Never leasing again... :?
(2011-11-16 15:30:23) 1. Says: I have 1 more payment on my car's lease. I chose the smart lease option. My newest plan was to finance the balloon payment and get that paid off in 2 years. My payment will be roughly $375/mo. in order to do so. (balloon payment is around $8000~I included a rough amount for interest on top of that) I have no money to put down towards my $8000, will I need it? What is the best thing to do in my situation? Wait it out and get the car paid off? Sell it to a dealership for a certified used car with a cheaper monthly payment? Can I sell it to a private party if I haven't paid off that balloon payment? I'm not sure of all of my options and what would be the best so that I'm not throwing any more money away with this vehicle.It's an '08 Chevy Cobalt.
I can't turn it in because I'm way over my miles and I travel with dogs a lot so the interior is pretty worn down. Wouldn't be worth it to trade it in, would cost me half the amount of the balloon payment.2. Says: Since you have no capital to pay your fees at the end of the lease, your only real option with being over the mileage and having a poor interior is to buy out the 'smart lease' balloon payment.
The fact that your interior is shot and you are way over on miles eliminates any bargaining power you have to reduce the balloon payment.
If your credit is good, I suggest seeing if you can get financed for the $8,000 buyout from a credit union. I am not sure they will do it if your car is worth less than that, but it's worth a shot.
$375 a month for 2 years sounds like the best you are going to do.3. Says: I suggest that you buy it out. If you truly are over miles and the car has a poor interior, it will be worth far less than the $8000 residual value (that is not a balloon payment since this is a lease).
You could try to trade it in on a new car and ask them to pay off your lease + penalties, but they will basically be rolling that into your new car's price and you'll be stuck in that car for a long time.
You can certainly sell it to a private party before the end of the lease, but I doubt they will pay more than the car is worth. Residual value is a calculated future value of the car based on wear and mileage. They are normally very close, so you might end up having to pay cash out of your pocket anyway. Tag: Never leasing again... :?