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Old 04-12-2016, 12:27 PM
 
Location: SW Florida
10,287 posts, read 4,862,753 times
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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.

I am a 61 year old widow who only starting leasing 2 1/2 years ago. My reasons for leasing are simple:


- I don't have to worry about breakdowns and expensive repairs once the car starts getting old because I'm driving a new one every 3 years


- My credit report looks better (if financing) because I don't "owe" that much on the car


- Depending on the dealer you can get into a brand new car with little to no money down.
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Old 04-12-2016, 01:20 PM
 
6,990 posts, read 6,985,767 times
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Thank you to all of you who have responded. We are planning to pay about $25,000 for the car. We will be using it for some trips--from GA to MD every year and GA to FL a few times. Mostly we'll use it for short local drives and some in-state weekend trips.

I am concerned about missing out on new safety features if we keep the newly purchased car a long time. My present Nissan, which only has 70,000 miles, is 16 years old and looks good, but is "out of style" and has a Takata airbag. So far Takata hash not recalled my model but I find it worrisome. So I'd like to avoid any type of safety issue in the future.

We plan to discuss all options before we make a decision.
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Old 04-12-2016, 01:27 PM
 
Location: NC Piedmont
3,911 posts, read 2,877,558 times
Reputation: 6291
We did a lease not all that long ago (around 3 years). The dealer priced it both ways - lease or buy - and even the lease contract was very clear in its terms that we were basically financing the anticipated depreciation. He said either way I would probably get an offer from them in under 2 years because they want then as CPO vehicles. Sure enough, we ended up trading the leased vehicle on a newer model and purchasing instead, partly because we decided we really do want a van for several more years even though the kids are older and not even all at home anymore and partly because we would have come out slightly ahead if we had been buying and accepted the offer.
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Old 04-12-2016, 02:39 PM
 
Location: San Francisco Bay Area
4,695 posts, read 2,543,648 times
Reputation: 9132
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.
As would I, though we are interested in luxury vehicles.
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Old 04-12-2016, 05:00 PM
 
Location: Jamestown, NY
7,841 posts, read 7,327,156 times
Reputation: 13779
Quote:
Originally Posted by Vision67 View Post
My mother in law leased a new Camry every 24 months until she stopped driving.

Advantages: Camry's never fail, they are cheap to lease because they have excellent re-sale value and cost only about $24K new. Her car was always in warranty so no worries about getting screwed having a car fixed. She only drove 5K miles per year so the dealer loved her.

Disadvantage: Costs more than buying. However, it was worth it for her piece of mind.
I think your mother-in-law had the right idea for an elderly person/couple who likes a new car every few years, doesn't put many miles on it, and wants no hassles about car repairs or even much maintenance. Yes, it would be cheaper in the long run to buy the car new and drive it forever, and cheaper still to buy a late model used car and drive it forever. However, there are sometimes more important things for retired folks to worry about than which is cheaper: fixed car expense, reliability, peace of mind concerning paying for unexpected repairs, etc. However, lease payments tend to be lower than purchase payments, and while there's the temptation to pay cash, is it wise to take $25-35k out of savings to pay for something that depreciates? For some, it's no big deal, but for others, it might not be wise. If it comes to the point where the person or couple can't drive any more, they just turn the car in and don't have to worry about selling it.

If I didn't put so many miles on my vehicles, I would definitely consider in leasing now that I'm retired.
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Old 04-12-2016, 06:49 PM
 
6,241 posts, read 4,725,740 times
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Quote:
Originally Posted by staywarm2 View Post
....

I am concerned about missing out on new safety features if we keep the newly purchased car a long time. My present Nissan, which only has 70,000 miles, is 16 years old and looks good, but is "out of style" and has a Takata airbag. So far Takata hash not recalled my model but I find it worrisome. So I'd like to avoid any type of safety issue in the future.

.........

Even if you want to get a new car every few years, it will still be cheaper to buy and then trade in or sell the old car. The lease companies definitely make money and to do so they cover the cost of depreciation and then some.
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Old 04-12-2016, 07:32 PM
 
Location: Columbia SC
8,955 posts, read 7,733,997 times
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Quote:
Originally Posted by staywarm2 View Post
Thank you to all of you who have responded. We are planning to pay about $25,000 for the car. We will be using it for some trips--from GA to MD every year and GA to FL a few times. Mostly we'll use it for short local drives and some in-state weekend trips.

I am concerned about missing out on new safety features if we keep the newly purchased car a long time. My present Nissan, which only has 70,000 miles, is 16 years old and looks good, but is "out of style" and has a Takata airbag. So far Takata hash not recalled my model but I find it worrisome. So I'd like to avoid any type of safety issue in the future.

We plan to discuss all options before we make a decision.
With you being comfortable with a 16 year old car and and not driving that much, I say purchase, not lease and keep the car for a long time. I drive a purchased new 2007 with only 50K mileage and I plan on keeping it.

I say finance it and buy creditor life insurance on it just in case.

Forget the Takata issue. That is just you looking for a justification to change cars.
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Old 04-12-2016, 07:41 PM
Status: "I am Blessed." (set 4 days ago)
 
Location: Spurs country. "Go, Spurs, Go!"
3,402 posts, read 3,964,576 times
Reputation: 8780
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.
Yep, that's me. My beloved 2001 Cadillac DHS just "bit the dust" last Thursday. I loved that car. My husband and I have almost always driven Lincolns or Cadillacs. We buy them "pre-owned" (read: used) when they are 2-6 years old, and drive them until they wear out. The key to keeping a car this long is to love the one you buy and not settle. There are still several that I miss. We leased once in our lifetime, a baby-blue Ford Pinto, hatchback, 1978, when leasing first became popular. Hated that car, couldn't wait to get rid of it. Luckily, a coworker bought it outright. Never again.
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Old 04-13-2016, 03:18 AM
 
14,260 posts, read 23,983,382 times
Reputation: 20058
When you are leasing a car, you are purchasing the use of a car for a specific number of miles over a specific period of time. In MOST consumer leases, you are purchasing 10-12k miles per year.

If you are only driving 5k miles per year, you are paying a tremendous premium for a limited number of miles.

If I was in this case - and I may be in a few years - I would purchase a new Toyota and keep it forever. The depreciation on those vehicles is relatively slow.
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Old 04-13-2016, 06:10 AM
 
Location: Colorado Springs
4,834 posts, read 4,949,965 times
Reputation: 17302
Quote:
Originally Posted by Linda_d View Post
I think your mother-in-law had the right idea for an elderly person/couple who likes a new car every few years, doesn't put many miles on it, and wants no hassles about car repairs or even much maintenance. Yes, it would be cheaper in the long run to buy the car new and drive it forever, and cheaper still to buy a late model used car and drive it forever. However, there are sometimes more important things for retired folks to worry about than which is cheaper: fixed car expense, reliability, peace of mind concerning paying for unexpected repairs, etc. However, lease payments tend to be lower than purchase payments, and while there's the temptation to pay cash, is it wise to take $25-35k out of savings to pay for something that depreciates? For some, it's no big deal, but for others, it might not be wise. If it comes to the point where the person or couple can't drive any more, they just turn the car in and don't have to worry about selling it.

If I didn't put so many miles on my vehicles, I would definitely consider in leasing now that I'm retired.
After reading through this string it surprised me that people make a big deal about it. For her, the cost of the monthly lease was about 3% of her monthly income.

Sometimes convenience and security are worth the tiny additional expense.
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