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Leasing a Car vs. Buying a Car

Home ▸ Archive ▸ Serious Business ▸ Leasing a Car vs. Buying a Car
W

WebFire

Go Bucks!

14,779 posts
Sep 3, 2012 9:11 AM
Terry_Tate;1260530 wrote:I've done it before, and honestly would do it again. Much easier than doing a price. I bought a used car and told them I wouldn't pay more than $150 a month. They ran the numbers and got me a payment of $145. Ended up taking the car below what I would have tried to get the price down to.
Typically when you negotiate on payment, they mess with everything BUT the price of the car to get you where you want to be.
Sep 3, 2012 9:11am
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Sep 3, 2012 9:23 AM
When you lease, negotiate payment. You're only going to pay for three year, and they still have to give you the same residual.
Sep 3, 2012 9:23am
J

jmog

Senior Member

6,567 posts
Sep 3, 2012 9:27 AM
WebFire;1260565 wrote:Typically when you negotiate on payment, they mess with everything BUT the price of the car to get you where you want to be.
Exactly, negotiate the payment and they typically stretch out the years.

Always negotiate the price. However, know going in what the payments would be for each price range so you know what your payment will be.

ALWAYS drive down to a price where they say no, they can't do that then get up and lEace. I guarantee you will get a call within 24 hours offering the price you walked out asking for.

Never buy the first day in there. Trust me, I have done this on my last few used cars.
Sep 3, 2012 9:27am
R

rydawg5

Senior Member

2,639 posts
Sep 3, 2012 9:56 AM
I just leased a CRV Awd for the first time. I negotiated payment. The sticker price was $25,000 (after all options), the selling price was $22,050. Ends up being a lease for $250/month (after tax). I have the option to buy it for $15,400 (A 3 year old AWD CRV for $15,400 with 36k would be steal).

This was for a second car. So, I highly doubt I'll need to care about mileage. I may even buy it out.

Why did I lease?

I really just don't want to commit to a 5 or 6 year term, so it's unrealistic for me to have a $500 payment to try to pay it off in 3-4 years. If we love it after 3 we could buy it, but chances are technology will change and I'd rather lease another one for another lower payment with better features and regain the 36k bumper to bumper warranty.

It just depends on the person.
Sep 3, 2012 9:56am
ernest_t_bass's avatar

ernest_t_bass

12th Son of the Lama

24,984 posts
Sep 3, 2012 9:58 AM
rydawg5;1260584 wrote:I just leased a CRV Awd for the first time. I negotiated payment. The sticker price was $25,000 (after all options), the selling price was $22,050. Ends up being a lease for $250/month (after tax). I have the option to buy it for $15,400 (A 3 year old AWD CRV for $15,400 with 36k would be steal).

This was for a second car. So, I highly doubt I'll need to care about mileage. I may even buy it out.

Why did I lease?

I really just don't want to commit to a 5 or 6 year term, so it's unrealistic for me to have a $500 payment to try to pay it off in 3-4 years. If we love it after 3 we could buy it, but chances are technology will change and I'd rather lease another one for another lower payment with better features and regain the 36k bumper to bumper warranty.

It just depends on the person.

What was your down payment? Did you get a 2011 or 2012? What exact model?
Sep 3, 2012 9:58am
R

rydawg5

Senior Member

2,639 posts
Sep 3, 2012 10:02 AM
I put $1500 down on top of the selling price. It was 2012 CRV AWD LX with a few extra options. The model was $24,575 but I added a couple things and it was an even $25k after that.

I think the payment is like 230 something but they add taxes each month so it came out $250 flat. I just told them I wanted a $250 payment and I knew it was kind of unrealistic, so I was negotiating price, just a different way. I didn't really expect them to go below $23,000 on selling price because I know $1500 markup is probably about all there is on a CRV.

Another thing, this is for my wife and kids to drive when I'm at work. I'm usually pretty frugal with my car. I honestly have an old beater, but I drive a ton on it. I don't want them in that. I want them to be as safe as possible (crash, breaking down, winter driving)

That's really what matters to me. And if it's a reasonable budget $250 (brand new car) I'm cool with that. I needed the space of a CRV (at least) and I like the 30mpg for an AWD car. I don't think it was the deal of the year but my wife was really happy and the payment is okay with me.

I'm sure there are some mystery fees I missed to make this not as good of a deal as I think haha
Sep 3, 2012 10:02am
J

jmog

Senior Member

6,567 posts
Sep 3, 2012 11:38 AM
rydawg5;1260584 wrote:I just leased a CRV Awd for the first time. I negotiated payment. The sticker price was $25,000 (after all options), the selling price was $22,050. Ends up being a lease for $250/month (after tax). I have the option to buy it for $15,400 (A 3 year old AWD CRV for $15,400 with 36k would be steal).

This was for a second car. So, I highly doubt I'll need to care about mileage. I may even buy it out.

Why did I lease?

I really just don't want to commit to a 5 or 6 year term, so it's unrealistic for me to have a $500 payment to try to pay it off in 3-4 years. If we love it after 3 we could buy it, but chances are technology will change and I'd rather lease another one for another lower payment with better features and regain the 36k bumper to bumper warranty.

