QuestionHi. I have several questions for you that I hope you might be able to answer. Thanks in advance for your time! I really appreciate it.
I have a 2011 toyota that I'm looking to trade in. I have 11 months left on a 3 year lease and have decided to trade it into a different dealership from the one I leased it from so that I can lease a 2013 ford fusion hybrid. I negotiated the purchase price of the ford which I'm satisfied with and have the offer in writing. I also negotiated a satisfactory trade-in value for my highlander which is still under lease. I made both of these negotiations separately. The dealer never asked me on the trade-in whether I owned or leased the highlander.
The new ford fusion I was looking to lease from them had to be special ordered with the options that I wanted since no other ones appealed to me. I signed an order confirmation for the vehicle which stated the agreed upon purchase price including rebate and which also listed the out the door cost including taxes, license, doc fees.. I put down a $500 deposit towards the new car (which he said was refundable) that I was told would take 6-8 weeks for delivery. I asked him about what documentation he required in order to put the ford lease under my business name. He said all he needed from me today was the $500 order deposit and a photocopy of my driver's license. I didn't negotiate the new purchase lease terms and left satisfied that with my excellent credit of 780+, I would more than qualify for a low Ford APR and the lease negotiation would be relatively painless.
I realized soon after leaving that I should have negotiated the lease terms then and there. I will go back to the dealership in a few days in order to hammer out the details. I will purposely be vague whether I want to finance the car or lease it so they can't use that knowledge to their advantage.
The sales manager who I dealt with put in writing that the agreed upon trade in value of $27500 for my toyota will be valid until the ford fusion vehicle i ordered arrives, as long as the condition of the trade-in remains the same. I should clarify with him I would think how many miles I can expect to put on the car where they would still honor the trade-in value. Should i ask for in writing that they will honor my trade-in if i put on an additional 2k miles in the 2months until my car is delivered?
I understand that I can't sign a lease or contract before my ford order is delivered, but isn't it reasonable to expect to negotiate the terms of the new car lease factoring the trade-in value that they quoted me on my toyota? I don't want to leave the lease terms up in he air until the car is delivered then negotiate the lease terms which are just as important as you know and when they know I want the car that's been delivered and can show less room to be flexible.
Would you suggest I insist on negotating the lease terms now based upon an agreed upon purchase price and trade-in value? Also, is it even possible to negotiate all the terms since I won't know how much of the trade-in value on my leased toyota i'll be able to apply towards my ford purchase since it's a lease and the
Do you think it's better to have all the negotiations over with before the new car arrives. What lease terms, if any will I have difficulty negotiating on this deal that you anticipate if I try and just get something in writing regarding my lease apr, and monthly payments? Also, what is a good apr I should try to get for a '13 ford fusion hybrid if you know this information?
Lastly and the question most important to me, I was wondering how do I determine exactly how much positive or negative equity there is on my trade-in that can be applied towards the new car? what of the following information do I use to determine if I come out ahead or am underwater on the trade-in of my leased vehicle:
The negotiated value of my toyota highlander is $27500 on the trade-in. The residual on my lease is $21,452. I have 11 lease payments left @ $457.06/month pretax. ($500/month including tax). The payoff amount of my toyota lease is $25,350. (also lets assume for argument's sake that i sign the deal and do the trade in in 2 months after making 2 more months of lease payments)
Do I calculate how much I have to apply to the purchase of my new ford based upon the monthly payments pre tax or post tax + the residual amount or based on the payoff amount? Do you recommend getting in writing from the dealer how many miles I should be allowed to put on my toyota before I physically trade it in?
Thanks for your time answering these questions in advance. I know there were a lot of points I touched on.
Best holidays
AnswerHi Matt.
Wow, Not often I get a novel, it's well written with detail, there are many Q that needs to be addressed from my end.
Let's do this, send me an email to paulsenray@yahoo.com with your phone # and best times to reach and we will together go through your questions step by step.
Have a Blessed day
From the computer of
Ray Paulsen
http://www.usedcartips.org/index.html
