I fell into the refinancing trap!!! Time to lease

Just a note to those who are tempted to refinance...


Every car I've ever bought, three in total, I've only once been in possession of the pink slip. I only kept the slip for few weeks before I again refinance.


My most recent car, a former lease, I purchased in 2003, and it’s been a wonderful car... I've been making payments for over 10 years and it's over 13 years old, and now I'm starting to have the typical problems for a 2000 with over 120,000 miles.


So, if you have a problem with debt, avoid buying - lease instead!!!


If I'm going to be making payments forever, why not have a new car every few years!!!!


BTW, I can't find any info on USAA leasing opportunity... Don't tell me USAA doesn't offer lease financing!









USAA does NOT have or offer Auto Lease Financing.


When leasing a vehicle it is best to work with the dealership for the make and model of the car you are interested in.




While leasing can provide a lower monthly car payment, there is one MAIN PROBLEM everyone should know.


If you trade your lease vehicle in prior to end of lease term the dealership may tack on to new lease (or loan) the amount they were still owed by former lease contract.




Example: You lease a vehicle for 36 months at a monthly payment of $350.00. On the 25th month (with 12 months remaining on lease) you trade-in your lease vehicle. The dealership adds the $4200.00 (12 times $350.00) they were still owed from the remaining time left on former lease to new contract.


Something similar happened to me, twice (as I traded in one lease vehicle for another prior to end of lease term, and traded a second lease vehicle prior to end of lease term for a new vehicle with "conventional financing").


I hope this helps someone.

Website Guru,


Thanks for your input... I owe around $600 on my most recent loan & I plan to have it paid off prior to my lease. I started looking into leasing a year ago and found out, still having a balance on my loan was going to significantly effect my lease...


My machanic wants to buy my car & I've been a customer of his for almost 20 years, so I'm sure I'll get a fair deal, I just wanted to get an idea on what my car is worth. Does USAA offer any services to help determine what my car is worth?


I'll be buying my 3rd car from the same dealership & working with the same salesman I first met in the mid 90's.


The one negative is I was planning to buy Saturns the rest of my life - we all know that's out of the questions...










The USAA Car Buying Service can help you determine how much to expect when trading in your vehicle to a dealership or selling it yourself, based on the used-car market in your area.


Also, you can use other sites, such as Kelly Blue Book, Edmunds.com and the National Automobile Dealers Association, to help you calculate your car's market value to dealers and individual buyers. When using these sites, be sure to factor in the vehicle's mileage, options, interior condition and any exterior damage. This will help you get a more accurate estimate of its worth.


More information about getting cash for your vehicle can be found in this article.




If your mechanic wants to buy yur car, he/she probably thinks it's in pretty good shape-maybe think about keeping it for a year and seeing what happens.  


Put  your payment away each month and you can use that for a down payment or repairs should you need them.


Best of luck!


I've considered keeping my car, but there are several issues... my radiator leaks, my air conditioner goes out a couple times a month. It's only out for a few hours. And I need a complete break job... I won't be able to wait on the breaks, but he'll be taking the breaks & my recent purchase of new tires into consideration when a price is set...


I've looked at my situation from every angle... my car is 14 years old & over 120,000 miles and as for repairs... I believe I'm just at the tip of the iceberg... I do have a good car, but am facing mutiple repairs in the future... for a mechanic, it's no big deal, for me.... the money I'd be putting into repairs, will be put into leasing a new car...


I have some health challenges and only having to deal with car maintence and not worrying about what repair will need to be made next, will be less stessful...


Thanks for the feedback...



That's a lot to deal with- you're right, sounds like time for a clean slate/repair history! My brother in law is a mechanic- things he doesn't blink at give me major anxiety.


Best of luck with the health challenges in particular, but also with the car.