QuestionQUESTION: Hi Ray,
Just one month ago I decided to take out a 60 month loan on a used Acura RDX, rather than lease another new Acura. My aim was to keep the SUV for the long-term and eventually own the vehicle, and any remaining equity. That notion didn't last long! Unless I'm able to convince myself to keep the RDX, in the next year, I want to test drive and negotiate a lease on the Q5 -- or the rumored Q3 -- but I wondered what difficulties I might face.
I have an excellent credit history, but I'm concerned Audi Financial might reject an application, since my inquiry from Honda Financial will still be in my report. Will that look suspicious to a lender?
Since there is a lien on the Acura and Honda Financial holds the title, what options do I even have to pay off the loan? Do dealers accept trade-ins on vehicles with a lien? Can I sell it privately without having the title? Are there any "best" times into your loan to sell the vehicle: ie. within the first year before it depreciates and interest grows?
Many Thanks!
Mike
ANSWER: Hi Mike,
When you lease there is no escape from the contract without heavy losses if you wanted to terminate the contract prior to expiry, I am happy to note you financed, and that gives you all the options to make changes, weather or not it's feasible becomes another matter, and that I can't answer without knowing the numbers involved.
Whenever ready go test drive the Audi,,, your Acura will be a trade - in, and Audi dealer will simply pay out Honda Financial if you buy or lease the Audi " but " is the trade - in allowance acceptable to make the deal ???
Yes you can sell privately anytime, the buyer or you pay out Honda Financial and the title will be transferred lien free.
Having purchased a used vehicle and selling within the first year in most cases it will be a negative factor when you consider dealer profit along with taxes paid, it's funds that can't be recovered,,, the more payments you make the more fair market value may come into play " but not in all cases "
Do this when you find the time for a bit of study how the transactions work, start with study on my website http://www.usedcartips.org/index.html anything you don't fully understand please get back to me with further questions
Ray
PS,,, I am curious to know your reason to wanting to lease rather than finance
---------- FOLLOW-UP ----------
QUESTION: Ray,
Thanks for so much helpful information, as well as your informative website that I can study.
Why do I want to lease rather than finance? I'm a sucker for the newest vehicles, equipped with the newest technology.
AnswerMike, it makes me feel good every single time I help someone along that want to take the time to study the process and not being taken to the cleaners, thanks.
I found out your a sucker for the newest vehicles, equipped with the newest technology lol. But you did not really answer my Q,,, You don't have to,,, but if you want post in my forum why your thinking lease and not finance.
This thread is closed
