Edmunds Answers



  • joebob 05/22/08 11:22 pm PST

    Forgot to say that my trade-in value, according to Kelly BB, should be around $5000.

    I don't want to deal with selling the car myself.

  • simpilot1 05/23/08 1:09 am PST

    Dealers don't really care about financing since they don't carry the note. Depending on what you're trading in it may be that the $5,000 BB value may no longer be valid. Used car prices are changing very quickly as a consequence of gas prices and blue book prices are not keeping up. Many dealers won't even take a large SUV on trade. Pickup truck prices are down more than 30% over the last month or two. On the other hand small cars like the Geo which were selling for a few hundred are now selling for several thousand. If it's simply that the dealer is trying to screw you find another dealer.

  • joebob 05/23/08 2:40 am PST

    Thanks for your answer. My question is more specifically about down payments on a lease. Lease deals usually require under $2500 down for a car in my price range. Let's just assume a dealer will value my car at $5000, or even $3500. Does trading in a car with this much value make sense on a lease? If I needed to pay around $11,000 in the 3 yrs of montlhy, wouldn't it be okay to put, say $5000 down? Then I'd have to pay only 6,000 in monthly. Someone told me not to put a big down on a lease, I'm trying to understand why.

  • simpilot1 05/23/08 7:07 am PST

    You can put down as much you want on a lease. Once you have the negotiated the sale price ask them what the residual value and money factors are. Then use a lease calculator to figure your payment. Low down payments are simply a means to bring people without much to put down into the showroom. The link will give you all the information you need.

    Source: http://www.leaseguide.com/

  • tjc78 05/23/08 1:25 pm PST

    The reason not to put a lot of money down on a lease is if the car is totaled during the lease (especially early on) you have just lost that money. What I would do is figure the lease with just first month payment and taxes/fees due at signing, then have the dealer cut you a check for the balance from your trade.

  • joebob 05/25/08 3:27 am PST

    That's a great idea to have the dealer make a check for the balance of my trade-in, but will dealers do that? Will a dealer be willing to give cash for the trade-in?

    Also, can anyone think of any other reason not to put much down payment on a lease?Losing the money if the car is totalled is good enough reason, but if it that risk wasn't there, woudlnt any down payment that is smaller than the sum of 3 years total payment amount) be okay, as long as the monthly payment is shrunk accordingly?

  • jdl300 09/23/08 2:03 pm PST

    how come if the leased car is totaled you lose the downpayment?

    if the car is insured for 100% of market/msrp value...!


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