cancel
Showing results for 
Search instead for 
Did you mean: 

AUTO LEASE HELP!

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Contributor

AUTO LEASE HELP!

In Sept 2017 I leased a silverado for 39 mo 12k miles a year at $350 a month no money down. Here I am about to make my 21st payment and I'm right on track with my mileage. I do a lot more driving than when I originally got the lease. I really want to get a car now because I can start up equity on a vehicle and more fuel efficient and more freedom as far as traveling goes. The truck books trade in 26-27... buy out is 31.9... I am looking at getting a car in the 15-20k range. Do I stick out the lease or put up the different in cash to trade in?

Discover IT $9,500 - 09/16
Amex BCE $25,000 - 07/17
Paypal 2% CB $10, 000- 05/19

Message 1 of 8
7 REPLIES 7
Regular Contributor

Re: AUTO LEASE HELP!

Where are you getting your trade in value from?

 

What kind of vehicle are you looking at purchasing?

I’m sure the dealer can use dealer cash on a newer vehicle to cover up the negative. 

Starting Score: (5/01/2017) -- EXP: 495; TU: 445; EQ: 460
Current Score (07/29/2019): EXP: 692; TU: 704; EQ: 674

Target Red - $800
Discover It Cash Back - $1000
Discover It Cash Back - $4000
Capital One Quicksilver - $700
US Bank Cash+ Visa Signature - $1000
Nordstrom Credit Card - $2500
Message 2 of 8
Valued Contributor

Re: AUTO LEASE HELP!

The longer you keep a car the less it depreciates each year generally.

 

If you buy another car, you will take another hit.

 

What is your buyout at end of lease?  What is the estimated value of it then?

 

You can always get some quotes from dealers to see what price you will actually get for the truck, then make a decision.

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $250k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

10% Rotating - Discover                    5%-20% - Amazon & Lowes                3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl         4% Dining & Entertain - Savor            3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver





    
Message 3 of 8
Contributor

Re: AUTO LEASE HELP!

nothing very specific at this point, couple years old 20-40k miles whatever.. guess it depends what mood i'm in haha. Using KBB, I've been offered 25-29k by a few different dealers.

Discover IT $9,500 - 09/16
Amex BCE $25,000 - 07/17
Paypal 2% CB $10, 000- 05/19

Message 4 of 8
Contributor

Re: AUTO LEASE HELP!

nothing very specific at this point, couple years old 20-40k miles whatever.. guess it depends what mood i'm in haha. Using KBB, I've been offered 25-29k by a few different dealers. The buy out is mid to high 20s.... my gut is 90% telling me just hang on for the ride I know I'm not gonna be crazy over mileage... the 10% of me is thinking my driving is kind of restricted until the end of summer 2020 when I would plan on getting out of it. Should I pay that 350 a month towards no equity now or pay a few grand to get into something else?

Discover IT $9,500 - 09/16
Amex BCE $25,000 - 07/17
Paypal 2% CB $10, 000- 05/19

Message 5 of 8
Regular Contributor

Re: AUTO LEASE HELP!

For starters, book your vehicle out through NADA and demand nothing less than clean trade for your vehicle. I don't know all the options, trim level, mileage, etc. that your car has so you'll have to do that yourself. NADA is always coming in higher values than KBB so you may not be as upside down as you thought. 

 

You have a few options - based on an assumption of what your credit score is because I have no idea. You can either hop into a new lease and the dealer can use dealer cash/rebates to cover up the negative equity. You can purchase a used car and if you're above a 650 the dealer will probably have enough carry to cover up the negative equity. For example, if you're a 700 you'll score tier A and the dealership is able to finance 115% (depending on the lender) of the car your purchasing's NADA Clean Retail value. If you purchase a car that has a NADA Retail value of $20,000, the dealership will be able to tack on the negative equity you have in your truck to the new loan. To be honest, if you were approved for a lease then your score has to be at least decent so you'll probably only need your first month's lease payment down, or if a purchase more than likely none.

Starting Score: (5/01/2017) -- EXP: 495; TU: 445; EQ: 460
Current Score (07/29/2019): EXP: 692; TU: 704; EQ: 674

Target Red - $800
Discover It Cash Back - $1000
Discover It Cash Back - $4000
Capital One Quicksilver - $700
US Bank Cash+ Visa Signature - $1000
Nordstrom Credit Card - $2500
Message 6 of 8
Contributor

Re: AUTO LEASE HELP!

I would have no problems with getting a loan, even a loan to roll over negative equity. My question was more focused towards would make more sense to take on the negative equity by getting a used vehicle, or just sticking out the lease until the end.

Discover IT $9,500 - 09/16
Amex BCE $25,000 - 07/17
Paypal 2% CB $10, 000- 05/19

Message 7 of 8
Regular Contributor

Re: AUTO LEASE HELP!

Well, to be blunt buying any vehicle in the first place technically doesn't make any sense because it's a depreciating asset.

At this point it's more a matter of want and need.

 

If you would rather have a car than the truck, go ahead and pull the trigger.

 

Starting Score: (5/01/2017) -- EXP: 495; TU: 445; EQ: 460
Current Score (07/29/2019): EXP: 692; TU: 704; EQ: 674

Target Red - $800
Discover It Cash Back - $1000
Discover It Cash Back - $4000
Capital One Quicksilver - $700
US Bank Cash+ Visa Signature - $1000
Nordstrom Credit Card - $2500
Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.