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Old 08-29-2006, 07:43 AM
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Default Re: Need advice on personal finance

Quote:
Originally Posted by amberbamber
Not sure if that would really save us much to pay $5000 and then another $10,000 on a loan for a car.
Try to picture where that will put you in five years. 60 more payments of $435 is more than $26,000. And then you have to turn the van in and pay the overmileage + any other damage fees that they come up with. What are your mileage limits?

If you could get out of the lease for $5000, and then buy a $10,000 used van. After 5 years you would own a van that is still worth a couple grand, so you'll come out ahead as long as the repairs/maintenance are less than $11,000 or $2,200 per year. If you find a well maintained used vehicle & keep up with the maintenance, then that should be easy to beat.

I wouldn't suggest sacrificing safety, but to give me a little peace of mind, I have AAA Plus membership ($100/year) which will tow me up to 100 miles a few times a year. I haven't used it in a couple years, but I'm glad I have it.
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