe about $4k more than their offer. I don’t think I can sell private party so I guess I am stuck with it for now.
Basically, I want to get out of it and just buy a car outright for $12-$15k. I should have just kept my 2015 and now am realizing that I do not want a car payment forever.
Sorry man, neg. equity is the worst. Wish there was a better solution. You may very well do okay selling privately if you’re up for it. Can also try Carvana, Vroom, or a few other online buyers - might get a little more than Carmax.
I didn’t think I could sell private party. My understanding is I would need to buy the car, pay taxes, then get the title. So I think my best bet is a trade in
What is wrong with your lease besides you not wanting to have car payments forever? If your situation has changed and the payments are a problem, taking a loss to get out of lease could make sense. But if you just want to own a car and not have monthly payments, don’t compound one bad decision by making another. Ride this lease out till the end/whenever trade in value equals your buyout price. It might feel better to be payment free but paying 12k for a used car and 4k to get out of this is a terrible idea. Instead put that 4k towards lease payments without spending more money on a used car.
Good catch, going back over her posts it seems you are right. My wife’s last car hunt started in Subaru and ended in a Acura so I understand the sentiment. That said, it makes my advice more applicable. If she could not get a luxury car for the price she wanted before she definitely isn’t going to be able to do it rolling 4k of negative equity into new deal.
I want to sell so I can get out of this cycle of having car payments. My fiance and I decided we are going to buy cars outright and just keep them. I have about $10k left in payments, however, I think if I wait a till end of year, Carmax will be closer to what I owe.
For when you sell, I’d highly recommend looking at a Lexus ES350 in your price range. They are very reliable, luxurious, and cheap to maintain (mostly Toyota parts)
If you are willing to stick with a car and maintain it right you should come out ahead particularly because you live in Maryland, (I think is where you said you live) due to the 6% tax on total sale price when leasing.
That said, this really depends on what kind of car you buy. Buying a base accord or just off lease Rav-4 and owning it for ten years will be cheaper. Buying any sort of luxury car less so. Think about it, you spend 40k on a car that is like paying 333 a month for 10 years. Between maintenance and time value of money, I’d argue you are better off leasing a new car every three years.
Finally, my wife also doesn’t like car payments so we do one pay leases. I figure savings on interst are worth the risk of losing money if car is totaled/stolen.
Do you know if you can do one pay leases on any car make? Also, if I was paying cash for a car, I wouldn’t spend more than $20k total including fees/tax. So it definitely would not be a new lexus or anything, however, would look for a certified used vehicle