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vehicle: Lease or Buy?

Discussion in 'The VIP Lounge' started by hgroff, May 21, 2007.

  1. hgroff

    hgroff New Member

    Yep, its time for a new car. I have not leased in 15 years, and was considering this round of cars to be leased!

    things to consider:

    Do we have a business to write off the monthly payment? no

    The lease payment is almost 1/2 the loan payment on a short 2-3 year lease, a little more for longer of course.

    Do we drive less than 12,000 miles per year / per vehicle? yes

    Do we have great credit to secure the best lease rates? yes

    At the end of the lease we have nothing, and now your stuck in a leasing trap, because you have no auto equity to use towards the next vehicle.

    Do we normally keep vehicles short amounts of time? I do (this is the longest I have ever kept a car, 5 years. I would prefer 3-4 years!) ! Wife does not! her car is 9 years old and thats the one we would be replacing first. She's Ok with keeping it, its paid off and runs great, but for how long??? It is 9 years old! Plus she has 2500 - 5000 depending on how we get rid of her car, So what to do????

    Anybody else leasing here? Would love to hear your point of view.
     
  2. Alfer

    Alfer New Member

    I've never tried it..some folks love it, others don't.

    Have you done your homework (via Edmunds etc) to see what the pro's and con's are?

    Also, do you take excellent care of you cars inside and out? If not, you could get zapped pretty hard at the end of the lease.

    Alos, what model car is this and how much is it? What kind of rates are you getting?
     
  3. LarryB

    LarryB Active Member

    I always lease because I like to get a new car every 3 years, and a lease makes it easy. The only downside for me is that if I exceed the mileage, the price per mile is considerably more expensive than if the miles were built in at the beginning. However, BMW has a very good policy in which, within 3 months of lease-end, additional miles can be added on for only one cent per mile more than than if they were included in the original contract.

    I will add that a common comment is "I can't lease because I drive a lot of miles, and a lease would be too expensive." This is a fallacy; you pay for the miles either way - - if you own the car, it's value is far less at trade-in if it has excessive miles.
     
  4. Alfer

    Alfer New Member

     
  5. Alfer

    Alfer New Member

     
  6. hgroff

    hgroff New Member

    Alfer;

    I have been looking at picking up a new car for the wife for the last two years. I am ususally more decisive. At this time we are actually thinking two new cars one for me one for her. She's first though! We have two sedans right now, an Infinity g35 and a Ford Taurus. My plan is to get rid of her Taurus and get an SUV, but she doesnt want an SUV! So I thought I would let her get a new Sedan and I would get the SUV next year. Unfortunatley we have been waivering on this idea...... Two vehicles each $30,000 - $40,000 equals two moderately high payments, thats why the leasing question. It would make this project much more workable...
     
  7. Alfer

    Alfer New Member

    Sounds like a good plan...as long as you BOTH agree that you will baby the cars VERY VERY well from now to lease end...no scrapes, spills on seats/carpets etc...or at least budget to get a full detail at the end.

    So what two cars are ya getting?
     
  8. Alfer

    Alfer New Member

    You need to go to edmunds.com and look at the cars you like, then click on the "Buy it or lease it" calculator under the "Finance" tab...it's really helpful to show you what your savings or losses will be.
     
  9. DYohn

    DYohn Well-Known Member Donor

    I always buy. Sometimes I lose my ass sometimes I make out, but I have too much old-school midwestern farm boy in me to rent my cars. I do understand the logic of leasing, but I cannot bring myself to do it.
     
  10. LarryB

    LarryB Active Member

    Alfer:

    Another misconception: You pay for those scrapes, dents, spills etc. either way.
     
  11. LarryB

    LarryB Active Member

    David:

    Were you to try leasing, I suspect you would not go back to buying.
     
  12. CJ

    CJ Well-Known Member Admin War Zone Member

    Top Poster Of Month

    That's what my girlfriend used to say.
     
