Car Lease Is UP...

[StitchandPooh'sMom]

This was DH's thought. The dealer was trying to talk us out of purchasing.

Probably because the dealership can sell the car to someone else for much more than your buyout price, plus they hope to make more money on you by getting you to lease again.

If you do decide to buy the car (which sounds like a very good deal if you are happy with the car) and you are not planning to pay cash for it, please figure out your loan options before you go to the dealer. They will almost certainly try to get you to agree to a loan with a much higher interest rate than a credit union or your local bank. You do not have to finance the car through the dealership.

 

[3happydancers]

Probably because the dealership can sell the car to someone else for much more than your buyout price, plus they hope to make more money on you by getting you to lease again.

If you do decide to buy the car (which sounds like a very good deal if you are happy with the car) and you are not planning to pay cash for it, please figure out your loan options before you go to the dealer. They will almost certainly try to get you to agree to a loan with a much higher interest rate than a credit union or your local bank. You do not have to finance the car through the dealership.

I'm on it!

 

[3happydancers]

I'm not a fan of leasing but we were in a pinch 3 years ago and leasing gave us the best monthly payment. Well, our lease is up at the end of April. We have a2011 Toyota Rav-Base model. It only has 11,000 miles on it. I tried looking the value up on Kelly BB and Edmunds but I don't see prices for base models (to get an idea on whether or not the car has equity). If the car has equity, I could turn it over into another vehicle as dp. Anyhow, DH and I went into Toyota to discuss options, (IE-purchasing the vehicle, which does not seem cost effective). Toyota says the car has 0.00 equity. I'm not sure but I feel as though they are playing hard ball. How is the best way to negotiate? The car is in excellent condition and like I said, only 11,000 miles on the 3 year old vehicle.

We've been doing a bit of research and getting used car loan rates. The lowest we found was 1.99% which makes it very affordable to purchase our lease. I think this is the route we are going to take especially given that we know the history of the car, it has extremely low mileage, and if we decided to sell privately, we could sell it for more than the loan is. Just wanted to say thanks for all your input. You have been very helpful and played an active role helping with our decision!