Did I get a bad deal? Anything I can do now??

You leased a vehicle... Ontop of that you are in on a seller's market with Prii. What do you expect?

If you want to purchase the vehicle, then buy it now. If you just want to "rent" it for 3 years and then get something newer and more shiny, then keep doing what you are doing. Buying and selling cars continuously is never good for finances.

 

Well... just for comparison, I bought my 2011 Prius Two at sticker about a month ago, 3.49% financing, 5 years, nothing down, ~$26,000 after dealer fees, taxes, and such, and my payments are ~$469

 

These questions need to be asked BEFORE making a decision. Read through www.carbuyingtips.com and get prices & quotes through www.aaa.com or Costco or another buying service.

Since you were under water on the old vehicle you should have kept it if possible. Stop renting cars or buying those you can't afford. If you don't break the cycle soon you'll be in debt up to your eyeballs for the rest of your life.

 

not a bad deal these days, but i would contact your attorney generals office or consumer affairs to make sure the payments are correct.

 

God-hell, man, cancel that ball-buster if there's still time! Sheesh.

 

knew that lecture was coming.

 

They whispered sweet nothings in your ear but did they at least give you lube?

 

If, after going through all the details, you decide you got a bad deal and are unable to get out of it, then consider it a learning experience and vow to do better next time. Many people, including myself, have a bad deal somewhere in their history. (I'm ashamed to admit it, but I fell for the window etching trick once!) After feeling taken advantage of, I read books like "Don't Get Taken Every Time" as well as the many other resources available on the web. And in the mean time, you still have a fantastic car to drive that you'll appreciate more and more as gas prices continue to skyrocket.

 

How may miles did you get per year 12k? Better consider what that will cost you if you drive 16 or 17k. deal doesn't sound great and compute the extra mileage costs before it happens.

I had a couple leases but it was hard to keep the mileage down so I wasn't forced to buy the cars at lease end for their residual value. No more leases for me and fortunately for me I was in a position a month ago to buy my my 2011 prius II for 2500 under the 24,000 and my payment ended up $250.00 per month X 60 Good Luck

 

depends on what state you're in. mass has a 3 day contract law. i think a buy out would kill you. you were underwater on your trade in, and this may have been a bit impetuous to say the least. you're a young man with many years ahead of you. why not make it a learning experience and take some of the advice from people here about reading books and the web to educate yourself for the future? you will be making many more serious financial decisions down the road. ask friends and family for advice if you can. all the best!

 

What are the terms? Correct me if I am wrong, but when you lease, it's still a "finance." The difference is that in a lease, you are financing the "use"or depreciation (based on the mileage over time). In a purchase, you are financing the entire cost of the vehicle regardless of depreciation/mileage. There is still a finance charge connected to a lease.

In effect, you are financing $16,958 ((24,400msrp+1,000upcharge+2700negequity-1,000down) - 10,142residual)). Based on a monthly payment amount of $495.89, I am coming out with an interest rate of 24.81% (16,958 principle / 60 month term). Of course, that is not completely accurate as I assume your 24,400 figure does not include any "misc" dealer charges (tax, destination charge, etc).

 

Take your lease contract and let an attorney look it over. The small cost will be worth it. If you can get out of the deal he might have a suggestion on how to proceed.

It might just be you are stuck. You did sign the contract. Never sign anything you don't fully understand and don't believe a salesman. Take the contract and look it over carefully before you sign anything. If they balk, just walk. Chances are they weren't honest with you in the first place.

 

Well don't forget when you pay that $10,142, you may have to pay tax on that, to the tune of about $912. Plus re-registration (which I'll ignore for the purpose of this post)

So your total out of pocket for 5 years, assuming you do the purchase, is

$1000 Down Payment
$540.27 monthly x 60
$10,142 purchase option + $912 tax
Total: $44,470.20

Now your negotiated purchase price is $25,400. Tax is $2286. Your negative equity is $2700. I'm ignoring registration. So if you bought the car outright, you'd have to pay out $30,386 (not including registration).

If you consider your lease as a loan, your effective interest is about 7.9% APY with a balloon payment at the end.

So you bought the car for $25,400, paid tax, took out an additional loan of $2,700, and financed it all with a 7.9% APY loan. You can think about it this way, If that makes you feel any better (I hope).

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Remember that your prior negative equity is like taking out a loan. You have to pay it one way or another. It's rolled into your lease so you are effectively paying interest on that figure, because the leasing company paid off your trade-in.

 

If you end up sticking through with the lease, please exercise the purchase option on your vehicle.

A 60,000 mile 5 year old Prius is worth way more than a $10,142 residual. So buying the car is the right thing to do.

Don't throw away the equity.

 

Looks like a bad deal to me, but then again, I never lease cars.

Arizona Attorney General, Tom Horne says there's no cooling off period in AZ.

Did you get sucked into the 4-square system described at http://www.edmunds.com/car-buying/confessions-of-a-car-salesman-pg4.html?

 

Wow... Either they were recently investigated on the news for being a bad dealership, or you got a really good dealership there that wants to make you happy.

I would let them keep your trade in and just outright buy the Prius like you should have done in the first place.