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finance strategy?

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Old 07-30-2001, 09:04 AM
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Default finance strategy?

I have a 225 TTQR w/ appearance/bose audio/baseball seats. Residual on lease is $28,900 due Aug. 2003. I can roll over to 5yr loan at lower interest (-3%) now or wait till end of lease. I'm thinking the market value will then be much less than $28,900 and I may be able to negotiate a lower residual since they will just have to whole sale it at a loss. What do you think?
Old 07-30-2001, 09:29 AM
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Default I would wait. Why lock in now, when you don't know what the

market value will be, but suspect it will be lower. If rates and residual go down further, you really win by waiting. If only the residual or rate is lower you still win. FWIW, many financial institutions are taking a bath on their forecast of residuals.
Old 07-30-2001, 09:31 AM
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Default I agree w/the latter strategy - many people aren't aware that the residual is negotiable, if you

decide to purchase the vehicle at lease end.
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