Interesting deal for STI
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Interesting deal for STI
Tell me what you think of this:
I was looking at pre-owned STI's in the auto trader the other day and happened to come across an interesting ad. The seller stated that someone can take over his lease for $235 dollars per month. For some reason, he put down a gigantic down payment (10.5k) when he bought the car making his payments very low. The catch to the whole thing is that he wants 8.5k cash to go along with this deal (to offset he'll be taking on the large downpayment).
The seller's original lease was for 36 months, and there are 20 months left which I would be taking over. The residual is $17,846. The car is in fantastic shape, and only has 5000 miles on it.
Has any seen anything like this?
I was looking at pre-owned STI's in the auto trader the other day and happened to come across an interesting ad. The seller stated that someone can take over his lease for $235 dollars per month. For some reason, he put down a gigantic down payment (10.5k) when he bought the car making his payments very low. The catch to the whole thing is that he wants 8.5k cash to go along with this deal (to offset he'll be taking on the large downpayment).
The seller's original lease was for 36 months, and there are 20 months left which I would be taking over. The residual is $17,846. The car is in fantastic shape, and only has 5000 miles on it.
Has any seen anything like this?
Last edited by Mr. Jack; Apr 29, 2004 at 01:01 PM.
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Leasing sucks. I just found that out at my own expense. And I am not talking about having to pay few extra hundreds/thousands more than if I would have financed it. No, it is much worse. Arg!
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Id recommend buying an STi instead of taking over this lease, you'd lose out on a crap load of money you could use to actually buy an STi... Remember, when you lease, you only "RENT" the car for X amount of months. Then at the end of the lease (like Imprezer said) you dont own the car, Subaru would in turn take the STi back or re-lease it to you for another X amount of months... And Subaru will not deduct the amount of money you spent on leasing the STi if you decide to buy it at the end of the lease... You would end up paying so much for the lease, and then buy the STi at prolly Kelly Blue Book cost (or whatever they say the car is worth at the end of lease).
I wouldnt recommend leasing any car ever... it seems like your planning to buy the car, but taking over the lease is not buying the car. hehe Im not really able to explain it pretty well right now, Im so out of it rite now... but if anyone can help me explain the process of leasing and end of lease buy-out... Please help me out! Much appreciated!
I wouldnt recommend leasing any car ever... it seems like your planning to buy the car, but taking over the lease is not buying the car. hehe Im not really able to explain it pretty well right now, Im so out of it rite now... but if anyone can help me explain the process of leasing and end of lease buy-out... Please help me out! Much appreciated!
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Originally posted by STi Knight
Id recommend buying an STi instead of taking over this lease, you'd lose out on a crap load of money you could use to actually buy an STi... Remember, when you lease, you only "RENT" the car for X amount of months. Then at the end of the lease (like Imprezer said) you dont own the car, Subaru would in turn take the STi back or re-lease it to you for another X amount of months... And Subaru will not deduct the amount of money you spent on leasing the STi if you decide to buy it at the end of the lease... You would end up paying so much for the lease, and then buy the STi at prolly Kelly Blue Book cost (or whatever they say the car is worth at the end of lease).
I wouldnt recommend leasing any car ever... it seems like your planning to buy the car, but taking over the lease is not buying the car. hehe Im not really able to explain it pretty well right now, Im so out of it rite now... but if anyone can help me explain the process of leasing and end of lease buy-out... Please help me out! Much appreciated!
Id recommend buying an STi instead of taking over this lease, you'd lose out on a crap load of money you could use to actually buy an STi... Remember, when you lease, you only "RENT" the car for X amount of months. Then at the end of the lease (like Imprezer said) you dont own the car, Subaru would in turn take the STi back or re-lease it to you for another X amount of months... And Subaru will not deduct the amount of money you spent on leasing the STi if you decide to buy it at the end of the lease... You would end up paying so much for the lease, and then buy the STi at prolly Kelly Blue Book cost (or whatever they say the car is worth at the end of lease).
I wouldnt recommend leasing any car ever... it seems like your planning to buy the car, but taking over the lease is not buying the car. hehe Im not really able to explain it pretty well right now, Im so out of it rite now... but if anyone can help me explain the process of leasing and end of lease buy-out... Please help me out! Much appreciated!
However, if I do decide to keep the car, it makes more sense. For the first 20 months (the takeover lease part), I'll be paying the 235 bucks a month + the loan for the 8.5k (which would work out to be roughly 350 bucks a month).
