Thanks to this thread
http://forum.mrmoneymustache.com/ask-a-mustachian/help!-financial-dilemma/we have decided to cut our expenses! But most importantly my wife and I believe we made some dumb decisions and want to get out of our auto loan debt so we can save faster for a down payment on a house! Hence why I started this thread to focus on getting out of my auto debt... We've decided to try and get rid of both financed cars and replace them with an older (2009-2011) used civic that we will buy cash.
Here are the details:
2011 Acura TSX (purchase)*
KBB Private Value: $19,798
Original Balance: $26,109.49
Current Balance: $17,755.25
Payment: $498.29 (35 payments remaining)
Interest Rate: 3.49%
*This car has been rear ended (air bag deployed) and the accident shows up on CarFax.2013 Acura ILX (lease)
KBB Private Value: $22,737
Payoff Amount: $21,407.42
Original Term: 36 Months
Payment: $272.63 (21 payments remaining)
Just to test the waters, I took my cars to the dealer today and I've received the following offers:
Acura TSX $12,000
Acura ILX $19,000
Horrible offers right?
I contacted the lease company and basically the only way to get out of the lease without damaging my credit is to sell the car for the payoff amount ($21,407.42).
I was hoping the dealer would give me a reasonable offer so I wouldn't have to hassle with selling it in the market. Plus, I'm not exactly sure how I'm going to do the transaction when someone wants to purchase the car. For the purchased car I can head to the bank with the buyer and do the transaction there. However, the lease transaction will be a bit more difficult as it would be contingent on me paying out the lease.
I've put ads for the cars on craigslist last night and I haven't received any bites yet.
Please help my mustache grow thicker! :) Please share your experiences getting out of leases or financed vehicles. All advise is appreciated