Pay excessive wear and tear or get new car

[garp2100]

Hello everyone! just a quick dilemma I have in my head.

I have a Mazda6 on lease up for return in 1 or 2 days, my original idea was to return it and not have a car payment (I have a beater from my father in a law that I could drive for a year or so).

The problem is that the car has some dings and scratches which I've been reading could easily set you back $2000+ or even more, one guy told me he returned his mint condition lease only to have the company charge him $4000 on "excessive" wear and tear. While I want to get rid of the car payment, I would hate to pay a huge amount for a car I don't own anymore.

My dealership is offering to get me into a new car for purchase for the same payment and I just walk away from my dinged-up lease. Just that I get back on a 5 year loan, which if I do I would love to pay it off and keep the car.

What's the smart decision here?

[bjl584]

Trading in your lease for a brand new car with a 5 year loan is not a good decision financially.

I would either:

1) Keep the lease vehicle if the price is right. You may be able to buy it at the end of the lease on a 2 or 3 year loan. Then get it paid off and drive it into the ground.

2) Give the car back and drive the beater that you have access to. I wouldn't worry too much about the dings. Talk to the dealership and find out exactly what you are looking at in terms of damage. It may be less than you think. Even if it is say $2000, that is better than paying $350 a month for the next 5 years for a brand new car.

[disneysteve]

Originally Posted by garp2100

My dealership is offering to get me into a new car

How wonderful of him.

Of course he wants you to finance a new car for 5 years. He's a salesman. What did you think he would say?

NO. NO. NO.

Do not buy a new car.
Do not take a 5-year loan.

Pay what you owe and move on. Drive the beater. Then keep making your lease payments into a savings account so that when it is time to replace the beater, you'll have cash on hand to go out and buy something without needing financing.

[YLTL_Dan]

Originally Posted by bjl584

Trading in your lease for a brand new car with a 5 year loan is not a good decision financially.

I would either:

1) Keep the lease vehicle if the price is right. You may be able to buy it at the end of the lease on a 2 or 3 year loan. Then get it paid off and drive it into the ground.

2) Give the car back and drive the beater that you have access to. I wouldn't worry too much about the dings. Talk to the dealership and find out exactly what you are looking at in terms of damage. It may be less than you think. Even if it is say $2000, that is better than paying $350 a month for the next 5 years for a brand new car.

I vote for plan #2! Great advice... fight the car payment!