After the lease is up and I buy the car, I will finance the 17.3k (residual/buyout) + anything that's left on the 8.5k loan. That would be a 5 year loan and wouldn't be any more than say 350-400 bucks a month.
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Let me see if I got this right. You want to take over this guys loan paying $235 for 20 months and take out an outside loan to pay for the $8,500 he wants back from his down payment? How are you going to secure the loan for $8.5k? Since your leasing the car you cant use the car as collateral.........Using rough estimates your complete loan would like like this.
$235 x 20 = $4700
8.5K @ 6%* for 60 months = $9369 (164.32 Per Month)
$235 + 164.32 = 399.32 Per month for the first 20 Months
First 20 months total spent on car = $7986.40
Since you said you want to then finance the residual value of the car (17.3K) and the remainder of your previous loan ($5,809.53) for an additional 5 years. That would look like
$23,109.53 @ 3.9%** for 60 Months = $424.55
Second 60 months total spent on Car = $ 25,473
Total spent on car over 80 months = 33,459.40
As apposed to buying a new car.
$31,000 @ 3.9%* for 60 months = $34,170.6 or $569.51 per month
On paper you would save roughly $700 dollars by taking over this guys lease as opposed to just purchasing a new one over the life of the loan. But keep in mind you are still getting a used car and the terms of the entire ordeal would put you well into the year 2010
Also keep in mind the interest rate with a * next to it is for an unsecured loan (i.e. you have nothing to use as collateral, so the real intrest rate will probabaly fall more in the area of 6%-15%).
The interest rates with a ** next to it were the rates I could get from my employers credit union for both a new or used car (Keep in mind credit rating could make this rate go up). I think the real rate for a used car with the terms of 60 months would be a little higher, as when I was looking to refinance my auto loan I was only looking at terms for 36 months.
I would recommend you speak with your financial istitutions you work with and find out what your real interst rates will be, and then go from there. All the interest rates I used in my calculations were on the low end. I would imagine that when you really look into it you would be much better off purchasing a brand new car.
Having said all that let me state that I do not work for a bank nor do I have experience with buying out someone elses lease. All I used was information provided in your above posts and my best guess at what interest rates would be. ---It all makes sense in my head, but it is getting late and I didnt get much sleep this weekend. If anyone notices any errors or can provide further insite please share. This topic is really interesting to me for some reason
Also keep in mind I didnt include any tax/title/lincense and all that jazz......
Jeff
$235 x 20 = $4700
8.5K @ 6%* for 60 months = $9369 (164.32 Per Month)
$235 + 164.32 = 399.32 Per month for the first 20 Months
First 20 months total spent on car = $7986.40
Since you said you want to then finance the residual value of the car (17.3K) and the remainder of your previous loan ($5,809.53) for an additional 5 years. That would look like
$23,109.53 @ 3.9%** for 60 Months = $424.55
Second 60 months total spent on Car = $ 25,473
Total spent on car over 80 months = 33,459.40
As apposed to buying a new car.
$31,000 @ 3.9%* for 60 months = $34,170.6 or $569.51 per month
On paper you would save roughly $700 dollars by taking over this guys lease as opposed to just purchasing a new one over the life of the loan. But keep in mind you are still getting a used car and the terms of the entire ordeal would put you well into the year 2010
Also keep in mind the interest rate with a * next to it is for an unsecured loan (i.e. you have nothing to use as collateral, so the real intrest rate will probabaly fall more in the area of 6%-15%).
The interest rates with a ** next to it were the rates I could get from my employers credit union for both a new or used car (Keep in mind credit rating could make this rate go up). I think the real rate for a used car with the terms of 60 months would be a little higher, as when I was looking to refinance my auto loan I was only looking at terms for 36 months.
I would recommend you speak with your financial istitutions you work with and find out what your real interst rates will be, and then go from there. All the interest rates I used in my calculations were on the low end. I would imagine that when you really look into it you would be much better off purchasing a brand new car.
Having said all that let me state that I do not work for a bank nor do I have experience with buying out someone elses lease. All I used was information provided in your above posts and my best guess at what interest rates would be. ---It all makes sense in my head, but it is getting late and I didnt get much sleep this weekend. If anyone notices any errors or can provide further insite please share. This topic is really interesting to me for some reason
Also keep in mind I didnt include any tax/title/lincense and all that jazz......
Jeff
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