It just depends on the person.
You say you dont want to commit to a 5 year loan?

You just committed to a longer one no matter what you end up doing. 3 years to start and then 3 or 4 years if you decide to buy it at the end of the lease.

If you decide to lease something else at the end it is 3 more years.

In other words it's more than a 5 year commitment when you lease.

My last two cars I bought I got a 5 year loan and paid the one off 1 year early and the other 2 years early.

I now have two cars each with at least 3 years left in them with zero payments.

Lease and you have continual payments.
Sep 3, 2012 11:38am
Ironman92's avatar

Ironman92

Administrator

49,363 posts
Sep 3, 2012 11:46 AM
Barry Badrinath;1260502 wrote:Mileage just seems a little too high for me for an 08

The mileage is high for an 08.....but I've never had a mileage issue with a Honda.....but I bet Ricart's price is well higher and they'll low ball you on yours.....even with all those factors I bet you'll still be happy with the 08 Civic...but do a search and you'll get dozens of similar matches around you for a better deal.....put your current on Craigslist.

What is Ricart asking? $14,500?
Sep 3, 2012 11:46am
M

mella

Senior Member

647 posts
Sep 3, 2012 12:03 PM
Buy a certified used car with a warranty. Get the lowest payment possible, even if it isn't your dream car. Pay off the car as soon as possible. Save up money, then buy a better car when you're more financially secure. There is a reason that leasing is referred to as fleecing.
Sep 3, 2012 12:03pm
Ironman92's avatar

Ironman92

Administrator

49,363 posts
Sep 3, 2012 12:11 PM
Yeah....regardless of everything said, don't do the lease.
Sep 3, 2012 12:11pm
C

Cher

Senior Member

276 posts
Sep 3, 2012 12:47 PM
When I was looking, I couldn't find a respectable used car with decent mileage on it. I'd buy new again in a heartbeat.
Sep 3, 2012 12:47pm
W

WebFire

Go Bucks!

14,779 posts
Sep 3, 2012 2:03 PM
My comments about negotiating price vs. payment was for buying. A lease would be different.

Also, I do not recommend ever thinking of buying a leased vehicle. If you are even thinking of doing that, just buying to begin with.
Sep 3, 2012 2:03pm
B

Barry Badrinath

Senior Member

176 posts
Sep 3, 2012 6:37 PM
Ironman92;1260617 wrote:The mileage is high for an 08.....but I've never had a mileage issue with a Honda.....but I bet Ricart's price is well higher and they'll low ball you on yours.....even with all those factors I bet you'll still be happy with the 08 Civic...but do a search and you'll get dozens of similar matches around you for a better deal.....put your current on Craigslist.

What is Ricart asking? $14,500?
14,595
Sep 3, 2012 6:37pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Sep 3, 2012 7:30 PM
GoChiefs;1260461 wrote:Carfax and a good mechanic and you won't buy a mess. Some don't get rid of a car just because there is something wrong with it. I know plenty of people that buy, trade it in 2 or 3 years later without anything wrong with it, just because they want something newer or different.
Mechanics aren't going to be able to tell you everything. They're not going to take your tranny off for an inspection. They're not going to check the engine for anything other than how old plugs and shit are on it. They'll run a scan and check for codes. It's hardly reassuring for me.
Sep 3, 2012 7:30pm
mcburg93's avatar

mcburg93

permaban to basement

3,167 posts
Sep 3, 2012 7:41 PM
I have bought used and new cars. Now all I will buy is used cars. You take a chance with anything you buy new or used. I bought a new blazer in 97 and the motor blew up on me four days after I bought it. The warranty covered the motor and I ended up just getting a new blazer instead of taking that one back after the new engine was installed. Now a days you can get pretty good warranties on used cars so I buy used only now. I get em usually for 10k less then if I went and bought the same one new and they usually only have 50k or less miles on them.
Sep 3, 2012 7:41pm
Terry_Tate's avatar

Terry_Tate

Senior Member

7,606 posts
Sep 3, 2012 7:52 PM
WebFire;1260565 wrote:Typically when you negotiate on payment, they mess with everything BUT the price of the car to get you where you want to be.

I should have clarified, I told them $150 a month for 3 years. That way I know exactly what I'm paying, they can do whatever as long as that's where I am. It would be stupid to tell them $150 a month but not tell them how many months.
Sep 3, 2012 7:52pm
GoChiefs's avatar

GoChiefs

Resident Maniac

16,754 posts
Sep 3, 2012 8:04 PM
ZWICK 4 PREZ;1260788 wrote:Mechanics aren't going to be able to tell you everything. They're not going to take your tranny off for an inspection. They're not going to check the engine for anything other than how old plugs and shit are on it. They'll run a scan and check for codes. It's hardly reassuring for me.

