Car lease?

[Jasonc126]

If you are filing a Chapter 7 and you still have a car that you are leasing, will GMAC still let you lease another car when your old lease is up.

[6ftladycop]

I was asking this question today because I have a 2005 GM vehicle that I leased and it ends in July 09. The problem is that today GM told me that I would have to purchase a vehicle in the conventional way but I could not lease again. I could not even purchase a new car, but a pre-owned vehicle which I have never done before. They offered me a 2006 Cadillac CTS demo with 8,000 miles for 25,000 dollars. I am thinking about taking it because I now have a Cadillac CTS 2005 with 38,999 miles on it. NOt sure if this is a good deal, but at least I know that I can get another car. What do you think?

[freshstartfl]

Think in terms of what your interest rate woud be. If it's 5%, it would seem fine to spend $20k on a car. If it's 18%, it's not, IMO. Personally, if I were to finance a car at a high rate like that, I wouldn't spend more than 5-6k.

[6ftladycop]

I.m glad you said that because I was thinking the same thing. The dealer told me when I come in to have my list of things I wanted and would like answers to so my list:

1. Interest rate...no. one
2. warranty information and how long..no. two
3. is the note cheaper than the one I have now...no. three
4. With low mileage, exactly what was the car used for?
5. Has it ever been in an accident?
6. What type of repairs have been done on the vehicle?
7. what will the trade in value be in two years and will I be upside down?
8. How soon will I be able to trade it in for a new one?
9. Do they provide the 1yr free On Star?
10. Will I also receive the same service ex road side assistance, free towing, free diagnostic etc as I did with a new vehicle.
I can not think of the others, but what do you think of that list so far?

[freshstartfl]

Sounds pretty comprehensive to me. The reason the interest rate was at the top of my mind is b/c going thru bankruptcy truly is a fresh start, if you handle it properly. Myself, I've spent the entire 12 years of my adult life thus far trading in one new car for another, every 2-3 years or so. Even tho I've never paid more than 5.25% on any of the loans, I just end up more and more upside down. I'm looking at the bankruptcy as a way to free myself from that vicious cycle and start making better decisions. Now I'm driving a 2000 Infiniti with 105k miles that I am paying $2500 for. Yes, it's old. Yes, it's out of warranty. It's not "flashy." But the funny thing is, the fact that I can own it outright has changed my entire view -- I'm keeping it cleaner than any car I've ever had. I'm picky about people eating in it. Etc, etc. It's MINE; finally a vehicle that's MINE!

IMO, getting a $20k car at ANY interest rate is not something I will take lightly ever again. So really think about whether you need a car that expensive, especially if the rate is going to suck. You will end up spending way more than $20k to own that car outright -- the higher the rate, the higher the price you end up paying. I don't plan on getting a new car for at least a couple years, and when I do, I'm going to make a sizable down payment and I won't do it at all until I can get a rate that I deem acceptable.