ok so 3 years ago, i went into leasing 2 cars.
2 nissan pathfinders fully loaded. now one was with the intent of purchasing the leasing when the time was up and the other was to buy a car later. some details on the usage. my wife drives more with her car(the car that was going to be bought out.) and it has 20k miles on it. My car has 19k but sits in the driveway during the week as i take mass transportation.
now as my two cars are coming up, friends keep saying dont buy the lease out and just lease again. i get that the cars start having problems by the 3rd year but i just hate paying for cars all the time and want to own one at least.
your thoughts and feel free to ask me questions if you need more info to make a judgement.
I've never had a problem inside of 5 years on any car. In my experience, good cars (assuming you stay away from ones that are known to be problematic) don't experience any real failure issues until 5-6 years in, and many will still operate just fine outside of routine maintenance for their duration.
Cars are a lot better made and more durable now than they were in years past.
That makes no sense - in a lease you're paying for the depreciation. Depreciation slows down after the first couple of years - owning it past that point would cost you less.
My wife and I keep our cars for 10 years (or more if possible) and stagger them so I only ever have 1 car payment, and many times none.
I usually also get 0% interest or close to it so there is no incentive to pay the loan off early.
If you can buy a reliable car and keep it, I'd buy vs lease.
And I've leased and bought. I leased when I was a student and couldn't afford to buy a car, but that turned out to be a disaster because I didn't take care of the car, went over the miles, and was upside down in it when the lease ended so it was going to cost me money to turn it in or to buy it
It's amazing never having to fork over a car payment every month - BUT the issue now is the car is about 7 years old and approaching 200,000 kms. Things have started to go on it and the repairs get annoying and costly. It's definitely still cheaper than $250/month to only need to repair the A/C. But that's still a big $800 job, and my concern is that's just where it starts. This calendar year alone we've replaced 2 tires, need to have the blower repaired, and now the a/c cold temp is gone so that has to be fixed before next summer.
I'm on the side of the next vehicle purchase being a lease, for the reasons mentioned previously that it can be written off for business use (which I can claim), but also I don't want to be locked in to a car that could have problems 4 years down the road when it's out of warranty and I'm also paying $300-$400 + a month. Financing a car and then insurance it gets crazy how much you add to your monthly expenses, and then if you have to start paying for major repairs it's too much.
I'd say lease it if you can, regardless of if you can take advantage of the business write off, worse-case scenario you're in the same boat and get yourself a new leased vehicle in 5 years or less.
Also, with the depreciating value of a vehicle the moment it's off the lot - no thanks. By the time you are ready to trade in a vehicle it's worth shit!
We lease my wife car for the last 6 years. She now has a 2018 Acura RDX fully loaded with 12,000 miles. We pay less because its a lease and I get rid of that new car itch every 3 years so its worked out.
Two cars we pay less than 500 a month.
We lease my wife car for the last 6 years. She now has a 2018 Acura RDX fully loaded with 12,000 miles. We pay less because its a lease and I get rid of that new car itch every 3 years so its worked out.
Two cars we pay less than 500 a month.
i was about to say, where did you get a fully loaded acura and another car but you paid one off. Whats the payment on the acura and why am i not paying that for my nissan? fuck
Quote:
I have a work vehicle so I drive less than her. I bought my 2012 Explorer in 2011. Its now paid off and has less than 50,000 miles.
We lease my wife car for the last 6 years. She now has a 2018 Acura RDX fully loaded with 12,000 miles. We pay less because its a lease and I get rid of that new car itch every 3 years so its worked out.
Two cars we pay less than 500 a month.
i was about to say, where did you get a fully loaded acura and another car but you paid one off. Whats the payment on the acura and why am i not paying that for my nissan? fuck
We put some money down to lower the price. normally I don't do that but we were able to this time.
If you go to AUtoflex and D&M Leasing, you can lease used cars too. They will usually do it up to maybe 3 years old.
1) Are you ok with always having a car payment?
2) do you like to get new cars every 3-4 years?
3) Can you stay within the mileage limits?
if you answer YES to the above, then leasing probably makes sense... less $$ down, lower monthly payments, and you almost never have to worry about big ticket repairs or a car you are tired of.
Quote:
In comment 13646673 superspynyg said:
Quote:
I have a work vehicle so I drive less than her. I bought my 2012 Explorer in 2011. Its now paid off and has less than 50,000 miles.
