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NFT: car buying and leasing

lpdcan28 : 6/15/2017 12:03 am
i may get a certified 2014 caddy cts or lease a 2017 ats for roughly the same payment. i like to get a different car every few years. will it be easier for me to trade in a used car or try and get out of a lease (with 6 or more months left)? do dealers take in used cars easier then vs leased ones? thanks for advice.
Yea they love used cars  
DennyInDenville : 6/15/2017 12:16 am : link
But they low ball you on the trade in
Lease new  
AnnapolisMike : 6/15/2017 4:07 am : link
Ask if they have pull ahead programs to get you out of your lease early into ANOTHER new Caddie. Otherwise you can't avoid making all the payments in the lease contract. Choose a lease term that matches the time you will want to own the car. With a lease you will only have yearly maintenance costs in addition to your payment.

If you buy..your loan term should not exceed 48 months if you plan on trading it in two years down the road. You will be upside down if your term is 60 or 72 unless you put significant cash down. Also... Plan on additional repair and maintenance costs with a used car. Tires and brakes at the very least are in the future if you hold the car to term.

Caddies do not hold value well. There presence is rental fleets hurts trade values.

They all want to buy back leases  
mdthedream : 6/15/2017 6:11 am : link
Big thing is how many miles do you put on the car? buying a used one for a couple years is a bad idea esp a American made one they lose value fast.
Plus with a lease  
mdthedream : 6/15/2017 6:13 am : link
No worries on tires brakes and anything else that goes wrong. The warranty is worth it if your trading it in two years.
I find it almost impossible to buy a car new  
UConn4523 : 6/15/2017 6:54 am : link
put $5k down on a $30k car and you are still at $500+ per month. Put $2k down on the same car and lease for $300 per month with virtually all maintenance included throughout the lease. And with tech changing as rapidly as it does being stuck with a car that your are still paying off for 5-6 years sucks.

Sometimes you get lucky and get a good car hat lasts 10 years where you make out better financially but it's such a crapshoot IMO. For every Volvo like my stepfathers that lasted 10 solid years you have a horror story of people paying huge prices for car fixes past 50k miles. No thanks, I'll lease and midigate my risk, getting a new car every 2-3 years in the process.
To me it's a question of mileage  
ron mexico : 6/15/2017 7:55 am : link
If you are going to hit the mileage numbers of the lease then leasing is good. If you will go significantly under or over leasing is a rip off.

RE: I find it almost impossible to buy a car new  
ron mexico : 6/15/2017 8:02 am : link
In comment 13500602 UConn4523 said:
Quote:
put $5k down on a $30k car and you are still at $500+ per month. Put $2k down on the same car and lease for $300 per month with virtually all maintenance included throughout the lease. And with tech changing as rapidly as it does being stuck with a car that your are still paying off for 5-6 years


The service costs are not influenced by your financing choice. Doesn't matter if you lease or buy, what is covered is covered and what is not is not. Also, there is no law that says you have to keep a car you bought for longer than 2-3 years.
You're right right  
UConn4523 : 6/15/2017 8:14 am : link
there is now law that says you have to keep a car for longer than 2-3 years after buying but you are still paying more up from and more monthly. So if you want a new car every 2-3 years, leasing would save you thousands per year. The only way to make that money back is to have the car paid off and go multiple years with no payments.
Thousands  
UConn4523 : 6/15/2017 8:15 am : link
not thousands per year
You are forgetting the factor in  
ron mexico : 6/15/2017 8:22 am : link
That when you buy a car you get to Sell it and you get some money back
I'd be interested in leasing  
Greg from LI : 6/15/2017 8:25 am : link
But I don't know how anyone stays under those mileage limits. 10K a year? Get the hell outta here.
I'm not forgetting that  
UConn4523 : 6/15/2017 8:28 am : link
I'm simply saying that it it's a big up front cost for a lot of risk. Some cars depreciate slower than others so your options to really come out well are pretty limited.

It all depends on your lifestyle. If you are really into cars, know when and what to buy and don't mind spending the time to set yourself up you can probably make out ok. But others want a quick fix that gives you more flexibility with less up front costs. I wouldn't say either option is better but for me i tend to lean towards leasing.
That is well stated  
ron mexico : 6/15/2017 8:42 am : link
Just be aware you are paying for that convince. And you never stop paying.

There is a reason dealers push leases so hard.
If you go over your lease mileage  
Sarcastic Sam : 6/15/2017 8:49 am : link
couldn't you just leave it unlocked with the keys in the ignition in an empty lot in Newark? Wouldn't the insurance money take care of it?

Think, people.
Well if you want a new car every couple of years  
superspynyg : 6/15/2017 8:58 am : link
Then lease.

I own my vehicle out right 2012 Ford Explorer. Its great not having any payments and it still has low miles (44,000). Im not trading that for a while.

We lease my wifes car. Since she lets me lead her in a direction to what to get I get the new car experience every few years. We always raise the miles to 12,000.
I've been in the leasing business (even if it was years ago)  
grizz299 : 6/15/2017 9:03 am : link
and have worked on cars.

