Please help me decide on my car situation before I file for Ch. 13

[NeedOptions]

Here is my story in a nutshell:

1. Wife and I own two cars.
2. Wife's car will be traded in today for a new one. We will have around $10k equity in it (not a good thing I have read when you file for Ch. 13)
3. I leased a 2010 Honda Accord last Dec and have 32 months left on the lease.

Here are my various scenarios:
A. Buy new car before credit is trashed and turn in the leased car.
B. Buy new car before credit is trashed and keep the leased car (sis in law would take over payments on the leased car but the car would still remain in my name).
C. Don't buy a new car, keep the leased car, and try to refinance after 32 months and buy it from Honda.

If I go with C (the more sensible option), It would be very hard to get a loan as my credit will be trashed soon. I could perhaps try to save and pay it off ($14k residual) when the lease is up. That would mean that I would have to try to save all I can now up until we file for Ch. 13.

If I go with option A or B, I would have a new car before I filed for Ch. 13 and wont have to worry about buying another car for a very long time.

Please help me make my decision. Thanks all.

[debtinohio]

Howabout a new option 'D':

Try to buyout/refinance the 2010 Honda lease now and convert that into a loan so you do not have to find financing during the 13.

Trade the car with equity in (chances are the dealer will see it having less equity than you think anyway) and get a new one.

Stay with a reasonably priced car around $489 or less. Hopefully the Honda payment isn't much higher either since some Honda's can get $$$.

Good luck.

[NeedOptions]

I like option D! Here is option D v1.5 as well. We have close to $13k in equity on my wifes car. When I trade in her car, I can ask for $10k back and use part of that money for the refinance of the leased Accord!

[debtinohio]

I like option D! Here is option D v1.5 as well. We have close to $13k in equity on my wifes car. When I trade in her car, I can ask for $10k back and use part of that money for the refinance of the leased Accord!

Whatever = the least amount of equity. If putting $5K down on the Honda makes it now 0 equity (assuming the value has dropped under the loan amount since new) than that is the best bet :-) and drop the other 5K down on the new car and that should be good too as its value drops when you drive it off the lot so you won't really have $5K of equity.

I have a 2009 Truck, sticker was $42000, I had a loan @ $32000 and it's still only worth $31,000 now :-) and that was $10K down.