How Old do you need to be to lease a car?

themanej2001 · Feb 28, 2007

I was given a car when I went to college a 2001 Grand Prix GT... It has 55k miles and I am going to trade it in and get a Volvo S80... Or a Volvo S60... I might end up buying it for 72 month payments at 440 a month by trading in my car... But if I want to lease it how old do you need to be just wondering... Do you need to be 21? Could I have a co-signer...??

And for buying it for 72 months of payments would I need a cosigner and would I need to be 21?

Presto · Feb 28, 2007

If you got the dough, they have the lease.

At age 18 I believe you can buy or lease any car your budget/credit will allow.

themanej2001 · Feb 28, 2007

Yeah...

I am looking into buying it now I think... for 72 months of payments... Think I am going to pay the 420 a month... I have no more payments in my life as my folks pay my lease in school and give me money monthly for food... So I am going to try and build my credit and get a new car in the process. I personally love Volvo's but feel since I don't really have much credit that I am going to need a co-signer....

Illini · Feb 28, 2007

Not the best idea. Actually, one of the worst financial decisions you could make. Sell it, buy a beater, and start a Roth IRA. :toast: Then buy 3 BMW's when you turn 60.

Labeeb · Feb 28, 2007

The question you need to ask yourself is are you going to be able to make the 420 payment once you are out of school, living on your own, and the folks aren't there to give you a hand. If you're anything like the vast majority of new graduates, the 420 plus all of your other expenses is going to be steep.

Doesn't answer your question, but it's something to consider.

themanej2001 · Feb 28, 2007

Saving money isn't something I need to do... I have already saved a ton... and have a portfolio... If I was only Jewish and had a bar mitzvahs I would be rich as hell but oh well...

I think it is a good idea to build credit and I have a job right now that pays me 500 a week... not sure if I will have it for that much longer probably until the beginning of next school year so I figure I will be pulling in about 12k more until it is done...

So If I put 6k of that away for a month I should have about another years payments... Or if I put 10k away because I get money for food and my rent is paid for... So I would have two years of the 6 years saved and put away... and not have to worry about it for two years... and I work every summer and put most of that away...

joeyfitzclick · Feb 28, 2007

Let me guess you are only 19 ?

themanej2001 · Feb 28, 2007

Well I am only a sophomore and will be at school for 4 more years because I am a double major and a minor and am looking to get my masters I hope... So will be at school for 4-6 years... so If I can put about 8k away by then I should have it done... I will have 19k paid off in the next two years and will have 11k left to pay off over 4 years... so I think I can do it

themanej2001 · Feb 28, 2007

But I am just wondering will I need them to co-sign... I would like to put it in my name but I need them to co-sign...? That is my question...

GreenDoberman · Feb 28, 2007

A 6-year loan is about the worst move you can make. You will no doubt have negative equity in the car when your consumer-craving mind decides to trade it in again 3 years down the road. What a great idea to pay extra interest.

Get a shitty used car or keep your old one and save yourself the headache.

will.cover · Feb 28, 2007

themanej2001 said:
I was given a car when I went to college a 2001 Grand Prix GT... It has 55k miles and I am going to trade it in and get a Volvo S80... Or a Volvo S60... I might end up buying it for 72 month payments at 440 a month by trading in my car... But if I want to lease it how old do you need to be just wondering... Do you need to be 21? Could I have a co-signer...??

And for buying it for 72 months of payments would I need a cosigner and would I need to be 21?

As long as your credit allows, you can buy or lease anything you want, providing you are over the age of 18. However, the 72 month payment plan that you are writing about is a BAD deal. If you have to stretch your payments to 72 months, you don't have the money or the budget to buy the car. Period.

A lease is a fleece. Bad deal all the way around.

If you want to be smart about your money, you should buy a used car, 2 to 3 years old and pay cash for it. The previous owner would have already taken the hit on much of the depreciation, while you would have a vehicle that is still under manufacturer's warranty and a late model edition.

GL!

WC

will.cover · Feb 28, 2007

Illini said:
Not the best idea. Actually, one of the worst financial decisions you could make. Sell it, buy a beater, and start a Roth IRA. :toast: Then buy 3 BMW's when you turn 60.

Very good advice!

WC

will.cover · Feb 28, 2007

themanej2001 said:
Saving money isn't something I need to do... I have already saved a ton... and have a portfolio... If I was only Jewish and had a bar mitzvahs I would be rich as hell but oh well...

I think it is a good idea to build credit and I have a job right now that pays me 500 a week... not sure if I will have it for that much longer probably until the beginning of next school year so I figure I will be pulling in about 12k more until it is done...

So If I put 6k of that away for a month I should have about another years payments... Or if I put 10k away because I get money for food and my rent is paid for... So I would have two years of the 6 years saved and put away... and not have to worry about it for two years... and I work every summer and put most of that away...

