Thread Number: 63535  /  Tag: Other Home Products or Autos
New Vechicle - Own Or Lease?
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Post# 861067   1/10/2016 at 16:27 (441 days old) by Launderess (Quiet Please, There´s a Lady on Stage)        

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We've never had a serious chat about owning a new car versus leasing so.....

Around the table for holiday friends and family events topic always turns to who is driving what. Leasing has been popular with the younger set but the old timers prefer to pay cash or perhaps have small note that is paid off ASAP.

Personally think leasing is great because you can drive something new every few years. You are also getting rid of something while it is still under warranty so no nasty surprises.

Discuss amongst yourselves....





Post# 861068 , Reply# 1   1/10/2016 at 16:40 (441 days old) by wayupnorth (On a lake between Bangor and Bar Harbor)        

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Being a former car salesman for a short time, it totally depends on what you want. If you want a new vehicle every 3 years and can keep the miles low, leasing may be good. But remember, if you exceed the mileage cap, you pay thru the nose plus any damages to the vehicle. If you are going to keep the vehicle after that, you have the option for buying the residual out. If you are going to run the vehicle into the ground (or at least past the point of break even on the loan) Buying may be the best. It all depends on your preference.

Post# 861070 , Reply# 2   1/10/2016 at 16:45 (441 days old) by chachp (Conway, AR)        
Leasing for me!

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I have been leasing since about 2001. It works well for me. I don't put a lot of miles on the car and I get to drive a new one every few years and I get to trade it before the warranty is up. The added bonus is I can afford a much nicer car than I could if I was buying outright. The best way to think about it is it's like putting a really large down payment down at the end if you decide to keep the car which I never do.

It's not for everyone but works very well for me.  I really anticipate hearing the comments on this topic because this seems to be one where people have REALLY strong opinions.


Post# 861071 , Reply# 3   1/10/2016 at 16:47 (441 days old) by Supersuds (Knoxville, Tenn.)        

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Post# 861073 , Reply# 4   1/10/2016 at 17:01 (441 days old) by drhardee ( Columbia, SC)        
Leasing = renting

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Leasing is the same thing as renting. I have leased a number of cars in the past quite successfully. I am an ideal leasing candidate; I'm "easy" on a car, I take care of it, and don't have a passel of chaps tearing things up and spilling ice cream all over the upholstery, etc. If you're confident that you won't exceed the mileage allowance, and if you prefer to drive a new car every few years, and the thought of never "owning a car" doesn't bother you, leasing allows you to drive much more car than you might otherwise be able to afford with monthly (purchasing) payments. You can lease a used car as well, though after awhile you're renting a car that might cost you serious money if it's no longer covered by a warranty.

Case in point: the 2014 BMW i3 that I drive daily. The retail price on it was $50,300.00. I decided to LEASE it primarily because:

~It was BRAND NEW technology,and covered for every bit of it's 3 year, 36,000 mile lease by BMW factory warranty (which is a 4 year/50K warranty). I can (and probably will) walk away from it at the end of the lease, or purchase it (refinance) for the $26,000.00 residual. If I walk away from it, there is a $350.00 "disposition fee" (for reconditioning), which will be waived if I lease or buy something else in the BMW family...which I may do.

~I put $2,000.00 down, and my LEASE payments are $454.00 a month; roughly the monthly price of financing a $20,000.00 car if I were purchasing it for 60 months. But remember, that $2,000.00 ain't BUYING me anything, it's reducing my LEASE payment. I could have put 0 down, but my lease payment would have been higher.

~There was also a Federal (and state) tax credit available to lessors and purchasers of this particular car, since it's alternatively fueled.

Purchasing that same car for 5 years would have been $5,000.00 down minimum, and more than $800.00 a month monthly payment. So not in the budget!

All those 20 and 30-somethings out there you see in those Mercedes and BMW's and Audi's and $50,000 pick up trucks? They're LEASING!

Because I'm a gadget freak (hey, I'm a member here, ain't I?!), I'll see what new whiz bang technology is available in 3 years. Maybe by then, a pre-owned Tesla will be affordable.

Buying a car makes sense if you plan to keep it for a long time. I purchased (not leased) my 2004 Mercedes station wagon, because I knew I was going to keep it 10+ years. It's not particularly "whiz bang" any more, and it's relegated to hauling 3 dogs to the vet and going camping occasionally. We also take it on road trips, outside the 60 mile "gotta recharge me" limit of the BMW.

As always, YMMV. My thoughts only..


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This post was last edited 01/10/2016 at 17:20
Post# 861076 , Reply# 5   1/10/2016 at 17:10 (441 days old) by DADoES (TX, U.S. of A.)        

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I bought the first new car on payments (my dad had to co-sign), kept for 6 years.  Next paid cash, kept 9 years.  Next paid cash, kept nearly 13 years.  Next paid cash, time in-progress.  I haven't had a monthly car payment since 1989.

Seems to me that leasing or renting something is always to the economic advantage of the owner/lessor, not the user/lessee ... otherwise it wouldn't be a valid business plan for the lessor.

