Lease or Buy?–How to Choose an Affordable Car (and Fix an Upside-Down 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 the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: [email protected] or leave a voicemail: (302) 364-0308.

Money Girl is a Quick and Dirty Tips Podcast, hosted by Laura Adams.

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