How should we handle buying out our leased car with extra charges or get a loan?

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  • #96982 Reply

      Looking for advise to smart people how to settle this  financially. I leased a car 3 years ago, (it was not smart, it was the peak of pandemic, I was an immigrant, used car that time has higher interest rates) now.

      Our leased car is near to end and we are planning to buy it out but it seems the dealer is charging us so many extra payment or charges.

      Our outstanding loan is 22k

      And they are asking us to pay taxes, registration, reconditioning, etc which will total 28k.which is ridiculous.   banks is willing to loan us at 6.5% how do you handle this?

      We are thinking to pay it in cash but that would mean we will use our emergency funds.

      What’s the best thing to do?

      My husband is thinking to lease again, or buy a new car with a  lower interest rates which I am not in favor because our aim is to pay debts or eliminate to have a full swing investing .

      Buying would mean (another debts)

      Pls help . what’s the best way to do?

      Thank you

      #96983 Reply

        Taxes and registration is normal, you’re buying the car so you’re paying taxes on the remaining balance. Reconditioning seems silly because it’s not transferring hands.

        If the car is not worth $28k then I would hand over the keys and get rid of it. If you put too many miles on it and will have to pay a fee when you turn it in I would try to go another dealership that sells the same make car and “sell” it to them. We sold a 4Runner lease we had and profited almost $6,000 from it which we used as a down payment on the next vehicle that we bought outright.

        Leasing is never a good play and certainly not a FI thing. It’s often something people do to get them into more expensive cars they couldn’t otherwise afford to buy or into a vehicle they know is a problem brand (think Land Rover Range Rover) and want to give it up before the warranty is up. I’ve never seen it as a “cheaper” option.

        #96984 Reply

          How far do you drive each day?

          If you can deal with a car that goes about 240 miles between charges, you can find a used Chevy Bolt from 2018-2022 for a screaming good deal. You can get a $4k tax credit at point of sale, and then there’s no gas and virtually no maintenance. And they’re really fun to drive.

          #96985 Reply

            Get rid of it and buy a certified used car in great condition with cash.

            #96986 Reply

              Dump it and buy a different used car.

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