New to this site and in advance thanks for any input. My step daughter is trying to get out of her 2012 VW Jetta that has non working a/c in this Texas summer!
Have a proposed deal on a 2017 Equinox LT wth a MSRP of $30,505. Tax in Texas is 6.25%. Rolling in negative equity of $5500 and leasing car for 27 months @15k miles per year. Putting down $1500 which includes 1st month payment and a payment of $400 a month. Are we getting a good deal?
Basically your negative equity is $2XX month and you’re paying under $200/month for the equinox. I have seen equinoxs as low as $64/month. Make sure you get 10% off MSRP before incentives.
Are you serious? $400 a month for an equinox just because the AC is not working? At most the AC can be fixed for 1k if the compressor is shot and much less if it just requires a recharge!!
Yes I am serious. The compressor is out so she is looking to put $1000 in to a car with 85,000 miles and that she is upside down to the tune of $5500 and she is presently paying $348 a month.
So for $50 a month more than what she is paying she can get into a car that is worry free and in 2 years she can walk away and not owe any money. If she continues in this car she is probably around 15 months away from being at a break even point and that is only if she has no more mechanical problems. She also has body damage on 3 panels of the car plus some hail damage, so the 15 month period is very optimistic.
What I am trying to determine is if I am getting a good deal on the lease portion of the purchase.
sounds about right-ish. i know LT equinox i sold under 200/month with current lease, but texas has higher lease structures/
5500 over 27 months is 203 + 200 pmt on 15k/
weird term length though. you get the car just over two years but you have to pay another years worth of registration because its 27 months. -_-
If she has put 85k in 5 years with damage to 3 body panels then you may want to consider if leasing is right for her - mileage overage and dented panels are extremely costly in a lease …
She actually bought this car used 4 years ago and she has averaged about 13,000 miles a year that is why we are looking at 15k now. So very true that she has to maintain a certain condition of the vehicle or she will be paying at exit of vehicle.
My thought was to not put money into a car for repairs with so little value and then secondly how can she make negative equity go away as quickly and inexpensivly as possible.
If there is another suggestion I am all ears and appreciate all feedback. New to this forum but I can see that there is quite a bit of knowledge here.
Btw, she has a child and her and her husband are pretty large people so smaller cars that I suggested were going to be a tight fit, literally! The Equinox was intriguing because it seemed like that was a descent size car for the $$$. I don’t think we could have gotten to same payment on a rav 4 or a rogue, which she preferred.
I would try a jetta or Hyundai Tucson before an Equinox.
Cheaper lease to begin with.
Edit: Scratch the Jetta