Disagree with almost everything that's been written here.
Except for sarcastic SAm scum is consistently scum after all.
Cars are marvelous today, the horror stories are the exception and exaggersated. Brakes and oil changes through 150,000 and minimum costs afterwards depending on your driving exposure.
No idea who need to impress by turning a car over every two years is almost silly.
Buy the car and when it's paid off go for a few years without collision and comp. Lowest cost and you still have a healthy residual when you trade it in.
A car depreciates almost 50% the first year and slowly after that. Just re-read that relative to your situation.
Leasing made more sense when you had "safe harbors" and could play with the investment Tax Credit or use the lease cost as a form of accelerated depreciation..now its a scam to make the dealers rich.
RE: I find it almost impossible to buy a car new  
Jim in Fairfax : 6/15/2017 9:11 am : link
In comment 13500602 UConn4523 said:
Quote:


Sometimes you get lucky and get a good car hat lasts 10 years where you make out better financially but it's such a crapshoot IMO. For every Volvo like my stepfathers that lasted 10 solid years you have a horror story of people paying huge prices for car fixes past 50k miles. No thanks, I'll lease and midigate my risk, getting a new car every 2-3 years in the process.


It's only a crapshoot if you buy cars with a bad history of reliability. Or you don't take care of them. Buy a quality car and it will hold up a high percentage of the time. We've bought 7 new cars in our lives. 8 years is the shortest we've kept any. Currently have a 10 and 11 year old car. Probably replace one next year. The other probably has another 3-4 years at least it should be good.

If you're dead set on a new car every 3 years, then yeah, you're probably better off leasing as long as you can predict the milsge you will use reasonably and don't put undue wear and tear on the car. But you're not saving yourself money.
other factors to take into account, with a longer view,  
ColHowPepper : 6/15/2017 10:00 am : link
are costs of running and maintaining ICE-driven vs. electric vehicles. The rate of change in EV adoption may increase dramatically, for a variety of cost and cultural issues.

That said, the inducements (financial and otherwise) to switching are muddied by the rapid fluctuations in the price of fossil fuels. Oil and gas right now are cheap and getting cheaper, so the tradeoff is not a no-brainer. But over time, as the costs of EVs continue to come down, their driving range increases, and charging stations and options become more convenient, ownership raises more questions. As noted, this is a longer view, but changes in the automotive industry are coming, like it or not.
Jim  
UConn4523 : 6/15/2017 10:01 am : link
agreed. In the long run know I'm not saving money, I'm paying for convenience and somewhat "future-proofing" myself. With electric, fuel cell, etc all probably taking off at more affordable prices in the next 5 - 10 years, I'll probably buy then. Also daycare costs will be gone so larger car payments will be more affordable.
I used to lease  
pjcas18 : 6/15/2017 10:10 am : link
now I buy and depending on the interest rate it impacts what I put down.

For 0 - 1.5% or so interest it's a no-brainer, maximize the financed amount, it's free money. In general I don't go longer than 60 months on a term, but if there was a reason to I would. If the interest rate is in the 3's or higher I'd put more down and finance the least amount I could afford.

My last few cars I've experienced multiple years of no payments and no noticeable significant degradation in technology or style.

I've had acuras and hondas primarily.

I also have zero desire to change cars every few years so that makes buying a safer decision for me. My Acura TL was over 10 years old and still ran fine. Honda pilot the same.

I leased a Ford Escort (probably the equivalent to the fusion now?) because I was just out of college and it was cheaper than buying, and went way over in the miles an the condition of the vehicle was only so-so and when the lease was up I owed a ton of money so I bought a new Ford Escort to which they rolled my overage of the lease into and it took me a long time to get out of that shitty situation and those shitty Ford cars.

of course Cadillacs are not Ford escorts, but the principle isn't much different.
RE: I'd be interested in leasing  
BH28 : 6/15/2017 10:11 am : link
In comment 13500635 Greg from LI said:
Quote:
But I don't know how anyone stays under those mileage limits. 10K a year? Get the hell outta here.


You can lease a car with to to 20,000 miles per year. Obviously that increases your monthly payment.
RE: other factors to take into account, with a longer view,  
Jim in Fairfax : 6/15/2017 11:10 am : link
In comment 13500743 ColHowPepper said:
Quote:
are costs of running and maintaining ICE-driven vs. electric vehicles. The rate of change in EV adoption may increase dramatically, for a variety of cost and cultural issues.

That said, the inducements (financial and otherwise) to switching are muddied by the rapid fluctuations in the price of fossil fuels. Oil and gas right now are cheap and getting cheaper, so the tradeoff is not a no-brainer. But over time, as the costs of EVs continue to come down, their driving range increases, and charging stations and options become more convenient, ownership raises more questions. As noted, this is a longer view, but changes in the automotive industry are coming, like it or not.

Bigger factor I think will be self driving cars. The ability to order up a vehicle on demand that meets your need of the moment and at a lower annual cost will end many if not most people's car ownership.
The only way buying a car makes sense to me is if I pay all cash  
PatersonPlank : 6/15/2017 12:25 pm : link
, so no finance, or finance very little. Once I get into a normal small down scenario then I always gravitate towards leasing. One other factor is with a lease you don't have to worry about how much the car is going to be worth at the end of the term. You just turn it back in, the leasing company has taken the risk on if the car holds its projected value or not. With a purchase, you may calculate that the car is worth $10K 3 years from now but in reality its only worth $7.5K by then.

Also if you go to D&M or Autoflex, you can lease used cars too.
Just buy a horse  
Deej : 6/15/2017 12:34 pm : link
you'll thank me later.
RE: Just buy a horse  
Sarcastic Sam : 6/15/2017 2:07 pm : link
In comment 13500952 Deej said:
Quote:
you'll thank me later.


If you get rid of a horse for insurance money, you'll have to deal with the PETA crazies...
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