my girlfriend was thinking about leaseing a car if she pays every month on time and doesnt go over her set miles does she have anything to worrie about cuz she owes 7900 on her grand prix and its worth 5000 or so and we need to get rid of it cuz its giving us problems that will cost alot to fix. and she want to stay about $300 a month and wants a new car lol (ive tryed forever to tell her its not gonna happen for the cars she wants) and we get a gm discount so if she get a car for around 300 and we use the gm discount which should take care of her negative equity. i mean is their a catch i know we need a big down payment but other then that is it all good?

I'm not a big fan of leasing a car, it was originally set up for the purpose of company cars. A manufacturer limits the amount of kms/miles on a vehicle and companies have the cars to give to their employees for a set time or distance. Car makers realized the potentional for the private market and leasing was born.

If she wants a new car, I suggest financing. Right now, at least in Ontario, you can finance a new GM car for 60 months at 0% interest. Basically the money is free. Sometimes you can find a sweet plum deal whereby no deposit, no interest for up to 5 years. That gives you the chance to pay it off sooner and not have to deal with the higher interest rates onece the 5 years expires.

On thing is for sure. Don't buy a used car and finance it. They'll take everything they can and smack you with like a 5% or 7% interest rate :?