Richmond_Bills Posted November 24, 2005 Posted November 24, 2005 Current situation. I have a 2003 Ford Escape. It has 66k miles (I've put on 25k in 2 years). I still owe $12k on it (monthly payment 350). I would really like to lower my payment by about $100 a month and still have a nice vehicle. A buddy of mine who is a car dealer told me that the best way that he could help would be to get me into a lease. I'm not crazy about it, but I may have to do it. Any thoughts?
mcjeff215 Posted November 24, 2005 Posted November 24, 2005 Best of both worlds in my opinion? Buy used.
eSJayDee Posted November 24, 2005 Posted November 24, 2005 What your payments are is really irrelevent. What counts is what are you paying in depreciation and financing (&/or lost income). One advantage of a lease is that you know EXACTLY what this will cost you, whereas w/ buying it (assuming you're only going to hold onto the vehicle for a relatively short period), you have to make a realistic guess. Often leases are not what I would consider 'fair value', that is you're paying a substantial premium. This is one thing you have to be careful about as far as I'm concerned. If you think it's likely you're going to get rid of the car relatively soon, if you can get a 'fair market lease', that's the way to go. If they're overpricing the lease, your only prudent option is buying (or opting for a different car). Just my 2¢.
mead107 Posted November 24, 2005 Posted November 24, 2005 some times you have to put $1500 - $2500 down to buy in to the lease . that equals your $350 per month, just paying up front.
UConn James Posted November 24, 2005 Posted November 24, 2005 Best of both worlds in my opinion? Buy used. 511540[/snapback] Yup. I heard somewhere that people who get used cars retire 5 years earlier than those who buy or lease new cars. At the heart of it, it's a one-time investment of a few grand + some repairs and if it lasts you five years you're ahead of the game vs. constant monthly payments that really add up as your vehicle depreciates. I've gotten some good deals at state auctions. Usually Ford Escorts, Taurus, etc. that are about five years old and go for about $2-3K. Some need minor work, some need a little more extensive work, but still might be worth it. But there's some people who just need a new car, must have a new car, can't live without a new car. I just look at it in a Point A to Point B and 'it's just a hunk of metal and plastic' perspective.
Ghost of BiB Posted November 24, 2005 Posted November 24, 2005 FWIW, I drive a '95 Cougar that runs like a top and is paid for. Cars are transportation. I have to go with UConn on this one.
mead107 Posted November 24, 2005 Posted November 24, 2005 when the car needs new tires ,it's time for a new car
Ghost of BiB Posted November 24, 2005 Posted November 24, 2005 when the car needs new tires ,it's time for a new car 511655[/snapback] I thought it was when the ashtray got full?
SDS Posted November 24, 2005 Posted November 24, 2005 I thought it was when the ashtray got full? 511659[/snapback] Ashtray? Every smoker I ever follow flicks their butts out the window... The WORLD is their ashtray.
mead107 Posted November 24, 2005 Posted November 24, 2005 Ashtray? Every smoker I ever follow flicks their butts out the window... The WORLD is their ashtray. 511660[/snapback] come a stop at a corner and look down thousands of butts
Alaska Darin Posted November 24, 2005 Posted November 24, 2005 Yup. I heard somewhere that people who get used cars retire 5 years earlier than those who buy or lease new cars. 511648[/snapback] I'm not sure that's exactly right. What I've seen is folks who buy a NEW car every 10 years instead of every 5 retire 5 years earlier. Nothing that depreciates 10% the moment you take "ownership" should ever be considered an investment. Quite the contrary.
Ghost of BiB Posted November 24, 2005 Posted November 24, 2005 I'm not sure that's exactly right. What I've seen is folks who buy a NEW car every 10 years instead of every 5 retire 5 years earlier. Nothing that depreciates 10% the moment you take "ownership" should ever be considered an investment. Quite the contrary. 511664[/snapback] Buy a 56 T-Bird.