IF you want to build credit, get a gas or credit card, charge a few items a month and pay the bill off in its entirety. This will build credit. You don't have to finance a car to build credit. That's absurd.

Don't figure you will be pulling in 12K until your job is done. Life happens. You can't plan it. Have enough saved up for a rainy day. In fact, you should have 3 to 6 months expenses saved in case of an emergency. By having a car payment of $440.00 a month for 72 months does not allow you the luxury to do what you want to do. The math doesn't work.

WC

crunch99 · Feb 28, 2007

Age isn't as important as credit when it comes to leasing. You need to have 730 FICO to lease luxury brands such as MB & BMW. Lexus and Acura are a little easier to qualify. You also need to get higher insurance coverages and deductibles. Also need GAP insurance in case of a total loss.

If you'd like to give lease a try short-term, look at http://www.swapalease.com, plenty of people trying to get out of their lease.

Financing is much easier as long as you have a large downpayment.

But why a Volvo? They are such bland/boring cars.

themanej2001 · Feb 28, 2007

Yeah... The reason I looked at the 72 month one was because there is a major deal... It is a 32000 dollar car if I buy it with cash up front basically...

But I will pay 34500 for it over the 72 month period so I will be paying an extra 2500 which is a hell of a deal I heard.... And my parents buy all there cars from the dealer so I may be able to pull a deal... Since I am putting up so much money up front I am getting a good deal... I am putting 10k up front for the car... So it may save me money in the long run. I don't have the 32k to buy the car right now but I have the 10k to put up front and still have 4k to spend... So that is the first 8 months of payment... but every month... I earn 4 months of payments... and still have 1000 left over... and I will be working 6 more months so that is 24 months of payments or 2 years... plus the 8 i have saved... so I am looking at 32 months of payments... WIth like 4k left over... So that is almost have the payments saved and ready to be paid...

To be honest i want a new car just because... it isn't the greatest idea ever I know... but I would like to get a new car that will last me the next 10 years... and I won't have to worry about it when I get out of college for at least 4-5 years... Which would be nice... I will only have the car I have now for about 4 more years at the pace it is going... so I will get 6 more years out of it...

themanej2001 · Feb 28, 2007

Problem with credit card is that the interest is so damn high at my age... 27% is the best I can get... I am only paying 3.4% interest on the car...

themanej2001 · Feb 28, 2007

I love Volvo's... I love the stereo and I love how safe it is... Also I don't pay my own car insurance so that isn't a problem

will.cover · Feb 28, 2007

themanej2001 said:
Yeah... The reason I looked at the 72 month one was because there is a major deal... It is a 32000 dollar car if I buy it with cash up front basically...

But I will pay 34500 for it over the 72 month period so I will be paying an extra 2500 which is a hell of a deal I heard.... And my parents buy all there cars from the dealer so I may be able to pull a deal... Since I am putting up so much money up front I am getting a good deal... I am putting 10k up front for the car... So it may save me money in the long run. I don't have the 32k to buy the car right now but I have the 10k to put up front and still have 4k to spend... So that is the first 8 months of payment... but every month... I earn 4 months of payments... and still have 1000 left over... and I will be working 6 more months so that is 24 months of payments or 2 years... plus the 8 i have saved... so I am looking at 32 months of payments... WIth like 4k left over... So that is almost have the payments saved and ready to be paid...

To be honest i want a new car just because... it isn't the greatest idea ever I know... but I would like to get a new car that will last me the next 10 years... and I won't have to worry about it when I get out of college for at least 4-5 years... Which would be nice... I will only have the car I have now for about 4 more years at the pace it is going... so I will get 6 more years out of it...

The fact is you won't keep this car 10 years! You are going to have NEGATIVE equity in this vehicle when you sell it in five to six years, because a NEWER model has been released. You will be upside down.

You are going to be a slave to the lender.

It's a bad idea. I'm only trying to help you. I was once in your shoes and I wish somebody would have told me what I am telling you.

You should drive your current vehicle into the ground. If it ain't broke, don't sell it.

If you set aside $380.00 a month, from age 18-60, and invested it in a money market account, at retirement age, you would have over $4.5 million dollars. Just something to think about.

WC

Labeeb · Feb 28, 2007

Caviar tastes on a chop steak budget.

will.cover · Feb 28, 2007

themanej2001 said:
Problem with credit card is that the interest is so damn high at my age... 27% is the best I can get... I am only paying 3.4% interest on the car...

Interest rates on credit cards are only a problem if you don't pay your bill on time or in full each month.

If you have a 27 % interest rate, either you have no credit history or you have poor credit.

I don't advise getting a credit card to build your credit, but shop around:

http://www.creditcards.com/index.php?a_aid=1004&a_cid=1000&a_did=1078

http://www.bankrate.com/brm/rate/cc_home.asp

http://www.cardweb.com/

Between the 3 major credit card companies (BofA, Citi and Chase), over $610 billion dollars is owed to them. Unbelievable.

WC