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A little back story- we will be relocating. Just got rid of our 10 year old car (would cost too much to ship and needed work that we weren't willing to dump into a 10 yr old car) and now we only have 1 SUV now (5 years old, we bought brand new). My dh wants us to have a second car once we get out to CA. Initially we wanted to get a used car under $6k but after looking yesterday my dh feels it will be a waste of money because he said we'll get a car that either has a lot of miles or will need a ton of $$$ in repairs, as it will likely be older.
So, then we had the idea of getting a lease... Just a cheap lease (one of those $99/month or $120/month) so that he can have a dependable car to drive to/from work and the maintenance is included in the price (right? Isn't that how leases work? The dealership covers the cost of any major work needed to be done?). This would allow us to stay under the mileage since my dh would only use it to/from work.
Your husband sounds like an intelligent man. Please investigate the supposed evils of leasing. It is not the ABSOLUTE worst way to buy a used car. I have purchase two of my leases in recent history because the book was higher than the residual. (A Jeep and a Subaru). I have never paid for maintenance except for oil changes and assorted filters (but you would have to do that anyway). I have never been hassled at turn in or had a HORRENDOUS experience.
My college bound nephew just leased a Subaru Impreza (admittedly a stripped model) for $210.00/month with $500.00 down. That includes the first payment. The maintenance for the lease term is oil changes and an air filter. The monthly payment includes the sales tax, a savings of about $800.00 over an outright purchase (in his particular state).
With a world population over seven billion I assume everything is possible, but I have never seen a $2000.00 used car (purchased in an arm's length transaction) that I would trust with young children involved. And I've never seen a "cheap" used car with new brakes or, more importantly, the timing belt replaced (actually replaced anyway).
I know I said it earlier but a Safe (you don't have to drive down the highway with people pointing at your wheels), DEPENDABLE (My experience with Employers is they seriously frown on car-related tardiness), PRESENTABLE (No young towhead is going to ask if you want their family's "extras" at the local IN-N-OUT) automobile is going to cost $200/month. Every month forever.
Doesn't matter. It still adds several thousands of dollars to the cost of the lease (monthly payment goes up by $100). If you know you're gonna drive 18k miles over the allotted miles, you should NOT lease.
This is wrong. Adding additional miles does not increase the payment by that amount. As I previously said, leasing numbers make sense up to about 18,000 miles a year. After that, the numbers skew in favor of purchasing rather than leasing.
Doesn't matter. It still adds several thousands of dollars to the cost of the lease (monthly payment goes up by $100). If you know you're gonna drive 18k miles over the allotted miles, you should NOT lease.
My family just priced a few Subaru Impreza leases. From the get go I concede this is a relatively inexpensive car. The difference in monthly cost was $50/month going from 12k to 15k miles. That would be $1800 over the lease term.
You have to pay for the mileage one way or another, whether leased or purchased. If you go on NADA/KBB, etc the value of the vehicle is going to be reduced at least a thousand or two dollars adding those assumed miles (36000 vs 54000 miles in your example)
I agree leasing is not for everyone. If the OP is moving to California to use the automobile in the salmon fishing industry leasing is a bad choice. If the family wants a dependable car to go to work leasing is not much different than buying, with some unique advantages.
My experience with people who say "every lease is a mistake" are the same people who complained when color TV first arrived.................."B&W is better, color TV looks fake, how can I enjoy the ball game with that fake looking green grass, etc, etc.
Doesn't matter. It still adds several thousands of dollars to the cost of the lease (monthly payment goes up by $100). If you know you're gonna drive 18k miles over the allotted miles, you should NOT lease.
Of course it will cost more.
Just like in middle school ... please show your work -- that leasing break-even is at 12kmi.
Car leases are a business activity. It lets you expense the whole cost up front rather than amortizing. If you file a Schedule C or Schedule SE, you should look into it.
I have leased probably 8 different cars. I bought one in the past. I don't see any negative in leasing other then the miles issue but for me that is not a concern. For others if you go over mileage it does add up.
The lease deals you see advertised are often for employees or there is some other issue that the price will be a lot higher.
