Transfer my lease and then buy with credit line?
 

OK, here's the deal.

I am currently in a lease for a 2008 Acura TL navi base. I have 17months left at $527 a month (taxes in) with a buyout at the end at $21984 + taxes.
It currently has 58000km.

A friend of mine wants to sell me his 2007 Acura TL navi base for $25000.
he has about 39000km.

SO.. i was thinking of transferring my lease and using my credit line to buy out my friends car.. BUT... the 12% tax added to the $25000 boosts it up to $28000. My credit line interest rate sux at 5.25%. I would probably dish out about $130 in interest a month. I would probably pay $600 a month to pay it off.


so at the end of the day, is it worth it? they are identical cars except for color and i'd like to own one sooner than later. but the numbers above work out to be so close. can I approach my bank and get a better rate aka car loan to buy it? or should i stick to my lease and let it ride out and since it being a 'walk away' lease, see if there is a better deal at that time? (march 2012). and/or just buyout my TL at the above buyout price.

*keep in mind that at the end of the lease period, i would most likely use my LOC to buyout the car IF i chose to do so.


for the record, mine is white diamond pearl and his is polished metal metallic.

Without calculating the interest on the LOC, you are saving less than $3000. Factor in interest from line of credit, and you'll be saving very little, or even spending a bit more.

Who exactly are you transferring the lease to on your current TL? and are you getting anything in return for it? Your pretty much stuck in your lease untill your 17 months are up or untill you pay the early buyout fee and pay for the remaining months + the buy out total with taxes in. In my opinion your better off sticking with your current model, if you happen to buy it out it will be worth more then your friends 07.

exactly..it works out to be so close.. and as a addition, at the end of my lease term, i would most likely buy out the car using my LOC subject to the same rate OR higher (depending on whatever the damn banks do in 2012).

i put in an ad on craigslist to transfer and got about 8 responses within 48hrs so i can probably let it go pretty fast. i wouldn't be getting anything for it.. i'd have to probably pay the lease transfer fee of $500. The 07 and 08 being completely identical in features/specs with the only difference being the year.

here is the way i'm seeing it:

Lease:
remaining payments $527 x 17. plus buyout of $21984 +tax.
adds up to $33581.00 PLUS if i buyout the car using my LOC, i'd pay at least another $5000 in interest if i were to stick to a schedule of paying it off within 41months at $600 a month. so then this works out to about $38581.

Purchase:
I dump the lease and get my friends car at $28000 (taxes in). again, sticking to a payment schedule of 41months at $600 a month, i'd pay approx $5000 in interest..adding up to $33000.

sheesh.. guess i'll stick to my lease lol. no point sacrificing capital when the lease payment is so convenient for now.

i aint no mathematician so these numbers are allllll approximate.

with a lease, you have an option to get another car at the end. so , this option is vital when a year and half later you might be interested in another car

Spending almost 30g on a 5 or 6 year old car by time you are done paying it. is not worth it imo.

i think your options are to either transer your lease, and use the money to buy a car from US , 15g to 20g max.

or stay with your lease.

You never lease a car, then buy it out at the end... not if you want to save money that is.. that's gonna be the most expensive way to buy a friggin' car!

Take it from me, getting out of a car lease is not that easy. I had a 2008 Accord coupe and it took 10 months for me to find someone to take it over. I got lots of responses too and had over a dozen test pilots. Not only did I have to pay the lease transfer fee, I also had to give the guy $700 cash as incentive. I say if you're not desperate to get rid of your TL, keep it until the end.

not at .9 percent financing.

have your friend transfer the car over to you via 'gift' so you save the tax

UPDATE...this has been done! quite happy with the new color!


http://www.user.dccnet.com/sislam/carbon2.jpg

hey i park at the same lot as you do. won't mention names, cuz i don't want my car or your car to get keyed by haters :D

i'm so spitting on your guy's car tomorrow. 30 stories form above :D

Congrats Op
There is a situation when it benefits you to buy out your lease. When you take the residual value they give you at the beginning of the term say $10,000 as your buyout, but it turns out your car holds its value better than expected, and is in fact still worth $15,000 when your lease is ending, then it would benefit you to buy out the car, and either keep it or sell it.