  13. hgroff

    hgroff New Member

    What cars?
    We started out looking at convertable roadsters; BMW Z4, Nissan 350Z, Honda S2000, then opened it up to convertables in general with the Volvo c70, briefly looked at an Mercedes SLK. The we went to the 2 + 2 coupes, g35 coupe, nissan 350 Z, BMW 330 /335 i, Audi A4, etc. Then we started shopping SUV's; FX35, Pilot's, 4 runners, etc. But last week I noticed that the new 2007 G35 sedan was out, and I love my g35, and new one has some really cool bells and whistles, biggest G35 engine to date, halogen curve tracking lights, very cool new GPS nav system, it even has a SD card slot to use with my extensive MP3 collection, very cool.
     
  14. cjd

    cjd New Member

    You don't pay for all that stuff if you drive the car into the ground. ;)

    Unless the Taurus really is showing signs of being an expensive repair bill to keep going, or the trade-in is really worth anything you care about, I'm not sure it does make sense for you to replace that. At ~$2k value and an old car, you can drop insurance way down.

    In fact, insurance is one of the places leasing can really bite you. Though of course, it's good to have adequate coverage.

    My wife has leased, never wants to do that again. Her old car was eight years old when she picked up the Prius, and her mom is now driving it. I have a 12 year old car I use regularly (also a 6 year old car).

    I think leasing doesn't make sense until you are driving cars that cost an arm and a leg, like a BMW. ;) Or an SUV.

    $40 fill-ups on a 12.5 gallon tank (was $3.69/gal for premium this morning) are making me wonder why anyone wants an SUV still. :p

    C
     
  15. Alfer

    Alfer New Member

    Wow that's gonna be quite a jump in monthly costs and insurance I'd bet..vs. a Taurus etc.

    So if you invested a little bit on fixing up the 9 year old Taurus and your car, are they in good enough shape to just keep them and save the $$$ you'd have to spend each month?
     
  16. hgroff

    hgroff New Member

    Yeah I agree with the gas issue, and thats why I would consider Hybrid if they had one in a car I wanted, Anyway sometimes you just gottat haul some stuff. I am sick of cramming stuff like my lawn mower, or bags of Mulch or weed and feed, into the trunk of my Infiniti!!!! I know I could pay home depot to deliver, it just a couple of bags etc......... but...........
     
  17. Michael

    Michael Junior Geek

    If you want a vehicle that gets decent gas mileage, is safe and will haul a ton of stuff you really need to consider a mini-van. They do all of the above much better then most SUVs.
     
  18. hgroff

    hgroff New Member

    Wow that's gonna be quite a jump in monthly costs and insurance I'd bet..vs. a Taurus etc.

    So if you invested a little bit on fixing up the 9 year old Taurus and your car, are they in good enough shape to just keep them and save the $$$ you'd have to spend each month?
    _________________

    Well yeah, the Taurus will probably last several more years and thats basically what the wife says. We spent around $700.00 last year on repairs, which isnt much for a 9 year old car. But I like new cars, plus how long will the taurus go before it needs something major????
     
  19. AndrewM

    AndrewM New Member

    The contract reads "normal wear and tear", that means you don't have to treat the car with kids gloves, you don't have to "baby" it, etc. Everybodies definition of "Taking care of" is different, but providing you're not accident prone and not a slob, normal wear and tear would be just that, normal.

    Most if not all of the lease calculators on buyer's guide type websites are absolutely horrible for calculating lease costs. They don't factor in any manufacturing deals, many times they don't allow you to factor in other costs (like interest rates), etc.

    This is important for some, most leasing/finance companies require you to carry 100/300 levels of liability insurance, you may or may not be there already, but that can have a drastic effect on your rates.

    Not that I want to discourage keeping an old car as it's by far the cheapest thing to do when it comes to cash flow. But from a long term view, after awhile you're dumping more and more money into the car than it's worth. And sooner or later something big will go wrong, which will affect whatever value the car has now, facing a $1.5k repair on a $2k car kind of sucks. Although at this point you've certainly gotten your money from the vehicle, so anything at this point is all gravy (so to speak).

    Andrew
     
  20. hgroff

    hgroff New Member

    My company blocks edmunds.com enyway. I will play with it when I get home tonight.
     

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