Leasing and school loan problem

Ok, i'm not really looking for anyones opinion on the car I want. But here is my problem. I have wanted a Mustang GT for awhile now and was planning to buy one, and order it in a couple weeks. By the time I'd take delivery, say in June. I could have sold my car and saved up some more money as a down payment on it.

Now, I graduated in Dec. and have about $35,000 in loans. I'm not looking for the opinion of... drive your car into the ground and pay off your school loan then buy a car. B/c if we looked at our decisions in such a way, noone would have bought a Ferrari. It may make more financial sense, but your personal happiness has to come first sometimes.

Now i'm thinking, I could lease a Mustang GT, even the Conv. like I really wanted, and use the money from the sale of my car towards my school loan. Pay that off quicker.

So what do you think?

I normally am against leasing, but this seems to make more sense, since my school loans are my priority to pay off.

 

pay off first whatever has the higher interest rate

 

Which I would imagine would be the car (unless you went for private school loans) personally I hate having debts, currently the only debt I have is my car at about 23k. Fortunately I make enough money already to pay for the car over the five year period I signed for and pay my tuition each year. To me my financial well being is part of my overall happiness-debt and financial troubles can really ruin things-even having a nice ride.

 

Personally I LOVE leasing cars as I usually get bored with cars quickly and I am young enough to have changing needs (expanding family and the like), but I have resigned myself to the fact that I will always have a car payment.

I echo what Ryalex said and pay the highest interest debt first, which would probably be the car loan.

 

My advice is to pay the debt off first as quickly as possible and all of it before you get into a car.

Once you get all that taken care off and get situated then look into a Mustang.

 

Exactly the advice he specifically said he was NOT looking for.

I'll echo Ryan's advice. If you're going to get into a car, focus your money on the loan that charges the highest interest rate. Paying off tuition debt at a relatively low interest rate while taking on a bigger car loan at a higher rate doesn't make much sense.

 

I've talked to a few finance managers at the dealership I work at. We came to the conclusion it was a good idea, since the interest rates on my school loans are about 6 and 7%. So may as well make them my goal to pay off. I'll lease a car. Then hopefully by the time my lease is up, I'll have paid a majority if not al of my school loan off and will also be ready to buy a new car.

 

What's the interest rate on your lease going to be?

 

It would make more since than having two forms of debt.

 

Might want to research the owners of Ferraris.

Just don't forget the cost of insurance, which I'm sure won't be cheap for a 21-year-old leasing a new GT (No expert on how leasing works, but I am guessing the leaser will require full coverage?).

 

22 in a week.

Nah, insurance through Geico is AMAZING. About $1100 for 6 months.

Called up the Ford dealer, doesn't make sense to lease a Stang. It's not the kind of car they typically lease nor have any good specials on. So i'm going to order it the way I want it, then save up some money while its being built. Probably take a portion of whatever my car sales for, put half towards my student loan and the other half towards the car.

 

I think you're being BS'ed.

Not only is it likely are many (or most) of them leased, I've seen plenty of new Mustangs advertised by dealers in the paper. If you're a Costco member go see what their wholesale price is.

 

I was looking at the BMW coupe. And for about the same price, I can lease a BMW (good employee pricing through work), as I can finance a Stang. And, well I want the stang.

 

To be quite honest, a car is a depreciating asset, If you have 23K in loans and you already have a car that runs fine etc, pay off the school loan first. Unless you know your brining in enough to pay off both in a decent time (if your paying min. your not paying into the principal and your going to kill yourself) then fine, but if you gotta heckle one to get the other just wait.

 

I'm making enough to pay both with money left over. Just trying to find the way that pays them off faster.

 

Ok, sorry if i came off blunt but i wanted to see if you were in the financial position to afford both lol. I think a lease will be the best for you, depending on the miles, another option is buy the car finance out, and maybe consolidate bills?

 

I leased my wife's Lexus RX 330 because I wasn't sure if she would want a different car in 3 years. Turns out she loves the car and wanted to keep it so we paid it off this month. Another fact in leasing is that your payoff amount at the end of the lease is negotiable. Our payoff was supposed to be 21,300 but I was able to negotiate to 20,500. Got an extra 800 off, which i did not expect on a lexus. I had a good experience with leasing. First time that i have done it. It allows you options in 3 years. One thing I understand is that you need GOOD credit to lease.

Good luck.

Dan

 

You need DAMN good credit. lol finance is easy lease isn't so much

 

Credit is not a problem for me. I'm not going into this stupid, everything is pretty much figured out. I just need to find the dealership that will give me the car at the best price.

 

thats just some research, Just got a denali XL MSRP for 61500 talked him down to 48500 LOL so it can be done. What car you looking for? If its a BMW i know the owner of a dealership in MA.

 

Oh the irony...

 

Out of curiousity, is a year or two old Stang out of the question?

As far as I can tell the car hasn't changed enough to warrent buying a brand new one...but then what do I know about mustangs.

 

Really? I had a buddy least a brand new BMW (2006 back in july) and his credit was horrible.

 

ROFL!!!

 

I know what you mean by the $30,000 millionaire that you explained in the DFW thread.