I stopped in earlier this week to ask a few questions. Made arrangements to take my trade in for them to take a look at on Friday. I have a 2002 Land Rover Freelander HSE with 71000. Perfect condition, added aux fogs and driving lights, Sirius radio, new tires tow package and extended warranty to 75,000 with 1 year remaining. KBB says $12K, I owe $1500. Looking at 2007 H3 with luxury package, chrome trim, chrome wheels 16", 6 disc radio with XM. It's a demo with about 2500 miles. Thinking about a 27 month lease. He gave me a quick quote of $13,000 with the lease paid up front. So, if I can clear $10K on the Freelander...I add $3k and drive for 27 months with no payments. OK now, am I wishful thinking? Do I bargain for the truck from a total payment standpoint or the purchase price?

I love to drive 'em....HATE the process of buying 'em.

Any input greatly appreciated.

OH and Happy Thanksgiving too!

 

I would never pay that much up front on a lease, you total the truck and your screwed...gap coverage will cover some of it but not all.

 

Always approach the deal as if you were going to purchase it outright...based upon total purchase price and never on payments which you are willing to pay. Also, I only lease a vehicle if I don't plan on keeping it beyond the term, otherwise, it would be in my best interest to actually purchase the vehicle instead. Since leasing is in fact renting, I have/will never put any amount down for something that I will in fact never actually own.

 

You arent supposed to factor in a trade-in value until after the deal. If they say "I think we can get you another $xxx to get you to your price" then tell them to take that off the sales price. They will try to get the bottom line low, you want to get the sales price low. Don't let them barter with the money on your side of the deal.

As for the lease, I would say no just so you can set yourself up on the next purchase.

While it sounds like you are only spending $3,000, you are spending $13,000

13,000 over 27 months is a monthly payment of $481.00
at the end of the loan you have a balance of $0 because you applied all of your equity at once and you would be facing an expensive next car payment.

A $20,000 loan over 48 months is also about $480 a month.
After 27 months, you would still owe about $7,000 so at the end of a 27 month term, assuming your 07 is worth about $23,000 (as the loan value indicates), you could walk away with $16,000 to apply to your next purchase.

For the same payment, I would rather have $16,000 to start me off with something new.

Or my numbers could be totally wrong

 

haha..oops...so I was a little off now that I look at it..I forgot to re-factor in your rover on the lease...[:@]

So in reality you are compaing $11,000 in return to $16,000 in return.

Its easy to see how you could really screw somebody over!!

Anyway, I still think its smarter to buy than lease.

 

Good Luck..You'll enjoy the H3 more than you can ever imagine, after owning the damn Freelander worry bucket...I sold my SE last January and got $14,500, I had only 33,000 miles though.