2

People!

I've been doing okay financially and recently ordered a new car (Middle of April). While the vehicle is expected to be delivered in the next 2 weeks, I noticed that the dealership website has listed a new starting price for the car from May 1st, coming in around 5000€ cheaper for the same configuration. I talked to them and they said I could get some compensation for the price drop, but probably nothing close to the amount it dropped.

I intended to lease the car for 4 years, 40% down payment, 40% financed amount(the monthly payments, don't know the term) and acquire ownership at the end of the period with a 20% final payment (buyout). Please note that I did sign a vehicle order contract, but not any lease papers yet, so I can still change those parameters.

So, that got me thinking, wouldn't it be better for me to opt for a lease with the intent of returning the car at the end of the lease period (30% down payment, 40% buyout)? As then the leasing company will have to deal with the already overpriced car after I return it.

What is the best thing I can do in this situation?

Total price I signed up for is 40000€, give or take, and I'm in an EU country, if that matters. And yes, I understand that leasing is never a good deal, so skip that part.

Any advice would be greatly appreciated!

  • 1
    probably need more details. It appears as if currently you end up paying 100% of the purchase price for the car (40% now, 40% over 4 years, 20% after). If you go with the other option (30% down, 40% buyout), what are the payments ? would it be 30% 30% 40% ? In that case you would pay 60% of the car's (overpriced) price to end up with no car after 4 years .... I don't currently have enough information to make the calculations on that. – xyious May 28 '18 at 20:07
  • Yes, 2nd option would be 30% down, 30% finance, 40% buyout. In that case, I could use the car as a down payment for a new one after 4 years. My thinking is that in this way I wouldn't have to deal with reselling an overpriced car, the leasing company would have to deal with that. – user2574170 May 28 '18 at 20:30
  • If you already know that a lease is a bad deal, then why are you worried about improving it? Are you looking for a slightly less bad deal? – D Stanley May 29 '18 at 13:33
  • Yep, could use this money on a good vacation somewhere. I had to take a lease and not buy cash because the company I work in has an incentive for buying a new car on a lease and I needed new one anyway(my company will cover the monthly payments for me). So just trying to figure out how I can get the most out of the situation. – user2574170 May 29 '18 at 14:03
  • What kind of vehicle depreciates 80% in four years? I don't know about leasing in Europe, but in the US, the residual value (end-of-lease number) is at least ostensibly based on the projected value of the car at the end of the lease. – stannius May 29 '18 at 19:36

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.