I am thinking about trading in my 2003 Honda Element and leasing a new vehicle (make unknown) - I owe less than 1k on the Honda. Blue Book Value is around 9-13 K. Say the dealer is willing to give 10k. What happens to the excess cash if I am leasing a new vehicle from that dealer.
Obviously the dealer will pay 1k to get the title for the Honda, I am going allow for 2.5k for down payment, tax, title, etc for the new lease. What happens to the remaining 6.5K? Does the dealer cut a check?
If you were going to negotiate this lease not planning to buy at the end of the term what be the best plan of attack for negotiating the lowest monthly payment.
2007-05-12 05:08:14 · 4 answers · asked by Emily 2 in Cars & Transportation ➔ Buying & Selling
Roll over the equity or excess value of your trade into the lease to get lower payments or have the dealer cut you a check for the diff and put it in a savings or money market account and pay a higher lease payment. You'll have to figure which is better over the term of the lease. Or sell the Honda on your own...the dealer will only give you wholesale value for it one way or another and you'll lose the diff between wholesale and retail value but it may take a while to sell it yourself....could be a few thousand more dollars in your pocket though....maybe wait on the lease until you've sold. Rent a car for a week if there's a hitch on delivery of the new vehicle...still cheaper.
2007-05-12 05:18:10 · answer #1 · answered by paul h 7 · 1⤊ 0⤋
Read the fine print closely on that lease. $77 a month sounds like an introductory rate that probably won't last more than a few months. Then the real payment comes into play. If you leased a Mazda3 with no money down and only $77 a month you'd only be paying $1850 towards the total price of the car. I think you're missing a key component of those lease terms. You will not qualify for this lease on your own. You need to be earning at least $40,000 a year in order to qualify for this lease. Don't expect to get anywhere near KBB value for your trade in. Especially if it has repair issues.
2016-03-19 03:52:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The dealer will cut a check for the difference. If you can put more money down then just the cash due at signing...then your payment will be lower. Most dealers require 1st month payment, taxes, and title fees due at signing. This is not considered the down payment.
2007-05-12 05:19:50 · answer #3 · answered by vcassidy2002 1 · 2⤊ 0⤋
depending which honda you want to get, with that much money involved, i still think personally leasing is for dummies, no offense. You should get a car that you want, negotiate a trade in and use the extra cash as a fatter down payment.
2007-05-12 08:44:47 · answer #4 · answered by the_greatone 2 · 0⤊ 3⤋