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About to lease a car...any tips before I pul the trigger?
Posted on 5/26/14 at 7:28 pm
Posted on 5/26/14 at 7:28 pm
Backstory:
We've got about every mile we can out of the wife's car but its gotten to the point where it's not safe for her to drive anymore. She's got 2 years left in her master's program before she starts working and contributing to household income. We need something to hold her over between now and when she can start work.
Basically, my thought process for going with a lease over a used car is this:
1) She drives about 5 miles a day total so she won't put many miles on it, which would keep us well under the 12,000/ year mileage penalty
2) 3 year lease gives us about a year between her finishing school and the lease term ending, which means we have options for our next car.
3) The residual value of the car would be still be great at the end of the lease term, considering the amount of driving she will (or won't) be doing. This leaves the option of buying the car after the lease.
The lease we are looking at is for a Mazda 3:
Requirements and Restrictions:
Down Payment: $1,840
Security Deposit: $0
Lease Cash: $0
Annual Mileage: 12,000
Lease is based on the 2014 Mazda3 Sedan i Sport with automatic transmission. MSRP as equipped is $20,290. $500 Dealer contribution is required for the $170 monthly payment. $2,010 is due at signing. Tax, tags and insurance are extra. Must finance through Mazda Capital Services.
The payment works out to $170/month.
I've never leased a car and I'm not sure how the whole process works. Do I just go into the dealership with the lease deal and say this is what I'm paying or is there room for negotiation? I feel like $170 a month is reasonable but if I can pay less then why wouldn't I?
We've got about every mile we can out of the wife's car but its gotten to the point where it's not safe for her to drive anymore. She's got 2 years left in her master's program before she starts working and contributing to household income. We need something to hold her over between now and when she can start work.
Basically, my thought process for going with a lease over a used car is this:
1) She drives about 5 miles a day total so she won't put many miles on it, which would keep us well under the 12,000/ year mileage penalty
2) 3 year lease gives us about a year between her finishing school and the lease term ending, which means we have options for our next car.
3) The residual value of the car would be still be great at the end of the lease term, considering the amount of driving she will (or won't) be doing. This leaves the option of buying the car after the lease.
The lease we are looking at is for a Mazda 3:
Requirements and Restrictions:
Down Payment: $1,840
Security Deposit: $0
Lease Cash: $0
Annual Mileage: 12,000
Lease is based on the 2014 Mazda3 Sedan i Sport with automatic transmission. MSRP as equipped is $20,290. $500 Dealer contribution is required for the $170 monthly payment. $2,010 is due at signing. Tax, tags and insurance are extra. Must finance through Mazda Capital Services.
The payment works out to $170/month.
I've never leased a car and I'm not sure how the whole process works. Do I just go into the dealership with the lease deal and say this is what I'm paying or is there room for negotiation? I feel like $170 a month is reasonable but if I can pay less then why wouldn't I?
9
Posted on 5/26/14 at 7:36 pm to iAmBatman
quote:
She drives about 5 miles a day total
Get her a bicycle.
Posted on 5/26/14 at 7:46 pm to iAmBatman
It is a mistake to lease.
Can't explain it all, just know I have family who is over finance managers for many dealerships when he is on property.
Good luck with whatever choice you make.
Can't explain it all, just know I have family who is over finance managers for many dealerships when he is on property.
Good luck with whatever choice you make.
Posted on 5/26/14 at 8:45 pm to iAmBatman
quote:
We've got about every mile we can out of the wife's car but its gotten to the point where it's not safe for her to drive anymore
is this your opinion or a mechanics?
Posted on 5/26/14 at 9:40 pm to iAmBatman
quote:
I've never leased a car
And I wouldn't start now.
Long story short, with a lease, you owe something but you own nothing.
Buy a used vehicle for $10K, finance it for 3 years at PenFex (rates are less than 1.99 %). At the end of 3 years, you'll have a vehicle that is in your name and "equity" built in it.
Posted on 5/26/14 at 10:22 pm to iAmBatman
I was in your shoes about 18 months ago. Wife's car crapped out with 10 months left in school...needed something to get her through. Ended up getting a $14k + tax 4Runner, and financed the entire thing. I sold after she was done with school for the amount I owed on the note. So basically just leased something for those 10 months.
Would have kept the 4Runner except she got a job 72 miles from our house so we went with the Jetta TDI.
Would have kept the 4Runner except she got a job 72 miles from our house so we went with the Jetta TDI.
Posted on 5/27/14 at 8:16 am to iAmBatman
quote:
About to lease a car...any tips before I pul the trigger
umm, don't do it?
Leasing a car is the dumbest thing a person can do, financially speaking.
Posted on 5/27/14 at 8:49 am to iAmBatman
i don't see what the big deal is on leasing if he's gonna be doing low miles and needs a cheap payment. ya'll act like buying a car is some investment anyways, it's a losing proposition almost anyway you look at it.
Posted on 5/27/14 at 10:13 am to iAmBatman
quote:
Would you want your wife walking 4 miles round trip anywhere in Baton Rouge?
Depends on the area.
quote:
And what about when it rains or she has run to an errand?
If the choice is between making due for the time being, or settling for a vehicle purchase/lease...I would choose the former. Ms. brgfather129 had her car finally die and we waited four months until the "right" vehicle came along. We made it work.
quote:
Not having a car is just not an option in Baton Rouge
You have a vehicle.
If you need a car, you need a car. I feel strongly that bad buying decisions are made when you NEED a car...you could slow the process down a little and make a more informed decision with your money, especially if it is tight. Walk/carpool/etc until the time is right and then pull the trigger when it makes more sense to do so.
Posted on 5/27/14 at 10:13 am to iAmBatman
I mean, that is a ton of money for going 2 miles each way. You lol'd at the bike suggestion but that's the kind of commute where a bicycle or even walking is actually feasible. That's what I did back when I was in graduate school (of course the internal combustion engine was a new and unproven technology at the time...)
The other option is you driving her, although that might not work for schedules.
The other option is you driving her, although that might not work for schedules.
This post was edited on 5/27/14 at 10:15 am
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