So I ended doing a lease with Lexus on a RC 350 F Sport coupe (every stupid bell and whistle as they only had 1 on lot, could of done without some of the options, but it is what it is)
So a question, did I do a smart thing or not.. Here are my questions
I had a 2013 Infiniti G37s coupe that I believe I financed for 47kish @ 10.89%apr for 72 months.... I owed 36600 left abut 17 months into the term. This is when I had bad credit and realized I had to start rebuiding... This is why I ask the question. I got sick of seeing an extra 300-400 month going to interest a month and only about 500ish going to principle per month. Cost of having bad credit at time. So the car trade in was worth 28.5k and owed 36.6k..
So leased the lexus at tier 1 financing (711 score), was suppose to be 720 but they made it happen with the 711.. Anyways so I rolled 8k negative equaity into a 36 month lease on a 59k (includes negative equity of G37) after 3 years my negative equity in my G37 will be gone and I walk away clean. My payments are about 5 dollars cheaper a month as well
.. Does this sound like a good thing I did or bad thing? Honest opinions please. I typically keep cars 2-4 years as I never want they after warranty is up, that is just me.. My main gain is I wanted to get out of that nasty 10.89 APR (granted I could of refi'ed), but I did get out of it, along with the negative equity as well as it is rolled into my 3 year lease, granted my payment I believe went up by maybe 200 a month if I would of just payed off the negative equity with cash, but didn't have the cash laying around.
Also side note why I did a lease I only put 5k miles on my car a car.. So lease seemed like the sensible option since I don't drive a ton and eating my negative on old car.
Payment on Infiniti was 935 a month for 72 months
Payment on Lexus lease is 927 a month for 36 months. (high I know, keep in mind negative equity) 0 Down payment other then Acquition (First month payment)
Whats everyone take, do something dumb or smart if you were in my position?
For better or worse is here is the car: (not my exact car, but looks exactly the same color and all, just pulled pic off net of it)
@Anonymous wrote:@Anonymous,
Congrats on your new Lexus... Hmm, if you generally keep your car 2-4 years then lease is definately the way to go. I personally like leasing instead of taking a loan.
To your question, for the kind of car the monthly payment is outragious for $900 and change. I understand when you took the loan on your infiniti, you had bad credit but did you shop around to refinance since it was a loan to get a better deal? Before trading in the car, did you shop around to see who will give you the best money for your car?
I personally wouldn't have rolled the negative equity into the lease. But I will let others chip in as well.. You should not be paying over $900 in monthly payment for a $59k car.
Private sell I would of got a few more grand, but a deffinete headache.. I did my research on NADA first and that is excellent trade in value, it is what it is
..
I also live in Nashville where Nissan has factories, although they don't produce the G37 here, there are TONS due to Nissan having factories and I believe their corporate headquarters are out here, so the market is saturated!
Keep in mind the $900 payment on the 59k car the car is 59k before taxes... Well the car was 51k or something then add taxes then my negative equity into the car and you get actually a bigger $ then 59k, but leases don't quite show it that way. I believe 70$ of my lease payment is taxes or something like that per month.
With regards to refinancing I did consider that, but the depreciation on infinitis is horrid or at least the g37 coupes, especially since a new model is coming out I believe this year? Any car you drive off the lot you get hit obviously, but this infiniti more so plus the crap apr I was paying for 1.7 years just made it worse.
Honestly the smart decision would of probably been to refinance, but it the grand sceme of things I can afford the 900 and change car payment as that is what I was paying before and I can walk away after the 3 yeears is how I look at it. I agree with you in a perfect scenario if I didn't have any negative equity I would of been paying 600-650 a month I believe on this lease, but it was the negative that kicked it up into the 900 range .. I could of paid 8k cash, but really didn't want to tap into savings for that. I guess I could of gone for a cheaper car as well and got my payment down that way, but payment wasn't really my motivation it was the principle I was paying an outrageous interest rate and knew I didn't have to pay it anymore. I guess I figured in 3 more years of even a refinanced infiniti, I probably would be breaking about even when I went to sell it so why not drive a new and nicer car? I don't know my thoughts completly on it and not saying I did the right thing persay, just making sure I really didn't get screwed over. Which I don't think I did.. It was ultimately my decision whether to refi or not though and decided against it as I believe the g37 is going to take a bigger plundge in value due to the new model coming out and wanted to get out before I took even a bigger hit than I already did.. Rambling now.. Thanks for the input though, I appreciate it.
Just heard leasing is one way of getting out of negative equity situations and figured I would try it, for right or wrong.. Hopefully it wasnt the worse choice I could of made
Curious what others have to say as well.. It is deffinetly a steap payment, no more steap then what I had though and gets me out of my prior mess.
