If you leased your Evo, step inside
May 19, 2014 | 05:54 PM
#46
You have it pretty much right. That said, call them and ask about selling and how it relates to the payoff amount and taxes. I don't remember who I talked to, but the lady was awesome. Also, if you trade it, you won't have to pay the taxes.
When I get mine financed soon, I'll give you more info if you haven't gotten out of yours yet.
When I get mine financed soon, I'll give you more info if you haven't gotten out of yours yet.
Ah ok, so basically I would have to get a car loan to finance the outstanding payoff balance + the leftover tax? Then I can turn around and sell the car private party?
However, as long as MMC owns it on the lease, I *cannot* private party sell it?
Ugh, silly me for not looking into this more before I leased the gorilla.
However, as long as MMC owns it on the lease, I *cannot* private party sell it?
Ugh, silly me for not looking into this more before I leased the gorilla.
May 19, 2014 | 06:24 PM
#48
May 22, 2014 | 03:44 AM
#52
Evolving Member
Joined: Aug 2007
Posts: 450
Likes: 0
From: New York
May 22, 2014 | 04:47 PM
#53
Newbie
Joined: Nov 2011
Posts: 58
Likes: 1
From: Minneapolis, MN
As far as the leasing company changing the residual value, i don't believe they can because that would change your monthly payments instantly. As i said in the first paragraph, your leverage is the fact that they don't have to go through the work of reselling the vehicle, however ill state again there's no guarantee MMCA will negotiate the sale price with you after the lease.
Jun 17, 2014 | 11:23 PM
#54
Newbie
Joined: Apr 2007
Posts: 2
Likes: 0
From: Cali
Yes, unfortunately Mitsu will not finance you at the end of your lease for the remaining balance of the car. You have to secure your own financing, and from my experience Credit Unions such as Wings Financial are going to give you the best deal but that is not always the case as many factors such as your credit rating or history with a particular bank can change that. Ill try to get Trogdor on here who may be able to better explain the process and options but here is my situation and what i plan on doing.
I leased a brand new 2014 GSR fully loaded with some warranties as well for roughly 42k on a 36 month lease with 4k down. I pay 475/month. August 2016 my lease will end and MMCA will value the car at around 24k. The car will only have about 16k-18k miles on it at the rate i drive by the end of the lease. I know damn well this car will be worth more than 24k, probably more like 28k-30k.
475*36=17,100 paid in payments+4k=21,100 total into the car for 3yr lease.
I will be buying the car out at the end of the lease through Wings Financial at 2.99% interest for another 3 year term. Dont forget you might be able to negotiate a buyout price and get the car for less than the estimated 24k value by haggling with MMCA to buy the leased vehicle.
Ill be putting another 4-5k down on this 3 year financing (saving up during the 3 year lease) making my total loan to pay off around 17k-19k (depending on negotiated buyout price) over 3 years AND keeping the minimum monthly payment around the same as my lease payment which is what i can afford comfortably (475-500ish). I will also be paying more than the minimum monthly payment when i can afford it to lower the amount of interest i pay on that 3 year financing and pay off the car faster.
So this is all rough rounded numbers but in total i have bought a 42k car in 5-6 years with only around 2000 paid in interest, this is due to the fact that MMCA undervalues the car by 4-5k which i pocket in the value of the vehicle and basically gets me to break even on the down payment i put on the lease. again these numbers also depend on if the buyout price was haggled as well. Yes 2000 paid to interest is 2000 dollars burned, but that 2000 dollars is my opportunity cost for being able to afford a 42k car at the age of 22 that is my dream car and with monthly payments that are much lower than what i should have been paying which is the advantage of starting with the lease. Also since i plan on buying the car out at the end of the lease, there will be no turn in inspection so i can mod it as i please throughout the 3 year lease.
I hope this helps you guys out with your idea on how you are going to handle your lease, again stay tuned i will see if i can get Trogdor on here to help explain as well (he is the salemen i leased my evo from and who is also leasing his evo and pretty much doing the same process i just explained).
I leased a brand new 2014 GSR fully loaded with some warranties as well for roughly 42k on a 36 month lease with 4k down. I pay 475/month. August 2016 my lease will end and MMCA will value the car at around 24k. The car will only have about 16k-18k miles on it at the rate i drive by the end of the lease. I know damn well this car will be worth more than 24k, probably more like 28k-30k.
475*36=17,100 paid in payments+4k=21,100 total into the car for 3yr lease.
I will be buying the car out at the end of the lease through Wings Financial at 2.99% interest for another 3 year term. Dont forget you might be able to negotiate a buyout price and get the car for less than the estimated 24k value by haggling with MMCA to buy the leased vehicle.
Ill be putting another 4-5k down on this 3 year financing (saving up during the 3 year lease) making my total loan to pay off around 17k-19k (depending on negotiated buyout price) over 3 years AND keeping the minimum monthly payment around the same as my lease payment which is what i can afford comfortably (475-500ish). I will also be paying more than the minimum monthly payment when i can afford it to lower the amount of interest i pay on that 3 year financing and pay off the car faster.
So this is all rough rounded numbers but in total i have bought a 42k car in 5-6 years with only around 2000 paid in interest, this is due to the fact that MMCA undervalues the car by 4-5k which i pocket in the value of the vehicle and basically gets me to break even on the down payment i put on the lease. again these numbers also depend on if the buyout price was haggled as well. Yes 2000 paid to interest is 2000 dollars burned, but that 2000 dollars is my opportunity cost for being able to afford a 42k car at the age of 22 that is my dream car and with monthly payments that are much lower than what i should have been paying which is the advantage of starting with the lease. Also since i plan on buying the car out at the end of the lease, there will be no turn in inspection so i can mod it as i please throughout the 3 year lease.
