Welcome to City-Data.com Forum!
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 06-04-2014, 07:03 AM
 
Location: Westside Houston
1,022 posts, read 1,953,217 times
Reputation: 1902

Advertisements

Would you tell us what kinda car it is?
Reply With Quote Quick reply to this message

 
Old 06-04-2014, 07:41 AM
 
2,776 posts, read 3,951,107 times
Reputation: 3049
Quote:
Originally Posted by BubbyBobble View Post
Ok, I guess leasing is a bad deal. My car is shaking (the engine) really badly. Oddly enough it does this for a while, stops for a few months then continues again.

So my options now are to either buy a new car or fix my old one (that I'm still paying on). So if I fix my old one, it will be cool hopefully for a few months. BUT, the biggest problem is the amount repairs are. I can deal with one thing, but when I need a new CAM sensor, struts, battery (already replaced that), an alignment and possibly new tires it seems daunting.

I'm not sure if it's even the repairs themselves but the high cost of the repairs...at one time. I have school and internships to focus on and don't want to be stuck because my car hit the crapper.

The way I see it, the $200/mo payment I pay on my car is something I automatically calculate in my finances. It's like my cellphone bill where I need it to communicate. I still have money left after everything is said and done as discretionary spending and I'm not a big spender on anything else.

I like wheelsup's quote:




I'm trying to reduce my risk in terms of fixing problems. If I get a car with a warranty, I don't have to worry for the next few years in terms of the power train.

Note that I have no other major debt aside from school loans.


BTW, my car is over 10 years old and is over 130,000 miles.
I've bought used, bought new, and leased in the past. I've had vehicles I bought both used and new that had high repair bills and I've enough automotive/mechanical/troubleshooting knowledge that I can do my own work on my vehicles even though I've used dealerships and garages in the past to do repairs and diagnosis to save me time/effort.

OK, enough of the credentials

1) don't lease, ever. Leasing sucks because of several reasons; primarily that at lease term end you don't have an asset and throughout lease term you are using someone else's asset that you must take perfect care of (or be stuck with the bill to fix it). You are also told exactly how much insurance to carry (typically more than you would otherwise want to pay for), and you must pay for repairs and services not covered by warrantee during lease term. Additionally, everyone without exception thinks they will only drive 10k miles per year, but for a mysterious reason the real number with most leased cars ends up being higher. Not just for myself, but for friends and family, mileage driven on a lease became an issue. It's not a mystical or magical thing, but just a reality check... when you get a new car you want to drive it. It sucks to be paying on a lease but to be worried about accumulated mileage you will have to pay for at the end of the term! There is thus no peace of mind when leasing; during or at the end.

2) You said you have a 10 year old car with 130k miles - but I haven't read what make and model you have and whether the vehicle has ever been in an accident. Those things make a huge difference as some vehicles can safely go over 200k miles these days while others peter out at 100-120k. Seasoned mechanics know these make/model endurance numbers and you will want to find one to ask.

3) I can deduce that you purchased the vehicle used as I don't know of any 10 year lease or 10 year purchase term lengths. You bought an old car and still have a little less than $2000.00 for payments on it and you are facing a ~$2000.00 repair bill. Important unanswered questions are what can you get for trade-in for this vehicle after repair and what can you sell it for today without repair (and can it be driven/sold without repair)?

4) I'm a fan of not coming out of college in massive debt, including automotive debt. If a seasoned mechanic tells you you have a vehicle which can potentially last another 100k miles, then fix your car (fix all the problems, not budget style but the right way using mechanic recommendations), and keep it and enjoy it. If you are told instead that the car is likely a money pit on its last legs; then find a dealership with new or used cars you like that will offer minimum value trade-in.

5) buying new vs used - A payment on a new car is definitely easier to stomach than on a used car as you know you have something that will run right, get free repairs for a while if it doesn't, and something that as the original owner you "generally" know what to expect. You pay for this peace of mind. If you can afford it, then do it. If not, then try to find a much better used car than you did last time. There are dealerships around me which only sell used cars that have had one owner, no accident history, and are less than 5 model years old. Generally, getting a car from such a dealership is good idea, or getting a used car like this from anywhere is a decent way to hedge your bets that you aren't wasting your money on a potential money pit. In any case, experiences vary tremendously and only you know what you can afford.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 07:55 AM
 
Location: Huntsville
6,013 posts, read 6,588,794 times
Reputation: 7031
Quote:
Originally Posted by BubbyBobble View Post
Ok, I guess leasing is a bad deal. My car is shaking (the engine) really badly. Oddly enough it does this for a while, stops for a few months then continues again.

So my options now are to either buy a new car or fix my old one (that I'm still paying on). So if I fix my old one, it will be cool hopefully for a few months. BUT, the biggest problem is the amount repairs are. I can deal with one thing, but when I need a new CAM sensor, struts, battery (already replaced that), an alignment and possibly new tires it seems daunting.

I'm not sure if it's even the repairs themselves but the high cost of the repairs...at one time. I have

BTW, my car is over 10 years old and is over 130,000 miles.
Those are extremely small repairs to make........ 130k miles is nothing on a vehicle so I'd recommend 2 things:

1) Get a second repair quote as there is no way it should cost $1,200 to fix the items you listed unless you factored in tire costs.

