Leasing a cheap new car vs. buying an old car

[Tdbo]

As others have noted, there are very few scenarios in which you can benefit from a lease.
I would say for the type of car you are looking for, take advantage of some of the 0% financing/rebate deals and buy new and run the wheels off of it or look at used cars in the 8-10K range.

 

[DuckRyder]

I suspect a "cheap" car might not lease so well as an expensive one.

If the lease is properly configured a car with better resale will have a lower lease payment than a car of similar price with worse resale.

Remember that you don't shop a lease based on the value of the car but on the value of the "use" so a car with lower depreciation should have a lower lease cost.

Without actually doing the shopping I suspect that you could lease a Civic, Corolla or perhaps a Focus for about the same as a Fiesta.

Also, make sure the lease includes gap insurance or purchase it separately and put nothing down save perhaps one lease payment and a security deposit.

 

[GreeCguy]

Originally Posted By: Quattro Pete
Originally Posted By: KitaCam
I find it kind of funny seeing ol' farts in Florida buying new cars that will see maybe 2.5k miles a year....the car will long outlive them...

So what if they enjoy the feeling of having a brand new car? It may be their last. It's not like they can take all the saved up money to the grave with them if they buy used instead...


Thank you. My Dad is 94 years old and has driven beat up trucks his whole life. Back in 2008, he bought a brand new Ford truck with the extended cab and all the bells and whistles. Two years ago, he finally gave up his drivers liscense. On great occasion, he will drive the truck around the farm, (not on the road), but he's getting to the point he can't even do that. Most of the time, it sits in the yard. It has 4,800 miles on it.

 

[Vikas]

Have you noticed that when people ask for our opinion as to which car to buy or lease, they are really looking for the validation of the choice that they have already made prior to posting the topic?

It is exceedingly rare to see replies ever changing the final preconcieved outcome.

 

[Stanley Rockafeller]

Originally Posted By: Vikas
Have you noticed that when people ask for our opinion as to which car to buy or lease, they are really looking for the validation of the choice that they have already made prior to posting the topic?

It is exceedingly rare to see replies ever changing the final preconcieved outcome.


au contraire mon frere!

I have thought long and hard about this one, and after having my local shop repair my currenlt 25 yo daily driver for about 1/2 of what it should have cost, I have decided to purchase a 6 or 7 year old Vibe/Matrix WITH an auto tranny (this is gonna be a new one for me, as I never purchase auto cars. I can find many with far less than 100k miles in my area, as most ppl. tend to only drive about 6-7k miles per year where I live. It's very easy to buy a car that's rust free, and stone and chip free, for very little.

I am also gonna keep my old car and put it into cheap storage. I love it, but I also don't have the space to have 2 cars, and using it as a daily driver in winter is not the best choise either.

thanks again for the help with my decision guys!

 

[KrisZ]

Originally Posted By: Stanley Rockafeller
Originally Posted By: Vikas
Have you noticed that when people ask for our opinion as to which car to buy or lease, they are really looking for the validation of the choice that they have already made prior to posting the topic?

It is exceedingly rare to see replies ever changing the final preconcieved outcome.


au contraire mon frere!

I have thought long and hard about this one, and after having my local shop repair my currenlt 25 yo daily driver for about 1/2 of what it should have cost, I have decided to purchase a 6 or 7 year old Vibe/Matrix WITH an auto tranny (this is gonna be a new one for me, as I never purchase auto cars. I can find many with far less than 100k miles in my area, as most ppl. tend to only drive about 6-7k miles per year where I live. It's very easy to buy a car that's rust free, and stone and chip free, for very little.

I am also gonna keep my old car and put it into cheap storage. I love it, but I also don't have the space to have 2 cars, and using it as a daily driver in winter is not the best choise either.

thanks again for the help with my decision guys!


You're one of the few that appears to be actually influenced by advice given here instead of making a bunch of excuses.

Vikas has a point and I see it in a lot of threads as well.

