Comments on: Reader Question: Should I Pay Off My Car or Trade It In and Lease Another Car? http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/?utm_source=rss&utm_medium=rss&utm_campaign=reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car personal finance blog Sat, 21 Nov 2009 04:07:50 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: same old advice won't work http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/comment-page-1/#comment-6808 same old advice won't work Sat, 19 Sep 2009 04:51:37 +0000 http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/#comment-6808 I hope you didn't take the advice completely! The first half is true. You shouldn't buy or lease a new car, however, you should keep and try and pay off the car you have! Seriously, buying a cheaper car is not an option most times. So many cars that are cheaper have too many machanical problems which don't make them worth it. You'll have invested money into a car that you will have to replace as soon as you've paid it off. It's ridiculous. If your figure out how to refinance and make the car you have cheaper, then sacrifice and pay it off you'll be better off in the long run. People are obsessed with telling people to invest in cheap products, but what I've learned is that, that always keeps you in the position of having to replace and repair which is just as costly! You're better off investing in quality. Look, I got my first good job and could finally afford a car. The first thing I did was invest in a reliable Toyota. Really I couldn't afford it, but had no choice! In the city I live public transportation isn't reliable, I had to get to work and my old car broke down. Now, I'm trying to refinance and pay the car off early, but in the meantime because I don't have to worry about how to make it to work, I've gotten a promotion and a raise! Now, once I pay this car off, I'm not going to buy another. I can rely on this one for another 5 years I feel, which is great, but buying a new car was the absolute best decision I ever made and I don't regret it at all. I hope you didn’t take the advice completely!

The first half is true. You shouldn’t buy or lease a new car, however, you should keep and try and pay off the car you have!

Seriously, buying a cheaper car is not an option most times. So many cars that are cheaper have too many machanical problems which don’t make them worth it. You’ll have invested money into a car that you will have to replace as soon as you’ve paid it off. It’s ridiculous. If your figure out how to refinance and make the car you have cheaper, then sacrifice and pay it off you’ll be better off in the long run. People are obsessed with telling people to invest in cheap products, but what I’ve learned is that, that always keeps you in the position of having to replace and repair which is just as costly! You’re better off investing in quality.

Look, I got my first good job and could finally afford a car. The first thing I did was invest in a reliable Toyota. Really I couldn’t afford it, but had no choice! In the city I live public transportation isn’t reliable, I had to get to work and my old car broke down. Now, I’m trying to refinance and pay the car off early, but in the meantime because I don’t have to worry about how to make it to work, I’ve gotten a promotion and a raise!

Now, once I pay this car off, I’m not going to buy another. I can rely on this one for another 5 years I feel, which is great, but buying a new car was the absolute best decision I ever made and I don’t regret it at all.

]]> By: Carnival Of Personal Finance #118: Fun Money Facts Edition http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/comment-page-1/#comment-5099 Carnival Of Personal Finance #118: Fun Money Facts Edition Mon, 17 Sep 2007 09:25:32 +0000 http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/#comment-5099 [...] Reader Question: Should I Pay Off My Car or Trade It In and Lease Another Car? by Eric @ Money Crashers. If you stick to paying cash for cars, paying yourself, and slowly upgrading to newer cars every year or two, you’ll soon own a nice car without any car payments. [...] [...] Reader Question: Should I Pay Off My Car or Trade It In and Lease Another Car? by Eric @ Money Crashers. If you stick to paying cash for cars, paying yourself, and slowly upgrading to newer cars every year or two, you’ll soon own a nice car without any car payments. [...]

]]> By: The real finance king http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/comment-page-1/#comment-5075 The real finance king Tue, 11 Sep 2007 00:56:03 +0000 http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/#comment-5075 Go and get the tundra. I mean, How ill you pick up honies in a beat up pinto? save more money and in 3 years when the lease is up, you can lease another pimpier car.... is easy sir. new car every 3 years. chics dig it. Go and get the tundra. I mean, How ill you pick up honies in a beat up pinto? save more money and in 3 years when the lease is up, you can lease another pimpier car…. is easy sir. new car every 3 years. chics dig it.

]]> By: Lazy Man http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/comment-page-1/#comment-5062 Lazy Man Wed, 05 Sep 2007 19:55:23 +0000 http://www.moneycrashers.com/reader-question-should-i-pay-off-my-car-or-trade-it-in-and-lease-another-car/#comment-5062 I would recommend the same thing. I might suggest looking towards a used Kia Rio, a cheap car that has terrible resale value (so it can be had cheap used). I looked into it and you can get an 2001-2004 for around 3000-5000. You should be able to get at least 8 more years on this car. This means that you'd be paying around 500 a YEAR for the car rather than $400 a MONTH. With this savings of over $4000 a year, you should find yourself out of this hole in a little over a year. I would recommend the same thing. I might suggest looking towards a used Kia Rio, a cheap car that has terrible resale value (so it can be had cheap used). I looked into it and you can get an 2001-2004 for around 3000-5000. You should be able to get at least 8 more years on this car.

This means that you’d be paying around 500 a YEAR for the car rather than $400 a MONTH. With this savings of over $4000 a year, you should find yourself out of this hole in a little over a year.

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