2) If you're in a tight, get a set of used tires (check for patches) and save some money.


I think too many people "factor in" a car payment now when it isn't necessary really. Vehicles last long past payoff if maintained so unless you just want something new all the time, you should get a lot of service out of the vehicle. I'd keep it.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 08:02 AM
 
Location: Keosauqua, Iowa
9,611 posts, read 21,135,113 times
Reputation: 13662
Quote:
Originally Posted by BubbyBobble View Post
Ok, I guess leasing is a bad deal. My car is shaking (the engine) really badly. Oddly enough it does this for a while, stops for a few months then continues again.

So my options now are to either buy a new car or fix my old one (that I'm still paying on). So if I fix my old one, it will be cool hopefully for a few months. BUT, the biggest problem is the amount repairs are. I can deal with one thing, but when I need a new CAM sensor, struts, battery (already replaced that), an alignment and possibly new tires it seems daunting.

I'm not sure if it's even the repairs themselves but the high cost of the repairs...at one time. I have school and internships to focus on and don't want to be stuck because my car hit the crapper.

The way I see it, the $200/mo payment I pay on my car is something I automatically calculate in my finances. It's like my cellphone bill where I need it to communicate. I still have money left after everything is said and done as discretionary spending and I'm not a big spender on anything else.

I like wheelsup's quote:




I'm trying to reduce my risk in terms of fixing problems. If I get a car with a warranty, I don't have to worry for the next few years in terms of the power train.

Note that I have no other major debt aside from school loans.


BTW, my car is over 10 years old and is over 130,000 miles.
So you're going to pay $15K+ for a new car to avoid paying $2K to fix your current car? Makes perfect sense from a financial standpoint.

Nothing in this post changes my opinion that your best bet is to fix what you've got and keep driving it at least until you're out of school and working.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 08:17 AM
 
Location: Texas
44,257 posts, read 64,046,055 times
Reputation: 73913
Quote:
Originally Posted by mbuszu View Post
1) don't lease, ever. Leasing sucks because of several reasons; primarily that at lease term end you don't have an asset and throughout lease term you are using someone else's asset that you must take perfect care of (or be stuck with the bill to fix it). You are also told exactly how much insurance to carry (typically more than you would otherwise want to pay for), and you must pay for repairs and services not covered by warrantee during lease term. Additionally, everyone without exception thinks they will only drive 10k miles per year, but for a mysterious reason the real number with most leased cars ends up being higher. Not just for myself, but for friends and family, mileage driven on a lease became an issue. It's not a mystical or magical thing, but just a reality check... when you get a new car you want to drive it. It sucks to be paying on a lease but to be worried about accumulated mileage you will have to pay for at the end of the term! There is thus no peace of mind when leasing; during or at the end. .
Mmmmm...no.

While in this case, I would agree that the op would be wise not to get involved in a lease, I disagree with everything else you've said.

Your car is rarely an asset.

In financial accounting, an asset is an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent value of ownership that can be converted into cash.

All your car ever does from day one is lose value. It's a liability. Even bigger one if you owe money on it. I think what you mean is that you will not have a physical piece of property, but one can argue whether or not that is a good or bad thing.

Disagree about insurance - I carry the same amount of insurance whether I own or lease a car. Btw, if you finance a purchase, you will also be obligated to purchase "more insurance." But I own my cars free and clear - and I still put the good insurance on them until they are fairly worthless.

I put 18k miles on my last 36 month lease.
I put 28k on the one before that.

Some of us keep our cars really nice no matter who owns them.

Of course you have to pay for repairs that are not under warranty. But what is that going to be? It's a brand new car. Even the paint is under warranty. The tires are under warranty. You'd have to pay whatever whether you owned the car or not.

The peace of mind that I get from leasing is knowing that at the end of the lease, any mechanical problems aren't going to be my problems. If the car is worth more than the leasing company thought, they owe me money. If the car is worth less than the leasing company thought, that's their problem and they are the ones who have to try to sell it at the crappy lower price. There is plenty of peace of mind in always driving a new car under warranty.

I also think that buying things with cash is the only way to go. Unless you can use that money to make more money in the long run. Then you should use the opportunity to use someone else's money to get stuff you want while you make money on your own money. Of course, this is not the point the op is at in life, but it is something to consider.

Do I have the money to buy any car I lease IN CASH? Of course. I would never attempt to own or financially get involved with something I didn't have the cash to pay for. But would I rather use my cash to make tons of money while my lease rate is 0.9%? Double of course.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 08:19 AM
 
662 posts, read 1,042,324 times
Reputation: 450
Quote:
Originally Posted by Chris V View Post
Would you tell us what kinda car it is?
Lol sorry, a 2002 Nissan Maxima.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 08:24 AM
 
662 posts, read 1,042,324 times
Reputation: 450
Quote:
Originally Posted by MrRational View Post
Fix your car AND pay off the loan.

