Hello good people of r/financialplanning!
To start, obligatory acknowledgement of my first ever Reddit post!
TL/DR, I'm paying more than I can afford for my car lease. What's the most financially responsible way to get out of it?
In March, I got promoted and it caused me to move to LA from NYC. Upon moving, I put together a quick monthly budget, and thought I could swing leasing a new car. My job requires me to drive alot a lot for work so I figured it made sense to get a newer car for gas milage, comfortc and technology reasons (apple car play, etc.)
I ended up leasing a 2019 Honda Accord Sport, for 36mo, with $358/mo and $2k down, and based on my milage calculation of daily commute and estimated extras, 15k annual miles. I got Geico insurance and am paying $215/mo.
Here we are 8months in, and not only am I only at about still under 5,000miles (I'm traveling much more than expected) but worse, I've budgeted incorrectly, and have depleted my savings trying to keep up.
I went through my finances, and looks like the car something that I need to change.
This is where I turn to you all - what's my best way forward?
I have about $22,500 left to payoff on the lease.
I called Honda Financial services to see if I could adjust lease/payment based on my milage usage but they essentially said no.
I did some light research on Lease Takeover, but it seems like it may not make the most sense sense?
I've thought about getting a car loan to pay off car, then selling it, and purchasing a cheaper car with that?
What should I do? Thanks for your help. I can provide more details if needed.
Submitted October 17, 2019 at 10:24PM by FlyLikeABogey https://ift.tt/2J1nnGP
