Kia Forte Forum banner
1 - 19 of 19 Posts

·
Registered
Joined
·
28 Posts
Discussion Starter · #1 ·
OK, here is my situation. I'm downsizing from my ($300/month) 2008 Honda CRV to something smaller and more fuel efficient, and I really need to lower my monthly payments. I've settled on the EX Sedan with premium leather package. They gave me $16K for my trade-in, but I owe $9K on it. So that is $7K difference. They are leasing me the EX for $99/month for 36 months. They must be using the part of the $7k for that and the rest is profit for them.

Is this still a good deal? Maybe I should buy it, but with the lease I can get rid of the car if it's a lemon. Plus, it's only 99/month!
 

·
Registered
Joined
·
32 Posts
I would never trade in for a lease. At the end of the lease you have nothing to show for it. Yes the $99 per month is nice and all, but essentially you are putting down thousands of dollars on a lease. The dealer will make good money on your previous car and make more money on your Forte when you give it back. I wouldn't do this, you lose too much value here. Try to work out a deal purchasing the car so you have some kind of value at the end.

If you add your $7000 trade in to the 36 months lease, that comes out to $195.00 per month on top of your $99. So you would be paying around $300 a month on your lease. Might as well get a great deal on your EX and own it at the end instead of paying all that and just giving it back to them to make more money on.
 

·
Registered
Joined
·
28 Posts
Discussion Starter · #3 ·
Good points, but I really don't want to keep paying $200-$300 a month right now. The lease makes financial sense for me right now.

I think I'm taking the deal. I may just lease another vehicle at the end of the lease.
 

·
Premium Member
Joined
·
1,533 Posts
That lease is costing you $300 a month once you factor the $7k deposit. HORRIBLE IDEA. I understand you don't want a 300 a month car payment but why not look for something used or put that $7000K down on a new model and take the 5 years or 6 to lower your monthly payment. You can always pay it off early.
 

·
Registered
Joined
·
28 Posts
Discussion Starter · #5 ·
Looks like I really should see how much it is to BUY the car. As long as it comes in under $300, I should take the deal?
 

·
Registered
Joined
·
973 Posts
if you're looking to get between like 100 and 250 a month on a car you need to look at used models, that lease is not a good idea unless you're paying the rest to get the car at the end. Trading in your car for 7k and giving them almost 4k on a car then having nothing after 3 years would be terrible..
 

·
Registered
Joined
·
28 Posts
Discussion Starter · #8 ·
I can't afford $300/month anymore. With this deal, I will be saving $200 a month + better MPG.

What if I can get them down to $75/month?
 

·
Premium Member
Joined
·
905 Posts
I can't afford $300/month anymore. With this deal, I will be saving $200 a month + better MPG.

What if I can get them down to $75/month?
If you trade in your car you have $100/month payments for 3 years then you have absolutely nothing. Your next purchase or lease in 3 years will be full priced and generally require at least $1000 cash to get started.

I wouldn't do it. Sell your current car and get a 7k car and have no monthly payments. You could probably get a Spectra that is 2 years old for 7k and that thing will last at least 5 more years with minimal maintenance.

Sorry but it just doesn't sound like you can afford a brand new car.
 

·
Premium Member
Joined
·
1,533 Posts
I can't afford $300/month anymore. With this deal, I will be saving $200 a month + better MPG.

What if I can get them down to $75/month?
I understand you cant afford $300 a month. My point was I'm paying $344 on a 5 year loan with basically $1000 down for an SX. You have $7000 down basically and typically it's about $20 per thousand financed.

If you go with an ex, It's cheaper than the SX and then put your $7k down and you should be under $200 a month easily.

Plus a new car you get a better
Finance rate. Just my 2 cents

Putting $7k down ton"rent"'a car is insane.
 

·
Registered
Joined
·
316 Posts
I agree, definitely don't go for the lease option. Either take the $7000 and get a used car. Or go new and with $7000 down you should be able to get an EX for about 180-200 a month depending on your interest rate. This would be financed over 60 months rather than your lease at 36 but after 60 months you own something.
 

·
Premium Member
Joined
·
2,249 Posts
with 7k trade in, i can see them getting you in the car for 200/month easy. i would totally get a car and own it versus leasing it.
 

·
Registered
Joined
·
45 Posts
ok let me throw in my 2cents here. I do accounting for a living and have purchased 15 cars. You are throwing that 7k away if you roll it into a lease. You can easily take that money and use it as a down payment on a purchase and still get low monthly payments. A lease use to work in your favor years ago but they have since switched it because the dealers were loosing out. You will not only loose 7k but the 3,500 you pay into the car and have nothing at the end. Don't even get me started on mileage if you go over what you allowed to use.

A low $99 monthly payment might be appealing but there are better options. Good luck.
 

·
Registered
Joined
·
28 Posts
Discussion Starter · #14 ·
Thanks guys! Will definitely purchase my Kia! Plus I think my CRV is actually worth more, so I should get a reasonable offer. I hope to be under $200. I'll keep you posted.
 

·
Registered
Joined
·
316 Posts
Thanks guys! Will definitely purchase my Kia! Plus I think my CRV is actually worth more, so I should get a reasonable offer. I hope to be under $200. I'll keep you posted.
Edmunds.com has the top price on a trade-in for a 2008 CRV to be 16000, but depending on your mileage it might be worth more. Detail the shit out of that, get a good wax on it and then go in and try and renegotiate. Cars are more valuable when they're shiny
 

·
Registered
Joined
·
28 Posts
Discussion Starter · #16 ·
Good thing I listened to you guys! I have two dealers duking it out for my business. My CRV is worth more than I thought. Oh, I switched to a SX with leather trim!!!! So far, I got them down to $158 for 60months.
 
1 - 19 of 19 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top