Tips on Buying Cars: lease end, 2006 nissan altima, nissan altima

Question
I am in a rather complicated situation with vehicles and I need a little advice sorting out what would be the best option.

Currently I lease a 2006 Nissan Altima and the lease ends May 1.  Since starting the lease, I was laid off and got behind on all of my bills including the lease payments which has affected my credit.  In addition the job I have now involves driving my personal vehicle which has caused me to go over my mileage limit.

So I'm wondering what my options are at lease end for getting another vehicle.  I'm sure my credit will make financing difficult whether I'm trying to start a new lease or loan, or purchase my current vehicle.

To make things more complicated, we need to get a second vehicle.  My wife and I have been sharing the car since she has been a homemaker for the past 2 years.  She is about to receive some inheritance money which she plans to put toward a car and start working again.  

My ideal result would be to have two fairly new cars but I don't know if thats possible or how to go about getting there.  

Should I settle for older used cars?
Should we put her inheritance money toward a lease or loan, or pay cash for an older car?
Will I be walking to work aver May 1?

Any advise will be greatly appreciated.


Answer
Jay,

Thanks for the questions.  Your situation, while it may be complicated is all to often these trying times that we are in.  I will try to help you sort them out.

For your options at lease end.  You have three ultimate options for the lease.  First is that you can turn the lease end, and you will be responsible for any overage on miles and any excess wear and tear.  Your second option is to try to trade it in, which you will more than likely be upside down, but this may be your best option.  Third is to buy the lease and finance the residual balance, which also may be your best option.  

The first thing I would try to do is to trade it in on another vehicle and see if they can get you financed.  You will not have to buy an "older" vehicle as most banks these days would rather you be in a newer vehicle within the last 2 model years.  

As far as your second vehicle, once again you will have to see if you can get approved on the second vehicle.  It will be difficult with only one income in the household currently.  You might have to wait for your wife to get her job, and put the money down to get approved.

As far as your ideal result, you are going to have to be flexible and be prepared for whatever the bank says.  You will need to go into the dealership with your most recent paystub, and your most recent Proof of Residence, and probably 5 full references.  Have that with  you when you go into the dealership, and it will at least help speed the situation up.

As for a lease or a loan.  With your credit situation what you say it currently is, you may not qualify for a lease according the bank, so you may have to purchase the car out right.  At last resort, you can take your wife's inheritance money and pay cash for an older car.

I hope this has answered all of your questions.  If you have any more, don't hesitate to ask.

Thanks - JB