Ghost of BiB Posted November 24, 2005 Posted November 24, 2005 Ashtray? Every smoker I ever follow flicks their butts out the window... The WORLD is their ashtray. 511660[/snapback] So? Pass them, old woman. I don't flick out the window. I have had them blow back into the car, and burn stuff.
mcjeff215 Posted November 24, 2005 Posted November 24, 2005 Yup. I heard somewhere that people who get used cars retire 5 years earlier than those who buy or lease new cars. At the heart of it, it's a one-time investment of a few grand + some repairs and if it lasts you five years you're ahead of the game vs. constant monthly payments that really add up as your vehicle depreciates. I've gotten some good deals at state auctions. Usually Ford Escorts, Taurus, etc. that are about five years old and go for about $2-3K. Some need minor work, some need a little more extensive work, but still might be worth it. But there's some people who just need a new car, must have a new car, can't live without a new car. I just look at it in a Point A to Point B and 'it's just a hunk of metal and plastic' perspective. 511648[/snapback] I used to buy new because of the sheer number of miles I put on the things. The logic was more warranty blah blah blah... the way I see it, even if I end up putting a new engine in something four years down the road I still wind up paying *less* than I would have eating all of that depreciation off the lot. -jeff
MadBuffaloDisease Posted November 24, 2005 Posted November 24, 2005 Nothing that depreciates 10% the moment you take "ownership" should ever be considered an investment. Quite the contrary. Who ever called a car an investment? I bought my wife a new Honda Odyssey Minivan back in 2002. Recently they changed their design and she wants a new one. I said "no fuggin' way, we're keeping this car until it falls apart." Meanwhile I got a new Honda Pilot in 2004 and am looking to trade it in for a new 2006 Toyota Prius (I know, big change). But I plan on keeping THAT car until it falls apart. And hopefully I'll be able to sell the Pilot for close to what I'll pay for the Prius.
Mark VI Posted November 24, 2005 Posted November 24, 2005 Yup. I heard somewhere that people who get used cars retire 5 years earlier than those who buy or lease new cars. 511648[/snapback] Well said. I drive a '93 LeSabre and the wife has a '94 Regal. Both are still in good shape. Both were just a couple years old when I paid cash for them. No major repairs yet. I'll look for a couple more newer used cars next year and drive them into the ground. Car Payments = RJ Use monthly $$ for a mortgage, not a car.
slothrop Posted November 24, 2005 Posted November 24, 2005 Current situation. I have a 2003 Ford Escape. It has 66k miles (I've put on 25k in 2 years). I still owe $12k on it (monthly payment 350). I would really like to lower my payment by about $100 a month and still have a nice vehicle. A buddy of mine who is a car dealer told me that the best way that he could help would be to get me into a lease. I'm not crazy about it, but I may have to do it. Any thoughts? 511532[/snapback] I don't want to sidetrack the thread but do you like your Escape? My wife and I want to buy the Escape Hybrid, but we hate Ford (we had a bad Taurus experience that challenges all notions of reality).
aussiew Posted November 24, 2005 Posted November 24, 2005 I don't want to sidetrack the thread but do you like your Escape? I don't know about the Hybrid. I'm relunctant to invest in anything until it's proved itself in the marketplace. I had a 2002 Escape and loved it so much that I traded it in a few months ago for a newer model. I got the Limited this time because I liked the "one color" style. The Escape handled very well, and I had no problems with it except a weird wiring problem that we traced back to the people who replaced the rear door due to hail damage. I trade in every three years because being a woman alone, I want a car that's always under warranty. Too bad you've had trouble with Fords. I've driven them for years. My other car is a 93 Mustang 5.0 Convertible - it's been a mechanical dream (except when my son blew the transmission).
Just Jack Posted November 24, 2005 Posted November 24, 2005 Current situation. I have a 2003 Ford Escape. It has 66k miles (I've put on 25k in 2 years). I still owe $12k on it (monthly payment 350). I would really like to lower my payment by about $100 a month and still have a nice vehicle. A buddy of mine who is a car dealer told me that the best way that he could help would be to get me into a lease. I'm not crazy about it, but I may have to do it. Any thoughts? 511532[/snapback] Easy answer. Look at the number of miles you put on each year. Most leases are for only 12K-15K a year. You pay a penalty for every mile you go over. So the money you're saving in a monthly payment, you'll need to shell out at the end of a lease. Former boss of mine had a lease, and for the last month he had the vehicle, he wouldn't drive it because it would put him over his limit.
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