I was only indicating that the bank isn’t better off with him holding the car versus him selling the car and giving them the proceeds plus an ongoing payment. Whether they actually let him do it is another question but their security interest is the same either way. He would likely need another loan to pay bank off.
Anyhow, both other optiona are bad. He has a MKX not a navigator. What’s a better bet a MKX with 117k or accord with 163k? I’d take the accord but that’s a close call. I mostly think maintenance (tires, oil changes etc…)and repairs will be cheaper on the Accord.
And I agree with that. With that said, I really can’t see the bank releasing the title of a car to a new owner while the existing owner continues to pay on it. At least if he defaults, they have something to go after and recover. Once the car is sold, they have nothing. I’d be willing to bet they’d require a payoff via personal loan.
Well guys I’ve decided to get a 2019 Cherokee. While I’m not exactly sure I got the best deal (I probably could have negotiated a bit more), the dealer gave me the best trade in offer i’ve gotten so far at 9600 for an even 9k negative and the monthly payment is 587 a month with 587 due at signing.
My thoughts on doing this were: I have 9k negative. I can either take that 9k negative and continue to drive a used car and in 4 years I will own that car. Or, I can take that 9k negative and pay it off sooner all while driving a new car. I suppose maybe in the very long term that if the car was still running in 4 years or didn’t have any major mechanical problems along the way, that ultimately I’d possibly be losing 2-3k in equity if I traded it in after I owned it.
Either way, I’m in a bad situation and no matter what way I approached it I was still screwed. But I’ll be in a brand new car under factory warranty while I’m paying down that negative. Never again am I financing a car!
Obviously it’s your call based on your situation whether a new car is the better choice, taking into account your finances. If you can afford that per month and you’re happy with the car that’s the main thing. Would have been a good idea to post your lease deal here as there’s plenty of knowledgable people who could have checked you were getting a good deal.
I get the impression you wanted confirmation you were making a good financial decision by posting your initial comment here about what to do, and had planned on going this route anyways, despite everyone telling you not to. Maybe I’m wrong.
While I think your logic is flawed (just my opinion), what’s done is done, and good luck with your Jeep. Don’t continue the negative equity bloodbath by trying to get a new car in 2 years because you want to lower your payment. Drive it till term and start fresh.
Yes sir. I am going to drive this for the term of the lease. The whole thought of getting a fresh start at the end is what is driving me to do this.
Also - I won’t be signing the papers until tomorrow. After reviewing things I don’t think the dealer really worked too much with me on the numbers. The salesman said I’m getting “employee pricing” but the MSRP is 31,030 but its sale price is 28,030… the 3 grand difference comes from a factory offer, it’s nothing that the dealer did. The only thing they may have done was offer me more for my Lincoln than other dealerships. Do you guys think there’s still a little bit of negotiating room left?
oh yeah I get all of that. But I mean do you think I can negotiate the sales price down on the jeep? Didn’t sound like the dealership really did me any favors on the price of the vehicle.
I’d be willing to bet they gave you more for your trade than they wanted to, and just took it out of the discount on the new car. Without seeing all of the numbers though on the deal, it’s hard to say.
Fair enough. I’m comfortable with and can afford $587. I think i’ll just chalk it up and in 3 years when i’m clean and clear I can work the best deals.
Roughly, $9000 loan with 3% interest, 36 month, payment for that will be about $260. So $327 should be lease payment for a $31K car. close to 1%, so not bad in general. For specific Jeep brand, expert here can comment
Usually what dealers do when doing a trade-in is over-value the trade-in to make the customer feel good but lessen the discount on the vehicle. I think there’s more money on the table.
FYI - there’s a $1k lease rebate too so, in reality, you’re getting 2k off MSRP plus 1k lease rebate. IMHO, that’s not a good deal. I’d shoot for atleast another 1000 off the MSRP. Also, maybe check for loaners/demo’s or 2018’s?
My girlfriend said the same thing when she rolled $6k negative Focus equity into a Silverado lease. She actually got a hell of a deal on a demo Silverado with a very low MF, so it wasn’t a horrible deal. The original sin was not driving the Focus into the ground as there was nothing wrong with it. But fast forward to today, and she’s staring down the mileage limit with 11 months still left to go. $0.25 overage wouldn’t be kind. A beater car is in her near future. Be careful of the leasing game…
Hey guys - Signed the papers today. Got a hell of a deal. Worked it out to $496 a month, $1400 at signing. Asked what the MF was… .00051. So not too bad! Also, got 12k miles per year vs 10k.
