U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Automotive
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-24-2014, 08:28 PM
 
11,135 posts, read 11,198,532 times
Reputation: 3419

Advertisements

I have a 2010 Ridgeline that will be paid off in 2015.

I'd like to trade it in in 2015 when it's paid for.

I figure the truck will be worth 12-13K by that time (low miles). I hate like hell to pay that 9.5% state tax in Cali and so I'm considering a lease, but the lease world is an entirely different dimension than straight buying. Overall, if I'm just doing leisure driving 6K/year should I just bite the bullet and pay the tax on a 2015 Ridgeline or is leasing worth looking into. Am I a minnow swimming in a sea of sharks dealing with these leasing guys?
Reply With Quote Quick reply to this message

 
Old 06-24-2014, 10:39 PM
 
11,135 posts, read 11,198,532 times
Reputation: 3419
Sorry for the intrusion. lease is definitely out.
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 05:53 AM
 
Location: UpstateNY
8,612 posts, read 8,260,443 times
Reputation: 7522
pay it off and save up for a car you will be buying in 2020. No reason to trade so early.

There's a reason they call a lease a 'fleece.'
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 06:07 AM
 
18,140 posts, read 19,883,403 times
Reputation: 26577
If you drive very and little like a new car all the time and DONT mind endless payments a lease is for you. It's better if you have a business where you can deduct it. Leasing has a few pluses.

Otherwise IMO I would do what CC posted. I buy cash. Meanwhile while I drive that car I pay myself a car payment. When I'm ready to buy a car in 10 years or so I have cash. If I don't like something about the deal I still have my perfectly well running car AND my cash that goes home with me. Dealer can't hold me there because I'm not trading in my car and I already know exactly what I'm willing to pay out the door price.

I don't see why you're getting rid of a 5 year old car with 30k ( if you drive 6k a year) on the odometer. That's barely broken in. Unless you're loaded with cash, you're losing money. Not only on trade in, but new car depreciation and higher insurance. Not to mention registration fees.
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 06:25 AM
 
Location: NC
6,032 posts, read 7,532,115 times
Reputation: 6350
You still have to pay taxes on a lease here fyi
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 06:46 AM
 
Location: Westside Houston
1,022 posts, read 1,326,025 times
Reputation: 1890
Leasing a car is like leasing a house.

Lease a car, still gota pay for tax, registration, insurance , maintenance. Like its your car.

Leasing a house, still got to pay electricity, water, trash, mow the yard. Keep it in good condition. Like its your house.

But neither one will ever be yours.
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 07:15 AM
 
Location: Pikesville, MD
5,229 posts, read 11,921,079 times
Reputation: 4846
If you're the kind of person that changes cars every 3-5 years, you're always going to have a car payment anyway (or always be saving up for the next car) and never really own the car, so leasing can make sense, as you can get the same car for a lower cost. If you drive well over the mileage limits, then leasing does NOT make sense. If the car is new tech and owning it out ofwarratny is a bad idea, then lesing makes sense. If you're going to buy it and drive forever and want to work on it yourself, then leasing does NOT make sense.

For me, it depnds on the car. I've bought with cash outright, bought with traditional financing, an dleased, depending on which made more sense at the time. My current new cars are leased, as I am not planning on owning them long term anyhow and the lease rates are pretty aggressive. (The Volt leased for $300 a month with no down payment and taxes/title/registration rolled in). Since that car is not something I'd want to own out of warranty, but has everything I want in a commuter, then leasing made sense over buying it since buying it woudl have added a few hundred a month to the budget. The MINI Cooper is leased and used as a car for my wife's business, so we write off the lease on taxes. The Suburban was bought with cash outright because it was cheap.
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 07:51 AM
 
Location: Massachusetts
9,464 posts, read 10,189,765 times
Reputation: 13249
If anything, a paid off car with 30K miles is a good reason to just keep driving the car. That's when you start saving money by not having a payment.
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 08:13 AM
 
Location: Pikesville, MD
5,229 posts, read 11,921,079 times
Reputation: 4846
Quote:
Originally Posted by GT5Pantera View Post
There can be great business expense reasons to lease a vehicle, but I think it's a rip. some people lease a vehicle brand/highline/ they they could never really afford to BUY, or they have it covered by auto expenditure provided by their employer instead of a Company Car...so then of course who cares - plus most maintenance is free on most of these new high lines.

Again, there are advantages, but there are many more disadvantages to leasing.
Again, if you're going to be buying new anyway, then leasing makes sense. For my wifes car, I don't want to work on it out of warranty, so I want her to have the newest, safest, warrantied fun car she can get, and we write off the lease on taxes. For my commuter, I've changed cars so often in the past with paid off cars that leasing is really no different. If you're putting X dollars aside every month to save up for another car or spend X dollars a month on a car you already have, there's really no budgetary difference and "owning" the car ends up being a logical fallacy anyhow. I've bought with traditional financing and sold the car after the paymetns were up. So I never really "owned' the car anyway.

Other than my '63 Comet, I'm never going to own a car longer than 5 years. Just not going to happen as I like too many cars to settle for just one and settle for long term. Hell, I may even get rid of my Comet when I get it done and move on to another project. And, leasing the daily driver is a good disincentive to want to modify it... (since I tend to modify most of my cars...) And unless it's a project car, I don't WANT to work on a car out of warranty anymore. Been there, done that, way too often over the years on cars that had to get me to work the next day. Instead of scrimping and saving and pinching pennies to save money by working on a cheap used car myself, I did the opposite: worked hard and earned more money so I dont HAVE to. I'm not poor anymore and I don't HAVE to scrimp and save and count my pennies in some cheapskate finance class.

Quote:
Otherwise IMO I would do what CC posted. I buy cash. Meanwhile while I drive that car I pay myself a car payment. When I'm ready to buy a car in 10 years or so I have cash.
You're still budgeting a monthly payment AND you've used up your cash assets.
Reply With Quote Quick reply to this message
 
Old 06-25-2014, 09:11 AM
 
7,846 posts, read 5,268,296 times
Reputation: 4025
Never lease.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Automotive
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 03:32 AM.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top