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Auto lease early buyout
Posted on 6/28/16 at 9:24 pm
Posted on 6/28/16 at 9:24 pm
Has anyone here every bought out an auto lease early? I'm about a year into my lease and have decided i'd rather just buy the car since it is my only monthly payment. The car probably has some equity since I only have 11k miles over 13 months. I figure if I buy now I can start making additional payments and pay the car off sooner. My question is, is there a sweet spot on how many months early a lease should be bought out and\or is the buy out amount negotiable. I figure I might be able to negotiate a little if I offer to keep the used car loan with the dealership. Anyone have experience with this. Also what rate does a used car loan carry on top tier credit? The lease is with Lexus if that helps.
This post was edited on 6/28/16 at 9:26 pm
1
Posted on 6/28/16 at 9:38 pm to LSU5508
quote:
Has anyone here every bought out an auto lease early?
Why would you want to do that?
quote:
figure if I buy now I can start making additional payments and pay the car off sooner.
Why would you want to do that?
Posted on 6/28/16 at 9:48 pm to barry
quote:
Why would you want to do that?
Why would someone want to pay off a loan early and avoid interest charges? Am I missing something?
Posted on 6/28/16 at 10:11 pm to LSU5508
quote:
Why would someone want to pay off a loan early and avoid interest charges? Am I missing something?
Interest is at an all time low. Why would you rush to put your money into a rapidly depreciating asset?
Posted on 6/28/16 at 10:32 pm to barry
Same thing I was recently told, though not on a lease...good debt and bad debt
Posted on 6/28/16 at 10:35 pm to wfallstiger
Well having a note is not a huge deal. But an asset I own at the end is better than an asset I don't.
Posted on 6/29/16 at 7:39 am to LSU5508
You have the option to buy it now or at the end of the lease if you wish. The lease is paying down the car each month and has an amount in your paperwork of what the car will cost at the end of the lease. You can always save money at your bank so when you lease is up for purchase you can make whatever down payment you wish and finance accordingly.
Posted on 6/29/16 at 9:46 am to gobuxgo5
Just finish the lease, and then buy it out. That way, you're only paying tax on the residual rather than the buyout amount.
Posted on 6/29/16 at 10:00 am to LSU5508
quote:
But an asset I own at the end is better than an asset I don't.
Really? Because I'm not crazy about owning assets that depreciate every year 5-10%
Posted on 6/29/16 at 10:41 am to barry
I'm not sure and I know this is an obvious answer, but you could always just set aside money and drop a lump sum payment when the lease is up.
My guess is they'd rather not have you pay the car off early because they make more leasing it, but I have no idea.
My guess is they'd rather not have you pay the car off early because they make more leasing it, but I have no idea.
Posted on 6/29/16 at 10:46 am to barry
quote:
Really? Because I'm not crazy about owning assets that depreciate every year 5-10%
While true, I have come to realize owning a car is better than leasing a car forever. While it may depreciate it will do so long after the monthly payment is over. I'd much rather save the 500/month and spend it elsewhere.
Posted on 6/29/16 at 1:43 pm to LSU5508
quote:
While true, I have come to realize owning a car is better than leasing a car forever. While it may depreciate it will do so long after the monthly payment is over. I'd much rather save the 500/month and spend it elsewhere.
How long are you keeping a vehicle?
Posted on 6/29/16 at 3:30 pm to barry
My hope is to keep it until the wheels literally fall off. I've been leasing for years and while the new car is nice I'd rather just start increasing my wealth and/or put the money towards a larger house.
Posted on 6/29/16 at 4:00 pm to LSU5508
quote:
My hope is to keep it until the wheels literally fall off.
Hopefully not, that sounds dangerous
Ok, then its fine. A Lexus should last forever.
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