I have a 888 dollar lease car and a paid off car worth 22,000 which car to keep

I have a 888 dollar lease car and a paid off car worth 22,000 which car to keep
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#1

HI

I recently lost my job, and I am trying to go on my own business.

I have 2 cars, one is paid off and if I sell it I can get at east 20 thousand, the other car is a lease and it cost 888 dollars a month, if I sell it, I will probably loose around 7 thousand, I can also list the car in swap a lease.

what you guys think I should do, keep the owned car or the lease one?


#2

Hi Guy,

Welcome to NerdWallet; I’m sorry to hear about your job loss. That can definitely be a stressful experience.

It’s a hard call with the cars. If you sell the paid off car, can you use the money to buy out your lease? Is it a definite that you’d get that $20,000 or is it just possible? It’s easy to dream big on selling something and have the reality come in at less than we need or expect.

On the other hand, spending nearly $900 a month means the leased car regularly costs you money. Selling it now at a loss gives you that money back in your pocket each month, and in about a year, you’d have the $7000 back in savings from the lease payment.

You also want to consider the other costs for both cars: Does one get better gas mileage or require less maintenance? Do you have similar insurance costs for both or is one more affordable to insure? I’d compare those secondary costs as well when I thought about the best move here.

Would keeping the leased car as your primary vehicle put you over the annual mileage limit?

What if you return the lease early? Is there a penalty you could negotiate?

We do have some resources around leases that could be helpful as well:

I’d love to hear what other members who have negotiated leases handled their situations. And please let us know what you end up doing!

Good luck: take care of yourself, too! Losing a job is not easy, and the emotional strain can pop up unexpectedly over time.

Best,
Emily


#3

Guy leases are the most expensive way to purchase a car FINANCE FINANCE FINANCE. Or buy outright!
If i were in your shoes I would evaluate if I need two cars and then :

  1. See if I can do a lease pull ahead but finance the new traded car. if you are within the allotted time in your lease contract to trade in early and skip the next cpl payments. and sell the payed car because (me personally) I have no need for a second car.

  2. Sell the Payed car and buy out the lease then sell the leased car and buy a used Corolla or Lexus for <5k.

  3. I would look for someone who wants my car and take them to the dealership to swap the lease into there name. Then they will take over the legal responsibility and payments. Then I would still sell the other car and get a used Toyota or Lexus for <5k.

I like Toyota and Lexus because they last a long time and are very reliable.

Remember : if you want something you never had you have to do something you never done.

Its unfortunate that you lost your job but lets not focus on that. Bad things happen, but the real question is where do we go know. The world expects you to quite and give up like everybody else so lets give them the unexpected and overcome :smile:
My greatest fear is that I will look back at my life only to realize that I am ordinary. I challenge you to share this fear with me and become extraordinary together!