You can get a feel of the transmission by driving it. A good mechanic will do a more thorough check for you than that. Most problems can be identified with a simple test drive 85% of the time if you know what you are looking for.
Sep 3, 2012 8:04pm
Q

queencitybuckeye

Senior Member

7,117 posts
Sep 3, 2012 8:13 PM
ZWICK 4 PREZ;1260788 wrote:Mechanics aren't going to be able to tell you everything. They're not going to take your tranny off for an inspection. They're not going to check the engine for anything other than how old plugs and shit are on it. They'll run a scan and check for codes. It's hardly reassuring for me.
Two identical cars coming sequentially off the line will have totally different repair histories, even if the were maintained perfectly.
Sep 3, 2012 8:13pm
Ironman92's avatar

Ironman92

Administrator

49,363 posts
Sep 3, 2012 8:14 PM
Barry Badrinath;1260780 wrote:14,595

Well, what is your's worth (what the manuals say they should give you for yours)

Let's say yours is worth $4,000 and the 2008 is at $14595.....they'll low ball you by saying $3100 for yours and you'll have a gap of $11,495. You should be able to haggle down to $13,750 if they don't budge on yours and take the gap to $10,650.

I'd still try Craigslist to get the most out of yours....for example last year I had a 181,000 mile 2001 Civic LX with no Carfax records past 91,000 miles lol. It ran fine and touched 35 mpg still, but dealerships refused to go over $750 lol. I had it for sale for 3 weeks and zero looks....put it on Craigslist and had 7 phone calls about it in 6 hours, 3 appointments to look at and sold it within 1 day for $3000.
Sep 3, 2012 8:14pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Sep 3, 2012 9:27 PM
queencitybuckeye;1260822 wrote:Two identical cars coming sequentially off the line will have totally different repair histories, even if the were maintained perfectly.
.

The brand new one has far less of a chance to already have problem versus the new one. Plus a brand new warranty. Plus the assurance that it hasn't already been neglected.
Sep 3, 2012 9:27pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Sep 3, 2012 10:51 PM
GoChiefs;1260816 wrote:You can get a feel of the transmission by driving it. A good mechanic will do a more thorough check for you than that. Most problems can be identified with a simple test drive 85% of the time if you know what you are looking for.
Except for debris from grinded gears that haven't plugged valves yet or a rusted away overdrive band that hasn't busted free yet or a seal that's deteriorating that hasn't let the tranny fluid completely out yet. or the literally hundreds of things that go wrong in transmissions everyday that takes awhile to show up.
Sep 3, 2012 10:51pm
GoChiefs's avatar

GoChiefs

Resident Maniac

16,754 posts
Sep 3, 2012 11:38 PM
ZWICK 4 PREZ;1260925 wrote:Except for debris from grinded gears that haven't plugged valves yet or a rusted away overdrive band that hasn't busted free yet or a seal that's deteriorating that hasn't let the tranny fluid completely out yet. or the literally hundreds of things that go wrong in transmissions everyday that takes awhile to show up.

Or the bad parts that were put in the brand new one, or the bolts that didn't get tightened all the way on the brand new one, or all the other things that could go wrong.
Sep 3, 2012 11:38pm
C

Cher

Senior Member

276 posts
Sep 3, 2012 11:41 PM
GoChiefs;1260959 wrote:Or the bad parts that were put in the brand new one, or the bolts that didn't get tightened all the way on the brand new one, or all the other things that could go wrong.
All of that stuff is covered under warranty.
Sep 3, 2012 11:41pm
sleeper's avatar

sleeper

Legend

27,879 posts
Sep 4, 2012 3:08 PM
ZWICK 4 PREZ;1260925 wrote:Except for debris from grinded gears that haven't plugged valves yet or a rusted away overdrive band that hasn't busted free yet or a seal that's deteriorating that hasn't let the tranny fluid completely out yet. or the literally hundreds of things that go wrong in transmissions everyday that takes awhile to show up.
Enjoy that new car. You subsidize the intelligent car buyer by recklessly purchasing a vehicle that depreciates rather rapidly right after you drive it off the lot. Your rationalization path is broken at best.

I always laugh at the people who want to pay 25% extra on a car so they can be the first to drive it and enjoy that "new car" smell. What a waste of money. I'll happily take you car after 3-4 years at half the price you paid for it; even if it breaks down, I'll still have saved a ton of money to go out and buy another used car.

It's EZ bro. EZ.
Sep 4, 2012 3:08pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Sep 4, 2012 7:10 PM
sleeper;1261298 wrote:Enjoy that new car. You subsidize the intelligent car buyer by recklessly purchasing a vehicle that depreciates rather rapidly right after you drive it off the lot. Your rationalization path is broken at best.

I always laugh at the people who want to pay 25% extra on a car so they can be the first to drive it and enjoy that "new car" smell. What a waste of money. I'll happily take you car after 3-4 years at half the price you paid for it; even if it breaks down, I'll still have saved a ton of money to go out and buy another used car.

It's EZ bro. EZ.
Supplier pricing homey, get wit it.
When I bought my wifes Edge I paid a grand less than a two year old model with 30,0000 miles on it. You're the sap that buys a the two year old car bc it's 8 grand less, when you coulda got the new one for that price.
EZ bro, EZ.
Sep 4, 2012 7:10pm