What to do

[FlyingDumbo]

We have 2 big car payments and a baby on the way. One car we need to keep it would be too big of a loss to get rid of. The other car needs to go. I am trying to decide what would be a better deal, getting a low end sedan on a lease or buying an older car outright. I need something to łast 2 years or so, and won't be going super far. If we buy a used car it would need to be under 5 k . Any tips or suggestions?

 

[Shelly F - Ohio]

Well the lease offer will require a down payment of $2K - $3K so keep that in mind. If you are looking for some thing that cost 5K a lease may not be the best option.

 

[Disneychix]

What do you plan on doing with your car that you are making payments on now? Will you take a hit if you trade it in and owe money that you'll roll into the next vehicle?

 

[Leajess99]

Can you try to refinance the cars for lower payments?? I know the credit union I use offers refinancing at lower inteest rates and lower payments. It may be worth looking into that rather than buying a different car.

 

[minnie1928]

Buy the car outright...leasing is rarely a good idea. With the lease, you'll have a monthly payment. Buying a car outright keeps your monthly cash-flow neutral.

 

[DisneyEater]

Consider how many miles you drive, whether you are the type that always needs a newer car (do you keep cars longer than 5 years normally) and of course your budget (which is why you are here).

Low milage leases are generally the best deal, but not nearly as good as keeping your car for 7, 8, or 15 years.

People will tell you that leases are not a good deal, and for most people they are not, but you individual situation may vary. Do the math on mileage and expected ownership time and see what works best for you.

 

[cvjw]

A couple of years ago, friends of ours needed 3 used cars for their teen drivers. They sold a minivan, and had $15,000 to work with. They bought 2 Toyota Corollas and a Toyota Camry for $5000 each thru craigs list. Their only criteria was that the mileage be under 80,000. Those 3 cars are still rolling around our neighborhood!

 

[FlyingDumbo]

Can you try to refinance the cars for lower payments?? I know the credit union I use offers refinancing at lower inteest rates and lower payments. It may be worth looking into that rather than buying a different car.

It just will not be practical to keep a 2 door 2 seat sports car with an infant. And we want to get our monthly expense as low as possible so I can take some time off from work.

 

[FlyingDumbo]

Since I am planning to take some time off with the baby, the replacement car will not have a lot of miles put on it by us. Just around town and I will be working per diem so once a week or so. I am concerned about the reliability of buying a car outright, but would MUCH rather have no payment and the cheaper insurance on an older car.

There are a few lease options available right now where you put zero down. There is also 2 sites where you can take over a lease, and some are offering incentives. There is one person offering a Ford Fusion lease, they are willing to pay 500 bucks if you take the rest of the 16 months over and the payment is 165 a month. But the lease transfer fee is 200, and I need to see the car to make sure it is still in perfect condition so I don't get penalized upon end of lease.

In the past I have always kept my cars until they kicked the bucket, I recently got rid of my 98 Chevy to get a Dodge Charger and it turned out to be a lemon. It was in the shop more than it was out so I had to get another new car and ended up taking a loss. But it was necessary because the Dodge was going to be the end of my sanity! Sine we are car shopping I recently checked the carfax on my Dodge (it was a 2012 model) and saw it has 27 service records. It had 14 in the 4 months I owned it. My husband has always been a " trade it in for the next new thing" kind of guy and I have been trying to work on that. It was never a financial burden, but now we have a baby coming we need to be more careful with money.

 

[FlyingDumbo]

A couple of years ago, friends of ours needed 3 used cars for their teen drivers. They sold a minivan, and had $15,000 to work with. They bought 2 Toyota Corollas and a Toyota Camry for $5000 each thru craigs list. Their only criteria was that the mileage be under 80,000. Those 3 cars are still rolling around our neighborhood!

This made me happy. I did a search with that criteria though and the least amount of miles I found on a car under 5K was 105K miles. Nothing even close to 80K.

 

[StitchesGr8Fan]

The thing with a lease is you have nothing at the end of it. Unless you save money during the lease, what are you going to put down towards the next car?

 

[FlyingDumbo]

The thing with a lease is you have nothing at the end of it. Unless you save money during the lease, what are you going to put down towards the next car?

That is not any different than buying an old beater to drive around. That is going to be worthless for a trade in too. So either of option will get me that same result. My goal is to eliminate one of the 2 car payments. A lease is going to be a LOT cheaper than buying another car newer car, I'll end up exactly where I am now with 2 car payments. A lease is WAY less than buying a new car and means a more reliable vehicle to have the baby driving around in. I will be going back to work eventually, so a down payment then will be easier to manage.

 

[StitchesGr8Fan]

That is not any different than buying an old beater to drive around. That is going to be worthless for a trade in too. So either of option will get me that same result. My goal is to eliminate one of the 2 car payments. A lease is going to be a LOT cheaper than buying another car newer car, I'll end up exactly where I am now with 2 car payments. A lease is WAY less than buying a new car and means a more reliable vehicle to have the baby driving around in. I will be going back to work eventually, so a down payment then will be easier to manage.

Yes, but instead of paying the lease, you could save that money toward the down payment to your next car. That is all I'm trying to get at. If you put $100 in to savings for 2 years you'd have $2400 toward your downpayment.

 

[lvillotta1]

You can never go wrong with a Toyota or Honda. I love the post a out finding the Toyota's on Craiglist. Even with slightly higher mileage you can score some awesome deals.

 

[Swimalie]

You can never go wrong with a Toyota or Honda. I love the post a out finding the Toyota's on Craiglist. Even with slightly higher mileage you can score some awesome deals.

I agree. When we moved to our current location, we needed a commuter car for my husband. We bought a 2001 Corolla with 17,000 miles on it for $7000. A bit more than you wanted to spend but it is still a good example. The car drives over 50 miles a (week)day and has for the last 6.5 years and is still in good shape.