I hope this helps you guys out with your idea on how you are going to handle your lease, again stay tuned i will see if i can get Trogdor on here to help explain as well (he is the salemen i leased my evo from and who is also leasing his evo and pretty much doing the same process i just explained).
Thanks
Jun 18, 2014 | 09:17 AM
#55
Jun 19, 2014 | 03:41 PM
#57
Yes your lease payments are based off the residual value because that difference is the depreciation which is what your paying for plus interest. However, they don't know if your even interested in buying the car at the end of the lease so your not agreeing to anything in those regards. IF you turn the car back in they have to go through the work of reselling it and when they go back through the dealer the dealer is going to negotiate that price because they wanna sell it and make a profit. So it saves the leasing company the headache of trying to sell the vehicle, which means they are usually willing to negotiate with you to take the car off their hands and save them the work.
As far as the leasing company changing the residual value, i don't believe they can because that would change your monthly payments instantly. As i said in the first paragraph, your leverage is the fact that they don't have to go through the work of reselling the vehicle, however ill state again there's no guarantee MMCA will negotiate the sale price with you after the lease.
As far as the leasing company changing the residual value, i don't believe they can because that would change your monthly payments instantly. As i said in the first paragraph, your leverage is the fact that they don't have to go through the work of reselling the vehicle, however ill state again there's no guarantee MMCA will negotiate the sale price with you after the lease.
Sorry, I think I'm kind of slow at this. I have a 2012 MR Touring package...fully loaded minus the nav. My lease is up March 2015. I did a lot of research about leasing and the pros/cons. One of the main reasons was that my wife is self-employed, so the full amount of the lease payments could be claimed on income taxes as a business expense (effectively lowering her income level). Everything that I read stated to negotiate the years, final sale price, the interest rate, the lease payments, and the miles driven (if you wanted to). We ended up negotiating the final sale price for the vehicle at $42,xxx (don't remember off hand). Of course, the interest rate/money factor (from what I understand) is based on your credit score, but can still be negotiated within whatever tier your score falls in. I spent about 4 weeks going back and forth with a dealer in So Cal.
Sorry for the long post, but my question is...you can still negotiate the residual (which I assumed was the final amount owned on the car after your years of lease payments, etc, is deducted from your negotiated initial sale price)?
Jun 24, 2014 | 02:36 PM
#58
I leased my evo.. It is a 2012.. My residual at the end will be $19000.. the value of the car will still be in the mid to upper $20k range..Especially since it will be a 1 owner, non modded, low mile clean car. So I am going to exercise my ability to purchase the car. I can either keep it or sell it at that point.
When I leased, they weren't putting a very strong residual on the cars, so my payment is high.. However now is a great time to lease an Evo because the residual's are higher and the payments are much lower.. Only drawback is at the end of the lease you probably won't want to purchase the car, and when you give it back to the dealer you essentially lost your down payment money.
If you want to get out early, MMC has a payoff amount with your statement just like they would if you did a loan. Pretty plain and simple.
If you go to trade it in, as long as they give you the payoff amount you will not have a negative deficiency, however you will not get the state sales tax credit (in most states) because you didn't pay the full amount of taxes on the purchase price of the car up front.
Hope this clears up some questions. Right now is a good time to lease if you want an awesome car for a low monthly payment.
When I leased, they weren't putting a very strong residual on the cars, so my payment is high.. However now is a great time to lease an Evo because the residual's are higher and the payments are much lower.. Only drawback is at the end of the lease you probably won't want to purchase the car, and when you give it back to the dealer you essentially lost your down payment money.
If you want to get out early, MMC has a payoff amount with your statement just like they would if you did a loan. Pretty plain and simple.
If you go to trade it in, as long as they give you the payoff amount you will not have a negative deficiency, however you will not get the state sales tax credit (in most states) because you didn't pay the full amount of taxes on the purchase price of the car up front.
Hope this clears up some questions. Right now is a good time to lease if you want an awesome car for a low monthly payment.
Jul 9, 2014 | 09:18 PM
#59
Newbie
Joined: Nov 2011
Posts: 58
Likes: 1
From: Minneapolis, MN
Sorry, I think I'm kind of slow at this. I have a 2012 MR Touring package...fully loaded minus the nav. My lease is up March 2015. I did a lot of research about leasing and the pros/cons. One of the main reasons was that my wife is self-employed, so the full amount of the lease payments could be claimed on income taxes as a business expense (effectively lowering her income level). Everything that I read stated to negotiate the years, final sale price, the interest rate, the lease payments, and the miles driven (if you wanted to). We ended up negotiating the final sale price for the vehicle at $42,xxx (don't remember off hand). Of course, the interest rate/money factor (from what I understand) is based on your credit score, but can still be negotiated within whatever tier your score falls in. I spent about 4 weeks going back and forth with a dealer in So Cal.
Sorry for the long post, but my question is...you can still negotiate the residual (which I assumed was the final amount owned on the car after your years of lease payments, etc, is deducted from your negotiated initial sale price)?
Sorry for the long post, but my question is...you can still negotiate the residual (which I assumed was the final amount owned on the car after your years of lease payments, etc, is deducted from your negotiated initial sale price)?
Jul 10, 2014 | 12:44 PM
#60
Question: If someone leases a car and plans to purchase the car at the end of the lease, would it benefit them to put as many miles as reasonably possible to lower the value of the car? That way when they negotiate with the leasing company to purchase the car at the end of lease, the value of the car is lower?