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Started By
Message
Leasing vs buying a vehicle
Posted on 4/7/23 at 11:49 am
Posted on 4/7/23 at 11:49 am
Pretty close to moving the wife's CRV for a mini van so that putting my kid in his car seat doesn't destroy my back anymore.
Every single place I've been to is really pushing leases hard vs buying.
Leaning towards a Hybrid Pacifica (Chrysler's will explode blah blah blah) though I have no idea if I'd qualify for the $7500 tax break b/c of the fluctuations in the stock market but for some reason if I lease I'd get the full credit taken right off the top of the lease price.
I've never leased a vehicle before so I was wondering what all the real world advantages are as well as the negatives.
Very likely would want to continue owning the vehicle after the 3 years are up so I'm wondering how that process works.
7
Posted on 4/7/23 at 12:21 pm to Dr RC
Leasing is good: do not drive a ton (10-15k/yr is the normal lease terms), want to have options in 2-3 years (lease term) but must do something (drop/purchase/sell), do not keep vehicles long term normally (want to not have a car payment in next 6 years), save on taxes (only pay taxes on depreciation amount/mo).
Lease is bad: lease rate is higher now than buy rates (from last few leases i looked at before i bought last week), if have a trade in you will not get tax credit toward a lease (only purchase), you are paying for ‘depreciation’ so you technically do not have equity, you will pay more interest if you do plan to keep long term (would be buying as a used car at end of lease to finance, versus usually lower rates for new car purchase. GL
Lease is bad: lease rate is higher now than buy rates (from last few leases i looked at before i bought last week), if have a trade in you will not get tax credit toward a lease (only purchase), you are paying for ‘depreciation’ so you technically do not have equity, you will pay more interest if you do plan to keep long term (would be buying as a used car at end of lease to finance, versus usually lower rates for new car purchase. GL
Posted on 4/7/23 at 12:24 pm to Dr RC
There is lots of talk on this board about the dealership “fleecing you” and whatnot. The dealership is GOING TO MAKE MONEY regardless. They are not a charity and will not get into a deal that is structured to lose money. So, let’s talk about what’s advantageous to YOU the buyer. that being said here is the bottom line:
Leasing is advantageous to you because it allows you to drive a new vehicle for less money because you’re paying for a part of the “loan” and not the whole price of the vehicle. While it is true that you don’t have an asset at the end of your lease term, automobiles are not really an asset and RARELY gain value. You will almost always be in an inequitable position on a vehicle you finance unless you come in with a huge down payment or you buy cash. Even then you will often lose money. Lease terms are also often the same as the manufacturer warranty term so when the vehicle is out of warranty you don’t need to keep it.
Downside is you don’t own the vehicle and you will always have a car note. Upside is you’re not pumping cash into a vehicle past its warranty and if you lease the car for a couple of years and you want something new you don’t have to come up with a pile of money to cover your inequity or down payment.
Purchase is obvious, you own the vehicle outright when you’re done paying for it. More expensive in the short term. It’s yours if it sucks or tanks if value, or if you actually end up with equity you get to take advantage of that.
Leasing is advantageous to you because it allows you to drive a new vehicle for less money because you’re paying for a part of the “loan” and not the whole price of the vehicle. While it is true that you don’t have an asset at the end of your lease term, automobiles are not really an asset and RARELY gain value. You will almost always be in an inequitable position on a vehicle you finance unless you come in with a huge down payment or you buy cash. Even then you will often lose money. Lease terms are also often the same as the manufacturer warranty term so when the vehicle is out of warranty you don’t need to keep it.
Downside is you don’t own the vehicle and you will always have a car note. Upside is you’re not pumping cash into a vehicle past its warranty and if you lease the car for a couple of years and you want something new you don’t have to come up with a pile of money to cover your inequity or down payment.
Purchase is obvious, you own the vehicle outright when you’re done paying for it. More expensive in the short term. It’s yours if it sucks or tanks if value, or if you actually end up with equity you get to take advantage of that.