We lease my wife car for the last 6 years. She now has a 2018 Acura RDX fully loaded with 12,000 miles. We pay less because its a lease and I get rid of that new car itch every 3 years so its worked out.
Two cars we pay less than 500 a month.
i was about to say, where did you get a fully loaded acura and another car but you paid one off. Whats the payment on the acura and why am i not paying that for my nissan? fuck
We put some money down to lower the price. normally I don't do that but we were able to this time.
more detail.
Its a lease so its cheaper. They wanted to have us pay 550 per month. But I paid all the paperwork fees up front and the GA Avalone tax. Then we negotiated to $498
My lease is a Dodge Durango I use to trailer my boat. Between the exposure to saltwater and the realization that it doesn't seem to be the most reliable car (water pump and evap system have both given out inside of 2 years), this is not a car that I want to own off warranty.
Leasing is good if you want a new car every 3 years, and you are good to your cars. If you beat them up, if you drive them a lot of miles (upwards of 15k a year), then you might want to reconsider since anything beyond normal wear and tear is going to cost you.
Last - to AnnapolisMike's point - I don't think that all lease buyouts are bad. I've leased 4 cars now - 2 of them had very reasonable buyouts (my Mazda would have netted me $2k if I wanted to just drop the thing off with CarMax). Sometimes they're worth it, sometimes they're not - best to go by KBB to figure out what it is in your case.
Done.
Done.
In this crazy world, you have to admire consistency. Even a broken clock is right twice a day, twice more than Stan.
Done.
rent furniture then? Appliances?
- Do you want to minimize your payment? Another check for leasing.
- Do you like the feeling of "owning" your car? There's one for buying.
- Do you plan on keeping your car for 10 years or so? Buy.
- Will you want to make modifications to the car/truck? Buy.
- Do you like having a brand new car every three years? Lease.
And don't listen to Stanley. He has no idea what he's babbling about.
If you get into a lease car and find that it doesn't serve the purposes that you needed, then it is harder to get out of a lease so that you can get into something different. We leased a front-wheel drive SUV for my wife to drive in the winter, we were assured that the front-wheel drive could handle the Michigan winters. The SUV not only drove like shit in the snow, it didn't do much better in wet weather. We tried to get into an AWD/4WD but Ford wanted us to pay a bunch of extra money to get out of the original lease. Lesson learned.
You should buy if you plan to keep and maintain the car for 8+ years. There shouldn't be a lot of maintenance needed if you buy the car. Tires and brakes should really be all you need until you get close to 100K. 2-3 monthly payments should cover those expenses after you buy. You have to pay for oil changes whether you lease or not.
By owning your car you wouldn't have to worry about going over mileage.
My wife and I keep our cars for 10 years (or more if possible) and stagger them so I only ever have 1 car payment, and many times none.
I usually also get 0% interest or close to it so there is no incentive to pay the loan off early.
If you can buy a reliable car and keep it, I'd buy vs lease.
And I've leased and bought. I leased when I was a student and couldn't afford to buy a car, but that turned out to be a disaster because I didn't take care of the car, went over the miles, and was upside down in it when the lease ended so it was going to cost me money to turn it in or to buy it
Quote:
and you get a good price, buying makes more financial sense.
My wife and I keep our cars for 10 years (or more if possible) and stagger them so I only ever have 1 car payment, and many times none.
I usually also get 0% interest or close to it so there is no incentive to pay the loan off early.
If you can buy a reliable car and keep it, I'd buy vs lease.
And I've leased and bought. I leased when I was a student and couldn't afford to buy a car, but that turned out to be a disaster because I didn't take care of the car, went over the miles, and was upside down in it when the lease ended so it was going to cost me money to turn it in or to buy it
Are you getting 0% through dealer/manufacturer financing or private financing?
I've gotten it only through dealer/manufacturer and if not 0 then very close to it making interest payments minor over the life of the loan, what incentive would private lenders have to offer 0%? Only asking because I have never pursued it.
When 0% financing wasn't available I got good rates from AAA. Like 1.8 - 3%, but if there was interest I'd pay it off sooner.
The incentives were only available if you took the loan. I did the math, and it was cheaper for him to borrow the money (without factoring in inflation, just the incentives) than it was to buy outright.
