Leasing Car a Bad Idea!

by | Apr. 26, 2010


Dear Dave,

I leased a car about two years ago, and I'm just now beginning to realize that it was big mistake. I'm throwing away tons of money. Is there any way to get out of a car lease?


Dear Randy,

Now you see why I call it "fleecing," don't you? Never do a lease! It's the most expensive way to operate a vehicle.

Call the company and ask for the early buy-out or pay-off amount. Then, compare that figure with the value of the car. If the car is worth $19,000, and the early buy-out is $21,000, you'll have to scrape together $2,000 to make up the difference.

If you don't have that kind of cash sitting around, go to your local credit union or bank and get a small loan of $3,000 to $3,500. This will get you out of the "fleece," and give you some cash left over to buy a little beater to drive for a while.

Get this done, and pay the loan back as quickly as possible. Then, you can start saving up to pay cash for a really good, used car later!

- Dave

* For more financial help, please visit daveramsey.com.

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