Trading in 2014 Accord Hybrid for 2015 Silverado. Financial advice needed?

I owe $27,500 (23,000 appraisal value) on the accord, and the Silverado is for $43,000. The dealer is willing to do pay off the honda, provided I pay the $43,000 on the silverado. He quoted me a lease payment of $535.00 a month, for 39 months.

I looked up the same vehicle on chevrolet, and the lease payments come up to no more than 360 a month for the same packages. The dealers explanation is "when you re trading in a car with negative equity, the amounts get rolled into the lease." I feel this is baloney, and they are having me pay my negative equity, AND sticker price of the car.

Please advise me.

Added (1). Rebate incentives total $3500, Which means that it I'm left with $1000 negative equity. So with that added to the 43,000, the car is a 44,000 -Selling price, With my $2500 down payment (calculate on chevrolet, on a 44,000 MSRP truck) my monthly payments are at $318 a month. But why the dealer is asking for $535 is beyond me!

What you don't realize is that the dealer states that they will "pay off" on the honda BUT in actuality, the balance of the loan from the honda will be tacked on to the new amount for the truck! NO dealer is going to pay off someone's loan

Why is it baloney?

You don't have anything to trade, except a $4500 debt. That has to be paid off before you can start with nothing. So currently you have LESS than nothing, but still want a brand new car. Even if you wanted to walk away from your existing car, it's still going to cost you $4500 to give it away.

YOU have to pay off that negative equity at some point, and then you have to finance the new vehicle as well. Until you understand how this works, you are going to stay in an ever deepening financial hole.

The dealer doesn't care what you think, for now. He has done his own math; walk away if you don't like it. Check APR, total financed amount, loan term, monthly payment assumptions. If the dealer really wants the deal ( questionable), he'll show you the details.

You are $4500 upside down and you want to lease?

How about finding a nice 10 year old to help you with your financial decisions.

Something isn't right here. Assuming you're leasing $44,000, and you claim you should be paying $318 per month, over a 36 month lease you'd only be paying $11,448, with a residual of $32,552, or 74% of the retail value. NO chevy truck holds 74% of its value after 3 years.

To give you an example, a Chevy Silverado Crew Cab 4X4 w/1LT retails for around $46,443, and has a 36 month residual of $23,075, or 48%. Retail value ($46,443) minus the residual ($23,075) comes out to $23,368. Divide this by the number of payments (36) comes out to $649. Even at 24 months, the residual would be $27,350, or 57%. Payments would be $1,163. At 48 months, residual would be $20,625 (43%), and payments are $537.88. At 60 months, residual is $18,275 (38%). Payments would be $469.47. Keep in mind that this is without the money factor (interest), tax, title, and license.

Obviously, you're leasing less truck, with a slightly different residual, but the payments remain a lot closer to their numbers than yours.

Hope this helps to clarify things a bit for you.

You can't borrow your way out of debt. And you are about to go deeper in debt. You need to save up and pay cash for cars or not buy them. As you have realized, the negative equity together with the exorbitant dealer profit is making that lease a very bad move.