My expectation was to see if I could find a modest truck lease w/ the equity rolled in that would be less than the 750 I’m paying. In your example, if I’m at $222 a month before the lease, add the lease pymt of $450 a month, that’s $672 a month which is less than I currently pay ($750).
I’m guessing that’s how it works. As stated, never leased before and all this is new to me. Thanks for actually asking and trying to understand my situation.
You’re going to be at more than $222 extra a month, as you get to pay taxes and rent charge on that $8k as well. Depending on where you’re at and what vehicle, that can add a lot.
What is your interest rate on the Rogue?
have you considered selling the car to carvana and paying off the negative equity instead of buying the boat (I assume this will require 8k or more down payment anyway).
then start over and lease a pickup with no money down for less than 400/month- not sexy but a better option than rolling negative equity in and still having the 700 payment and a boat
then buy the boat next yr after you catch up
Sounds like you cant even light a match to this one. I would say it is a pretty bad idea to get a boat. $8k rolled in is going to hurt any deal. $8000/36= 222.22 monthly additional payment over whatever you lease.
16.5% My credit score at the time was right at 605 and that’s the best rate I could get.
This is why I’m confused. If I was able to find a lease for $450 a month then add the $222 from the negative equity, its still less than what I’m paying now ($750 p/month). Am I missing something?
At that interest rate you should be throwing everything you have at paying it down as fast as you can. If you do go the lease rate do you at least have some cash to bring to the table to make it more doable?
I pay $450 every two weeks to try to offset the interest.
Dang, that is a very high interest rate. How do you know if your situation has changed any ? if you couldn’t get any better than 16.5% than, I imagine it would be difficult now as well.
What ur missing is that ur burning money. U don’t like having it with you and like to give to the banks. If that’s your play, go ahead and do it.
Rather than look at rolling it into something, you should do everything you can to refi AND pay that immediately down.
And for the love of god, don’t go making a bit discretionary purchase on something like a boat until you get that under control.
Yeah I do.
Get carvana/vroom quotes. Maybe you’ll only have to brink 4K to the table and you can start fresh.
This is true, I’m just using that as a rough starting point. So IF (big if) you were going to go through with something like this, there’s several things to consider:
How much truck do you actually NEED? Without commenting on the financial implications of the boat (for all I know it’s a gift/free), how much does it weigh? What about when combined with the trailer? No sense in getting a truck that can’t tow it. There’s also no sense in getting a bigger truck than you need if a midsized truck with better leasing programs exists that will serve the purpose.
You need to consider the maximum loan to value (LTV) situation here. Most banks will only offer a max LTV of 120%. So that means that anything that’s under $40,000 dollars or so wont work. Considering how expensive trucks have gotten that probably won’t be an issue.
Once you narrow down the size and capabilities you need, it’s time to research the candidates from a leasing perspective. Which one has the most incentives? That’s going to go a long way in burying the negative equity. Trucks in general have decent Residuals, particularly from third party banks. Which one has the best interest rate/money factor? You want the best combination of all three.
I’m tempted to just tell you to take a look at some of the Tundra deals posted here if you decide to go through with this, but keep in mind that the Toyota 3rd party leases tend to be at their best on shorter 24 month terms, which means that your negative equity will be around 350 a month then, which kind of kills the value proposition.
Banks might not lend you enough to cover all that negative. So you might have to pay some or all of it out of pocket.
You’re comparing apples and oranges. A loan payment pays off something you own. Whether it’s worth $3k or 6k or 10k when it’s paid off, it’s worth something. That is money in your future pocket. A lease is going to have $0 equity in the future, extraordinary circumstances aside. So you’re robbing your future self for the present gratification
I do suppose that you have to consider the age, mileage and mechanical condition/warranty of the Rogue as well, in addition to how much longer the term of the note is. But yeah, it will probably be worth at least something by the time it’s paid off.
Yes. This is the best case scenario. You will also have to pay upfront fees such as the lease acquisition fee, dealer doc fees, title and license fees. That could easily be an extra $2k, although you could roll that into the lease payment and do $0 drive-off.
What is your current 3 bureau credit score? You are not going to get buy rate money factor (MF) on a lease with a credit score in the low 600s.
Keep paying down the loan on the Rogue and wait till your credit and financial situation improves.
EDIT: I forgot to include taxes on the lease payment. After adding all this up, you will probably be even.
I believe that some people (brokers in particular) have reported being approved or able to get someone approved for Tier 1 through US Bank or Ally at around a 690 or so. So a 700 isn’t out of the question for Tier 1, depending on the vehicle and bank.
What is the thought process you’ve gone through that suggests it is a good idea to add a boat to your life?
Scores don’t account for DTI, which could be a big hurdle to get approved at any decent APR/MF.