Quote:
Originally Posted by Belugs
Sure!
No money down is best practice meaning no cash down. If you have a loan vehicle obviously u can trade it in to lower your lease payments with your equity in the vehicle. I think that's okay. Saves you from the trouble and time to find another buyer etc. If the vehicle is already fully paid off then I wouldn't suggest trading it in.
For the new car, I think the $4k off MSRP + $7k incentives is good for a custom order. Doubling of the incentive makes this a good offer. If it were just the $4k off MSRP and normal rate incentives then would have said to push for at least 6-7% off MSRP. So good deal in my opinion.
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I'm confused w/ your advice in first para above.
Let's say I have existing car on loan w/ 50% paid off. OK to trade in the 50% equity to lower lease payments. W/ fully paid off car, not OK to trade in the 100% equity to lower lease payments.
Are you saying that ideally you wouldn't want to apply any of the equity in the car you're getting rid of to lower your lease payments in the new car. It's just harder to find a buyer w/ a car that's under loan w/ say 50% equity than to find a buyer for a car that's fully paid off. So keep the money you get by selling the fully paid off car. Use it to help w/ the monthly lease paynents or invest it or whatever.
Only issue here as I see it, is in MA, sales tax at 6.25% is applied to out-of-pocket cost when purchasing a car. So a trade-in lowers the value to be taxed on. W/ a leased car the sales tax is applied to the monthly payments.
Have I got this right?