lease vs financing a car (truck, Fiat, prices, Toyota)

[airics]

watch the movie "suckers" on youtube if you want to hear about leasing.. its hilarious... and true

[delgadobb]

Originally Posted by EA

But at the same time, how many people actually pay off and keep their new cars long term? Most people I know with new cars trade them in every 2-3 years.

I do. I guess I'm in the minority.

I like to joke that I drive the most boring car in the world, but it has the best feature - it's paid for!

An old girlfriend's dad worked for Chrysler & she insisted on having a new car every 3 years - despite the fact it was a disproportionate portion of her income. Her rationale was "I don't wanna be stuck with all the repairs when it's out of warranty & things go wrong." So, she signed up for a $600+/mo lease. Less than two years worth of her lease payments covered every cent of my new car (about 20-21 months). Since I've had my car for 7 1/2 years & about 81,000 miles, I'm on almost a six (6) year freeroll compared to the money she spent on a lease in 20-21 months. Put another way: If she turned in that car in 20-21 months, I've been driving for free for almost six (6) years in the time she has likely continued lease payments. That's $42,000 in the bank versus her continuing to lease a similar vehicle. In that time, I have (1) Replaced the battery & (2) Replaced tires at 52,000 miles. I installed a K&N air filter & do synthetic oil changes myself. It still drives like new. Couldn't be happier.

A car is a depreciating asset, I'm happy with a headache-free, reliable car. Someday when I have money to burn I *might* get a sports/fun car. Motorcycle first.

Obviously, if you can negotiate the right price & lease as well as write off the business expense, more power to you. To each his own. Personally, I can't ever imagine leasing. The only way I envision replacing this car is eventually with either a hybrid or possibly electric car if the distance hurdles are overcome.

[Croce]

Another tact would be to purchase an off lease 2014 luxury car. My friend just picked up a 2014 mercedes that listed for over 60k for 35k. It has 14,000 miles on it and came with a three year unlimited mile warranty as well as two years free maintenance. Mercedes was running a promotion. I thought it was a new car. Something to consider. However he did have to go to California to get it since Flecther Jones wouldnt deal.

[EA]

Originally Posted by delgadobb

I do. I guess I'm in the minority.

I like to joke that I drive the most boring car in the world, but it has the best feature - it's paid for!

I've had 3 new cars I don't want another one. I've had 61 cars, 58 were used. 55 were bought with cash. I am going back to paying cash. I would rather have an old paid for car than a new car the bank owns.

The longest I have owned a car is 2 years. I did want to keep my new truck for many years but I just couldn't swing those giant payments. The other new cars I would have eventually been bored with.
My next purchase will be an early 2000s 4 door truck, with cash of course.

[delgadobb]

Originally Posted by EA

I've had 3 new cars I don't want another one. I've had 61 cars, 58 were used. 55 were bought with cash. I am going back to paying cash. I would rather have an old paid for car than a new car the bank owns.

The longest I have owned a car is 2 years. I did want to keep my new truck for many years but I just couldn't swing those giant payments. The other new cars I would have eventually been bored with.
My next purchase will be an early 2000s 4 door truck, with cash of course.

That's a lot of cars! I think I've only owned a half dozen cars in my life. I tend to keep them around, taking care of them as well as possible & driving them until they croak (one got totalled when a deer jumped in front of it). I know you've had some freaky luck with your vehicles, tho.

Generally, I've been a used car guy as I also want to pay cash & not have a loan. This is actually my first new car but I got it for a used car price & paid cash (I had been saving for a while). Back at the end of December 2008 a combination of factors came together (new model year, big rebate, crappy economy, excess inventory & a paper copy of a friend's good deal on the same car.) I wound up negotiating off our friend's deal, still walked out of the dealership 3 times & eventually wound up with the previous model year's brand new Kia Optima that stickered for $19,500 for about $11,000 - about $12,500 out the door with TT&L. Never had a loan, paid in full immediately.

If I knew the car was going to be this good, I would've bought two of them - at least that's what I like to say. It doesn't do anything particularly well (i.e. not a racy sports car, doesn't get the mileage of a Prius); it also doesn't do anything poorly. Jack of all trades, master of none? Handles fine, air blows cold, CD/Stereo/Aux all work fine, PW/PL/cruise, steering wheel mounted audio controls very useful. Nothing too extravagant but everything I'd want. Just took it on a 4500 mile trip through 16 states & it was a gem.

That reminds me, time for another synthetic oil change ... cheap insurance to protect the engine & make sure it lasts a long time ...

[ElleTea]

The biggest mistake people make is thinking of a car purchase on terms of payment instead of the actual total amount of the purchase.

[ND_Irish]

Originally Posted by ElleTea

The biggest mistake people make is thinking of a car purchase on terms of payment instead of the actual total amount of the purchase.

As I said previously in this thread, whether you finance, lease, or pay cash, the only number to be focused on during negotiations is the actual selling price of the vehicle. Ironically, the point you make is also applicable to housing. Many people focus on the monthly payment when buying a house, and it is only when it is time to sell that they are concerned about the selling price. In both instances it is my opinion that failure to focus on the selling price is going to lead to a suboptimal outcome.

[ElleTea]

Originally Posted by ND_Irish

As I said previously in this thread, whether you finance, lease, or pay cash, the only number to be focused on during negotiations is the actual selling price of the vehicle. Ironically, the point you make is also applicable to housing. Many people focus on the monthly payment when buying a house, and it is only when it is time to sell that they are concerned about the selling price. In both instances it is my opinion that failure to focus on the selling price is going to lead to a suboptimal outcome.

When you lease a vehicle and pay lease payments for X amount of years, then buy the vehicle and make payments for X more years ...you are the dealership's favorite kind of customer! Endless payments!

Car makers advertise that way on purpose , of course. "$199 a month!" It's easy to think that's affordable, but the real amount is $30,000 or whatever.

[ND_Irish]

Originally Posted by ElleTea

When you lease a vehicle and pay lease payments for X amount of years, then buy the vehicle and make payments for X more years ...you are the dealership's favorite kind of customer! Endless payments!

Car makers advertise that way on purpose , of course. "$199 a month!" It's easy to think that's affordable, but the real amount is $30,000 or whatever.

Typically, buying a car outright, assuming the car does not suffer from major issues outside of the warranty, is the best option in the long run. However, there may be situations where leasing makes more sense for someone. I also would point out that if you pay cash for a car, there are some opportunity costs associated with locking up your cash in a rapidly depreciating asset. The most important point is that no matter which route one chooses to get a car the most important data point is the selling price of the car.

[OmegaSupreme]

i see some dealerships have advertised new vehicles at ridiculously low prices, about 30% off msrp or more.... fine print says 1 in stock... is this bait and switch practice legal in nevada?

Now that I think about it, the fine print that states 1 in stock actually protects them