Thoughts on leasing a car.

[amandad413]

Thanks for all of the advice everyone!!

Good thing, it was just the battery on the Jetta! She's purring like a kitten now! We'll be paying it off in four weeks and putting the payments we make towards it to a down payment on a car later down the road. I like the idea of leasing, but I also like the idea of owning my car outright. I don't necessarily need a new car, especially with working from home.

The jeep will be getting paid off tomorrow and we'll be looking to trade it in here in the next month or so!!

Again, thank you!

 

[Kitzka]

Just read through the thread and thanks for the update. I’m glad it worked out and was just the battery on your VW!

Happy to hear you will be making final payments on both cars soon and good luck in the new car to replace the Jeep.

 

[MrsPete]

Its truly different for everyone. I could never own a care because I would never ever take care of it. A leased car as long as its not dented and over miles, I drop it off and never think about it again. I think I've gotten 4 oil changes in 2 years and still have not cleaned it since i picked it up. In a year from know, i drop it off and go find something else, yes i have a payment but no stress about caring for it.

And you're okay with paying a premium-premium price to avoid car care chores?

 

[HeatherC]

If your car is still running and paid off and you only need it for the weekends, hang on to that baby as long as you can! Your wallet will thank you!

 

[tvguy]

I've only leased cars, I really don't find any draw backs as long as you don't go over the mileage. New car every 3 years and I literally can't remember the last time I've had a car break down on me or something happened that wasn't covered.

Only drawback to leasing is it the most expensive way to have a car. The rest of what you say is 100% correct.

 

[supersnoop]

When you buy a car, you negotiate how much you’re going to pay for it. When you lease a car, you negotiate how much you’re going to pay, how much you’re going to use it, the rate for financing, and how much it will be worth when you turn it in. In my experience, car salespeople are better negotiators since they do it every day, and leasing companies have much more information than I have to base determine the rate and residual value.

If you would legitimately trade in your car every three years, then you might come out even.

Keep in mind that you’re essentially financing the first three years of depreciation. You’ll get a better deal on a car that holds its value. A cheaper car might have a higher payment than a more expensive one.

 

[MikeNamez]

And you're okay with paying a premium-premium price to avoid car care chores?

I really don't see how its a Premium Premium Price for a 2016 car fully loaded under 200$ a month with 0 down. And yes, I'll always pay for convenience with anything.

 

[TheSouthernBelle]

And you're okay with paying a premium-premium price to avoid car care chores?

I agree, not sure how renting your car is more convenient, you can buy a car once every ten years and that would be more convenient than leasing every 2-4 years, less paperwork, less negotiating, less time in a dealership. Taking care of a car you own is just a part of life. I can't see not cleaning my car for months on end just because it was leased and not owned. Ownership status of the car you drive has nothing to do with how you care for it. I think leasing for most is less about convenience and more about just having a new car every so many years which is fine if that's what someone wants.

On the financial side, I can't see always having a car payment as a good idea for anyone. The never ending payment (plus more expensive auto insurance premiums) are less than ideal for most. Saving money is never convenient, if it was everyone would be wealthy.

 

[_19disnA]

I understand leasing and love it. For me, it works.

Same here. If you are going to keep your car for 7-10 years, you will also be paying for service/repairs on parts that wear out, some of which can be very expensive. So while you may no longer have a car payment, you will have repair bills that probably exceed the cost of lease payments. Older cars tend to also be less reliable as things wear out and do you want to chance getting stuck at the side of the road hundreds of miles from home? Hard to put a $ value on that. When I did purchase a car, the idea of trying to selling it to private parties I did not know was always a hassle. Having strangers come to my house and test drive the vehicle was always a concern to me. Dealers usually don't give you a very good price on your trade-in.

Leasing involves known costs and at the end of the lease, you just hand the keys back to the dealer. Vehicles with higher residual values will have lower lease payments. The dealer assumes the risk associated with setting a residual value.

There are costs/risks with either buying or leasing a vehicle and no one solution works for everyone. You have to consider all of those factors to see what is right for you.

 

[supersnoop]

you will have repair bills that probably exceed the cost of lease payments.

I don’t think that’s a fair statement. The vast majority of people will not have any major repairs in the first 10 years. Maintenance expenses shouldn’t come anywhere close to a lease payment.

 

[_19disnA]

Tires is one example as they wear out depending on mileage. There are various other wear/tear items as well. Rebuild of transmission or engine could be costly.

My main point was that purchasing a car doesn't involve ZERO future costs just because you have paid it off.

 

[tvguy]

Tires is one example as they wear out depending on mileage. There are various other wear/tear items as well. Rebuild of transmission or engine could be costly.

My main point was that purchasing a car doesn't involve ZERO future costs just because you have paid it off.

More than one co-worker has gotten hit with a bill for new tires at the end of their lease. So you do have to read the terms of your lease carefully. I just got rid of a 1987 Suburban that I bought news. I spent $10,000 over 31 years in repairs. 2 transmissions, a/c compressor, 2 water pumps, 2 radiators. That works out to $27 a month. And I had no payments for 28 of the 31 years I owned it.

 

[MrsPete]

I really don't see how its a Premium Premium Price for a 2016 car fully loaded under 200$ a month with 0 down. And yes, I'll always pay for convenience with anything.

Simple: You can buy the car for only slightly more, and then once the payments are done, you can continue to drive it (payment-free) for years and years. When you look at the long-term cost, renting a car is much more expensive.

Same here. If you are going to keep your car for 7-10 years, you will also be paying for service/repairs on parts that wear out, some of which can be very expensive. So while you may no longer have a car payment, you will have repair bills that probably exceed the cost of lease payments.

This hasn't been my experience. My 10 1/2 year old car has had tires replaced twice, brakes once, and an oil pan replaced once. Not nearly bills that "exceed the cost of lease payments". The car's still running perfectly; I anticipate it has at least five years left it it ... probably more.

More than one co-worker has gotten hit with a bill for new tires at the end of their lease. So you do have to read the terms of your lease carefully. I just got rid of a 1987 Suburban that I bought news. I spent $10,000 over 31 years in repairs. 2 transmissions, a/c compressor, 2 water pumps, 2 radiators. That works out to $27 a month. And I had no payments for 28 of the 31 years I owned it.

Yep, that's in line with my current car, which I described above. Every car I've owned has lasted about two years once I reached the "I think this car's going to die any minute" point. Maintenance really isn't the bug-a-boo that lease salesmen make it out to be.

My college daughter is currently driving the 1999 SUV I bought when she was a preschooler. It is beat up, but the engine is sound. It just won't die.

 

[BLAZEY]

I just got a new to me car (2015 Nissan Leaf w/ 30,000 KM) My payment is LESS than the lease of a NEW car and after 5 years it's mine. I got rid of my 2002 Acura that Had 245000 + KM on it and it was reliable for a good 10 + years after I had finished paying it off. I used what had been my car payment for savings, trips, maintenance, repairs, braces, and the start of a down payment for the new car. I enjoyed using my money for other things rather than always having a continuous car payment.