No, it probably just means you got some poor financial advice.
Either poor financial advice…or good advice and NOT listening to it.
Leasing is the absolute DUMBEST way to get into a car…FINANCIALLY SPEAKING.
Thanks, guys! I’m a big fan of the Mazda3, so I was thinking of trying to get a 2005 or 2006 (I’m not looking to buy until next winter, ideally) as it comes off a lease.
I guess what I’m worried about is someone who has the attitude that because they’re not keeping the car indefinitely, they don’t need to spend the $100 a year to get the oil changed. Do car manufacturers require you to produce your maintenance records when your lease is up, and do the records get passed on to future buyers? I’m wary of purchasing a car without maintenance records.
Good question, I would call the local dealer and ask them. If the dealer serviced the car, they should have the records. If it was serviced elsewhere, I do not know if they require maintenance records for lease returns.
Wow, Craig, what world do you live in – where people can plunk down $60K cash for a new vehicle? Must be nice! But anyway, since you clearly need to have the last word and think you have the right to critique my financial decisions and that your way is the only way, have at it buddy. Enjoy driving around your old-a** cars around and I’ll just cry all the way to the BMW dealer when my CTS lease is up. At least there are other reasonable folks on this board who understand my rationale and aren’t such know-it-alls.
Hoff – to answer your question about the maintenance on leased vehicles, I’d venture a guess that the oil changes or other service may not be as frequent. I personally get the oil changed regularly, but probably am not quite as diligent as I’d be if I were keeping the car long-term. If buying at a dealer, perhaps you could get the service records.
Psanzone – your idea of buying an off-lease is something I’ve considered. However, these cars are usually still pretty expensive so the payments would be high. In addition, the technology changes so quickly, there’s usually some bell or whistle I want that’s only available on the new model (e.g., nav system, bigger wheels etc.). By the time the lease is up, there’s usually some new thing I want.
But whoever said you pay just as much leasing as you do buying is just wrong. I’m paying out about $20K over 3 years for a $45K car. I didn’t tie up money with a cash down payment. I could never afford a $45K car otherwise. The fact that I have nothing in the end just means I go lease another vehicle. But I know this really bothers some people who want to OWN something at the end of the 3 years.
You need to take a VERY BASIC finanial course at your local high-school. This is SIMPLE MATH here.
The ONLY part of your statement I agree with is “But whoever said you pay just as much leasing as you do buying is just wrong.”…You’re right…you pay a LOT MORE to lease a car then to buy one…A LOT MORE…
You’re paying out $70k+ OVER 10 years…that’s LOT more then you’d pay for a car you buught…
“Wow, Craig, what world do you live in – where people can plunk down $60K cash for a new vehicle? Must be nice! But anyway, since you clearly need to have the last word and think you have the right to critique my financial decisions and that your way is the only way, have at it buddy. Enjoy driving around your old-a** cars around and I’ll just cry all the way to the BMW dealer when my CTS lease is up. At least there are other reasonable folks on this board who understand my rationale and aren’t such know-it-alls.”
I live in a world where people actually save some money and don’t spend every penny they have on the newest toy. Not everyone manages money like my 12 year old (I’m working on it). Folks who can afford to lease a $60K car could probably afford to pay cash for a $30K car after a few years of saving, and avoid spending their entire lives in debt. If they do that for a decade, they might just find themselves in a position where they can pay cash for a $120K car. That’s what I’m trying to teach my 12 year old.
The $60K car was just an example, you can divide (or multiply) all the numbers by 2 or 3 if it makes you feel better. I was simply using an example that I happen to be familiar with. IMHO, if you cannot pay cash, you do not need to be driving a $60K car. If I choose to drive a new car, I would write a check. If I couldn’t afford to buy the car I wanted, I would wait until I could afford it; pretty simple, huh? I really don’t know anyone who has built wealth by borrowing money to pay for their toys. What do you have to show for that $50 or 100K you have paid in leases over the last 20 years?
Sorry if you don’t like my opinion, I was primarily interested in giving advice to the OP. As soon as I read that you had been leasing cars for 20 years, it was obvious that you have made up your mind. You are the one who posted your “financial decisions” on a public forum, I just decided to use them as an example for the OP. You should do whatever makes you happy. You can have the last word.
“Wow, Craig, what world do you live in – where people can plunk down $60K cash for a new vehicle? Must be nice!”
I will respond only to say that people who own cars for a longer period can typically afford to pay cash even upwards of $60k. Especially those who buy used cars cash starting small and building up by monthly saving.
I know several people who are worth well over 1 million - 2 million dollars net worth and all drive older cars worth between $5k-$10k.
Here’s an interesting article about Warren Buffett (the billionaire) who was driving a 2001 Lincoln Town Car when this was written in 2006. I guess he doesn’t need to impress anyone by leasing a new car every 2 years:
http://www.forbesautos.com/advice/toptens/billionaire/03-warren_buffett.html
“Sorry if you don’t like my opinion, I was primarily interested in giving advice to the OP. As soon as I read that you had been leasing cars for 20 years, it was obvious that you have made up your mind. You are the one who posted your “financial decisions” on a public forum, I just decided to use them as an example for the OP. You should do whatever makes you happy. You can have the last word.”
Well, yes, that’s what I was trying to do five posts ago but you just won’t let it die. I think you made it clear two pages ago to the OP that you thought leasing was a stupid idea. And I never advised him otherwise. But then you just HAD to get in that dig about my getting “poor financial advice” which I don’t remember asking for your opinion on. You are continuing to operate on the theory that people who lease are spending “every penny they have”. You are making an assumption that people like me don’t have homes, savings or any other assets because we spend “every penny” on the newest toy. You have no idea how much I make, spend, or have, but you continue to lecture me like your 12-year-old. But good for you that you feel so superior.
