Type Of Loan For Buyout?

[toyboy1980]

Hey y’all. Leased a 2020 GT1 in February for 24 months. Due to things getting crazy in life for a while due to this freak show of a year, even thinking about a buyout got put on the back burner.

I’m now circled back around to looking at doing a buyout. Question: My Stinger now has 5000 miles on it. What type of loan should I be looking at? Lease buyout loan? Used car loan? New car loan?

I’d appreciate advice from anyone who got 3rd party financing, and what type of loan you got.

 

[stasek]

Hey y’all. Leased a 2020 GT1 in February for 24 months. Due to things getting crazy in life for a while due to this freak show of a year, doing it even thinking about a buyout got put on the back burner.

I’m now circled back around to looking at doing a buyout. Question: My Stinger now has 5000 miles on it. What type of loan should I be looking at? Lease buyout loan? Used car loan? New car loan?

I’d appreciate advice from anyone who got 3rd party financing, and what type of loan you got.

It depends on the lender. Some lenders may treat it as a new car and some may treat it as used.

 

[fc528e]

My credit union treats any car 2019 or newer as a new car, which leads to better financing. Your best bet will be to check with the bank/credit union of your choice.

 

[MerlintheMad]

"Type of loan"? I would only compare interest rate of the loan with "lease rent" (interest). If you can get a lot lower interest rate than the total you'll be paying in lease rent by lease's end, then the buyout makes sense. Otherwise, not: Just finish out the lease.

 

[toyboy1980]

"Type of loan"? I would only compare interest rate of the loan with "lease rent" (interest). If you can get a lot lower interest rate than the total you'll be paying in lease rent by lease's end, then the buyout makes sense. Otherwise, not: Just finish out the lease.

What I mean by “type of loan” is just that. When I go to my Bank of America account for instance, it gives the option for car loans as, new, used, lease buyout, private party. They all have different interest rates.

 

[MerlintheMad]

What I mean by “type of loan” is just that. When I go to my Bank of America account for instance, it gives the option for car loans as, new, used, lease buyout, private party. They all have different interest rates.

But, you just compare and get the lowest interest rate? I don't see the problem. If the interest rates are not super competitive with the "lease rent" you pay in total by lease's end, then the buyout isn't worth the hassle. Just finish the lease.

 

[toyboy1980]

But, you just compare and get the lowest interest rate? I don't see the problem. If the interest rates are not super competitive with the "lease rent" you pay in total by lease's end, then the buyout isn't worth the hassle. Just finish the lease.

Yeah I understand your point. I’m just saying that it seems that some establishments aren’t willing to do a new car loan on a used car with 5000 miles, and then there’s the lease buyout loan category, with even higher interest rates.

I assume a bank/credit union is gonna want to know the specifics of what they’re loaning you money for. Perhaps not. I am ignorant of how the specifics will play out. That’s why I was asking for other people’s experiences in this scenario.

 

[MerlintheMad]

Yeah I understand your point. I’m just saying that it seems that some establishments aren’t willing to do a new car loan on a used car with 5000 miles, and then there’s the lease buyout loan category, with even higher interest rates.

I assume a bank/credit union is gonna want to know the specifics of what they’re loaning you money for. Perhaps not. I am ignorant of how the specifics will play out. That’s why I was asking for other people’s experiences in this scenario.

I don't remember anybody on here doing the buyout so late into the lease. That will vitiate your savings too. The buyout works best early. I did mine with cash after making three payments, and saved well over $5K in lease rent.

 

[toyboy1980]

I don't remember anybody on here doing the buyout so late into the lease. That will vitiate your savings too. The buyout works best early. I did mine with cash after making three payments, and saved well over $5K in lease rent.

Yeah I have a feeling that’s gonna be my problem. We shall see. I’ll update with what happens, and if I can make it make sense.