Lease or Buy?–How to Choose an Affordable Car (and Fix an Upside-Down Loan)
About this episode
Laura discusses how to choose between leasing and buying a car while managing an upside-down auto loan.
1010. Are you feeling "car poor" or trapped in an auto loan that costs more than your vehicle is worth? In this Finance Friday episode, Laura answers a listener's question about how to navigate an unaffordable car loan when you’re upside-down (negative equity) . If you are looking to lower your monthly payments or are debating between a car lease vs. buying your next vehicle, you’ll learn the pros, cons, and math behind making the most affordable choice for your budget. We talk about: How to manage an upside-down car loan: Strategies for refinancing or negotiating with lenders when you owe more than the car's market value. Auto Refinancing 101: When to switch your loan to a credit union or online lender to reduce interest rates and monthly payments. The 20% Rule: Why a significant down payment is the best defense against rapid vehicle depreciation. Leasing vs. Buying: A breakdown of the long-term costs, maintenance responsibilities, and flexibility of each option. Hidden Costs of Ownership: How to account for repairs, mileage restrictions, and residual value before you sign a contract. Upcoming Wedding Series This May: We want your questions about wedding finances! Whether you're…
More episodes of Money Girl
- 5 Smart Money Management Tips for a Shaky Economy: Mastering Mindful Spending in 2026
- Creating Financial Independence with Farnoosh Torabi
- How Can I Stop Overpaying for Home Insurance?
- New Ways Homeownership Builds Wealth
- How to Skip a Budget and Build More Wealth
- Should You Use a 401(k) Loan to Buy a House? Pros, Cons, and Rules
Explore listener stats, chart rankings, contacts and more on the Money Girl podcast page.