Posted on 4/7/23 at 12:28 pm to Robertson coach
How many years till we start splitting or removing hold back?
Posted on 4/7/23 at 1:03 pm to Dr RC
Get a sienna. Mine has been awesome for the last 13 years. Still awesome.
Buy used to get the all gas motor. 3.5L.
If you have to buy new then check out the Honda or the new Kia Carnival MPV.
You won't be disappointed.
Sorry I could help with the lease question
Buy used to get the all gas motor. 3.5L.
If you have to buy new then check out the Honda or the new Kia Carnival MPV.
You won't be disappointed.
Sorry I could help with the lease question
Posted on 4/7/23 at 1:24 pm to thejudge
quote:
Kia Carnival MPV
Lol I refuse to call a mini van a multi purpose vehicle. That attempted rebrand of the segment ain't gonna get any push from me.
In my initial thread in the OT I mentioned that the Kia dealers have been such a mess that I kind of soured on them. I'm not really a fan of the Sienna interior and the Honda is super dull.
I get that people on this board have hangups w/Chrysler-Dodge-Jeep-Ram reliability but our other vehicle is a '14 Grand Cherokee that's been great and several other people have had no issues w/their FCA vehicles. My wife used to work for the post production house that did Ram commercials so a lot of her coworkers had them b/c they got an extra $500-1000 discount depending on the vehicle. She recently left her work from home job w/a tech company to go work at a Dallas advertising firm that also gets the old discount so that's an extra point in the Pacifica's favor as well.
This post was edited on 4/7/23 at 1:25 pm
Posted on 4/7/23 at 2:09 pm to Dr RC
quote:
Leaning towards a Hybrid Pacifica (Chrysler's will explode blah blah blah) t
Well, considering every single one of these has been recalled there is a reason for concern.
Posted on 4/7/23 at 3:37 pm to Dr RC
quote:
In my initial thread in the OT I mentioned that the Kia dealers have been such a mess that I kind of soured on them.
Yeah. I think they were the worst last year ripping everyone off with price over msrp. I have had 3 sorrento’s over the past 10 yrs and was pretty pissed last year when looking for a telluride.
Posted on 4/7/23 at 3:57 pm to NewIberiaHaircut
Meh. Plenty of vehicles get recalls. A lot of them aren't even their fault. For example, the Takata air bag recall is still ongoing and that hit a bunch of different manufacturers.
The big one w/the Pacifica was the recall over the battery fires but that has been fixed and ended up being due the batteries LG Energy Solution provided. Their batteries also had to be fixed w/the Chevy Bolt, Chevy Bolt EUV, Hyundai Kona EV, Smart ForTwo Electric, and Volkswagen ID.4 as well as w/some home solar panel systems.
