I find myself in a situation where I’d like to trade my wife’s vehicle that we are $4k upside down in (don’t ask!)…and I’m wondering what’s the best between a couple of options:
I sell the car myself, paying the difference between the sale price and the loan amount out of pocket, then go lease (similar would be selling it to Carmax which is where I’m getting the $4k upside down amount from)
I find a car to lease, negotiate my lease, then pray they don’t back down from the price once they learn I want to trade a car I’m so upside down in. IF I choose this option, I assume I’m ok in the sense that my leased vehicle would be a good enough deal that I might still be able to roll the negative equity into the lease and the bank would be ok with it…is that a bad assumption?
I know I should never have gotten so far upside down…it was a spur of the moment purchase and we’ve since learned that lesson. What I’m looking at is how to move on from this. I’d keep the car, but to be honest, it’s coming due for thousands in maintenance costs (Porsche) and I’d rather just pass it along and move into something less costly.
If I tried to trade in to a dealer, I know with purchases I’ve always gone in and negotiated fully prior to introducing the trade…does the same apply on the leasing side? That is, do I need to come to full terms on the lease first, and then introduce the trade and see how it changes the lease numbers?
You are right it shouldn’t matter either way but some salespeople like to play games with the numbers. I prefer to get all info out in the open right off the bat but that is just me. Either way, don’t let them think you are desperate, regardless of if you are or not.
The main difference is there are different lease incentives than purchase. If you like to wait and propose the trade until the end, then it should be fine. Just assume that $4,000/36 months = $111 per month extra without including the interest.
Cayenne…only 47k miles but she’s a 2008 so it’ll take a little while to find a buyer who appreciates the value of an older low mileage Porsche. Honestly, I love the Cayenne, I’m just getting tired of maintaining my own vehicles and I’d like to get back into new vehicles that are covered under warranty and maintenance plans…hence the lease attractiveness.
Just a quick update, I was able to trade in the Cayenne at a Porsche dealer who could resell at high market, so I wound up coming out pretty clean on the deal.
I came out owing exactly $4k on the trade…but I was comfortable with that as the night before I traded my driveshaft essentially exploded. That was the main reasoning behind going to the Porsche dealer to facilitate the trade (I knew they could fix it in-house whereas it was going to run me almost $2k for the repair). Between the driveshaft repair and a broken windshield, I felt the $4k I paid out of pocket was reasonable in order to get out of the vehicle and into something new with substantially better fuel mileage.
Even with the $4k out of pocket, my 2017 GTI comes in at $2 more per month than I was paying for a 2008 Cayenne.
4k upside down on a Porsche is like having 4k positive equity on other brands lol.
Care to share some absolute numbers with us regarding the GTI(?) deal? I am in the market for a Porsche myself, not a GTI(or GTS?), but would love to see the % discount and MF.
The lease numbers for the GTI weren’t that great: MF 0.00130 and RV 56% on 36/12
The MSRP on the GTI was just under $26,735, and the sale price was $20,656…right around 24% off. I was able to get the dealer to price match an online ad from the below dealer (not near me). The one extra piece they had me do was to join USA Cycling…it was a $50 fee that gave me an additional $500 off.
For reference, the Stohlman site price changes every day. On the day of my purchase the sale price was $20,4?? but I noticed today it’s $20,691. Luckily I had printed the ad from a day where it was $20.5k, so they took the average of the three prices they saw.
I was shocked at first…but once it happened and I started searching for the cardan shaft failure on the Cayenne it became all too apparent that this is a common issue. It seems to fail in most all Cayenne’s, but is related to the rubber seal around the center bearing wearing (in my case, the Porsche service rep said it was not related to my low mileage but rather the fact that my Cayenne was a 2008, hence more years for the rubber seal to deteriorate). In other forum members, they had newer Cayenne’s but with higher mileage and experienced the same failure.
On a side note, I went through a similar scare with my low mileage (<30k miles) Boxster…Google the IMS bearing failure in Boxsters and 911s and it’ll make you think long and hard before buying one not under warranty. Luckily mine didn’t fail during my ownership, but the next owner wasn’t so lucky.
While the 997 was substantially upgraded in 06, for my own peace of mind I would shoot for 09+ as the IMS bearing was removed from the equation. I do agree however, that an 06+ is a reasonably safe bet (the MAJOR drawback IMO is that the redesign in 06 made the IMS bearing stronger, but unserviceable…so there’s no preventive care, a failure will be catastrophic). While many folks would say the IMS is an overblown issue, my next door neighbor (who had a Boxster at the same time as myself) experienced a catastrophic engine failure as a result of the IMS bearing failure. The repair cost was staggering.
vhooloo,
I’ve seen failures in a variety of vehicles, and wouldn’t assume the Leaf would be immune to its own set of issues (though presumably at a lower repair cost per issue). Having owned and driven almost every brand out there over the years (I’m on my 52nd vehicle), I can say there is certainly a reason people are willing to pay the higher price for the Porsche…the driving experience is truly a treat.
