Cheap Car Lease

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HadEnuff

Thinks s/he gets paid by the post
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DW and I have a relative who needs (unfortunately) our help. Trying to get his life back together, has work, but no reliable car.

I want to get him into the cheapest leased new car I can. He has no wife, no kids, lives in a decent sized city. He needs wheels that will be reliable. No frills.

I don't want to get him into a used car because he can't afford repairs.

Any ideas?

thanks in advance
 
Any lease will be at least $200 a month, x36 = 7200 (plus at least a G down if not more). Find a 7 year old honda civic from a reputable dealer, and I'm sure that will be cheaper over a 3 year period, with virtually no need for repair, and chances are it will last way more than 3 years.
 
Aerides said:
Any lease will be at least $200 a month, x36 = 7200 (plus at least a G down if not more). Find a 7 year old honda civic from a reputable dealer, and I'm sure that will be cheaper over a 3 year period, with virtually no need for repair, and chances are it will last way more than 3 years.
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The inverse might be a grand down on a Honda Fit lease. Payments well south of $200. Same with a Toyota Yaris. IMHO, if reliability is a must, steer clear of the used car route. In either case, buying at end of lease is an option. And everyone knows how the car was treated.
 
I understand how appealing the lease option is, but if this person needs help, is it fair to question his ability to keep the lease car in good order? Remember, you will be responsible for any damage at lease turn in. Also, what about insurance? Insurance cost on a lease vehicle is about the highest you can get because the lessor requires more than basic coverage. Not to mention your liability - unless you're going to give money and the car will be leased in his name. In that case, look out, his credit score will not allow you to take advantage of those great lease deals you see advertised. I could go on, but this doesn't sound like the best way to help someone out while maintaining your financial security.

Give him money to buy a used car and agree to pay for any repairs for two to three years whichever period of time you were going to lease the car for him. Bonus is that when the deal is over, if he has actually gotten his stuff together and been responsible for the three years, he'll have a car that should go awhile longer.

If you're going to help someone, that's admirable, but be careful. A few bucks more in aid and some further involvement on your part could be a lot cheaper than being personally liable for something he does even if it is a pure accident. I've been this route with my DD and at 35, she and her DH are finally in cars that I have nothing to do with. I know a lot about this if you want to discuss further.
 
Jerry1 has a good point.
If Homer Simpson needs help because he stayed too long at the bar, you need to be financially detached. If, in my example. Snow White missed the carriage ride, be involved and engaged.
 
Jerry1 said:
I understand how appealing the lease option is, but if this person needs help, is it fair to question his ability to keep the lease car in good order? Remember, you will be responsible for any damage at lease turn in. Also, what about insurance? Insurance cost on a lease vehicle is about the highest you can get because the lessor requires more than basic coverage. Not to mention your liability - unless you're going to give money and the car will be leased in his name. In that case, look out, his credit score will not allow you to take advantage of those great lease deals you see advertised. I could go on, but this doesn't sound like the best way to help someone out while maintaining your financial security.

Give him money to buy a used car and agree to pay for any repairs for two to three years whichever period of time you were going to lease the car for him. Bonus is that when the deal is over, if he has actually gotten his stuff together and been responsible for the three years, he'll have a car that should go awhile longer.

If you're going to help someone, that's admirable, but be careful. A few bucks more in aid and some further involvement on your part could be a lot cheaper than being personally liable for something he does even if it is a pure accident. I've been this route with my DD and at 35, she and her DH are finally in cars that I have nothing to do with. I know a lot about this if you want to discuss further.
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points well taken. thank you.

thanks to everyone for your input.

this sucks, by the way...I may have to just back off and let him figure it out...but it's probably really not my decision anyway...c'est la vie.
 
+1 Jerry1 comments.

A lease requires good credit history usually and full coverage insurance so that takes from the bottom line (paycheck).

Work is not good if it costs alot to maintain. It might not be a good job after all.

Can the person walk, use a bike (even an electric bike), or public transportation?
 
How about a certified used car, usually a low mileage lease turn in. Generally well maintained, low mileage, and with most a very good service warranty offered to the new buyer.
 
No good deed goes unpunished.
 
What Jerry said.

We're in a similar situation and were advised to have no legal attachment to the car.

Around here however there are deals on (Toyota, GM, I don't remember) for something like $129 a month and $2K down.
 
How about a power assist bike? If this is totally out of your experience, you will likely reject the idea before you read this far. Where your relative lives will have an impact on the success of this approach. But, it is a proven and viable alternative for many.

With more info, I might be able to provide some thoughts about how to make it work. No matter your direction to help your relative, good luck.
 
HadEnuff said:
DW and I have a relative who needs (unfortunately) our help. Trying to get his life back together, has work, but no reliable car.

I want to get him into the cheapest leased new car I can. He has no wife, no kids, lives in a decent sized city. He needs wheels that will be reliable. No frills.

I don't want to get him into a used car because he can't afford repairs.

Any ideas?

thanks in advance
Click to expand...

If he lives in a decent sized city, why can't he take public transportation until he can save enough money to take care of his own car needs?
 
davef said:
How about a power assist bike? If this is totally out of your experience, you will likely reject the idea before you read this far. Where your relative lives will have an impact on the success of this approach. But, it is a proven and viable alternative for many.

With more info, I might be able to provide some thoughts about how to make it work. No matter your direction to help your relative, good luck.
Click to expand...

SheitlQueen said:
If he lives in a decent sized city, why can't he take public transportation until he can save enough money to take care of his own car needs?
Click to expand...

