Posted on: 23-02-11 13:43:29
My SUV lease will be up soon, I am considering to buy out my 4 years old leased vehicle and looking for low interest car loans.
The lease end buy out amount is ~18k (with taxes and dealership admin fee etc), the dealership refinancing is available at 6.85% (seems high).
I want to avoid paying cash (if possible) so that I dont dry out my savings, the car loan (for used car) from the major banks seem to be around 7%.
if someone can share how can I get low interest car loan.
Just went thru this… Kind of strange, but options are very limited… I ended up buying it via personal loan. If you have equity in ur home, you can get a low rate. PC Financial has a prime based rate - exact rate will depend on your credit rating.
Btw, you can pay the car company directly - call them up and ask for the mailing address for Draft. That will save you the dealership Admin fee!
A better alternative will be to take a brand new one on new lease or 0% purchase financing. Do the math and compare.
The American auto market is always encouraging buying new vehicles (and you have multiple financing options) than pre-owned vehicles. Actually there is no attractive financing option for pre-owned lease except your own LOC,
Hiren
Quote:
Originally posted by hchheda
A better alternative will be to take a brand new one on new lease or 0% purchase financing. Do the math and compare.
The American auto market is always encouraging buying new vehicles (and you have multiple financing options) than pre-owned vehicles. Actually there is no attractive financing option for pre-owned lease except your own LOC,
Hiren
True... In my case, I hadn't even used 50% of the allocated kms... so made sense to buy.
Quote:
Originally posted by ashedfc
Go on a long drive to New Burnswick, or Vancouver (maybe Florida/California in you can enter US) & use the allocated mileage (you will have fun/vacation/good time) & then return your lease..... & get a new on 0% finance or whatever best option available.
Brand new car & 0% is always better.
:-)) Hee hee... that is a nice one... Gotto do that in summer...
Btw, I am surprised you recommending new car purchase, since you mostly post against home buying. My thinking is, the money you put in car is just burned over the years - never can make a profit, the depreciation in the initial 2-3 years is a big chunk too... So by returning old lease and buying a new one, one got to absorb another of that initial depreciation curve... Im sure you have your reasons - probably around investing the lease purchase amount (say $10K) to make more than the monthly payment on the new $20K car and the incremental insurance. Would like to learn that....
Quote:
End of the day, You have one life, You gotta enjoy it too..... right.
True... True... True...
I agree, with a new car there is a big depreciation factors in initial few years which is exactly the reason I dont want to finance/lease another new vehicle.
My leased RAV4 is 4 years old with less than 50K, in immaculate conditions, never had any problem, we love to drive, on top of that it fulfil out family's requirements, therefore thought of buying it out at the end of the lease.
