Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In the 20+ years of car ownership, we never leased a car. Either, we would buy a new, used or certified used, but never a lease. We had random experience with each type of purchases, and by now, we are not keen on any specific one. Hence we are considering a lease.
My wife has a job where potentially she could write off a car (lease) as part of the work expenses. We have two cars which are paid off and about $102k in the mortgage balance.
Our plan is to sell the more expensive car (worth about $25k) and use that money to make one-time principal payment on our mortgage which would then lower the mortgage to about $77k; thus saving us about $18-20k in mortgage interest.
We are looking to have a lease payment no bigger than $350 a month after taxes etc. The typical lease mileage limit is not a problem for us since we can still use the other car for longer trips etc.
Is this even a sound idea? Has anyone considered and followed through the similar plan? Any reason to not do it or do it?
No. Anyone who states categorically that leases are bad either doesn't understand them or is math impaired. Do the math.
When buying a 'new' car, it always makes more financial sense to buy a 1-2-year old vehicle with very low mileage. This is certainly a better financial option than either buying or leasing a brand new car (although, we prefer and can afford to buy brand new).
Whether buying or leasing, an real issue to beware of for the next 1-2-years, is low-price, low-mileage cars ...being shipped out of underwater hurricane areas such as Houston or Miami.
When buying a 'new' car, it always makes more financial sense to buy a 1-2-year old vehicle with very low mileage. This is certainly a better financial option than either buying or leasing a brand new car (although, we prefer and can afford to buy brand new).
3 year is where the value drop aka manufacture warranty is up.
Yes, buying 3 year is generally where it makes the most financial sense. Of course there is the argument that my dad likes to say, you are buying someone else's problem. He prefer to buy new and run it to the ground.
Buy a decent used car, take care of it. Eliminate the interest payments. Keep the insurance payment to a minimum by eliminating collision - which you can't do on a lease because they will force you to carry it.
It's a rip off --- in the same vein as private mortgage insurance.
Buy out the car. Keep the car or resell on your own depending on the market value. I know people who pre-pay more miles before they sign the papers.
And if you don't have the money to do that? Maybe your credit dipped during the lease period. It can force you into other bad decisions.
Say you lost your job and with 6 months to go and are way over miles. Well damn...trouble is on the horizon.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
