Strange dilemma WWYD?

**lottaLove** · 01-09-2007, 01:47 PM

I don't know what prompted me, but yesterday I was looking at insurance quotes for our 2005 Honda Civic (which we lease....yeah I know)
Well, once I got the insurance quotes for our Honda, I started quoting other vehicle makes and models for us, and they were all coming in much much cheaper (at least 100.00 cheaper, and this was for brand spankin new cars and vans)
The dilemma I am having, is that we can buy out our lease, and end up with the same car payment as we would leasing over the next 2 years for a 2006 used Malibu with 20,000km on it. This is mostly due to the cheaper insurance. We would be spending more for the car to get it paid off faster, but in the end would be budgetting the same amount for our vehicle, because the insurance would be less, if that makes any sense. What would you do in this situation?

I must admit, I am tempted to buy out the lease and get the Malibu, simply because at the end of 2 years we will OWN the car, and not still owe 8000 to buy it out. It's kind of a bizarre situation, so I don't really know what to do.

**YankeeMom** · 01-09-2007, 01:51 PM

I would definitely get out of the lease if it were my choice.

**lottaLove** · 01-09-2007, 02:09 PM

Hmmm I forgot to put that the cheaper insurance quotes were 100.00 PER MONTH cheaper. So over 1200 cheaper for the year....

**nodmicks** · 01-09-2007, 02:19 PM

Thats a huge difference in ins monthly. I'd go for whatever will give you less debt in the same time frame but I'm debt phobic after years of paying it off.

**3-boys-4-me** · 01-09-2007, 02:34 PM

What would it cost to get out of the lease? If it's doable, I would ditch the Honda and purchase something else. Let us know what you decide and much luck to you.

**Megareader** · 01-09-2007, 02:46 PM

I would buy out the lease and get a different car.

**jamie79** · 01-09-2007, 03:13 PM

Yep I would get out of the lease if it were me

**favesis37** · 01-09-2007, 04:15 PM

i agree buy out the lease

**lottaLove** · 01-09-2007, 10:05 PM

It would be $5000 to buy out the lease. The used car dealer is willing to lessen the price of a 2006 vehicle by $2500, so it would cost us 2500 to get out. We're going to shop around a bit around town and see if any of the other car dealers will offer us better to buy it out, and we're also posting an ad to see if anyone would like to take over our lease outright, which would save us from buying it out.
I think we're going to take our time with this one, and make sure whatever car we get is one that we want to keep for the long haul. I know that the Toyota dealership will buy our lease outright and not charge us any of the money if we buy a brand new Camry, but in the end we would save more by getting a used car anyways, because it would still come out cheaper if you add the $5000 lease buyout

**bumplett** · 01-09-2007, 10:22 PM

I've never leased a car, so maybe I don't understand exactly what you are saying - but I would keep the Honda - a Honda Civic should last for YEARS without major issues - is the only reason the ins is more expensive because it's a leased car? Is the ins through the dealership? (that's where I'm confused)

**bumplett** · 01-09-2007, 10:26 PM

okay - wait - I think I get it - you are saying the ins for the Honda is more expensive regardless of the fact that it's a lease - (I'm with ya here, really)

I'd still stick with the Honda - but that's just me -

**nwmissourigal** · 01-09-2007, 11:59 PM

I would get rid of the lease. And buy something that is yours at the end of payment...

**JEM** · 01-10-2007, 12:35 AM

So the car dealers will buy out your lease and sell you a cheaper car? Are you sure that they won't get the lease amount on your loan somehow? That is what I would be really leary of, are they that desperate to sell a car? Because a 5,000 debit to start out the purchase doesn't seem like something they would do.

But if that is truly the case I think I would buy the different car with lower ins. I think Honda civics are one of those hot items for car jackers so you get lower insurance and less chance of your car being stolen! A truly WIn Win situation!

**bumplett** · 01-10-2007, 10:13 AM

http://autos.msn.com/advice/article.aspx?contentid=2891

maybe this will help

I still vote for keeping the Honda - they don't make them much better than that! You may have a payment for a while longer, but in the end you own a very hardy car that is very reliable!

good luck.

**Lorelei** · 01-10-2007, 07:21 PM

Have you checked with your bank or credit union to see if you can get a loan to buy out the Honda lease? You might get a better deal through them than trying to work with a car dealership. Don't forget the costs of tags, license & registration if you decide to switch cars. You'll want to add that into your figuring.

Before you switch cars, I'd check kbb.com (Kelly Blue Book) for info. on the different cars you are considering. There can be big differences in safety, resale value, etc. between different models.

Sounds good that you are looking into options rather than continuing to blindly write checks for the car lease. You should be proud of yourself for doing the research. Whatever you decide, you'll know it was the best decision based on facts.