DEAR BRUCE: My son-in-law has rented new cars for the last 20 years. He tells me it is better and costs him less than if he were to buy the cars. He leases them for five years and then gives them back and leases another new one for another five years. He usually leases one on the more expensive side. They usually are $30,000 SUVs. -- N.G., via e-mail
DEAR N.G.: Your son-in-law may be the exception, but he would be a wonderfully rare exception. He says it costs less to trade every five years on a new car. Every expert in the business of answering candidly will tell you that's not true. There are extra costs. The leasing company has to make a profit. It has to build into its deal a cushion so when it gets the car back in five years, it can sell it and get its money and make a profit. If your son-in-law were getting rid of the car every two years, it may be that other things being equal, he can come out being very close to even. Leasing every five years, no matter how you slice it, he is paying a premium.
DEAR BRUCE: My new husband and I make about $170,000 a year. After my first husband passed away, I was left with a debt of $15,000 on two credit cards. I have moved to a new city with my second marriage and planned on using the money I made on the sale of my home to pay off this debt. Meanwhile, I make a $200 payment on each card. Things haven't gone as planned because of the housing market. I have been unable to sell my home for over a year now. It was assessed at $219,000. The home, with taxes, insurance, utilities and a $500 monthly payment, costs me about $1,000 a month. Do I drop the price significantly? I recently received a gift of $15,000 and am wondering if I should use all of this to pay off my debt. Or should I use just some of it to lower my debt, and then put the rest in savings for a safety net considering the economy? -- T.S., via e-mail