Nine Months

[cabinetman]

LOML has nine months left on her auto lease. This is her third lease, and each time it gets close to maturity we have the same discussion...lease or buy. The crux of the decision is based on the fact that either way, there will be payments for a few years. In figuring costs, including the initial outlay, leasing is less of an outlay. So our thinking is that leasing provides a full warranty, and a new car every 2-3 years. With a purchase we would be tied to a car whose value drops every year. What's your thoughts?

So, in the next 9 months she will be trying to decide what to get. She likes sporty type cars. Her present car is an Accord V6 six speed, loaded. I'm trying to talk her into something reserved, like a 370Z, Z4, or a Cayman. I'll force myself to drive it on the weekends.
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[dbhost]

I bought my 2004 F150 Super Cab XLT 4x4 5.4L in early 2006. I had been looking at them since they were first brought out in that body style. The MSRP when the truck was new was around $35,000.00. I got my truck with 17,000 miles on it for $20,000.00 including the 100,000 extended warranty.

Not including gas, and maintenance which the records show they did, the original lessee paid just under $1.00 a mile to operate this truck.

My 2001 Saturn SL2 with if I recall an original sales price of $15,500.00 or so came to my driveway for $2,500.00 with 40,000 miles on the clock back in 06 as well...

IMHO Leasing a car, unless you can write it off of your taxes like a business lease, is a particularly poor investment, far worse than owning the car...

But then again some people have to have a warranty.

[frumper64]

I tend to keep cars for quite a while (my current truck is a 99, my wife's car is a 2001), so for me buying makes more sense. I usually buy new and then just keep driving them. This way, I know the care that has been taken of the vehicle and any problems it might have. I don't really want a new car every couple of years and over the last decade or so, I can only remember one warranty repair that was necessary (leaking intake gasket on wife's car) so I'm not all that concerned with keeping a warranty in force. Keep in mind that we put pretty low miles per year on our vehicles, so that may be a factor.

[crokett]

IMHO Leasing a car, unless you can write it off of your taxes like a business lease, is a particularly poor investment, far worse than owning the car...

That is normally true. However, if you know you will be buying a new car every 2-3 years anyway and thusly probably always having a car payment, it makes more sense to lease since you won't get hit with depreciation. I've worked with folks (work with one now actually) who are car guys. Cars are their hobby. So he leases his car and his wife's car. It is important to him t always be driving a late-model car. It also lets him drive a nicer car than he could normally afford. He has the income and accepts that there are much cheaper ways to get transportation. So Cabman, unless you are going to keep the replacement vehicle for longer than the 2-3 years I would just go ahead and lease another one.

[dbhost]

I guess I should have been clearer about it.

The only reason I have the F150 is because the Ranger I had before it kept attracting STUPID drivers to its rear bumper... And LOML and I are trying to need the extra space of the extended cab...

I tend to keep cars until the wheels fall off, then try to bolt the wheels back on. Prior to my Ranger, I had a 96 Saturn SL2 my ex got, and a 1984 Jeep CJ-7 that I traded in on the Ranger when I finally decided I needed a solid roof and air conditioning...

If I recall correctly, prior to that was a 1976 Toyota Celica I drove all the way through college...

Yeah I keep cars around. And no I don't buy new typically.

As far as leases go, all you are buying is depreciation. Yeah it makes sense if you turn around every 2-3 years to get a new vehicle, but it is not something I am comfortable doing. I would much rather get in my now 5 year old truck and drive cross country than get in a brand new one and do the same. I know exactly what to expect from my truck, and the seat is broken in just right...

[Kristofor]

I'm in the buy new and keep it for a decade or longer camp. I know buying a 2 year old vehicle and keeping it for 8 years might be a better deal, but for me it's a "better the devil you know" kind of deal.

Not having to make arrangements and deal with a car being in for repair/service is half the value of the car to me. If that weren't the case I'd probably keep driving them for 15-20 years not just 10.

[jackellis]

We buy new or practically new cars and keep them until the wheels fall off. LOML's 2001 Volvo has over 188k miles on it and if no more sensors fail, it will probably reach 300k before she gets another.


If you want a new car every few years, leasing is fine. But as others have pointed out it's a poor economic choice. I can think of better things to do with the money I'd otherwise spend on a car (like pour it down the airplane rathole or build a new house).

[LinuxRandal]

How do you do on the mileage? I had one friend whose family generally leased, but they always went over, so it cost them more.

Something else to consider.

I prefer used myself.

[cabinetman]

How do you do on the mileage? I had one friend whose family generally leased, but they always went over, so it cost them more.

Something else to consider.

I prefer used myself.

Mileage can be a real issue. In the first part of LOML's last lease, her work was relocated, and her mileage to and from work doubled. So, we figured out a plan to control that issue, by her taking my vehicle one day a week. I've heard stories about relocation situations that really put the mileage over the edge and when you figure 10 - 15 cents per mile, it adds up quick.
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