You do need to keep certain amounts for car insurance. At the end of lease there is usually a turn in fee if you don't buy the car. I think mine is 395. Also be careful about damage cause they will charge you when you turn the car in. Yes you have to do regular oil and tire rotation but even if you bought a car you would want to do this. Just make sure to keep your receipts.
I actually leased my car in So Cal but I knew my miles were going to be kept low. If you live far from work or will be take longer weekend or day trips you would want to consider this.
With a world population over seven billion I assume everything is possible, but I have never seen a $2000.00 used car (purchased in an arm's length transaction) that I would trust with young children involved. And I've never seen a "cheap" used car with new brakes or, more importantly, the timing belt replaced (actually replaced anyway).
I know I said it earlier but a Safe (you don't have to drive down the highway with people pointing at your wheels), DEPENDABLE (My experience with Employers is they seriously frown on car-related tardiness), PRESENTABLE (No young towhead is going to ask if you want their family's "extras" at the local IN-N-OUT) automobile is going to cost $200/month. Every month forever.
Have the best day.
This is just your experience, and preference, and despite your qualifier ...I assume everything is possible, you negate that statement by stating but... and I've never seen...
I am not saying that every used vehicle priced at $2K or below are worth the price, of course not, but that they are out there. I know this as fact as over the last 30 years I have only purchased one vehicle new; the rest--some 8 in total, were all used, all under $1K, and all solid vehicles except at purchase for the one that I purchased for $250 (an 80s model Subaru) that required a new clutch. I bought the clutch (~$200) and replaced it myself. Car drove like a champ after that. Another (a 2000s model minivan) I purchased for $200. Like the first it was priced so low because the owner thought the transmission was done for and felt bad considering it would cost over $1K to replace. It turned out to be the EGR valve, not the transmission, and a $70 part that of course I replace myself.
Some people sell based on "emotional value", some want the Kelly Blue Book value, and others will say I paid $30K for this car 10 years ago. I want nothing less than $20K for it dangit! While others will simply not see the costs of maintaining registration and insurance on a vehicle that they don't drive, let alone want, as a good idea financially. They are willing to sell "low" just to get the financial "burden" off their shoulders. Some people just don't care, too. So this idea that everyone selling a used car is out for $$$ is completely false.
Anyways, the OP mentioned the possibility of buying used in addition to leasing. My previous post was more to illustrate that the OP is going to be hard pressed to find a lease for $100/month without putting down a substantial payment upfront and that perhaps her husband should reconsider his stance on buying used. Personally, I see nothing wrong with leasing a vehicle if and only if it makes sense for the person to do so. Buying used can also make sense, too.
Our world perspective is based solely on our own experiences. I grew up with blue-collar parents who never bought new [vehicles] and who did all repairs themselves [yes, that includes my mother too]. I had an ex GF who was from a wealthy family. She did not grow up with the idea that vehicles needed oil changes because her family always had new vehicles. When she got her first car at 16, she drove it for three years before it died: the engine fried because she never once had an oil change during that time. To illustrate how this is possible, her mother, who is from New Jersey, was not aware that people actually pump their own gas in other parts of the Country. You can imagine her surprise as she waited in her car at her first out-of-State gas station for what amounted to a really long time before she realized no one was coming to pump her gas. We all live in or own bubbles. If you want to believe that it is not possible to purchase a good, reliable, with some new parts, vehicle for under $2K that is your business. Just don't go around telling other people it is not possible, though, as their own experiences will say otherwise.
This is just your experience, and preference, and despite your qualifier ...I assume everything is possible, you negate that statement by stating but... and I've never seen...
I am not saying that every used vehicle priced at $2K or below are worth the price, of course not, but that they are out there. I know this as fact as over the last 30 years I have only purchased one vehicle new; the rest--some 8 in total, were all used, all under $1K, and all solid vehicles except at purchase for the one that I purchased for $250 (an 80s model Subaru) that required a new clutch. I bought the clutch (~$200) and replaced it myself. Car drove like a champ after that. Another (a 2000s model minivan) I purchased for $200. Like the first it was priced so low because the owner thought the transmission was done for and felt bad considering it would cost over $1K to replace. It turned out to be the EGR valve, not the transmission, and a $70 part that of course I replace myself.
