Does it make sense to trade in a car with no payments, in order to lease a brand new car that is valued at less than the trade-in value of the car that I own?

I own a car that is worth approximately $27,000. I don't have any more payments to make on it. Does it make more sense to keep the car for the next several years, or lease a brand new car whose lease value is around $25,000?

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3 weeks ago
67% of people found this answer helpful

Long term the smartest financial decision is to own an car and drive it as long as possible.  I'm car payment free- on a 5 year old car- hoping to drive it for at least another 5 years.

Leasing sometimes seems cheaper based on the payments- but your are always paying for the first few years of derpreciation. Car lose much larger amount of their value in the first few years.  

So no- unless you really needed cash for some reason- I'm not seeing the benenfit of trading in your paid off car (or selling it) to go and get a lease. Even if the new car is cheaper.

 

What are you trying to accomplish here?

 

Live for today, plan for tomorrow.

 

David Rae, CFP Financial Planner LA

3 weeks ago