Ideal scenario is pay cash for a car 2 to 5 years old, although I haven't gone the pre-owned route.


Post# 861084 , Reply# 6   1/10/2016 at 17:51 (441 days old) by Gusherb (Chicago/NWI)        

I drive a 2013 Nissan Altima, will have it 3 years on the 12th of this month. It's financed not leased... It's got 27k on it and I'm happy with it. Didn't start out so great, had lots of small problems like seat heaters not working right, and passenger seat belt squeak, brake light coming on etc but the dealer service department I go to is amazingly easy to work with and doesn't give me that "could not duplicate" BS every time I had an issue. They ended up fixing all that stuff. I wouldn't buy another one because of the problems I had, and I don't like what they did to the Altimas styling for 2016, but I like mine and will keep it for awhile longer. It still feels like brand new (and looks it too).

My mom started leasing starting with a 2006 Mercury Milan Premier (rebadged Ford Fusion). She got a high mileage lease and loved that car. It also didn't have a lick of trouble besides the lumbar knob breaking. Then she got a 2010 Fusion SEL V6, again high mileage lease (19,500). Car had a lemon tranny and toward the end of the lease other things went wrong like the A/C went out, plus it stalled a few times once on railroad tracks. Couldn't get anyone to buy out the lease either, so at lease end she leased a 2013 VW Passat 2.5 SE/w sunroof with only 15k a year. That car was slow and had quite a few very obnoxious nuances, but was reliable. She traded that early for a 2015 Hyundai Sonata Sport 2.0T back in June that she financed this time, already has 14k on it and plans to keep it awhile.

From the experience of watching my mom do it, don't lease if you drive a lot, don't keep the car in great shape, and don't like upgrading often.




This post was last edited 01/10/2016 at 20:25
Post# 861085 , Reply# 7   1/10/2016 at 17:51 (441 days old) by washer111 ()        
Family Always Owned Outright

We have always been taught to save for what we want, rather than borrow money - obviously because that costs you more and then you're investing on a depreciating item... Someone tell me a 2015 Camry is going to be "worth something" one day?

Current daily is a 1993 BMW with just over 124K miles - for what I'd paying leasing the BMW above - I can afford a year's insurance, Inspection 2 service (which is every 30K miles) and quite a lot of fuel for that price. In fact, the annual cost quoted would nearly pay this car's sale value each year.
Personally do some DIY where I can to save a bit and of course an older car can make it easier.

If I wanted new - I would purchase outright. Not that I've seen anything on the market here in 2016 that is visually appealing in the slightest... Seems we're obsessed with huge black grilles, squinty, angry-looking headlamps and other stupid design features.


Post# 861089 , Reply# 8   1/10/2016 at 18:07 (441 days old) by washman (Butler, PA)        
Buy

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Pay cash if I can otherwise get the shortest possible loan, pay it off.

I've never been one to go ga ga over a new ride every 3-4 years. Case in point, I have my 2005 Toyota-san title safely tucked away. Have not had a car payment since 2008. Sure I had to put some money into it this year like headlights and shocks, struts, but that is still cheaper than a car payment. What I would have paid for a car instead went towards a house; something much more valuable and has more opportunity to increase in value.

As washer111 said, think a Toyota is gonna really go up in value? They are a common as dirt in my area.

Also, I am not impressed with all the do-dads like GPS, touchscreen this, touchscreen that. Just like laundry appliances, the reach has long exceeded the grasp.

The millennials see it as a gotta have. I see it as a royal headache when, not if, it breaks. Besides, I don't like CVT transmissions and that seems to be the trend now.


Post# 861092 , Reply# 9   1/10/2016 at 18:10 (441 days old) by chachp (Conway, AR)        
Ha!

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All those 20 and 30-somethings out there you see in those Mercedes and BMW's and Audi's and $50,000 pick up trucks? They're LEASING!

 

Mine is an Audi but I am far from a 20 or 30 something! LOL!  I am on my fifth or sixth Audi.  I've lost count over the years.  But you're right I see it as renting.  I would have had to put down about $20K to get the payments I have!  That money is better off in my hands because I'm not going to keep the car anyway.


Post# 861095 , Reply# 10   1/10/2016 at 18:19 (441 days old) by delaneymeegan (Mary Richards lived here)        

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actually, we have. Thread 62555 in 'tub turns' forum.

Personally, I lease. ... but it hasn't made me 20 or 30 something again.





CLICK HERE TO GO TO delaneymeegan's LINK


Post# 861115 , Reply# 11   1/10/2016 at 20:03 (441 days old) by Xraytech (S.W. Pennsylvania, near Pittsb)        

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In October I decided it was time for a new car, I had nonpayment and didn't need a car but I was hell bent on one.
Originally I wanted to lease a 2016 Audi Allroad wagon, for a base model only adding heated seats the car was at $45k, had I added the back up camera, navigation etc it would have been about $54k.
I drive a lot so I'd of needed their maximum 15k mile a year lease.
Sadly on the base model for 42 months if if needed to put about $6k down on the lease to get the payment close to $500 a month.

