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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)
I had his exact hypothetical with an Audi A8L. Lease said car was worth 50K at the end, it was worth closer to 30K.....I left owing nothing and leasing company took the beating.
Here is a great numbers comparison on Leasing vs. Buying using a Lexus RX350:
Location: In a little house on the prairie - literally
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I used to consult to car dealers on how to increase their lease sales over outright sales, showing them why they could make $1000's of dollars more on the lease.
Take that for what it's worth. At the same time, I have not bought a new car for decades. I don't like payments, and my cars/trucks last me years with less or at least no more maintenance that those who buy new pay.
I used to consult to car dealers on how to increase their lease sales over outright sales, showing them why they could make $1000's of dollars more on the lease.
Take that for what it's worth. At the same time, I have not bought a new car for decades. I don't like payments, and my cars/trucks last me years with less or at least no more maintenance that those who buy new pay.
But what would I know, right?
The finance guy told me the sales guys like them because it makes the decision have 3 answers instead of 2 and it makes it easier to deal with people who just want to talk monthly payment. I asked him if they made more on one than the other and he dodged, but with an honest reply "Neither one is a hobby."
Location: In a little house on the prairie - literally
10,202 posts, read 7,916,433 times
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Quote:
Originally Posted by ReachTheBeach
The finance guy told me the sales guys like them because it makes the decision have 3 answers instead of 2 and it makes it easier to deal with people who just want to talk monthly payment. I asked him if they made more on one than the other and he dodged, but with an honest reply "Neither one is a hobby."
New car sales training 101: Get your customer to talk payments as quickly as possible.
[quote=MadManofBethesda;43688842]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. [/QUOTE]Mrs5150's 2002 Subaru Legacy is still going strong at 175K miles. We do not feel or perceive the need to buy a new car every three years.
New car sales training 101: Get your customer to talk payments as quickly as possible.
Because that is saying "Yes, if____" and in their minds everything after the first word is just noise...
In most deals there are 3 transactions - buying a new car, selling an old car and borrowing the money. They like having the payment number so they can play with the transactions to make it work. It is amazing to me how many people treat "I might have to go 60 months instead of 48 to get that payment" like it is a minor adjustment. Interest rates are so low these days that adding that year probably means the margin went up more than 10%.
You know, for someone with scant mechanical savvy or ability, who drives only 5K miles a year - they could buy an outright used Toyota, Honda, or Subaru of whatever flavor floats their boat, one about 5 years old with roughly 50K miles on it - no warranty at all - get it checked by a mechanic of course - you will find the occasional flood car or rebuilt wreck, although this is not very likely - one could drive it for at least 5 more years with just oil changes and maybe a set of tires, maybe brake pads. Sell or trade it whenever the mood strikes you, and lose very little money.
There is a slight chance that one such car might require expensive repairs during this second 50K miles of operation, but it's slight.
This would apply regardless if the buyer/driver is retired or young.
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.
Yeah I was about to post the same thing, especially when I saw the OP's follow up post. A lot of us fell into the trap of what we would do. But I still stand by my original comment that "as a general rule" there is no advantage to leasing. Obviously the OP is the exception with her finances to the general rule. And with her reasoning and financial position it makes perfect sense for her to lease even though it makes no financial sense.
You know, for someone with scant mechanical savvy or ability, who drives only 5K miles a year - they could buy an outright used Toyota, Honda, or Subaru of whatever flavor floats their boat, one about 5 years old with roughly 50K miles on it - no warranty at all - get it checked by a mechanic of course - you will find the occasional flood car or rebuilt wreck, although this is not very likely - one could drive it for at least 5 more years with just oil changes and maybe a set of tires, maybe brake pads. Sell or trade it whenever the mood strikes you, and lose very little money.
There is a slight chance that one such car might require expensive repairs during this second 50K miles of operation, but it's slight.
This would apply regardless if the buyer/driver is retired or young.
Good post. There are also good warranties available for used vehicles if you go to the right dealers (or non dealers in CarMax's case). I bought a 7 year old Honda that had done 35K from CarMax and was able to get a 100,000 mile warranty on it. The warranty did cost about $1,500 extra, but it beats the hell out of depreciation on a new 40K vehicle.
I had his exact hypothetical with an Audi A8L. Lease said car was worth 50K at the end, it was worth closer to 30K.....I left owing nothing and leasing company took the beating.
Here is a great numbers comparison on Leasing vs. Buying using a Lexus RX350:
Note that it shows 3 yr leases up against a 9 yr buy and drive.
Providing an example with actual numbers showing that leasing can be a better deal that buying still won't make a damn bit of difference to the anti-lease zealots. They're sure of their position and no amount of evidence to the contrary will ever get them to change their minds.
Leasing = bad
Buying = good
That's all that their minds will process regardless of the situation or circumstance.
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