I've been listening to Dave Ramsey lately, and I'm starting to feel like a sucker for leasing a vehicle. I've been trying to find out more ways to cut expenses, and it seems my home and my car are my biggest income drains. I earn about 55K, own a 140K home (mortgage around $900), and don't have any student debt. I save about 15% for retirement (401k, IRA, and HSA). I took a personal loan to pay off all credit cards, and I cut them up, so now, no CC debt to worry about either. However, my car seems to be a big expense I could lower (and hopefully eliminate within 3 years).
I'm leasing a Subaru Crosstrek for about $360 for 36 months.
I'd like a decent car, less than 10K, and less than 100K miles, but I'm not sure how to get rid of my lease.
I have 1 year left of payments worth $4320.
The current buyout price is around 22K and the estimated trade in I'd get is around 20K.
I could buy the car for 18K (if I decide to keep it at the end of term in December).
Do I keep the car to term and walk away? I'm estimating 5K miles over the 30K allowance.
Do I cough up $4320 now, give it back to Subaru, and then buy something like this?
Do I wait until maturity of term (December) and buy the Subaru for 18K?
Swap a lease is not an option, because JP Morgan does not allow it.
I have $3000 in Savings and I'm trying to figure out the best play.
Thank you for your help.
Submitted January 18, 2020 at 06:55PM by krsvbg https://ift.tt/2tyr7eh
