just think, she was offered a highlander back in 2016 that she could’ve kept for 20 years.
My 2010 Infiniti has been more expensive to keep on the road post-manufacturer warranty than my 2003 Mercedes E500 was… and that’s no small achievement.
Fixed. There’s another one around here, either he multiplied or grew. But Infiniti’s will last 1 million miles without any service, BMW owners need to carry oil cans around instead of gas cans.
3 posts were merged into an existing topic: Off Topic Landfill
Teach your dad a lesson about signing a lease for someone else and just drop the car off at a dealer. Boom /thread
Stop everything you’re doing and get an appraisal from carvana, vroom, and shift. It’ll take you 10 minutes.
Compare the buy out to this value to see how upside you actually are.
+1 for getting estimate from Carvanna
Seems to me a few factors are being co-mingled by various people in the thread
ie debating the wisdom of wanting to keep the car vs how to do it, chiding her for creating 10K in overage
She owes infiniti finance either
- 25K to buy it out (she’s going to get a LOT less than that from Carvana)
- She gives the car back and pay 10K in overages, and then has to go out and get another car.
Assuming she wants to keep the car, as long as the car is worth more than 15K to her , she’s better off buying it out. Another way of saying it, she has the chance to buy this car for 15K (yes she has to pay 25K,but that 10K is already spent).
I’d think a well cared for 2016 Qx60 (even with 90K miles) is a decent deal for 15K when you know the history and its been a reliable. Now if she hasnt been changing the oil enough, etc then all bets are off. But if those are highway miles, and she’s maintained it, its not bad for 15K.
She can rack another 90K over the next few years and then scrap it.
how is the buyout 15k? she either pays 10k to nissan mc to take the car back or she pays 25k (can be financed) to nissan mc to buy the vehicle, she can then keep a vehicle with 100k miles no warranty or sell it and take a negative equity hit on the car and call it a day since she plans to spend 5k anyway
He’s saying the $10k is a fixed cost. Regardless of what she does… she owes it. That means the additional $15k is going to be used to buy the car. So it’s an easy calculation if the FMV of the vehicle is $15k or more the buy out is either a wash or she comes out ahead. He’s basically saying that she could do worse to pay the $10k and then buying a $15k used car. Either way she’s spending $25k. I’d buy it and drive it until it’s scrap as previously discussed.
I would still get carmax, carvana, etc. etc. quotes. She will never get out of the depreciation curve on this thing, and who knows how reliable it will be. I think taking a 5 or 6k negative equity loss and moving on is the better solution and just learn from the experience, you might take the loss now but at least you won’t get burned on maintenance by a car over 100k miles down the road.
Not that one more opinion from another Internet stranger matters, but I completely agree. Everytime I check back on this thread I find myself shouting “EJECT EJECT”
Speaking only for myself, I knew what was being said. It’s a SUNK cost; then throwing good money after bad, and justifying it with an imputed value argument … please consider taking an economics class (again?). Thinking about utility like an asset will just lead to bad decisions in the future.
Might the OP come out ahead in the two-part transaction where dad buys car leased for them and two-steps out before dad has to pay tax? Yes. Is the lease overage 10k my contract? Yes. Is the 25k buyout a better deal? To then own a notoriously unreliable, small, Japanese luxury SUV, and hope you come out ahead? Show me the math.
Only if the OP said “I have NO money and I need to string out the overage payment, I can afford X per month” does it make any sense to me to buy this lease out. If you have the means, start over now and lease something cheap after disposition.
Paying the overage costs appears to be the worst possible choice, given a presumed market value of 19-21K. The real question is whether the car is worth more to her than to this wholesale market price. (which is what she’ll get for it if she sells it to carvana)
Since she knows the history of the car, its maintenance and her preferences, she’s in a position to know if its worth buying at that value or not.
The majority of this thread is just posting about people’s preferences about new vs used cars and personal risk tolerances. From a financial standpoint, it almost always cheaper to keep your current car until it becomes quite decrepit. Given that this is a 2016 and she said its been reliable, I doubt it’s there yet.
Of course, if she just wants to save money, she would just buy a Nissan Versa and keep it for 10 years. But this isnt Bogleheads.org or Mr Money Mustache.,
I posted before about possibly doing a lease buy-out or how to get into a new car since I will owe $10K in mileage. After reading all your responses, I need your unfiltered advice once again LOL. I did get quotes from carvana, shift, etc and the highest was $17 K (I got a total of 3 and they ranged from 15-17K). Lease buyout is 25K. If at all possible I would love to get into a new car - doesn’t have to be another infiniti but I do need a 7 passenger SUV. I have $5k to put down. Am I better off trying to find another QX60 lease with enough incentives to offset the negative equity? Or is there another solution that I am not seeing?
Please keep your related posts in the same topic.
I really think we covered all this before. You’re $8k underwater, which is less than the $10k mileage over, so common sense would dictate that trading it in is smarter than turning it in. Infiniti MF is practically zero so that’s a pretty good brand to focus on, or any other brand with a really low MF to avoid paying rent charge on the negative. Keep in mind you will be paying taxes on it however.
Also, why do you need a 7-passenger SUV now?
Don’t put money down on a lease…
I need a 7 passenger SUV because I have a ton of kids. I have a 7 passenger SUV now I understand not to put money down on a lease…but to help pay off the negative equity if I can’t find a deal to cover it all.
You should pretty easily be able to get an Infiniti for <120 LTV including the negative.
Here’s a marketplace example…
with $8k negative:
In that example the dealer discount is $7588 so you’re essentially leasing for $412 over MSRP.
edit: second calc link wasn’t correct sorry
To make the deal a bit sweeter, Infiniti is giving 1K extra if you ground your current Infiniti and take another lease this month.
this is usually not something they do but it is being done this month in NY metro area.
I’m surprised no one has mentioned snowy off ramps yet. But to echo, you need something that is capable of swallowing a ton of negative equity.
LOL there’s no snow here - SoCal is on FIRE. But no fires close enough unfortunately.