Should I take this deal?

Ask the Hackrs Buy/Finance
1

Hello all,

I was in communication with a dealer about leasing a 2024 Hyundai Ioniq 6 SEL. Unfortunately I’m trying to get out of another car and so I am taking a chunk of negative with me. I have not had my credit pulled yet and the salesman was pretty much working number for me over the phone/email. I owe 50k on my 21’ rav4 prime. over the phone the deal for the lease was. 3k down, 36mo, 10k miles per year monthly payment is 890. I currently pay $880 on a 84mo loan (down to 70mo). Would that be a deal to take to get out from under the Rav and in the long run save a bunch of money at the end of the lease vs end of the loan. I think they are giving me 38k or 39k for the rav which is the most I’ve been offered so far.

Yes I know this isn’t the best situation. But I wanted to ask to make sure I’m not making a bad thing worse. The thing that really has me thinking is at the end of my rav loan I’ll be paying around 62k vs around 35k at end of lease. And in all honesty I will not be able to reliably make extra payments towards the principle of the current loan.

I know this isn’t a unique question or topic, but I appreciate and advice for my situation. Thank you all in advance for any insight you can provide.

2

I’d stay with the rav instead of sinking more money into a lease pit.

3 Likes
3

There are a lot of unknown factors and comparing what you will have paid on a car purchase ($62k) vs lease is not quite apples to apples. Another way to look at your situation. To purchase the Ioniq at the end of three years, you will need about $27k (i’m guestimating based on the info you gave). At the end of three years for your Rav, you will owe about the same $27k.

You are not really “saving” anything because the negative equity on your Rav doesnt disappear. The big difference is at the end of your 70 months, you will own your RAV. If you go the lease route you will not own a car and you’ll need to get into another car loan/lease or purchase your lease.

1 Like
4

11K negative?! Just keep it as there is no other fiscally responsible option.

5

Cosidering they owe $50k on a 3 yr old car that is worth $50k new?

6

Who knows what he rolled into that deal…but that 11 or 12K of negative equity is a killer…take the pain now and be smarter when paid off.

7

What is the interest rate on the existing Rav 4 loan? It must be very high to get to a payment like that. Is it possible to refinance the Rav 4 at a lower rate for 72 months to get the payment down a little?

8

The rate is about 8.7%. Looking at my local rates the best estimated rates aren’t much better. If I refi I’d want to get it down to at least the 30’sk range so the monthly will come down. But that’s at less 2-3 years of payment b4 then.