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Just what is a good deal?

787 messages,  Last post on Sep 13, 2011 at 2:29 PM

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What is this discussion about? Car Buying

Messages Page 78 of 79

#768 of 787 Re: Financial Advice [stickguy] by qbrozen

May 27, 2011 (9:41 am)

Replying to: stickguy (May 27, 2011 9:18 am)
fresh out of school and a new job is a bad time to lease. You never know what is going to happen. I had a lease too early myself .... then me the right woman, got married, and bought a house. Wound up with a 100-mile per day commute. Yup.... bad time to be in a lease.

#769 of 787 Re: Financial Advice [darrvao777] by richard64

May 27, 2011 (9:42 am)

Replying to: darrvao777 (May 27, 2011 7:30 am)
I would suggest a one or two year old car. You would still have some warranty but save a ton of bucks. Don't get over your head this early in the game. You may have college loans and/or wish to purchase your first home. Also, don't buy the cheapest brand automobile available. Get a nice car at a good price. You'll have something that you can enjoy but still afford. Good luck to you.
 
Richard

#770 of 787 Future plans.. by kyfdx HOST

May 27, 2011 (10:23 am)

...are always good for a laugh, later...
 
Get something cheap... then, see what happens..

#771 of 787 Wow thanks! by darrvao777

May 27, 2011 (12:37 pm)

Wow thanks for the spate of useful and quick replies!!
 
So I've narrowed it down to a short term lease (24-36 months) versus financing a used vehicle.
 
I'm having trouble getting the monthly payments on the used car to match that of the leased vehicles.
 
So would it not be in my best interest to lease a car for 24-36 months to bridge me to a time period when I would have more cash? (because of the cheaper monthly payments?)
 
Or it makes more financial sense to make payments toward I car that I would ultimately own? (even if it means higher monthly payments?) I'm not quite convinced I would want to keep that vehicle in 2-3 years time but I guess for frugality's sake, I could certainly make do with it for a little while longer.

#772 of 787 Re: Wow thanks! [darrvao777] by mac24

May 27, 2011 (12:55 pm)

Replying to: darrvao777 (May 27, 2011 12:37 pm)
So I've narrowed it down to a short term lease (24-36 months) versus financing a used vehicle.
 
A lease buys you the use of the vehicle as opposed to ownership.
A lease can have tax advantages, but for someone starting out I doubt that would apply.
 
Personally I'd buy with as large a down payment as I could scrape together, then I'd overpay the balance each month until it hurt, so as to get it paid off as soon as possible.
When it's paid off, you own it; when the lease finishes you have nothing.

#773 of 787 Re: Wow thanks! [darrvao777] by qbrozen

May 27, 2011 (1:55 pm)

Replying to: darrvao777 (May 27, 2011 12:37 pm)
If you can't get the purchase number to look good, you may be using the wrong numbers. Are you comparing a 3yr lease to 3yr loan? Cause that will be misleading. On a 3yr lease, you are only paying about 45% of the car. So, to compare fairly, it should be looked at vs a 6yr loan. Not that you should get a 6yr loan.... Just pointing out that this is a more accurate comparison of the two.

#774 of 787 Re: Wow thanks! [darrvao777] by explorerx4

May 27, 2011 (8:38 pm)

Replying to: darrvao777 (May 27, 2011 12:37 pm)
How many miles a year to you expect to drive?
That can make a difference when considering leasing.

#775 of 787 Mileage and Finances by darrvao777

May 28, 2011 (6:24 am)

I have a limited travel routine and could probably get away with <10000 miles per year so I would think the usual lease allowance of 12000-13000 miles would be enough. I guess financing a used vehicle does provide me with more flexibility in case I wanted to use the car for recreational trips instead of solely for commuting. I tried extending out the financing term to ~72 months to match up with a 36 month lease, I've been looking at leasing a Camry or Subaru for ~$200 a month and haven't been able to find a similarly competitive used vehicle for $200 a month even over 72 months.

#776 of 787 Re: Mileage and Finances [darrvao777] by tallman1

May 28, 2011 (10:57 am)

Replying to: darrvao777 (May 28, 2011 6:24 am)
But remember, as others have pointed out: if you lease, you are renting and will have nothing after 3 years. If you buy, you will own a car. Even though there will be some depreciation, it certainly won't be zero.

#777 of 787 Re: Mileage and Finances [darrvao777] by qbrozen

May 28, 2011 (7:14 pm)

Replying to: darrvao777 (May 28, 2011 6:24 am)
I seriously doubt the lease on a Camry REALLY comes out to ~200/mo. Usually that involves a cap reduction, plus your bank fee and security deposit up front. Then add taxes.

Messages Page 78 of 79

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