Tips on Buying Cars: new car/lease car, chase auto finance, kelly blue book

Question
THANKS for information.

Here is some more info to help you give us advice:
1.5 was used because it is easier to type than 1 1/2 sometimes.
Purchased new, 2005, Subaru Forester.
Current interest: 5.29%
Current balance on loan: 21,565.
Total monthly payment: 490.
Chase Auto Finance is the lender, via the dealership.
NADA used car guide: 17,325.
Kelly Blue Book: 17,450.
We can lease a new similar model this month for about 250.

Again, monthly cash flow is the problem with a new child on the way; we realize that this may not be the best financial decision, but we aren't sure we can swing the monthly payments.

Thanks !

Feel free to ask others, we really, really appreciate your help and advice !!!




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The text above is a follow-up to ...

-----Question-----
For years I leaned towards leasing a car rather than buying, mostly because I enjoy driving a newer car every 2, 3, or 4 years and the lower monthly payments than you can often get by leasing.   My new wife of 1.5 years purchased a NEW 2006 Subaru just before we got married.  For the entire 1.5 years we've had the car and been married, I've seen lease payments on the same, or one year newer, models for about HALF of what she is paying for purchase.   Now into her purchase agreement for this long, we are having a child, hence money will begin to be tighter around here month to month.  Any suggestions on how we can get out of the purchase agreement for 500 a month and lease for 250 a month ?  I did check with the finance company and they really aren't interested, of course ... they made a deal to sell and finance a new car, not lease one.  Any and all ideas would be appreciated.
-----Answer-----
Hi Bill,

First of all, congratulations on both the marriage and the pregnancy! My suggestion is to find a dealer that's willing to deal. What I mean by that is one who will give you as close to what you owe as possible for the '06 Subaru on "trade" and then lease you a suitable vehicle for an acceptable payment. As you know, leasing is not only about the monthly payment (although that's all the dealer wants you to think about!), it's also about what the "selling" price of the vehicle is before calculating the lease. I recommend you find out your exact payoff on the Subaru, find its relative trade value on kbb.com and edmunds.com. Then whatever vehicle you may wish to lease, you should likewise find its proper selling price on the same sites. Let me know if I can be of any further assistance. Good luck!

Aaron

Answer
Hi Bill,

Short answer is that depending upon some variables the "negative equity" you have in your wife's car will add between $100 and $200 dollars per month to whatever lease payment you could otherwise get on a new vehicle. I hope that info helps you. If you don't mind me asking, where are you located? Good luck.