quote:
Audi:
2006-2013 Audi A3
2005-2008 Audi A4 Avant
2006-2009 Audi A4 Cabriolet
2005-2008 Audi A4 Sedan
2010-2011 Audi A5 Cabriolet
2005-2011 Audi A6 Sedan
2009-2012 Audi Q5
2017 Audi R8
2008 Audi RS 4 Cabriolet
2007-2008 Audi RS 4 Sedan
2005-2008 Audi S4 Avant
2007-2009 Audi S4 Cabriolet
2005-2008 Audi S4 Sedan
2010-2012 Audi S5 Cabriolet
2007-2011 Audi S6 Sedan
2016-2017 Audi TT
2003-2011 Audi A6 Avant
BMW:
2008-2013 128i
2008-2013 135i
2008-2013 1 Series M
2000 323i
2002-2006 325Ci
2002-2003 325iT
2001-2011 325i
2001-2011 325xi
2002-2003 325xiT
2006-2012 325xiT
2000 328i
2006-2013 328i
2006-2013 328xi
2006-2013 328i xDrive
2001-2011 330i
2001-2011 330xi
2002-2006 330Ci
2006-2013 335i
2006-2013 335xi
2006-2013 335i xDrive
2009-2011 335d
2007-2013 335is
2002-2003 525i
2002-2003 530i
2002-2003 540i
2001-2013 M3
2002-2003 M5
2013-2015 X1 sDrive28i
2013-2015 X1 xDrive28i
2013-2015 X1 xDrive35i
2007-2010 X3 xDrive30i
2003 X5 3.0i
2003 X5 4.4i
2007-2013 X5 xDrive30i
2007-2013 X5 xDrive35i
2007-2013 X5 xDrive48i
2007-2013 X5 xDrive50
2007-2013 X5 M
2009-2013 X5 xDrive35d
2008-2014 X6 xDrive35i
2008-2014 X6 xDrive50i
2008-2014 X6 M
FCA (Chrysler):
2007-2008 Chrysler Aspen
2005-2010 Chrysler 300
2005-2010 Chrysler 300C
2006-2007 Chrysler Crossfire
2005-2010 Chrysler SRT8
2008-2010 Dodge Challenger
2006-2010 Dodge Charger
2005-2011 Dodge Dakota
2004-2008 Dodge Durango
2005-2008 Dodge Magnum
2003-2009 Dodge Ram 1500
2003-2009 Dodge Ram 2500
2003-2009 Dodge Ram 3500
2008-2010 Dodge Ram 4500
2008-2010 Dodge Ram 5500
Daimler Trucks North America:
2008-2009 Sterling Bullet 4500
2008-2009 Sterling Bullet 5500
Daimler Vans USA LLC:
2007-2008 Dodge Sprinter 2500
2007-2008 Dodge Sprinter 3500
2007-2014 Freightliner Sprinter 2500
2007-2014 Freightliner Sprinter 3500
2010-2014 Mercedes-Benz Sprinter 2500
2010-2014 Mercedes-Benz Sprinter 3500
Ferrari:
2010-2015 Ferrari 458 Italia
2014-2015 Ferrari 458 Speciale
2015 Ferrari 458 Speciale A
2016-2017 Ferrari 488 GTB
2016-2017 Ferrari 488 Spider
2009-2014 Ferrari California
2015-2017 Ferrari California T
2013-2017 Ferrari F12
2016-2017 Ferrari F12 tdf
2016 Ferrari F60
2012-2016 Ferrari FF
2017 Ferrari GTC4Lusso
2012-2015 Ferrari 458 Spider
Ford:
2004-2006 Ranger
2005-2006 GT
2005-2014 Mustang
General Motors (GM):
2007-2014 Cadillac Escalade
2007-2014 Cadillac Escalade ESV
2007-2013 Cadillac Escalade EXT
2007-2013 Chevrolet Avalanche
2007-2014 Chevrolet Silverado HD
2007-2013 Chevrolet Silverado LD
2007-2014 Chevrolet Suburban
2007-2014 Chevrolet Tahoe
2007-2008 GMC Sierra 2500
2007-2008 GMC Sierra 3500
2003-2008 Pontiac Vibe
2005 Saab 9-2x
2003-2011 Saab 9-3
2010-2011 Saab 9-5
2008-2009 Saturn Astra
Honda:
2001-2007 Accord
2001-2005 Civic
2003-2005 Civic Hybrid
2001-2004 Civic CNG
2002-2011 CR-V
2011-2015 CR-Z
2003-2011 Element
2010-2014 FCX Clarity
2009-2013 Fit
2013-2014 Fit EV
2010-2014 Insight
2002-2004 Odyssey
2003-2008 Pilot
2006-2014 Ridgeline
2003 Acura 3.2CL
