Dave Ramsey advice on car lease

[DizMom11]

I am on BS 2 and have a car lease for the next 18 months. $300 a month not including insurance. Do I pre-pay lease or just continue paying monthly car payment since it is leased. TYVM

 

[mrsklamc]

HowHYpe much to break the lease? Would you want to buy the car at the end? Are you going to go over on miles?

 

[DizMom11]

I'm not gonna go over in miles, but I guess I have my homework to do It is a second car that I got for my 18y/o son. The primary car is paid for, and I plan on keeping the paid for car for years to come. I would just like to get rid of this payment without any penalties. I don't mean that I want to skip my responsibilities, just want to pay it offfffffff the best way possible Dave Ramsey style

 

[bennyrn12]

I dont have any advice just wanted to say hi!!! Its great to see another llnoe'er here who can understand the love for disney even when going through the baby steps!!! Good luck!

 

[DizMom11]

Good luck to you also bennyrn12!!!!!!

 

[DawnM]

What does the lease agreement say? I thought there was no real incentive to pay it off early, but you might find out otherwise. I really don't know.

Dave says not to lease at all, but since you are already in it, you need to see how to get out of it.

Are you intending to purchase the car when you finish? If so, I would go to the dealer and ask for a buyout now and see if there is a savings there. If not, you may just be stuck with it until the end of the lease.

Dawn

 

[mrsklamc]

After thinking about it, I believe Dave would say the 18 year old should be responsible for his own vehicle..

 

[PrincessDadx2]

Break the lease means get a buyout, not stop paying.

Where are you on the snowball? Is this your next smallest debt? If so, you should call the lease company for the payoff.

You currently owe 18 x $300 = $5,400. You should be able to pay off the lease for less than this and give back the car. However, lease financing is sometimes peculiar and they might not offer you a discount. In that case there is no real savings because you have already paid all the interest, and you lose the use of the car. If you keep it you must make sure you don't go over the mileage and increase your debt.

If you can get a good buyout I would clear it, if not I would move on to the next smallest debt. The 18 months fits within Dave's plan of getting out of debt in 2 years max.

 

[badiggio]

We have "leasebusters" here in Canada,so I imagine there must be something like it in the U.S.Basically,it's a website where you can get people to take over your lease,with the company's approval.

 

[WENDYDOTS]

Try looking into leasetrader.com or swapalease.com. I think that they are both very reputable...might be worth it for you! Good Luck!

 

[DizMom11]

Thank you so much WENDYDOTS. I will definitely look into those websites for swapping the lease.

 

[Evi]

lease scares me lol I dont know why. I want to own my car I know its not logical.