 

[Stanley Rockafeller]

I just realized that instead of leasing something I didnt' really want, for the sole pupose of commuting to work in it, is kinda silly.

I still like my old ride, but it's not practicle to me dailying it with gas prices as they are. A better bet is something that I can get USE out of, as my GF and I commonly rent cars for a day trips just to go skiing for the day/weekend.

Something like a Vibe/Matrix has oodles of reliability AND fuel economy, not to mention cargo capacity (something the BMW never had) that's comparable to many small SUV's.

I think I'm going to enjoy shopping for a new (to me) car

 

[IndyIan]

The matrix/vibe are a great used car deal, I needed a bit more space but if it was just the two of us, the matrix was top of the list. Have fun shopping.

 

[Vikas]

I always wonder about shopping for a specific used car. Isn't it pretty much luck of draw?

Also I am little confused by your wording about the repair cost. Did you do better or worse than expected?

 

[surfstar]

Originally Posted By: Vikas
I always wonder about shopping for a specific used car. Isn't it pretty much luck of draw?


If you have time on your side, and don't mind driving a bit, you can definitely find the one you want. After narrowing it down to a specific model, I would search for a while and a ways online. Funny thing was when I'd find my next car closer than I'd ever thought.

 

[MK2]

Forget monthly payments and get a used car. Just patiently wait for a good deal to come and check craigslist, friends, family members and co-workers.

Two years ago, I bought a 115k mile 92 Camry as my daily beater for $1600. I spent around $600 for parts and I did all the repairs:new brakes/rotors, slightly used Hyundai Sonata rims and tires for $100, radiator, hoses and tune-up.

After a year, the gas price went up here in South Cal and decided to sell it due to it's so-so mpg. I posted it at craigslist and after 15 minutes, I got three callers for the car. I sold it for $2300 the same day and bought my 03 Civic for $4100.

So I got my money back plus extra, I used the car for a year for free.. And the best of all, I got familiarized myself on doing some repairs on these great generation of Toyota Camry.

 

[Stanley Rockafeller]

Originally Posted By: Vikas
I always wonder about shopping for a specific used car. Isn't it pretty much luck of draw?

Also I am little confused by your wording about the repair cost. Did you do better or worse than expected?


No, after owning and repairing so many makes of vehicles,I have come to know what to expect when purchasing a newer car. Also things like Edmunds and car survey both seem to really help lots with the buying decision. I generally never go with a dealer or used lot when purchasing, as I like to get a "feel" for the PO and their maint. of the car before purchasing. And to top it off, a buyers inspection seems to help my in my purchase decision.

In regards to the cost of the repair to my current car, it was about less than half of what it should be. The shop also threw in some other parts that they saw were broken...for free! an engine mount and fuel pump seal. I tell ya, it's not usually I feel this way about a shop, but these guys are amazing! If I didn't get such a good, deal, my current car would def. be in the classifieds for sale!

 

[PandaBear]

If you are looking at fuel cost to begin with, that means you are driving enough distance that leasing is not going to work for you. Since you have another car as a backup, buying old all the way.

 

[mshu7]

To quote someone else...

"Rich people ask how much. Broke people ask how much per month."

 

[Stanley Rockafeller]

Originally Posted By: mshu7
To quote someone else...

"Rich people ask how much. Broke people ask how much per month."


In my exp., it's the poor asking "how much" and the rich asking "how much per month" (since they have more important things to be putting their invested money towards).

 

[hattaresguy]

You guys all miss the big picture when it comes down to owning cars, its cents per mile and total cost of ownership that matter, period. Those are your actual costs.

Paying it all up front (cash) vs a little over time and a small premium for the privilege (note/leasing+ interest) is a different decision.

BTW the cents per mile between a new basic car and keeping a nice old German car on the road, in new car like condition is pretty similar. Only way to do better is to do all the repairs on the old car yourself and value your time at $0. Its roughly .40 cents per mile.