Ok, so I've decided to sell/trade in my 2004 cavalier. If I trade it in, honda will give me anywhere from $6,500 - 8,000 for it. Should I trade it in and buy a new car or should I sell it on my own, put the cash in the bank and lease a car?
If I sell I could continue trading in my cars every 3-4 years and getting a nice down payment on a new one, but a lease may be less hassle with lower monthly payments. Please give me some of your pros/cons.
2007-01-08 10:49:59 · 5 answers · asked by Adriana 4 in Cars & Transportation ➔ Buying & Selling
see my last question as to why i'm not keeping the car i have..to keep it short - american quality sucks and i want out while i can still get 8k for a piece of crap car.
2007-01-08 11:01:29 · update #1
If a dealership will give you that much, you're doing pretty good. I'd trade it in.
If you're considering a new car every 3 years, the lease option is nice because you don't pay for any more than the depreciation on the vehicle. Your only restriction is MILEAGE. This is a big thing for some people. As long as you are comfortable with the mileage restrictions, a lease could be a good option for you.
Just remember, when the lease is up, you had lower monthly payments because you don't build equity in the car, so when you want to lease a car in 3 years, you'll need to have money for the down payment again. On the plus side, you won't be upside down in a loan and have to pay the dealership to take your car from you when you trade.
Typically the rule of thumb is if you plan to own the car 3 years or less, lease. If you plan to own a car 5 years or more buy.
Make sure you learn how to negotiate a lease too. There are tricks and a good negotiator can walk off with an excellent lease deal.
2007-01-08 10:57:54 · answer #1 · answered by hsueh010 7 · 0⤊ 0⤋
Do not lease a new vehicle the only reason car dealerships get you to do this is to make more money you may be spending less a month but you spend more over time and then you have the buy-out amount in the end if anything if you can get a loan from your bank it may be a lower interest rate going to your bank buy the car then atleast at the end of the term you know the car is yours and you don't have to cough up another 8,000 dollars or more to buy-out of the lease you are smart to be getting rid of the cavalier they are ticking time-bombs.
2007-01-08 11:02:23 · answer #2 · answered by Livinrawguy 7 · 0⤊ 0⤋
If you lease a vehicle you will hate yourself this time next year. It is the single biggest scam since timeshare condos. You pay almost as much every month for a lease as you would a new car and then as your reward the leasor inspects the vehicle from front to back and deducts every scratch, blemish and nick (heaven forbid if you have exceeded your mileage limits) and then you get to walk home with nothing. If a dealer is giving you a trade of 8K for a 2004 Cavalier then they are simply raising the cost of the new car to cover it.
Would'nt you be money ahead to simply keep the car you have?
2007-01-08 10:57:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
it's always better to own everything so i say buy it
2007-01-08 10:57:27 · answer #4 · answered by limitedgirl_t 3 · 0⤊ 0⤋
http://www.leaseguide.com/lease03.htm
they explain it better than I can.
2007-01-08 10:57:41 · answer #5 · answered by Trump 2020 7 · 0⤊ 0⤋