Another check against owning - if you know you're not gentle with your cars. I'm using my current SUV to tow my boat. It goes into saltwater at least 50 times a year, and has the strain of towing 6k lbs behind it. Not something I want to stick around and see the aftermath of 5 years from now. Some people drive like shit, don't maintain their cars, etc. Another good demographic for the leasing category, just don't bang 'em up.
If you are the type of person who wants a new car every three years, then dont ask about "deals" because you enjoy throwing money away.
thoughts?
^^^ Yep, most people have no idea how to figure out whether they are getting screwed on a lease. You end up over-paying for the car too often when you lease.
It's pretty simple. A vehicle is, in most cases, not an investment. It depreciates over time. The smart financial play is to pay off the vehicle so as to not have perpetual payments.
thoughts?
Only keep 1 car?
It's astounding isn't it?
it still ran like new. We'd still be driving it if that hadn't happened. Other than routine maintenance, we only replaced the AC over a 17 year period. Now she has a 2016 RAV4. We have had similar experiences with our other cars.
But the simplest, perhaps oversimplified way I’ve seen a lease explained. And this from car dealer. Leasing is simply agreeing to buy the car today at $X. And selling the car back at $Y. Over Z months. Pre arrange s purchase and sale, that’s it. Always found it an interesting way to think about it.
But the simplest, perhaps oversimplified way I’ve seen a lease explained. And this from car dealer. Leasing is simply agreeing to buy the car today at $X. And selling the car back at $Y. Over Z months. Pre arrange s purchase and sale, that’s it. Always found it an interesting way to think about it.
The thing is this: the biggest car depreciation is in the first 3 years. Leasing for those three years is almost always cheaper than buying those three years. Sometimes significantly so.
But the later years are much cheaper years. When you lease, you never get the benefit of those years. You just keep paying for those three expensive years over and over.
That's not to say leasing is wrong. It makes 100% sense if you can expense the payments in a business. And even if not, if you've decided you only want to own a late model car and want a new one frequently, then a lease also makes more sense. But it costs you vs. buying and keeping.a car for 8+ years. A lot of leasers have sold themselves with the idea it's cheaper overall, and they're just lying to themselves.
For myself at least it works out and saves me money in the long run.
It all comes down to cost per mile to drive the car. Everything is factored in. Cost to purchase, fuel, insurance, etc.
It all comes down to cost per mile to drive the car. Everything is factored in. Cost to purchase, fuel, insurance, etc.
Cool! Yeah, Toyotas really hold their value. We bought my wife's 2000 echo for $13K in 1999. We drove it until 2016 until it got totaled. State farm gave us something like $3500 for it. I couldn't believe we got that much for a 17-year-old, entry-level car.
thoughts?
Buy a one or two year old vehicle you like. The price will be very good and payments low.
Let’s say you save $5k buying it a year old. So it’s $25k. You go to finance the car since most people do. And your interest rate is used vs new rate. So add at least 2% to your rate. Now you’re paying $400-$500 a year more in interest over five years. There goes half your savings. Or your monthly payment is $30-$40/m higher - either way you look at it.
You’ve also added a year or so of wear and tear on the car. You’ve eliminated 1/3 of the manufacturers warranty. You don’t know how the car was maintained or cared for previously. And at trade in, your car is a year older with 10-15k more miles on it costing you at least $1k.
So ultimately what was actually saved? Factor in dealer incentives, negotiating really well, etc. I don’t see the value or savings in getting a year old car “to miss out on the depreciation”
I've worked the math out, and the "per month" purchase cost over the time I own the car puts me significantly ahead of leasing. It's been worth it for me.
I've worked the math out, and the "per month" purchase cost over the time I own the car puts me significantly ahead of leasing. It's been worth it for me.
It can't even be close. Once a car is paid for (even assuming a 5-year loan), there is no way that any halfway decent reliable car is going to cost as much per month between years 6 and 10 as a lease.
Buying a car, especially a used car, is by far is a better value - even if you factor in some minor repair costs you may have to deal with inevitably in the car's later years. The math isn't really that difficult to do.
Leasing makes sense only if you expect to relocate a lot, or if money isn't a factor and you want the luxury to turn in a car before having to change the tires and brakes.
$35,000? Are you will willing to drive it 70,000 miles? How long will that take you, and do you want to drive that car that long?
Personally, I multiply it by 3 because I'm greedy. Buy a 40,000 car cash and drive it 120,000. Pretty cheap.