Leasing requires you to alway have a new car and pay the new car depreciation, which is the highest depreciation a car ever sees. Unless somebody’s putting extra money in the deal, leasing’s more expensive than buying for the same period (the lease company has to make some $$), and much more expensive compared to buying and keeping for 10 years.
Read over the thread. It’s way more expensive to constantly plow money into a jalopy.
Nope, most reliable cars have maintenance costs a fraction of the depreciation. You seem to think a 10 year old car is a ‘beater’. Mine are clean, look great, well maintained, and have had few extraordinary repairs. Far from a ‘beater’.
I guess it depends on the jalopy. I have two of them which have been good cars thus far. Both of them look good for their age, although the $900 one looks a lot nicer than the $500 one. The $900 one is completely rust free, which is unusual in IL. I also pay $40 a month to insure both of my vehicles since there is no requirement to keep full coverage on a vehicle you own. My ex wife pays $145 to insure her luxury SUV, which is financed of course, so you also save on insurance by driving a car you own. I figure, for $450 a month, I can make an awful lot of repairs on my “jalopies” so long as I don’t have a requirement to be seen in a flashy new car (my bright red '98 F150 Super Cab is plenty flashy for my tastes, bordering on obnoxious for me). Of course, if you’re spending more than $450 a month on repairs to a vehicle you are trying to drive every day, the car in question has a lot of issues, and the owner probably does too.
Roll it over, in perpetuity, and you’ll be making monthly car payments in perpetuity. I haven’t made a car payment in 8 years. My car hasn’t needed a repair in four years. I guess that means I’ve saved at least $15,000 by owning my car.
@UsedEconobox2UsedBMW, I am guessing you don’t work in finance or accounting. You’re not very good with numbers. You see, if you keep your car in good shape by maintaining it and taking care of the occasional repair, it never becomes a jalopy.
@UsedEconobox2UsedBMW has been unsuccessfully trying to prove that Leasing is less expensive for a long time. @whitey and others are correct. Buy new/newer and just keep up with the PM…it’ll be far far far cheaper in the long run then leasing. Now if you’re like a couple of people I know who lease…they NEVER EVER do any maintenance. Just lease and after two years get another car. They don’t even change the oil. Now if they bought a car and maintained it the same way…then buying will be more expensive then leasing…but that’s just plain STUPID.
What I don’t understand is how anybody can try to make the argument that leasing is the better financial decision. Yes, leasing can be the lesser of two evils if you only consider limited options.
If UsedEconobox2UsedBMW prefers to lease luxury cars, I will stipulate that is the best decision for him and his particular situation. After all, he is spending his own money, and if he wants to drive luxury cars and never have to pay for another repair, well, someone has to support the banking and auto industries. It may as well be him. People like UsedEconobox2UsedBMW are padding the profits of the banking and auto industries so they can provide me with reliable low cost transportation and low interest loans.
Thank you UsedEconobox2UsedBMW for spending more than you have to. While you save money on repairs, you spend more overall because of ownership and maintenance costs. This gives the auto makers the freedom to sell economical low margin vehicles to folks like me, and I am grateful. You’re a one man bailout for luxury car leasers. What a guy!
@UsedEconobox2UsedBMW -
Your link points to a website which links to the actual lease company, which reports the price as $299/mo, not $259/mo. But that isn’t it - the $299/mo doesn’t include the $700 “bank fee” they state applies and sales tax. That deal is only good in NY state, where sales taxes are normally around 8%. So the $299 becomes $322.92 after tax, plus 1/18th of the bank fee, for a total of $361.81 per month.
That’s $4341.71 per year, provided you drive under 10,000 miles per year. The rest of the country is getting $319 per month with $1480 down for a G37 (not G37x) lease with similar terms, which means around $4815 per year with an undisclosed “disposition fee” at the end of the lease… and you’re still responsible for paying for maintenance on these leases and for repairing any damage that may occur in the meantime.
By contrast, my “rusted out 1998 Camry” has a blue book value that has actually increased by about $200 over the past year, and I’ve spent all of about $180 on maintenance and repairs in that time. That’s a bit low compared to previous years, but I’ve been averaging around $400 or so per year.
$400-$200 = $200 per year.
So which is cheaper again? The $4,341.71 per year or the $200 per year? The ONLY way your claim works is if the depreciation cost on a 1998 Camry is much higher than it is in reality or if the repair costs are much higher than most people see. A 1998 Camry is worth right around $3000 and it isn’t really dropping in value at all. Are the repair costs anywhere near $3000? In the overwhelming majority of cases, I’d wager no… I’d wager that the average repair bill per year for one of them is still under $1000.
i drive to many miles a year to lease a new car a low milage 4-5 year old car work sthe best for me.
Read over the thread. It's way more expensive to constantly plow money into a jalopy.
We have reread the thread. What you consider a jalopy is any car over 3 years old. And that is just plain WRONG. You’ve pulled numbers from thin-air to prove your point…but all you succeeded in proving is that you have no idea what you’re talking about.
I’m in business for myself, and even here leasing is much more expensive than buying and keeping the vehicle a long time. The only time it makes sense is when you have to have a new car every 3-4 years due toi “image problems”
I leased a car once, for just over a year when in sales. I knew I was going back to schoool, and could not justify a new vehicle while studying. I returned the car (it was a partial term lease form someone who had gone bankrupt), and bought a beater for my school years.