Author Topic: "Smart" Reasons To Lease Your Next Car  (Read 6125 times)

Phoebe

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icefr

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #1 on: March 07, 2013, 10:38:04 AM »
I have friends who lease cars and always want to drive the new shiny*. I really don't understand it.

*I realize that it may look like I do as well since I bought a new car, but at least I paid for it in cash and I bought a hatchback with great gas mileage and my maintenance costs have been cheap and I have zero plans to replace it, ever.

NumberCruncher

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #2 on: March 07, 2013, 10:38:45 AM »
"Leases have typically made up only 15% or 20% of the market. But this year, nearly 30% of new-car transactions will be leases, according to Tarry Shebesta, president of LeaseCompare.com, an independent leasing company. Thatís partly because carmakers are offering more incentives to lease so they can bring used cars back faster as well as boost their market share."

oof dah. 30% of new car transactions...

mm31

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #3 on: March 07, 2013, 10:39:34 AM »
At least the comments are smart :) .

Is  leasing is less expensive then renting from companies like Avis? Is it even possible to have a 1-3 month lease?

DebtDerp

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #4 on: March 07, 2013, 11:46:30 AM »
At least the comments are smart :) .

Is  leasing is less expensive then renting from companies like Avis? Is it even possible to have a 1-3 month lease?

Yes, all of the big rental places offer long term rentals (one month or more). Not sure on pricing for all of the places but I'm sure it won't be cheaper on a month to month basis compared to long term leasing (2-4 years). For example, in Seattle a long term compact rental is $110 per week (4 week minimum) plus the pretty hefty taxes (17.2% all combined).

Jamesqf

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #5 on: March 07, 2013, 12:07:18 PM »
At least the comments are smart :)

Yeah, loved this one:
Quote
It's kind of like buying a car, having it stolen after years of payments and then the thief sends you a bill for the wear and tear!

Forcus

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #6 on: March 07, 2013, 12:29:18 PM »
I could see it making sense. Not too long ago, there was, I think, a $179 / mo Nissan Altima lease with no money down and 12k miles per year. I had never ever ever considered or desired a lease but when I did the math, as a commuter car, it made more sense to lease than buy (another new / newer car), even at a lower price point. That being said, a cheap 3-4k car that never needs any maintenance was much cheaper for my situation, so that's what I drive now.

SnackDog

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #7 on: January 18, 2017, 07:44:44 AM »
In December GM was offering the 2016 Chevy Cruz for $37/month and $0 down!  24 months / 10,000 miles per year.   Can't do much better than that.

Just Joe

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #8 on: January 18, 2017, 07:48:17 AM »
Sounds like the Cruz factory needs to keep production rolling so they are just "giving them away" on lease?

HenryDavid

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #9 on: January 18, 2017, 12:38:13 PM »
My friend has 2 reasons to lease:
1. I don't know anything about cars and want one that's 100% covered by warranty etc.
2. I'm afraid to drive an older car in case it breaks down someplace and I'm stuck.

So my math says that the cost of ignorance and fear is maybe $5000/year more than getting a good used car and learning a wee bit about it.
A little bit of learning and attitude shifting could save a lot of dough.

Just Joe

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #10 on: January 18, 2017, 12:44:37 PM »
Your friend could have a spare car for that $5K extra they spend AND free towing.

We used our free towing this year for the first time. The main car broke, we parked it - and made the call. About an hour later I was following it home in our second car. I do all my own repairs so no big deal.

Could have had it dropped off at a mechanic's and just written a check for ~$??? and been done with it too.

gimp

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #11 on: January 18, 2017, 03:14:23 PM »
In December GM was offering the 2016 Chevy Cruz for $37/month and $0 down!  24 months / 10,000 miles per year.   Can't do much better than that.

Yeah, I was going to say that some electric cars have leases that are legitimately cheaper than owning even a fairly reliable used car. May as well, if you don't mind driving an econobox.

Chris22

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #12 on: January 18, 2017, 03:35:02 PM »
My friend has 2 reasons to lease:
1. I don't know anything about cars and want one that's 100% covered by warranty etc.
2. I'm afraid to drive an older car in case it breaks down someplace and I'm stuck.

So my math says that the cost of ignorance and fear is maybe $5000/year more than getting a good used car and learning a wee bit about it.
A little bit of learning and attitude shifting could save a lot of dough.

I'm guessing your $5k is pretty far inflated, unless your friend is leasing some pretty high-end iron, which, while potentially wasteful, is buying a different sort of benefit.  $5k a year suggests a payment of $416, which would have to be ABOVE what he'd pay as a baseline for alternative transport (amortize a car, maintenance and repairs, etc).

Frankly, to me if you want to drive a newer car inexpensively, a lease is a fantastic way to do it.  You pay, say, $200-250 a month for an Accord, which will always be in warranty, you'll never have significant repairs or maintenance (shouldn't need tires, brakes, etc).  Your costs are regular, repeatable, predictable, and never come with a surprise.  Sure, it will never be as absolutely cheap as the "$500 beater with barely any insurance" crowd, but it's probably not that much more, especially if you need regular reliable transportation.

Phenix

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #13 on: January 18, 2017, 07:41:04 PM »
My friend has 2 reasons to lease:
1. I don't know anything about cars and want one that's 100% covered by warranty etc.
2. I'm afraid to drive an older car in case it breaks down someplace and I'm stuck.

So my math says that the cost of ignorance and fear is maybe $5000/year more than getting a good used car and learning a wee bit about it.
A little bit of learning and attitude shifting could save a lot of dough.

I'm guessing your $5k is pretty far inflated, unless your friend is leasing some pretty high-end iron, which, while potentially wasteful, is buying a different sort of benefit.  $5k a year suggests a payment of $416, which would have to be ABOVE what he'd pay as a baseline for alternative transport (amortize a car, maintenance and repairs, etc).

Frankly, to me if you want to drive a newer car inexpensively, a lease is a fantastic way to do it.  You pay, say, $200-250 a month for an Accord, which will always be in warranty, you'll never have significant repairs or maintenance (shouldn't need tires, brakes, etc).  Your costs are regular, repeatable, predictable, and never come with a surprise.  Sure, it will never be as absolutely cheap as the "$500 beater with barely any insurance" crowd, but it's probably not that much more, especially if you need regular reliable transportation.

I have had great luck with buying 4+ year old Accords.  Very low maintenance vehicles.  Pretty much oil changes, air filters, tires, brakes, and a battery.  All of which are easy to do on a Saturday afternoon (aside from the tires).  I'm convinced if you're paying more than $2,000/year to own/operate an Accord, you are throwing away a lot of money.

Just Joe

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Re: "Smart" Reasons To Lease Your Next Car
« Reply #14 on: January 19, 2017, 07:44:32 AM »
I'll second choosing "the basic Honda". Have owned several over the years with excellent results.