Auto Lease question - Negative Equity question..

[Anonymous]

I wouldn't have done this deal, I broke the habit of changing cars every few years because rolling negative equity into the next loan is a never ending cycle that gets worse each time.  Having said that you can suck it up for the next three years and pay these payments and then be free and clear, if you trade in before the three years you'll put yourself in a tough spot.  You picked a nice car that I am sure you will enjoy for the next three years.  Just make sure you take good care of it so they don't charge you for any damage.  Other than that the deal is done so just enjoy your new ride.

[CreditCuriosity]

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@Anonymous wrote:

I wouldn't have done this deal, I broke the habit of changing cars every few years because rolling negative equity into the next loan is a never ending cycle that gets worse each time.  Having said that you can suck it up for the next three years and pay these payments and then be free and clear, if you trade in before the three years you'll put yourself in a tough spot.  You picked a nice car that I am sure you will enjoy for the next three years.  Just make sure you take good care of it so they don't charge you for any damage.  Other than that the deal is done so just enjoy your new ride.

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Ya negative equity is a vicious cycle.. That is why I did the lease to finally get out of the negative aspect after three years.  Payments are cheaper, by a few dollars then previous deal, granted I am never going to have equity in a lease, but in the last 10-15 years I have always been upside down in purchaing a car as I only keep them typically 2 years and tops ever is 4 years in the last 15 years..  So I think a least was best for me and my lifestyle..  I agree with you making sure I turn it back in in very good shape or be charged for alot of things if not in good condition, but I have had Acuras, Porsches, Mercedes, Infiniti's amoung my cars since I have graduated college some time ago and obviously take care of these type cars.

So really what I am coming down to is the best solutions would of been to Refi most likely my current car, but to come out ahead I probably would of had to keep it another three years and that wouldn't or really worked for my lifestyle.. So it is what it is and made the next best choice imo.  Whether I could of got a cheaper car or lease through a broker quite possible.  Will finaalize the final EQ pull they need today to finish the paperwork up and get rid of the dealer plates and transfer my plates to it.

[Anonymous]

Very nice car CC.  Love the looks of it.  Now as to that payment.  Woah :-)

[CreditCuriosity]

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@Anonymous wrote:

Very nice car CC.  Love the looks of it.  Now as to that payment.  Woah :-)

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Thanks... Ya the payment is big, but no bigger then my previous payment and gets me out of that nasty 10.89% interest and eats the negative equity.. I think I figured out with the money factor I am now paying about 3% APR if I did my calculation correctly, so happy with that.  Unfortunately Lexus has no lease incentives on that particular car since they have like none in stock persay..  So it is what it is, but really don't feel bad about it anymore other then the 3 pulls... tack to more onto TU and one onto EQ..  Guess it could of been worse pull wise, but seriously my bureaus need a big rest esp TU at 19!  only 6 I believe in the last 12 months, but still!!  Between my g13 inquires being on there from 2013 still about to fall of in a month to several months and these new inquires and one look at refinancing at the end of 2013 before credit was completly fixed they got about 12 inquires in across all my bureaus..  Recent dealership was a pleasure as they only wanted to see TU and lexus wanted to see TU/EQ so wasn't bad..  Can't say so much about when I was at infiniti who used Credco and a few other pulls then the refinancing aspect later down the line that used who knows what else off hand

[Anonymous]

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@CreditCuriousity wrote:

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@Anonymous wrote:

Very nice car CC.  Love the looks of it.  Now as to that payment.  Woah :-)

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Thanks... Ya the payment is big, but no bigger then my previous payment and gets me out of that nasty 10.89% interest and eats the negative equity.. I think I figured out with the money factor I am now paying about 3% APR if I did my calculation correctly, so happy with that.  Unfortunately Lexus has no lease incentives on that particular car since they have like none in stock persay..  So it is what it is, but really don't feel bad about it anymore other then the 3 pulls... tack to more onto TU and one onto EQ..  Guess it could of been worse pull wise, but seriously my bureaus need a big rest esp TU at 19!  only 6 I believe in the last 12 months, but still!!  Between my g13 inquires being on there from 2013 still about to fall of in a month to several months and these new inquires and one look at refinancing at the end of 2013 before credit was completly fixed they got about 12 inquires in across all my bureaus..  Recent dealership was a pleasure as they only wanted to see TU and lexus wanted to see TU/EQ so wasn't bad..  Can't say so much about when I was at infiniti who used Credco and a few other pulls then the refinancing aspect later down the line that used who knows what else off hand

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I think you made the right move considering the situation you were in.  In 3 years you'll be in a great position.  Dont look back and enjoy the ride.  

[CreditCuriosity]

Thanks Irish.. I really hope I made the right choice...  Picked up my real Plates today and turned in the dealer plates now that they were able to pull EQ today.  Still don't understnad why they needed to when I was alread approved based off my TU score and pull..  Oh well.

[Anonymous]

best answer from irish 80.    Same basic payment for a shorter time and no Neg Equity at the end is a no brainer.   And you saved your 8K.

[Watchmann]

It's too late to really change things now, but, man that is a crazy payment for a lease!  You are going to pay $33,300 over three years to RENT a vehicle.  What's done is done, but I would work on breaking the habit of getting a new vehicle every 2 or 3 years, that will really cost you in the long run.  I own two Lexus', a 2006 IS350 and a 2010 RX350 and never take a loan for more than 3 years.  So I've owned the 2006 model free and clear of any loans for almost SIX years, now that is the kind of payment I like, ZERO.  A Lexus will go 150,000 to 200,000 miles easy with little maintenance.  Break that new car habit and next time buy & hold instead, it will be far cheaper in the long run.  No one NEEDS a new set of wheels every 2 or 3 years, that's just an expensive indulgence.

[CreditCuriosity]

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@Watchmann wrote:

It's too late to really change things now, but, man that is a crazy payment for a lease!  You are going to pay $33,300 over three years to RENT a vehicle.  What's done is done, but I would work on breaking the habit of getting a new vehicle every 2 or 3 years, that will really cost you in the long run.  I own two Lexus', a 2006 IS350 and a 2010 RX350 and never take a loan for more than 3 years.  So I've owned the 2006 model free and clear of any loans for almost SIX years, now that is the kind of payment I like, ZERO.  A Lexus will go 150,000 to 200,000 miles easy with little maintenance.  Break that new car habit and next time buy & hold instead, it will be far cheaper in the long run.  No one NEEDS a new set of wheels every 2 or 3 years, that's just an expensive indulgence.

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I dont disagree with anything you said.. Had to get out of that 10.89 apr% and I did what I think was right...  Ya is kinda a crazy lease payment I don't disagree at all.  I could of refinanced and kept that infiniti and did a loan and paid it off in 4 years or whatever and came out ahead, but i choose a different route.  Different strokes for different folks I guess.  I like new toys, but agree I will never get in the situation of that kinda negative equity again..

With that said I am single, no kids and make > 100k+ a year ans a 1k rent payment, so it doesn't really stretch my budget at all.. Was it dumb to get in my orginal situation yes and I realize that.  As stated earlier it is done though and will be clear after 3 years, will I own anything nope, but will have 8k less debt on my plate.  

I do appreciate your thoughts though on it and they are valid.  Don't mind admitting mistakes I made in the past, but you can only correct the future.  I think I will continue to lease in the future, but my payments will be in the 500-700 range depending on car and value obviously.  Buying just doesn't work for me as can be seen as I explained

[jacksont1981]

That car is FREAKING HOT!!!!!!! Yes the payment is a lot but whats done is done at this point and in 3 years you will be in a much better position with no negative equity.