2002-2003 Acura 3.2TL
2013-2016 Acura ILX
2013-2014 Acura ILX Hybrid
2003-2006 Acura MDX
2007-2016 Acura RDX
2005-2012 Acura RL
2009-2014 Acura TL
2010-2013 Acura ZDX
Mazda:
2004-2006 B-Series Truck
2003-2008 Mazda6
2006-2007 Mazda Mazdaspeed6
2004-2005 MPV
2004-2008 RX-8
Mercedes-Benz:
2005 C230 Kompressor
2006-2007 C230
2008-2011 C300
2008-2011 C300 4Matic
2005 C320
2006-2011 C350
2009-2011 Mercedes-Benz C63 AMG
2010-2011 E350
2010-2011 E350 4Matic
2011 E350 Cabriolet
2010-2011 E550
2010-2011 E550 4Matic
2011 E550 Cabriolet
2010-2011 E63 AMG
2009-2010 GL320 BlueTec 4Matic
2011-2012 GL350 BlueTec 4Matic
2009-2012 GL450 4Matic
2009-2012 GL550 4Matic
2010-2012 GLK350
2010-2012 GLK350 4Matic
2009-2010 ML320 BlueTec 4Matic
2009-2011 ML350
2009-2011 ML350 4Matic
2010-2011 ML450 4Matic Hybrid
2009-2011 ML550 4Matic
2009-2011 ML63 AMG
2007-2008 SLK280
2007-2008 SLK350
2007-2008 SLK55 AMG
2011-2014 SLS AMG
2012 SLS AMG Cabriolet
2013-2014 SLS AMG GT
2009-2010 R320 CDI 4Matic
2009-2010 R320 CDI 4Matic
2009-2012 R350 4Matic
2011-2012 R350 BlueTec 4Matic
Mitsubishi:
2004-2006 Lancer
2004-2006 Lancer Evolution
2004 Lancer Sportback
2006-2009 Mitsubishi Raider
Nissan:
2001-2003 Nissan Maxima
2002-2006 Nissan Sentra
2002-2004 Nissan Pathfinder
2007-2012 Nissan Versa
2001 Infiniti I30
2003-2005 Infiniti FX35
2003-2005 Infiniti FX45
2002-2004 Infiniti I35
2006 Infiniti M35
2006 Infiniti M45
2002-2003 Infiniti QX4
Subaru:
2003-2005 Baja
2004-2005 Impreza
2003-2008 Legacy
2003-2008 Outback
Toyota:
2003-2008 Corolla
2003-2008 Corolla Matrix
2004-2005 Rav4
2002-2007 Sequoia
2003-2006 Tundra
2002-2010 Lexus SC
Volkswagen:
2009-2014 CC
2012-2014 Eos
2010-2014 Golf
2010-2014 Jetta Sportwagen
2006-2010 Passat
2012-2014 Passat
The big one w/the Pacifica was the recall over the battery fires but that has been fixed and ended up being due the batteries LG Energy Solution provided. Their batteries also had to be fixed w/the Chevy Bolt, Chevy Bolt EUV, Hyundai Kona EV, Smart ForTwo Electric, and Volkswagen ID.4 as well as w/some home solar panel systems.
This post was edited on 4/7/23 at 4:00 pm
Posted on 4/7/23 at 4:08 pm to Dr RC
quote:
Lol I refuse to call a mini van a multi purpose vehicle. That attempted rebrand of the segment ain't gonna get any push from me.
Call it what ya want they are nice up close. They will be looked at when I replace this sienna... the all hybrid engines have me looking at other brands u less I go used sienna.
Posted on 4/7/23 at 5:48 pm to thejudge
Why do you want to avoid having a hybrid Sienna? It gets pretty great mileage.
Posted on 4/7/23 at 5:58 pm to RockinDood
quote:
While it is true that you don’t have an asset at the end of your lease term, automobiles are not really an asset and RARELY gain value.
But there is a salvage value at the end of the road when you sell your vehicle vs leasing which is zero.
Run a time value of money analysis and see which makes more sense and you'll have your answer.