Since you’re quoting articles from Forbes Auto, Craig, why not include the link to their article on “Auto Leasing Do’s and Don’ts”? Including this excerpt:
When Does it Make Sense to Lease Instead of Buy?
A choice to lease or buy with a loan is largely one of personal preference and driving habits. If you typically trade for a new car every four years or less, drive less than 12,000 miles a year and keep your vehicle in good condition, you may be a good leasing candidate.
Especially among luxury brands, the best deals are often ones from the company’s own finance arm. Because they prefer promotional leases to giving rebates, companies such as BMW, Lexus and Mercedes-Benz often offer leases that have low interest rates, above-market residual values or both. The result is lower monthly payments.
If you are wavering between leasing and buying, we can help you decide. Read more advice in ?The Savvy Guide to Financing: How to Get the Most for Your Money.?
Uh-oh, Craig, better tell Forbes they’re giving out “poor financial advice”!!!
At least my 12 year old listens, sometimes. You are the one who seemed surprised that some folks can actually afford to pay cash for what they buy. I was simply trying to make sure that no-one who reads this thread gets the idea that leasing isn’t just about the dumbest (automotive) thing that anyone could ever do. Thanks for helping make the point.
As I said, you should do what you like.
P.S. I guess I lied about giving you the last word, sorry. (-;
That is horrible financial advice.
I can hardly wait for their next article: ?The Savvy Guide to Financing: How to Get the Best Payday Loan.?
I wasn’t surprised anyone would pay cash, just that a person buying a $60K car would pay cash. And somehow I’m thinking you’re not one of them… Oh and please, let’s not get into who has x millions and drives an old car.
I’m really sorry…I’m new to the board and didn’t realize you were Boss and your opinion is the only one that anyone should listen to. I’ll keep mine to myself from now on.
Nope, I can barely afford the electrons to type this. I’m really envious of anyone who can lease a new car, I’m so ashamed of my old cars…
Avalon welcome.
I think your taking it all too personally. I don’t read Craig58 attacking you personally nor being the boss. Every opinion posted here has the opportunity to be refuted. Its the way the board works.
Leasing works for you and thats that.
Craig58 is a nut who drives a 25 year old rolling relic but loves it.
Hey, I resemble that remark.
Really, I’m just bored, you should do whatever works for you.
And here I was driving a 43 year old relic… and loving it 
If I wasn’t getting into a house loan, I could probably afford a new Corvette
Well, I have a 26 year old car, a 25 year old car, and a 25 year old motorcycle at the moment (not to mention my 35 year old “endless project” car), so that adds up to 111 years worth of “relics.” Endless opportunity for fun.
So, to sum up Avalon and Craig’s discussion:
lease is good if you know you have a steady job, want a new car every 2~3 years and don’t mind indefinite car payments.
Buying is good if you plan to keep your cars for longer than 3 years and actually want something at the end of a loan.
pros:
new cars for as long as you want
cheaper monthly payments
cons:
nothing to show for your money after the 3 year loan is up
indefinite car payments
jobs change as do people’s lives
can’t get out of a lease as easily as a normal loan
types of cars one would normally lease would be high end Acura, Cadillac, Porsche, Benz, BMW. If you feel the need to lease something like an Accent or Civic, you should seriously reconsider your financial choices.
If you can purchase and keep a vehicle for at least 4 years, you can usually get out of it with a couple of thousand to put down on new, with a lower monthly payment. Do this 3-4 times, and you can do pretty well with a nice low payment.
We PURCHASED an '03 Trailblazer for an incredible price (dad worked for GM). $40,000 original MSRP. We got it for $25,500 with only 5K miles on it, loaded. I did my research ahead of time and figured that we should certainly be able to sell it after 1 or 2 years, and still come out ahead by about $6-$8,000, to put down on the next vehicle, of course. Had it up for sale for about 6-8 months, but could not sell even priced below KBB and NADA. Well, after 3+ years of driving this Trailblazer, we were only able to get $800 over what we owed for trade in. The “value” on these trucks dropped significantly. So, this “strategy” didn’t quite work out. Even today the KBB trade in value is only about $8500, and we’d still owe about $5500. (A 2002 has a KBB trade-in value of about $7000 today.) Which seems to be the only way to really come out “ahead”, assuming we didn’t have any major problems with a 5 year old truck with 90,000+ miles on it. (unlikely) So if we had kept the truck another 2 years and paid it off ($430x24mo.=$10,320), we MAY have been able to get about $6-$8000 back. Then financed $26,600 on the truck below for about $525/mo. (60 mo.)
I broke my vow to never lease a vehicle. We traded in our 2003 Trailblazer ($430/mo.) and leased an '07 Commander for 2 years at $508/mo. (=$12,200 over the 2 years) The payment on this vehicle, if purchased outright, would not have been affordable for us, about $670/mo. for 60 months. (Before all you GUYS out there start with the “buy a cheaper vehicle” comments, I’m married, and my wife REALLY liked this truck…) After 2 years the “buy-out” of the lease (the “guaranteed” value of the truck) will be about $22,000, (FYI, the $170 difference in payments =$3840 “saved” in that 2 years.)
Overall, yes, we’re paying more for vehicles by continually getting a newer one (either leasing or buying them) every 2-3 years, but our lease payments are about $150 less/mo. compared to buying (saving about $1800/yr. in payments). It’s very difficult to trade in or sell a 2-3 year old vehicle for what is owed on it at that time.