I ended up going the certified pre-owned route instead and got a 2011 Audi A4 Avant wagon. It has the upgraded paint in the color I wanted, heated seats, tech package, navigation, and back up camera. My payments are $300 a month and I put less down than if I leased. Besides I find the A4 Avant to be better looking than the Allroad since it doesn't have that ugly contrasting color trim like the Allroad


While I do like a new car every 2 or 3 years in reality I am NOT a lease candidate. Living in a rural area my daily commute from home to gym is 25 miles, 18 miles from gym to work, then 21 miles from work to home, so that's roughly 65 miles a day, plus other errands and usually 2-3 days a week I go to the gym twice.
In barely 2 1/2 months of having my Audi I've already racked up about 5,500 miles so far.
With a 15k mile a year lease I'd be going a good 5-7k miles over a year.


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Post# 861117 , Reply# 12   1/10/2016 at 20:26 (441 days old) by washman (Butler, PA)        
Question

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what is the difference between used and "pre-owned"?

Post# 861118 , Reply# 13   1/10/2016 at 20:28 (441 days old) by gusherb (Chicago/NWI)        

I'm pretty sure, at least in my experience that "pre-owned" is a nicer way of saying "used".

Post# 861119 , Reply# 14   1/10/2016 at 20:29 (441 days old) by Xraytech (S.W. Pennsylvania, near Pittsb)        

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Used and pre-owned are the same thing.
However Certified Pre-Owned or CPO is a low mileage car that is a few years old and comes with an extended warranty from the manufacturers hat is very comparable to the warranty on a new car


Post# 861132 , Reply# 15   1/10/2016 at 22:19 (441 days old) by Launderess (Quiet Please, There´s a Lady on Stage)        
Certified Pre-Owned

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From BMW, Lexus, Audi, Mercedes-Benz, etc... are steps above a "used car".

These vehicles are gone over with a fine toothed comb, scrubbed up and so forth then offered for sale. As already mentioned they come with good to generous warranties and so forth.

Not every trade-in or off lease vehicle makes it into "certified pre-owned". Usually only best of the lot such as low miles, good condition, etc...

OTOH you can purchase used vehicles from car rental fleets that literally have been driven hard and put away wet.


Post# 861133 , Reply# 16   1/10/2016 at 22:59 (441 days old) by LordKenmore (The Laundry Room)        

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I'm pretty sure, at least in my experience that "pre-owned" is a nicer way of saying "used".

I think that is often the case. Obviously, as Launderess points out, some pre-owned cars, e.g., "Certified", are better than others.


Post# 861134 , Reply# 17   1/10/2016 at 22:59 (441 days old) by LordKenmore (The Laundry Room)        

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Although in a way "pre-owned" is stupid label. Wouldn't ANY car you buy be technically "pre-owned?" A brand new car would definitely have been owned by at least the manufacturer of said car.

Post# 861135 , Reply# 18   1/10/2016 at 23:01 (441 days old) by LordKenmore (The Laundry Room)        

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Note: I forgot to make any notation that line #1 in my reply (#16) was a quote. Sorry!

Post# 861136 , Reply# 19   1/10/2016 at 23:14 (441 days old) by wayupnorth (On a lake between Bangor and Bar Harbor)        

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Once a vehicle has a title from the manufacturer to the very first owner from the state it is considered used in the eyes of the law. The dealer then transfers the title from the vehicle manufacturer to the first owner. Dealers never have the original title as new vehicles are still owned by the manufacturer pretty much under a floorplan, thus giving them more incentive to sell them. As far as used, in this state, titles are transferred from the previous owner to the new one, dealer or not when it is registered.

Post# 861138 , Reply# 20   1/10/2016 at 23:32 (441 days old) by delaneymeegan (Mary Richards lived here)        

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"what is the difference between used and "pre-owned"? "

About 200 points on your credit bureau score.


Post# 861143 , Reply# 21   1/11/2016 at 01:09 (441 days old) by Gusherb (Chicago/NWI)        
On a related note

I don't think I would buy a used or pre-owned car unless it was certified (I feel like most used cars I've seen on dealer lots are), and came with an extended warranty. I'm seriously not a fan of the idea of buying someone else's lemon... And now onto a lemony note, I know someone who had bought a used 2002 model year Buick from a local Chevy dealer, and the car had apparently come with a warranty because the thing had a bad tranny that they couldn't get working right and gave the person loaners for 6 months.
I wish they weren't a Chevy dealer cuz I would give them my business for that kind of service in return. (To me Chevy is like the Whirlpool of automakers, and I don't care for Whirlpool if anyone hasn't noticed)


Post# 861159 , Reply# 22   1/11/2016 at 04:29 (440 days old) by alr2903 (TN)        

We have had new and used. When we buy preowned/used, it is usually one we would not want to pay full sticker price for brand new. When we buy used, we buy from a dealer and take the basic 1 or 2 year service policy on the engine and drivetrain. (usually covers bumper to bumper the first year). A




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