Trading in a car I still owe money on and getting a lease?
A year ago I financed a used 2005 Honda Accord EX V6 that currently has 125,000 miles on it. I still owe 7,000 on the car. The car is starting to have transmission problems. I was on the BMW website and saw some good lease deals. My question is, can i trade in my used car and use that money towards a lease? I know I probably won't get much for this car, assuming they even accept it. What are my options?
You're right. You won't get much for it. If you don't get at least $7000, you will still owe money to the bank to close out the loan. It's possible a dealer might be able to roll the deficit into a new lease, if not too large.
You could sell the Accord yourself and likely get more money but few people want a car with transmission problems.
Before you lease, make sure you've done a lot of research online to determine if leasing is right for you. It's not right for everyone. Otherwise, you risk making a big mistake that is difficult and expensive to get out of. Also, those nice BMW lease deals require a hefty down payment (cash) and you'll need a high credit score to qualify.
Leasing is like renting, you end up with nothing in the end. All the money you've put into the Honda, is also wasted, by attempting the trade. It isn't worth that much money, so you owe more than it's worth. You need to stick out the deal you've already struck - double your payments, and whittle down the amount you owe, significantly, before you even think about another vehicle purchase. Perhaps, in a year or two, with double payments, it might be more suitable to sell/trade and purchase something else.
Buying a major purchase, that dwindles in value over time, using borrowed funds makes little financial sense. You'd be better served holding onto your purchase until it is paid off, and save $200/week for another year or two, before attempting another vehicle purchase - and using the funds you've saved to buy something suitable to replace the current vehicle. Then continue to save a similar amount, toward the next vehicle purchase, over the following 3-4 years, and you'll be able to afford much better vehicles over time, without giving half or more of your purchase price to the bank, in exchange for the financing.
You'll never borrow your way out of debt. When you find yourself in a hole, quit digging.
They would have to give you at least $7000 to cover the payoff. If transmission is bad, I doubt they will.
You are upside down big. And leasing, if you could, would be like throwing gasoline on the fire.
You have no chance of leasing. Unless you have a few grand in cash to put down and even then, an incredibly bad idea.
One you do not own the car. The bank does, Meaning the loan has to be paid in full before you can do anything. You can sell the car to an other person, But the chances of them being able to get the amount you need to pay the car off is slim, Value. If your car has issues how do you think you can get at least 8500 to make it worth your while to sell it, plus there will be no money left over to buy another car. If you trade the car into the Dealer they will have to pay the Loan off So the value of what is left over will be the amount for your trade in. You really have nothing to trade. You owe more than the car is worth. And its 10 years old. No dealer ship would touch this. I buy and sell used cars, have for 25 years, I would not touch this. No money left in the Car, if it was paid off, Now there you go But your upside down in the loan Seriously have the tranmission fixed and drive it till its paid off. Or find some idiot who will give you cash for it, But still you owe the bank. Also if you can, t afford a Honda, A BMW is a expensive car to drive, the yearly factory maintenance is not cheap. And in order to keep the warrenty this work has to be done, By a factory authorized dealer, you pay for it.So nice dream but not set in reality
Sure you can dealers do this type of deal everyday.
The thing is your vehicle is not worth what you owe so you will either have to come up with the negative equity out of your pocket or roll the balance into the new lease.
This is not a big deal assuming you have good credit and qualify for the monthly payment.
- Will a car dealership work with me if I'm gonna lease a new car, while trading in the car I have, which has an outstanding loan against it? The car I have now has a loan against it which is worth more than the trade in value of the car by about $5000. If me and a family member were BOTH looking to lease a new car (so 2 new cars), does anyone know if a dealership will be working to work with me in any way? Also the cars looking to be leased are not high end or luxury cars, they d be coming from a dealership like Honda, Toyota, or Subaru.
- I've financed a car and put 1,000 down, it's been 2 days and the dealer still Looking a for a bank but I've been approved already? So I've put 1,000 down for my car at Honda and everyday passes but still same response from the dealer "still working on a approval" but they have my deposit and they already approved me. Is this even legal, Can they hold my deposit and not give me the car. Would I lose my deposit if I'm not approved?
- What is a good monthly lease payment for new 2015 Honda CRV exl AWD- 36 month lease/12k miles? What is a good monthly lease payment for new 2015 Honda CRV exl AWD-- 36 month lease/12k miles? thanks for the reply… My credit score is excellent. I referred to monthly payment since its my first time leasing and I not familiar with terms like money factor and residual. I simply look at the down payment and the monthly payment that I have to make per month.
- Is it ok to lease one care return it then go to another dealership to lease another car? My lease on my Honda Civic is over in one year. I want to lease a Chevy Cruze next. Does this happen often?