2018 Advanced Blue Magnetism w/ Moonstone Softex will happen but likely not before 3 year lease runs out next month. Interested in thoughts on whether I should extend lease or buy and refinance until car arrives? It looks like I might pay a little less monthly if I refinance then extend lease--but interest rates are going/have gone up too. Thanks.
IF.....the monthly payment amount is your main or only concern......then follow that wherever it leads you. But your initial decision to lease likely was NOT the best thing to do if you had made a "life cost" calculation. And a lease likely won't be the best decision to make on your next car either if total outlay is figured.....as it should be.
What is a "life cost" calculation? With the Prime Advanced I hope to stop leasing every 3 years. It has been very costly on me and no doubt unwise. If I am planning to keep the car long past the lease why is it wiser to finance from the start then lease? The monthly payment is lower if you lease and once the lease is up you can finance to pay the car off. For all the years I've leased one might wish I had this all figured out before now. Yes, I've leased for a lower monthly payment and knowing that I'd do a new lease every few years. Thanks.
Buy the one you leased? What are the numbers? How much for the three year lease? How much for the buyout? Add the lease number and the buyout number, is it larger or smaller than the number To buy the car new? How much more? Why buy a car for a month, then you own a car and are leasing a car a month later, now you have to sell the one you own, to pay for the one you rent... Why not just rent a car for a month, then another month if necessary? How much less to use Uber for a month?
Add up ALL of the costs of doing it both ways......or all 3 or 4 ways. Even though the monthly payments are less with a lease, at the end of the 3 year period you have basically NO residual value; that is, you have nothing to show for all of those payments. It is kind of like renting a house for 20 years versus buying one and building up some equity with your monthly payments. If you belong to a Credit Union, they might be willing to show you the numbers both ways. A really honest dealer would do that too......but maybe a "really honest" dealer doesn't exist.
I don't fully understand your question. Can you extend your current lease month-by-month? Do that. Do not buy then trade it in when the new one arrives. You'll lose the difference between the residual value you pay to buy it and the whole sale value you get when you trade it in. (You're in Oregon, no sales tax. In other states the sales tax loss for the short term purchase is a total loss.) Leasing is the most expensive way to get a car. While the monthly payments are lower, you never build any equity. If you do lease, don't tell them that at first. Hammer the dealership down on the price of the new car (and maybe you're already made your deal). When you've agreed to the purchase price, then tell them that you'll consider a lease. Hammer them down on the "money factor," in essence the interest rate. Keep in mind that the owner of the car, the lessor, not you the lessee, gets the tax benefit for this electric car, so that should come off the capital amount you lease. Check both the federal and state tax credit for the Prime. Before you sign the papers, shop around for the best finance interest rate. Check your bank, local credit unions, and ask the stealership for the best rate they can offer you. The dealer gets a kickback if they can cheat you into a high interest loan, so keep your shields up. Purchase vs. lease calculators: Lease vs Buy A Car | Bankrate.com Calculate Your Own Car Lease Payment | Edmunds Lease vs. Buy Car Calculator Lease Calculator - Is It Better To Lease Or Buy? | Calculators by CalcXML How to negotiate a lease: How to Negotiate Your Next New-Car Lease Like a Pro | News | Car and Driver Always, ALWAYS, before you sign, read and understand every word in the fine print. A few dealers are honest. Most make their money by chiseling the customer. They sneak in charges, falsify addition, increase already agreed upon amounts, all to make themselves more money. The so-called finance manager is paid by commission. If he doesn't sell you something extra, or cheat you, he doesn't get a pay check...which is NOT your problem. When he's pushing overpriced extended warranties, tire & wheel warranty, overpriced sealant wax job, etc., etc., your mantra is "nothing extra, nothing extra, nothing extra!"
