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Save Money And Get Out of Your Car Lease

By Erik Folgate

It’s no secret that our wallets are really taking a hit from the astronomical gas prices. My wife and I both own small cars, so we do not get hit as hard as people with trucks and SUVs. Did you recently lease a truck, SUV, or other gas guzzling car? Are you trying to find a way out of the lease? CNN Money has a great article about how to get out of your SUV lease. Popular websites such as Lease Trader and Swap A Lease will help you transfer over your lease to someone else.

First of all, I don’t think it’s a financially smart move to lease a car in the first place. Why would you rent a car for a period of time and be told how many miles you can put on it in a given year? Then, at the end of the lease, they give you the option to buy it at a price that is MUCH higher than it would have been if you were paying down a car loan. I just don’t get why people lease cars. I can understand why companies lease them. Whether they buy a company car or lease it, it’s still just an expense to them. But, there’s no reason why you should lease a brand new car just because you like driving a new car. Now, people who leased an SUV or a truck are really feeling it. Their gas expenses are horrible and they don’t even own the car!

Make sure you check out the article from CNN Money. It may be an option you are interested in. The article explains all of the fees involved. Make sure you do the math to see if it is worth it for you to pay the fees to transfer over the lease. If you recently leased the car, you’ll have an easier time transfering it rather than someone who is nearing their mileage limit on the lease. If you are looking to make some progress on paying off debts, this should definitely be something that you consider. Think about how much more you could pay off on your credit cards or student loans if you did not have that lease payment? You could buy a $1,000 a car, knock out your debt, and then start saving up to buy a nicer, newer car.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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  • http://homefinancefreedom.blogspot.com/2007/06/take-break-from-car-ownership.html J at Home Finance Freedom

    Hello. I certainly agree about leasing. Cars are a drain even without a lease. I even reminded my readers to consider taking a break from car ownership entirely for a while.

  • Jacquelyn Hart-McCoy

    Great idea J at Home Finance Freedom but most people just can’t. I could easily see not owning a car in a major city that had a wonderful public transit system but here in south florida everything is so spread out and the public transportation is terrible. I would need a car just to get to the closet stop by my home which is miles away. So, although I would love to live without the draining of owning a car…that is not an option for most.

    Good post on leasing though erik… I have friends who do it and they will never have anything to show for it.

  • author

    Yeah, I definitely understand what you’re saying Jacqui. It’s tough when you live in a spread out metropolitan area. And let’s face it, mopeds just aren’t that safe!

  • http://www.leasetrade.com Matt

    Leasing isn’t necessarily always a bad option for certain people. Salespeople with a monthly car allowance fit well with leases. Shorter term situations also make leasing an amenable option. For folks looking to drive more car for a lower monthly payment, leasing also makes sense. In the end, leasing is one of a number of ways to pay for the vehicle that is the best individual fit for you.

    Regards,
    Matt
    LeaseTrade.com support

  • rocky

    Hey! Nice job here! I’ll be dropping by from time to time :)

  • Susan F.

    I leased a GM pontiac G-6. I have had two years of hell. Nothing but trouble, brakes, (I had to pay for) struts, doors not working, front seat caving in, trouble starting because the seat didn’t work, yeah…tell me more shit. I still have one year left…they don’t stand behind their cars and they are cheap and all trouble. Never lease or buy a GM…..

  • http://www.airporttrans.com airporttrans

    I am not understanding, why are you saying Get Out of Your Car Lease?
    some time lease a car is good option, when you make a trip for family holiday.
    If you have not your own,s car, then lease a car very good option to buy a car.

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