Currently have a vehicle that is 1 year old Should I trade it for a lease?

Question

I currently have a used vehilcle that I have had for 1 year. I have four years remaining on the car loan. I think that the car has been in an accident and I fear that I will have future problems with this vehicle. Does it make sense for me to to trade my current vehicle in for a leased vehicle? What are the pros and cons of doing this type of transaction.

Answer 1

Lots of variables here, but here goes.
Car: year, make ,model and trim level. Example 99 Honda Accord Coupe, EX-V6.
Your loan parameters: How much down, then your payments.
Your loan payoff, and are you upside down in the car.

If you are way upside down, your best bet is to get a lease, but keep in mind, the dealership will roll your old payments in with the new payments. This will get you out of a negative equity situation and get you back on track. Advantages:new car , (potential problem car disappears). Disadvantages: relatively high lease payments. I would get a Honda Civic lease, because of the high residual value. You'll have a problem free car for the length of the lease, and if you like it, a shot at buying the car usually below market value.

Option two: If you have equity in your car, by all means use it as a trade in for the cap-cost reduction , fancy term for money down for a lease, that way you are out of your car and into a new one.

Option three: Do nothing for a while, make your payments, pray your car doesn't crap the bed.

Answer 2

Run a carfax report using the VIN of the car. That should tell you if anything has happened to the car. Either way, if you trade in, you'll be in more debt. Unless, you trade in for something a lot less expensive.

Answer 3

some call leasing fleasing its horible
i would like to meat you and buy all my cars from you as the bigest depreation hit coimes in the first year and the car is still new

Answer 4

do not do not lease...You pay all the costs of ownership and end up with a big bill and no car when its done