Keep driving the beater until you can also fill up a car replacement fund.
Find a reliable mechanic. Listen to him (or her).

WHEN it is time to replace the car... do that without a loan.
*looks at username....looks at post*

I see what you did there...
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 08:36 AM
 
662 posts, read 1,042,324 times
Reputation: 450
Quote:
Originally Posted by duster1979 View Post
So you're going to pay $15K+ for a new car to avoid paying $2K to fix your current car? Makes perfect sense from a financial standpoint.

Nothing in this post changes my opinion that your best bet is to fix what you've got and keep driving it at least until you're out of school and working.
No, what I meant was it's $2k at once for repairs. Then I have to come up with that money at once no matter what if another problem happens again.

If I get a brand new car with a great 100k/10 yr warranty then I don't have to pay for a $2k bill. But keeping my car means I have to pay a bigger amount at any given moment. Let's calculate. 2k is 166/mo over the course of a year. That means I would have to save that much to repair my car. Yet if I were to buy a car now with my trade in it wouldn't be different than what I'm paying on my car AND I get to save 166 into my savings account at the same time.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 08:43 AM
 
2,776 posts, read 3,951,107 times
Reputation: 3049
Quote:
Originally Posted by stan4 View Post
Mmmmm...no.

While in this case, I would agree that the op would be wise not to get involved in a lease, I disagree with everything else you've said.

Your car is rarely an asset.

In financial accounting, an asset is an economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent value of ownership that can be converted into cash.

All your car ever does from day one is lose value. It's a liability. Even bigger one if you owe money on it. I think what you mean is that you will not have a physical piece of property, but one can argue whether or not that is a good or bad thing.

Disagree about insurance - I carry the same amount of insurance whether I own or lease a car. Btw, if you finance a purchase, you will also be obligated to purchase "more insurance." But I own my cars free and clear - and I still put the good insurance on them until they are fairly worthless.

I put 18k miles on my last 36 month lease.
I put 28k on the one before that.

Some of us keep our cars really nice no matter who owns them.

Of course you have to pay for repairs that are not under warranty. But what is that going to be? It's a brand new car. Even the paint is under warranty. The tires are under warranty. You'd have to pay whatever whether you owned the car or not.

The peace of mind that I get from leasing is knowing that at the end of the lease, any mechanical problems aren't going to be my problems. If the car is worth more than the leasing company thought, they owe me money. If the car is worth less than the leasing company thought, that's their problem and they are the ones who have to try to sell it at the crappy lower price. There is plenty of peace of mind in always driving a new car under warranty.
hmmm well I disagree with nearly everything you have stated! Let's see:

1) I don't know what you are talking about regarding "financial accounting" but in general personal or business accounting and on my financial balance sheets for my personal and business taxes, loans, credit profiles, property leases, etc, one's automobiles are listed as ASSETs. In your world, perhaps it is different, but I've over 25 years of business and tax filing experience revealing otherwise. You are correct, automobiles as assets generally depreciate in value, and that is exactly why they tend to be poor investments. I wasn't talking about investments though.

2) The insurance argument you presented has no relevance to what I stated. The minimum insurance coverages for a leased vehicle will be dictated by the leasing/financing organization. If you pay for the same coverage when you own a car outright, that's your prerogative. I wouldn't/don't do that, but each to their own.

3) Continue to enjoy your lease, as with #2 that is your prerogative. You drive unusually low miles on your vehicles - that's your choice as well but I don't think it represents a typical young college-aged or slightly older person living in the US, I think instead it is more representative of someone who is near retirement aged or who lives in an area where everything is walking distance. Years from now I'd be really curious if you still have the same opinion. Once I finished and bought my vehicle post-lease and had the advantage of 20/20 hindsight, and a lot more experience and research on the topic under my belt, my opinion changed. Outside from my own lease experience, I have yet to meet anyone who has ever had a lease full-term express how they would do it again and I've known several people/families that tried out leases. I don't know everyone, but I'm just saying in my circle of friends and family this what I have heard/found and it resonates with what I experienced as well.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 09:14 AM
 
Location: Keosauqua, Iowa
9,611 posts, read 21,135,113 times
Reputation: 13662
Quote:
Originally Posted by BubbyBobble View Post
No, what I meant was it's $2k at once for repairs. Then I have to come up with that money at once no matter what if another problem happens again.

If I get a brand new car with a great 100k/10 yr warranty then I don't have to pay for a $2k bill. But keeping my car means I have to pay a bigger amount at any given moment. Let's calculate. 2k is 166/mo over the course of a year. That means I would have to save that much to repair my car. Yet if I were to buy a car now with my trade in it wouldn't be different than what I'm paying on my car AND I get to save 166 into my savings account at the same time.
You're ass/u/me-ing that the payment on a brand new car is going to be the same as the one on your current car. It's not, especially when you take a hit on the trade-in because your car has issues and they roll what you owe on your current car into the new note. Plus your insurance is going ot go up with a new car, and possibly your registration cost depending on where you live.

But it's pretty clear that you're looking for justification rather than advice, so just go and do what you want to do. It's your life.
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
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - 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, 36, 37 - Top