Posted on 4/7/23 at 6:07 pm to Dr RC
quote:
Why do you want to avoid having a hybrid Sienna? It gets pretty great mileage.
Minivans already have a shite resell value.
Place on top having to replace batteries or trying to dump the van when it's time to change batteries.
We've had this van for 12 years.
It's like 8 grand to replace right now. We use our and put a ton of mileage on it as a family vehicle.
Posted on 4/8/23 at 8:52 am to Dr RC
quote:
Leaning towards a Hybrid Pacifica (Chrysler's will explode blah blah blah) though I have no idea if I'd qualify for the $7500 tax break b/c of the fluctuations in the stock market but for some reason if I lease I'd get the full credit taken right off the top of the lease price.
I have 2 vehicles with that drive train and it really works awesome fuel mileage wise if you mostly drive short trips. We will sometimes get over 1000 miles between fillups.
If you do get it let me know and I can send you a link to a lower price rapid charger. Well worth having.
Posted on 4/8/23 at 8:56 am to NYNolaguy1
quote:
But there is a salvage value at the end of the road when you sell your vehicle vs leasing which is zero. Run a time value of money analysis and see which makes more sense and you'll have your answer.
Leasing isnt for people that are keeping a vehicle for 10-12 years its for people that want a new vehicle every few years. Of you swap out vehicles alot and dont drive a shitload of miles then leasing can work.
Posted on 4/8/23 at 9:09 am to Dr RC
quote:
Very likely would want to continue owning the vehicle after the 3 years are up so I'm wondering how that process works.
This is what makes leasing not the right option for you.
Vehicles that generally lease well, do so because they have a high residual. If you want to keep the vehicle beyond the lease term, just finance the vehicle.
Will you be trading in another vehicle? In states with tax credits (like LA), you lose the benefit of that. Also, you risk any equity gained through that trade-in.
I can run an analysis for you that compares leasing vs financing, but I’ll need the details of your vehicle. MSRP, purchase price, residual value or %, tax rate, money factor, etc.
Posted on 4/8/23 at 10:17 am to Dr RC
If my kids are an age that a minivan is needed... I'm in no way leasing a vehicle where you pay for every ding, scuff, scratch, and stain at the end of the lease.
Posted on 4/8/23 at 2:49 pm to NYNolaguy1
quote:
But there is a salvage value at the end of the road when you sell your vehicle vs leasing which is zero. Run a time value of money analysis and see which makes more sense and you'll have your answer.
Which is why I stipulated about turning the vehicle over every few years as most people do. A car is a machine which is getting increasingly complex as time goes on. It will fail and it will break down and they will get more and more expensive to fix. If you’re keeping the car for 10 or more years and you’re one of those “drive it till the wheels fall off” people or you put 40,000 miles a year on it then yeah leasing is a stupid move. But if you are like the majority of people and just want a nice ride with some bells and whistles, you don’t drive a lot and you don’t want to be bothered by trying to keep a 20 year old car running then leasing is a good option.
It comes down to this imo; if you are likely to turn the car over in 3-4 years and you drive less than 15,000-20,000 miles a year leasing is the way to go. If you don’t fit in that category consider purchasing the car.
Posted on 4/8/23 at 7:30 pm to LSUtigerME
Appreciate the offer but at this point we've decided to back off a bit and see what happens w/the car market a little further down the line. The Pacifica will still get the $7500 credit after April 18 so the only drawback to not buying now is no longer a worry.
At the very least I figured out which car dealerships I'm not going to and that I will be financing over leasing. I was fairly surprised at how much better of an experience it was going to a CDJR dealership in the DFW suburbs as opposed to the ones in Dallas proper.
At the very least I figured out which car dealerships I'm not going to and that I will be financing over leasing. I was fairly surprised at how much better of an experience it was going to a CDJR dealership in the DFW suburbs as opposed to the ones in Dallas proper.
This post was edited on 4/8/23 at 9:28 pm
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