Some people sell based on "emotional value", some want the Kelly Blue Book value, and others will say I paid $30K for this car 10 years ago. I want nothing less than $20K for it dangit! While others will simply not see the costs of maintaining registration and insurance on a vehicle that they don't drive, let alone want, as a good idea financially. They are willing to sell "low" just to get the financial "burden" off their shoulders. Some people just don't care, too. So this idea that everyone selling a used car is out for $$$ is completely false.
Anyways, the OP mentioned the possibility of buying used in addition to leasing. My previous post was more to illustrate that the OP is going to be hard pressed to find a lease for $100/month without putting down a substantial payment upfront and that perhaps her husband should reconsider his stance on buying used. Personally, I see nothing wrong with leasing a vehicle if and only if it makes sense for the person to do so. Buying used can also make sense, too.
Our world perspective is based solely on our own experiences. I grew up with blue-collar parents who never bought new [vehicles] and who did all repairs themselves [yes, that includes my mother too]. I had an ex GF who was from a wealthy family. She did not grow up with the idea that vehicles needed oil changes because her family always had new vehicles. When she got her first car at 16, she drove it for three years before it died: the engine fried because she never once had an oil change during that time. To illustrate how this is possible, her mother, who is from New Jersey, was not aware that people actually pump their own gas in other parts of the Country. You can imagine her surprise as she waited in her car at her first out-of-State gas station for what amounted to a really long time before she realized no one was coming to pump her gas. We all live in or own bubbles. If you want to believe that it is not possible to purchase a good, reliable, with some new parts, vehicle for under $2K that is your business. Just don't go around telling other people it is not possible, though, as their own experiences will say otherwise.
Well first look at my initial post in this thread, I think its #8.
I'm a thrifty (some say pathologically cheap) blue collar guy too. We burn wood to heat, can, thrift shop............the whole deal. Have a circle of friends who collectively can fix almost anything. (Even have an M.D. in the group, he's probably handiest to have around ).
I qualified my statement in post #8 that unless her husband had an awesome set of tools, a lift, no HOA restrictions, was mechanically inclined, that an older used car could end up costing more than a $200/month lease. I also said a lease, without a down payment was not going to be $100/month. I'm going to stand by the premise that any safe, presentable, reliable car is going to pan out the be $200/month however you cut it.
The reason you can purchase a car for under 2k, and make it work, is because you have the mechanical skill and knowledge. The vast majority of people do not.
Because I care for my fellow humans I will restate - You cannot in an arms length transaction, purchase a SAFE, RELIABLE, PRESENTABLE used car for $2000.00 that will be less expensive than leasing a new car for 200.00 a month over a three year period driving 36,000 miles UNLESS:
You possess the kind of luck only found in novels;
Have a lift:
Are an auto mechanic;
Have an awesome set of tools;
AND Have neighbors who don't mind you spilling gas, oil and anti-freeze into the storm drain.
As I said earlier, in this infinite, chaotic universe everything has to happen.............. However, a good $2000.00 used car is a newspaper article above the fold.
Everyone have a nice weekend.
06-11-2015, 10:48 AM
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n/a posts
Quote:
Originally Posted by mangoarrow
Doesn't matter. It still adds several thousands of dollars to the cost of the lease (monthly payment goes up by $100). If you know you're gonna drive 18k miles over the allotted miles, you should NOT lease.
LOL. You're just making things up now. And for some utterly bizarre reason you're still harping on about driving 18,000 miles over the limit, which exactly zero people have suggested doing.
I do pay extra to have more miles. I think the difference between 12k and 15k was something like $10/month. It is vastly cheaper (about 4 cents/mile) than going over on the allowance.
So, then we had the idea of getting a lease... Just a cheap lease (one of those $99/month or $120/month)
If you can find this deal without putting money down on a new car please let me know where I can find this deal.
The lowest legit monthly lease price I've seen recently was $199 per month for a Chevy Cruze. (no money down)
I'm not sure if it was mentioned here yet, but if you own a business you can lease the car in the businesses name and expense it against business income. However, if you also use the car for personal use you will have to keep track of the mileage. (business vs personal)
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