dreadful

Ok here is a summary of the situation, just wanted some others opinion...

2005 c230ss automatic,cd changer thats it pretty basic - msrp 31,780
Trade Ini, trade in value 13k am being given 11k but owe 16 so negative 5000 there

48 month lease, 5000 down (including ttl, finance charges)
tier 1 credit and the lease payments are comming out to 498...

To me this seems high, I want to get it down to 450 at least but I know that the 5000 down is basically just going to even me out...

What can I do to get my payments where I want them, I did not see the intrest rate they are giving me as I wanted to sit and stew on this a bit...

Any advice would be great, going to head back up there tomorrow and see what I can do...

kompressor boy

but u should try to get more for your trade-in....regardless of the crap they will give u regarding tax credit for trade-in vs. no trade-ins. i hate to say this, but the c230k is not a rare car, so just give them $500 over invoice, and u can get the invoice prices from any online source....msn, intellichoice, etc..negotiate this (trade in value + $500 over invoice) as if you are buying it outright....this is very important. Once you agree, and the deal is shaken on, than u will have to see the finance guy to do paperwork...ask him about the lease...and once he tells u about the lease....than let him know that you're going to lease since its soo good. good luck.

Deutscher_Wagen

I would first find out the intrest rates. Then consider a cosigner... when I first moved bac k to the states, I asked someone to cosign for me and it made a large difference. Now I get great rates by myself.

Also, consider selling to a private party. Cars are always worth more that way.

Just some thoughts.

dreadful

Well actually I am getting a cosigner just to see if the rates get any better, he currently has an s55 amg so I think that might help some...

I will look up the invoice price and see what that is, I really only want to shave about 50 bucks off the monthly to be happy another thousand on my trade and I would be close to there...

It's interesting that you mention the tax credit thing, I heard that spill out of his mouth but was not sure what he was refering too.. could you elaborate a bit on that..

Phillip711

seems a bit high, find out the money factor. Plus where are you located?

respdoc

My opinion is if you are already upside down in your first car why would you think of making your self even further on the wrong side by adding your neg. equity to a new car payment

kompressor boy

before i say anything further......respdoc has a great point, negative equity on prior car carried over to a new car isn't really wise, but if u have ur heart set on the new car, than go for it, as long as u can live with it :v

tax credit example would be tax at 9.00%

Trade In Value: $10,000
New Car Value: $40,000

Tax You Pay would be $40,000 - $10,000, so you are taxed on $30,000. which is $2,700.00

No Trade In Value: $0.00
New Car Value: $40,000 so you pay tax on $40,000 which is $$3,600.00

So basically, unless u can sell you car to a private owner for more than $10,000 than tax credit would benefit you. Because the tax credit you save on $40,000 vs. $30,000 would be $900.00. So in essence, you are getting $10,900 on your car. Private sales would be beneficial if you can get more than $900.00 on your car, otherwise, take the tax credit.

Hope this helps, if im wrong than correct me financial guru's out there

coconutpolito

IMO, I wouldn't do it. You're spending 10K out of your pocket. Pay that car off as fast as you can then buy another one.

MCONDE01

Try taking your car to CarMax...that is what I did with my 2001 1.8T Jetta and I got $1,600 more for my trade in compared to what any dealer would give me...And this was after really trying to beat up the dealers about the trade in price...just a suggestion

Biznatch

I wouldnt do this.

A- Your spending 10g just to lease the car.

B- Your payments are still almost 500/mo.

C- YOU ARE SPENDING 10G TO LEASE A CAR...

so

5,000 - downpayment
5,000 - owed from previous loan
23,904 - money spend through the duration of the lease 498 x 48

= 33,904 to drive a car for 48 months... No thanks!
Your payment is actually 706.33/ mo Plus taxes.

Your biggest issue is the trade in of your old car. You cant loose 5g. What kind of car, how long have you owned it? You should probably ride this one out and reduce your debt more.

Biznatch

Actually..

After thinking about this a lil more. You are probably best off by taking your 5,000 and paying it down on your current car. Saving up another 2,000 or so, and then go back to the dealer and discuss the lease of the new car first. Then get them to give you the trade in that you need to atleast break even.

It sucks, but its the way to go.

goldenbuddha

I just want to say this..

For 498... I got my fully loaded C320 for less than that...

So... can you swallow that?

I'd wait it out, but thats just my opinion. A car is suppose to be a fun thing, not something to lose sleep over.

gaogi

Given all the same numbers, it would cost you only 25.00 more a month to buy the car at 5.9% interest (since you said you have tier 1 credit). Monthly payments go down even more if you extend that loan out to 5 years (~430.00 a month). The numbers your dealer is giving you on the lease is HORRIBLE! If you go with it, you might as well bend over and grab your ankles as well.

gaogi

Just did a quick check on your numbers, and the lease money factor is ~.0098 which calculates to 23.5% interest rate!! That is definitely NOT tier 1 credit numbers...

Biznatch

Thats probably why he is rushing into the sale and talking about a co-signer.
Get that credit rating up..
700-up FICO scores are necessary for survival in this world.

CclassRun

Here is my two cents: Your trade in is only worth $11K So I''m guessing that its either a older nice'r" car or a not so old "regular" car. In either event, you'll start to see a leveling off of what your car is worth both privately and as a trade-in. You would have to look at various years, various mileages etc. to get a sense of what the leveling off point is. Let me clarify, my last car (which was a lexus) leveled off at about $8-9k. Which is to say that while every year and every mile made it worth less, it didn't drop as fast once it hit the $8-9k. Logically all cars have a leveling off or else they would all be worth NOTHING.

SO...my advice would be to start making larger payments and hope for a leveling off in the value of your car to get out of that negative equity.

LorinserCClass

It's hard to comprehend that when you want something so bad. Believe me I've been a victim myself a few times :p