Need a new car prior to filing - lease vs loan

[sarahrob2248]

I currently drive my fiances old SUV, and pay him $300 a month. The car is paid for, so I basically just pay for use.

I kinda hate the car, because it is super unreliable. Ive been looking into purchasing a vehicle that i can count on. I just retained an attorney to file a 7, but forgot to ask her if leasing vs. purchasing with a loan would be better, all else being equal. During my consult, she did say (as did other attorneys I spoke with) that buying a car now would be best before my credit absolutely tanks.

Is there any real difference in the eyes of the trustee?

[justbroke]

They really don't make a difference in the bankruptcy concept. The lease would typically be cheaper (a lower monthly payment). The lease vs. buy is always a question of what you prefer and how often you change cars.

[momofthree]

Since you're looking for a vehicle "that you can count on" it sounds as if you're more of a practical person looking for reliable transportation, than a car-nut who is always wanting the newest model. Therefore, I strongly suggest buying a reliable car (toyota and honda are very dependable) that will last you years after it is paid off. My Toyota Camry (that I bought brand-new) is 10 years old and has $190k miles on it and has never needed a major repair--just regular maintenance (tires, brakes, oil, tuneups, etc.) *knock on wood* No, it's not the newest model, but it's reliable and has never failed to get me from point A to point B, and it's a pretty comfy family car as well. I, personally, LOVE not having a car payment. Just MHO.

However, if I'm wrong, and you are a car enthusiast who is going to trade in your car every couple of years so that you always have the newest and brightest, then leasing may be for you.

[AngelinaCatHub]

Remember when ever you do file bk, you are "stuck" with either lease or purchase. I personally would never lease as they get much more money out of you in the long run. A good used car are around if you look enough.

My choice is a Jetta TDI diesel. You cannot beat the mileage average of 40, and the reliability of a diesel with a "tiptronic automatic trans". Mine has 230K on it without a major break down. Also seems a paid for car gets better mileage. 'Hub

[Floridagail]

I would not recommend leasing, as the insurance is much higher due to maximum coverage requirements. Please check that out.