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Old 04-12-2016, 10:42 AM
 
Location: Florida
4,356 posts, read 3,692,049 times
Reputation: 4084

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Quote:
Originally Posted by staywarm2 View Post
What are the advantages or disadvantages of leasing a car instead of paying cash for it when in retirement? We are in our early 70's and have the cash but are wondering if leasing would be a better option. We are planning on purchasing a mid-price auto.

I'd appreciate hearing your opinion and/or experience.
This could be you last car if you purchased and keep it in good repair. If you lease you are probably going to get several more cars and your total expense will be higher.

The only advantage I can see for you is if you can invest the cash you would pay out for the lease and earn enough, after taxers, to make the monthly payments and also earn enough to replace the car at the end of the lease.
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Old 04-12-2016, 11:07 AM
 
29,764 posts, read 34,851,819 times
Reputation: 11675
Quote:
Originally Posted by crusinsusan View Post
^I stopped reading at $85,000.

How's about a redo at $25-$35K with 15 years ownership. Retirees (ie: this forum) aren't likely to pay more than that on their fixed incomes. (Some very well off will, but most won't)
Most won't but the percentage that can. Income of 150k at age 70 puts you about in the 88th percentile of 70 year olds that leaves many a person at near and above it.
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Old 04-12-2016, 11:08 AM
 
58 posts, read 41,606 times
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I would normally be a staunch advocate of buying and holding over leasing, but there are huge technology changes in the works with regards to self driving cars, and additionally many seniors become less able to drive as they age. Bearing that in mind, I foresee a time when I would want to remain on the cutting edge of automotive technology - so I will likely lease then. But for right now I would likely buy a car that would last me 10-12 years until self driving technology becomes available.
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Old 04-12-2016, 11:08 AM
 
8,181 posts, read 11,902,987 times
Reputation: 17929
Quote:
Originally Posted by crusinsusan View Post
^I stopped reading at $85,000.

How's about a redo at $25-$35K with 15 years ownership. Retirees (ie: this forum) aren't likely to pay more than that on their fixed incomes. (Some very well off will, but most won't)
And I stopped reading at 15 years ownership.

It doesn't take a Mensa candidate to know and understand that leasing isn't practical for anyone who plans to keep their car for 15 years.

My post was in direct response to an individual who stated that as a general rule there was no advantage to leasing. I was providing an example of where that wasn't the case. In fact, unlike most anti-leasing zealots, pro-leasers readily acknowledge that there are plenty of times when purchasing a car is definitely the way to go.

Such as in your example of keeping a car for 15 years.
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Old 04-12-2016, 11:13 AM
 
Location: Charleston, SC
1,362 posts, read 764,777 times
Reputation: 2428
I always suggest that folks at least look into buying Certified Pre-Owned. These are usually just off lease, and have been certified by the dealer. If it needs brakes or tires.....Dealer installs them These cars are warranteed for up to 100K miles. And with a Honda/Toyota (or their upscale cousins Acura/Lexus) you can count on trouble-free miles even after the warranty runs out.

Any new car loses a big chunk of value the day you drive it off the Dealer's Lot. With CPO, you avoid that trauma. Financing terms are similar to new purchases. Or you can pay cash if you don't want to write a check every month.

I think it's worth looking into.
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Old 04-12-2016, 11:20 AM
 
29,764 posts, read 34,851,819 times
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For anyone interested there will be a Hyundai Genesis SUV in a few years. Perhaps as soon as 2018 and by 2020.
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Old 04-12-2016, 11:22 AM
 
Location: Nebraska
1,886 posts, read 2,297,215 times
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With only 5000 miles a year it would make much more sense to just buy it and drive it 10 years. It would save significate money. For at least half of the time you would be driving for almost nothing.
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Old 04-12-2016, 11:42 AM
 
29,764 posts, read 34,851,819 times
Reputation: 11675
Quote:
Originally Posted by RetireGuy View Post
I would normally be a staunch advocate of buying and holding over leasing, but there are huge technology changes in the works with regards to self driving cars, and additionally many seniors become less able to drive as they age. Bearing that in mind, I foresee a time when I would want to remain on the cutting edge of automotive technology - so I will likely lease then. But for right now I would likely buy a car that would last me 10-12 years until self driving technology becomes available.
Very, true I know folks who are going from buy and hold with cars to becoming short term and more upscale as they hit their senior years and seek the latest safety features.
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Old 04-12-2016, 11:52 AM
 
Location: Mount Airy, Maryland
10,459 posts, read 5,920,270 times
Reputation: 16141
Quote:
Originally Posted by MadManofBethesda View Post
And I stopped reading at 15 years ownership.

It doesn't take a Mensa candidate to know and understand that leasing isn't practical for anyone who plans to keep their car for 15 years.

My post was in direct response to an individual who stated that as a general rule there was no advantage to leasing. I was providing an example of where that wasn't the case. In fact, unlike most anti-leasing zealots, pro-leasers readily acknowledge that there are plenty of times when purchasing a car is definitely the way to go.

Such as in your example of keeping a car for 15 years.
Well since I was the poster you were responding to I'll just say as a general rule a new car does not cost anywhere close to $85,000. Not sure why you would take the time to write such a lengthy response that was worthless once you broke out that figure.
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Old 04-12-2016, 12:22 PM
 
Location: too far from the sea
19,824 posts, read 18,832,665 times
Reputation: 33721
Quote:
Originally Posted by FiveLoaves View Post
I always suggest that folks at least look into buying Certified Pre-Owned. These are usually just off lease, and have been certified by the dealer. If it needs brakes or tires.....Dealer installs them These cars are warranteed for up to 100K miles. And with a Honda/Toyota (or their upscale cousins Acura/Lexus) you can count on trouble-free miles even after the warranty runs out.

Any new car loses a big chunk of value the day you drive it off the Dealer's Lot. With CPO, you avoid that trauma. Financing terms are similar to new purchases. Or you can pay cash if you don't want to write a check every month.

I think it's worth looking into.
This. I've only bought one brand new car in my entire life. The depreciation after three years is tremendous. So I'll buy a good (check Consumer Reports, make sure I can see the entire repair records, make sure I buy from an honest dealer or just an honest individual, maybe someone I know) and get a great used car.

Some of the advantages are lower insurance rates--and in high tax states that's quite a savings--and low chance of being recalled from the market for some dangerous flaw.

One time we got a wonderful BMW from the dealership--used for ONE year by the dealer's wife! Although I was usually a Toyota gal and now we drive a "vintage" Saturn which we love. dh was an MG mechanic for a while and with the older cars, he can still work on them himself. With the newer cars, he says it's all computerized so you have to take it in for repairs. He still prefers to tinker with cars for the fun of it.

I'd always buy a good used car and have never heard anything good about leasing cars. Have heard horror stories about leasing, in fact.
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