Lease good?

albert096

I currently have a 2013 dodge dart rallye turbo and owe 16200 mines 1600 for a refundable warranty from carmax. I don't want to be underwater in 3 or so years (I won't keep it 6 years). Kbb trade in is around 11k. Honda is offering me a 2016 civic ex t lease 22,300$ car 15k miles a year X 36 750$ down 340$ a month. Including taking care of my dodge, is this a good deal?

kyfdx

albert096 said:

I currently have a 2013 dodge dart rallye turbo and owe 16200 mines 1600 for a refundable warranty from carmax. I don't want to be underwater in 3 or so years (I won't keep it 6 years). Kbb trade in is around 11k.
Honda is offering me a 2016 civic ex t lease
22,300$ car
15k miles a year X 36
750$ down
340$ a month. Including taking care of my dodge, is this a good deal?

Sounds like a lot for a Civic. You are $5K under water on the Dart now? Just keep making payments until you aren't.

albert096

I want too but the dodge is 72 months at 11 percent Interest. Not the best deal

Michaell

albert096 said:

I want too but the dodge is 72 months at 11 percent Interest. Not the best deal

Is it possible for you to refinance the current loan to get a lower interest rate and also to lower your payment?

albert096

No lenders will approve me, somehow carmax did and dealers will lease. I tried lending tree, capital one and chase. No luck. My car is about 3k underwater now

kyfdx

albert096 said:

No lenders will approve me, somehow carmax did and dealers will lease. I tried lending tree, capital one and chase. No luck. My car is about 3k underwater now

You can't trade your way out of that.. keep making the payments.

Or, find a relative that is earning 2% on a CD, and offer them 6%.

albert096

If honda was offering me the 340 a month with 1200$ down on a 36 month lease 15k miles a year with wrapping my negative equity is that good? 
It's a 2016 honda civic ex t-

Michaell

albert096 said:

If honda was offering me the 340 a month with 1200$ down on a 36 month lease 15k miles a year with wrapping my negative equity is that good? 
It's a 2016 honda civic ex t-

.00083 and 62% for EX-T.

Would need to know the MSRP, adjusted cap cost, breakdown of the $1200, state and tax rate and the details behind the negative equity to comment.

albert096

The msrp is 23,035 and my trade by kbb is roughly 11k I owe 14500k, NJ state tax is 7% I don't know the adjusted cap

Michaell

albert096 said:

The msrp is 23,035 and my trade by kbb is roughly 11k I owe 14500k, NJ state tax is 7% I don't know the adjusted cap

Ask the dealer; they should be able to tell you.

If they can't (or won't), then it's time to find another dealer that is more transparent.

Michaell

Michaell said:

albert096 said:

The msrp is 23,035 and my trade by kbb is roughly 11k I owe 14500k, NJ state tax is 7% I don't know the adjusted cap

Ask the dealer; they should be able to tell you.

If they can't (or won't), then it's time to find another dealer that is more transparent.

One more thing - the negative equity you have is adding almost $100/mo to the payment. Why are you wanting out of your current car?

It may be best to wait and narrow the gap on the negative equity.

albert096

The car that I have now the dodge dart. I am unsure of its reliability and depreciation. Not being able to refinance and having a 72 month loan term, down the road with 15k miles a year I don't want to be underwater majorly. It was my first adult car decision and got me to the point that lenders view me serious

Michaell

albert096 said:

The car that I have now the dodge dart. I am unsure of its reliability and depreciation. Not being able to refinance and having a 72 month loan term, down the road with 15k miles a year I don't want to be underwater majorly. It was my first adult car decision and got me to the point that lenders view me serious

The longer you hold on to it, the less upside down you will be. I doubt that it is so unreliable that it will leave you stranded.

My .02, it's your money.