TR Custom Parts
Mark Hueffman - Owner
- Joined
- May 25, 2001
Want to pick up a new car for the wife and exploring the possiblity of leasing vs buying. Pitfalls??? Looking at Chevy Cruze, Dodge Avenger, Ford Fusion or Dodge Caliber.
Leasing vs. buying a new car??
- Thread starter TR Custom Parts
- Start date
Silver Fox
Well-Known Member
- Joined
- Apr 17, 2003
Mark,
Here is my thought - buy the car, and don't replace it for at least ten years. If you need to finance it, limit it to three or for years, and drive the car debt free for six or seven years.
This is the plan I have followed since about 1988. Saves a lot of money in the long run.
Rob
it really depends if you plan to keep it long time or change often.
Lease :There is no right answer if you changing often and if you do not exceed the max milleage then lease is good and you keep the burden of the resale value on the manufacturer. cough cough...Hello Chrysler you do not trust resale value of your cars because you do not offer leases....
the rule of thumb the more often you change car the more it is going to cost you...but with a lease the incertainty of the resale value is on the crapfacturer.
The less the vehicle is expected to depreciate, the better the lease deal is for you.
Remember purchase assets that appreciate and lease assets that depreciate.
Some people will tell you... with a lease the car is not yours.....false... try to stop your car loan payments after months Hello repo guy.
Loan: keep it 8 to 10 yrs and you will save...but choose a vehicle that is going the keep its value.
Ex
odge avenger and Dodge Caliber....... check the projected values on the BB.... it is like throwing money in the toilet. An average Caliber will sell at 7k after 4 yrs and a ****vic or other car that keep their value will sell at 9k after 4 yrs. Remember after 7 yrs the resale value gap will grow. Now you know why some manufacturers wont do leases again.
Lease :There is no right answer if you changing often and if you do not exceed the max milleage then lease is good and you keep the burden of the resale value on the manufacturer. cough cough...Hello Chrysler you do not trust resale value of your cars because you do not offer leases....
the rule of thumb the more often you change car the more it is going to cost you...but with a lease the incertainty of the resale value is on the crapfacturer.
The less the vehicle is expected to depreciate, the better the lease deal is for you.
Remember purchase assets that appreciate and lease assets that depreciate.
Some people will tell you... with a lease the car is not yours.....false... try to stop your car loan payments after months Hello repo guy.
Loan: keep it 8 to 10 yrs and you will save...but choose a vehicle that is going the keep its value.
Ex
odge avenger and Dodge Caliber....... check the projected values on the BB.... it is like throwing money in the toilet. An average Caliber will sell at 7k after 4 yrs and a ****vic or other car that keep their value will sell at 9k after 4 yrs. Remember after 7 yrs the resale value gap will grow. Now you know why some manufacturers wont do leases again.Dennis Kirban
Well-Known Member
- Joined
- Mar 5, 2009
All good advice....
Leasing works if you own other cars and you can write it off as a company vehicle something we did for many years with cars for my wife. You seldom beat the lease system by that I mean the buy out at the end of the lease is a great deal and the car is worth more than the buy it. I got lucky twice on back to back leases...we leased the 1987 Grand national in 1987 for my wife to drive....
end of the lease the buy out was $5500........I sold it for 15 grand....next up we leased the GMC Syclone my wife drove not just any Syclone but one of two GMC used for all the magazines think it was 009.....payoff was 9 grand again got 15 grand ....
after that my luck changed.... and we simply turned in the lease cars my wife drove....she never even came close to the allowed mileage per year...
I would not lease a low end car doesn't make sense in my book....
Cars you listed you could buy a 2-3 year old example and not take that new car hit....and if your lucky some of them still retain the non smoker new car smell....
we have not leased any cars in over 5 years now...
denniskirban@yahoo.com
Leasing works if you own other cars and you can write it off as a company vehicle something we did for many years with cars for my wife. You seldom beat the lease system by that I mean the buy out at the end of the lease is a great deal and the car is worth more than the buy it. I got lucky twice on back to back leases...we leased the 1987 Grand national in 1987 for my wife to drive....
end of the lease the buy out was $5500........I sold it for 15 grand....next up we leased the GMC Syclone my wife drove not just any Syclone but one of two GMC used for all the magazines think it was 009.....payoff was 9 grand again got 15 grand ....
after that my luck changed.... and we simply turned in the lease cars my wife drove....she never even came close to the allowed mileage per year...
I would not lease a low end car doesn't make sense in my book....
Cars you listed you could buy a 2-3 year old example and not take that new car hit....and if your lucky some of them still retain the non smoker new car smell....
we have not leased any cars in over 5 years now...
denniskirban@yahoo.com
Why not the new Regal?