I can't definitively answer these questions. I have another relative who lives in the same city (Pittsburgh). Well, he lives out in a suburb. He has done a lot of work helping our mutual BIL get on his feet. The two jobs he works are a long way from where he lives (with a daughter), and commuting from his bed, to one job, to another job, after midnight....I don't think the public transportation option, or a motor assisted bike, is going to work very well for him, especially when the snow starts flying...

But I spoke with the BIL who has been helping and he is well connected to see that our mutual BIL can get a decent used car, and he has a trusted mechanic...so I suspect we'll be going the route of getting a (hopefully) reliable, no frills used car. We are going to be exploring the option of my DW and I cosigning a loan, and hoping that he can make the payments.

He is a willing worker. Not a druggie, or an alcoholic. He went through a divorce, made some bad choices about employment opportunities that didn't work out, followed by a very serious, nearly fatal health issue.

Gotta do what you gotta do, sometimes.

thanks again, all for the constructive and instructive advice. It is much appreciated.
 
HadEnuff said:
I can't definitively answer these questions. I have another relative who lives in the same city (Pittsburgh). Well, he lives out in a suburb. He has done a lot of work helping our mutual BIL get on his feet. The two jobs he works are a long way from where he lives (with a daughter), and commuting from his bed, to one job, to another job, after midnight....I don't think the public transportation option, or a motor assisted bike, is going to work very well for him, especially when the snow starts flying...

But I spoke with the BIL who has been helping and he is well connected to see that our mutual BIL can get a decent used car, and he has a trusted mechanic...so I suspect we'll be going the route of getting a (hopefully) reliable, no frills used car. We are going to be exploring the option of my DW and I cosigning a loan, and hoping that he can make the payments.

He is a willing worker. Not a druggie, or an alcoholic. He went through a divorce, made some bad choices about employment opportunities that didn't work out, followed by a very serious, nearly fatal health issue.

Gotta do what you gotta do, sometimes.

thanks again, all for the constructive and instructive advice. It is much appreciated.
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Lucky to have you in his life.
 
Thanks for sharing the "how and why." Like GravitySucks said, he's blessed that you are there. But, to keep yourselves honest, please (internally) consider the used/leased car as a gift. If you do get repaid, so much the better.
 
Take a look at people trying to get out of a lease... I saw a few that were really cheap... one had like 5 months free on like 18 months left on a lease...
 
HadEnuff said:
We are going to be exploring the option of my DW and I cosigning a loan, and hoping that he can make the payments.
Click to expand...

:confused: Is there no way that you can just give him the money and have him pay you back? That way, if he defaults, you don't take the credit risk. Also, if he defaults, you're out no more money than if you had co-signed. Plus, we're back to the liability issue again. If your name is on a loan and it is tied to the car (it will be), you will be sued if anything goes wrong. Why would you want to take that risk if there are other options?

Note, I give you credit (a lot of it) for wanting to help, but even if this guy is a saint, accidents in cars happen all the time. Be careful.
 
Jerry1 said:
:confused: Is there no way that you can just give him the money and have him pay you back? That way, if he defaults, you don't take the credit risk. Also, if he defaults, you're out no more money than if you had co-signed. Plus, we're back to the liability issue again. If your name is on a loan and it is tied to the car (it will be), you will be sued if anything goes wrong. Why would you want to take that risk if there are other options?

Note, I give you credit (a lot of it) for wanting to help, but even if this guy is a saint, accidents in cars happen all the time. Be careful.
Click to expand...
+1.
Co signing can cause all sorts of unsuspected liability.
 
If it was me, I would buy the car and then sell it to him and get a lien of your own on the car and put whatever conditions you want on the car. For example, with one of my kids I gave him a car but the agreement prohibiting him selling the car for X period of time. That way if he pays you fine. If not you haven't risked your credit. And, of course, if he doesn't pay you then you could foreclose on the lien if you chose to do so. (Of course, get legal advice on how to do this in your state).
 
I'm in Jerry's camp on this issue. Just give (or loan, if you prefer that term) him the money to buy the car and be prepared to walk away if things go south for him. If he later pays you back that's great. But if things do go badly at least you won't be dragged down with him.

Also agree that it is great that you want to help and that you're in a position to do so, but you don't want his problems to become yours, which may well happen if you co-sign on a loan or are part owner of the car or some other similar arrangement.

A key issue with what (I think) Jerry is driving at is to not have any paperwork tying you to your relative's problems.

Jerry1 said:
:confused: Is there no way that you can just give him the money and have him pay you back? That way, if he defaults, you don't take the credit risk. Also, if he defaults, you're out no more money than if you had co-signed. Plus, we're back to the liability issue again. If your name is on a loan and it is tied to the car (it will be), you will be sued if anything goes wrong. Why would you want to take that risk if there are other options?

Note, I give you credit (a lot of it) for wanting to help, but even if this guy is a saint, accidents in cars happen all the time. Be careful.
Click to expand...
 
Katsmeow said:
If it was me, I would buy the car and then sell it to him and get a lien of your own on the car and put whatever conditions you want on the car. For example, with one of my kids I gave him a car but the agreement prohibiting him selling the car for X period of time. That way if he pays you fine. If not you haven't risked your credit. And, of course, if he doesn't pay you then you could foreclose on the lien if you chose to do so. (Of course, get legal advice on how to do this in your state).
Click to expand...


I think this is a pretty great idea! Thanks....
 
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