It's a new build, should've clarified that.

what other lease can I get thats lower in payment. I'm trying to help my girlfriend's father buy a car for her. He will take care of everything. My plan is to be able to take care of her and buy her a better car once the 3 year mark is over. Just want to have the lowest possible payment possible on a new car so that she can be safe and we dont have to worry about repairs or time at the shop or headaches. Everything is just convenience for me. Yes I could save more money if I buy a used car with low miles, but the reality is that I don't want to be worrying about maybe buying a shitbox thats gonna cost me more headaches or money once I'm done with it.

thank you, you are probably the only person that has actually helped me and paid attention to my question

its just tough to make sense of a used car when I bought (2019 se) 3 year old corolla with 21k miles for 15k dollars one and a half year ago

what mile range? any used corolla I see around my area has 22-40k miles and they go for around 20-23k dollars. Thats a over priced used car with more miles for basically the same price, which I'm most likely going to return in 3 years. what do you think? I'm not sure what to do.

Probably a new build.

Something like a Hyundai Accent SEL model is $19k and comes with all essential features. Looking at probably ~$22k out the door with a bumper-to-bumper 5 year warranty (likely no significant problems before 10 years) and roadside assistance. The Kia Soul is also a great little vehicle at about the same price point with an incredible amount of interior/storage space (more than some small SUV's), and a similar 5 year warranty. These aren't the only two options in the price range, just two that come to mind with probably the best warranties.

You are planning on buying a nicer car in 3 years so the plan is to spend 16k on a lease just to avoid being upside on a car. 16k spent and no asset at the end of that time period.

Is there a better way you can utilize that money to set you up for your next purchase? I think that is the argument people are making by saying you should consider buying.

Consider buying a used Corolla. Still very reliable. Shouldn’t have mechanical issues, especially if you get one in the newer side.

I don't understand a 6 month closing. That seems... very long. Regardless...

This is money you have already committed. It's basically already out the door, it just has some time before you need to write the check. You really can't put it into any asset that incurs any type of risk. Put it in a HYSA and call it done.

Yeah I have had it a few years now and never had a problem.

I got my previous car manager working on some prices for that credit. The post above is tier 1, but the person I'm helping get the car just told me they have a lower credit

Unless they live in a very rare place (like the US virgin islands or something) prices are dropping quickly. People typically state unique circumstances if there are vastly different from the normal persons situation. So in this case, it seem reasonable to assume this person is way underwater on this car loan.

Or over 10 years of age.

My family's got 660 credit i doubt a 6 percent is possible. They also want to do 0 down. I know buying is probably best, but with the market going down most likely I'm afraid we won't need the car no more and we are upside down. Where as with the lease we can just walk right off.

Just running this through a quick loan amortization at 6%, putting $1000 down I come up with a $425 payment and with with you owing $9500 on this car at the end of year 3. Being as this will then be a nice 3 year old corolla I would expect it would still be worth about 13-14k, especially if you only had 36k on it (the lease terms). Do yourself a favor and just finance it and own it. When it's been 3 years trade it in or sell it. It is a very rare case (like 2020 when covid hit) where you'll do better leasing than buying. You can also read Clark Howard's advice on leasing:

https://clark.com/cars/lease-car/

I couldn't get past the fact that I would be paying tax on a vehicle that wasn't going to be mine. Leases are horrible.

A lot of banks will not write loans for under $10K.

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The older the car, typically, the higher the rate.

I agree with the other commenter, save up and buy a cheap car outright.

Nobody other than a lender can tell you an exact rate. Download the Experian app, and check your FICO 8 credit score there. Unclear if anything you’ve already checked is meaningful or not. That one is.

Regardless, your approval chances (and rate if you are approved) aren’t only about credit score, it’s also about income, debt to income ratio, your length of credit history and the specifics of the loan (length, age of vehicle, etc).

Bottom line - Pre-apply with your bank or credit union and find out. No one here can say.

Wow 25% percent interest is crazy if that’s the case then you’re right buying a car outright would be better

Yeah if that's all you care about, sure. It's just the most expensive way to drive a car other than literally renting one.

Always assume you'll end up with the high end of those online credit guesstimates. So a $10k car with a 48 month loan at 17% will run an extra $3850 of interest. Assume the purchase price is going to be another $1000-$1500 of dealer 'add-ons' and misc fees, so you could buy an $9000 car for roughly $290/mo. That's before you actually use the vehicle (gas, maint, insurance).

https://www.creditkarma.com/calculators/credit-cards/debt-repayment

But with a less desireable credit score, you can more likely expect usury pricing of 20-25% interest. Splitting the difference at 22.5% interest, you will pay $5254 interest on a 48mo $10k loan.

Anything you can do to raise your FICO (pay all bills on time in full, avoid debt) and/or save toward the vehicle and pay cash (saving 1/3 of the total cost!) is advisable.

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