Pay to end car lease early to save money?
Discussion
I am fed up of having a household income of circa £75k and living month to month. So I am looking to do a proper budget and trim costs and cut all debt except our mortgage.
I have about £800 on a credit card, so that will be easily taken care of.
My current lease is £392 a month. This is higher than it was, because I added excess miles (at 50% the rate I would have had to pay ant the end of the lease). 6 payments to go, so cost would be £2,356.
I can end the lease early if I pay 55% of the payments (£1,296).
So I would 'save' £1,060, but obviously have to pay to replace the car.
Despite not wanting debt, I would need a loan to buy a car. Looking at a £7k loan to buy a £6k car, plus the early settlement amount. I would look to repay the loan as quick as possible.
I am assuming the new car would lose about £150 month in value as i do 20k miles a year. So assuming all other costs are equal the 'saving' after depreciation is probably only a couple of hundred at best?
Am I looking at this correctly? If so, I think I may as well keep the lease until the end?
I have about £800 on a credit card, so that will be easily taken care of.
My current lease is £392 a month. This is higher than it was, because I added excess miles (at 50% the rate I would have had to pay ant the end of the lease). 6 payments to go, so cost would be £2,356.
I can end the lease early if I pay 55% of the payments (£1,296).
So I would 'save' £1,060, but obviously have to pay to replace the car.
Despite not wanting debt, I would need a loan to buy a car. Looking at a £7k loan to buy a £6k car, plus the early settlement amount. I would look to repay the loan as quick as possible.
I am assuming the new car would lose about £150 month in value as i do 20k miles a year. So assuming all other costs are equal the 'saving' after depreciation is probably only a couple of hundred at best?
Am I looking at this correctly? If so, I think I may as well keep the lease until the end?
I have changed energy bills, mobile contract is £7.50 a month etc.
When I look at my outgoings, it is the lease and fuel that are by far the biggest expense after mortgage and where I can make a real difference.
I hear what you are saying about a lease, having to spend £800 on my old volvo for clutch was part of the reason I went for a lease.
When I look at my outgoings, it is the lease and fuel that are by far the biggest expense after mortgage and where I can make a real difference.
I hear what you are saying about a lease, having to spend £800 on my old volvo for clutch was part of the reason I went for a lease.
Thanks turbo, will take a look. We are not too bad with money but current process seems to be pay our bills, then spank the rest.
Current idea is to do a budget to work out how much we can save (so spreadsheets look useful) , take that out on pay day and then restrict ourselves for the rest of the month and see how hard we can push the saving without having no life at all!
Current idea is to do a budget to work out how much we can save (so spreadsheets look useful) , take that out on pay day and then restrict ourselves for the rest of the month and see how hard we can push the saving without having no life at all!
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