Down payment on Lease Buyout

[donalric]

Sorry for the repeat but don’t think I posted this on the right thread the first time.

Just got my stinger gt2 but decided to sell my current car privately. Does anyone know the best option to put the cash from the sale towards the buyout? Does KMF allow two forms of payment (check from me +check from financing bank). I called my credit union and they said I would need to pay the down payment to the principal of my current loan. I explained it was a lease not a loan but they still wouldn’t be able to take the down payment.

 

[Travis Wills]

Not sure if the leasing company will take two different forms of payment. However, you can always get the loan for the full amount of the buyout and then immediately pay the money from the sale towards the principal of the new loan. That essentially would be the same thing as using that money to help pay off the buyout of the lease.

 

[donalric]

Not sure if the leasing company will take two different forms of payment. However, you can always get the loan for the full amount of the buyout and then immediately pay the money from the sale towards the principal of the new loan. That essentially would be the same thing as using that money to help pay off the buyout of the lease.

thanks for the reply.

I thought about that as well but wouldn’t that just shorten my loan term rather than decrease the monthly payment amount? the only thing I could think of was do what you said but then refi the buyout loan for 60 months. Sounds like I might not be able to avoid the third line of credit in such a short period if I want to have the cash from the car sale lower my monthly payment?

 

[Travis Wills]

thanks for the reply.

I thought about that as well but wouldn’t that just shorten my loan term rather than decrease the monthly payment amount? the only thing I could think of was do what you said but then refi the buyout loan for 60 months. Sounds like I might not be able to avoid the third line of credit in such a short period if I want to have the cash from the car sale lower my monthly payment?

If you want to lower your monthly payment then simply stick the money from the sale in the bank and use a portion of it to pay for the car each month. That will make you feel like you are paying less.

Honestly, interest rates are so low that it doesn't usually make sense to put money down anymore. How much are you going to clear from the sale of your current car? Are we talking thousands or 10s of thousands?

There are so many better ways to invest your money right now than by putting into a car. Just get a low interest rate for the longest term you can and invest your money elsewhere. The stock market is doing backflips right now and defying all reason. All time highs across the board. Your money would do much better there.

 

[donalric]

If you want to lower your monthly payment then simply stick the money from the sale in the bank and use a portion of it to pay for the car each month. That will make you feel like you are paying less.

Honestly, interest rates are so low that it doesn't usually make sense to put money down anymore. How much are you going to clear from the sale of your current car? Are we talking thousands or 10s of thousands?

There are so many better ways to invest your money right now than by putting into a car. Just get a low interest rate for the longest term you can and invest your money elsewhere. The stock market is doing backflips right now and defying all reason. All time highs across the board. Your money would do much better there.

Right about 10k. Good point about putting the money in the market. I think I was fixed on putting money down on the car just to get my monthly payment back to what I budgeted for with out paying the extra interest. I’m looking at a 2.19% APR so not horrible at all but just wanted to know if this was possible similar to the car trade in route. But your right I probably can make up the difference in interest by investing the money instead.

 

[Travis Wills]

Right about 10k. Good point about putting the money in the market. I think I was fixed on putting money down on the car just to get my monthly payment back to what I budgeted for with out paying the extra interest. I’m looking at a 2.19% APR so not horrible at all but just wanted to know if this was possible similar to the car trade in route. But your right I probably can make up the difference in interest by investing the money instead.

I doubt you are going to lower the interest much below 2.19% APR. That is lower than inflation since the FED announced they are going to let it go up. I would put those 10Gs to use some where else and just enjoy your new Stinger even if you have to pay some extra each month.