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Post by christine58 on Aug 6, 2014 18:27:26 GMT
Been thinking about this lately...I don't put a lot of miles on my car and am planning on retiring from teaching in 2 years. Thoughts?? good bad and indifferent!!!
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luckyexwife
Pearl Clutcher
Posts: 3,069
Jun 25, 2014 21:21:08 GMT
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Post by luckyexwife on Aug 6, 2014 18:47:55 GMT
I've had two friends try it, and it was bad for both of them.
If you really don't drive much, you want a new car every few years, and you are fine with always having a car payment, then it could work for you.
Be sure to be realistic about your mileage. This was the downfall of one of my friends, her kids are getting older and they wanted to take more family trips, but with the mileage restrictions, they either have to squish in her DH's car or rent a larger vehicle for the weekend. They are counting down the days until the lease is over.
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peppermintpatty
Pearl Clutcher
Refupea #1345
Posts: 3,947
Jun 26, 2014 17:47:08 GMT
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Post by peppermintpatty on Aug 6, 2014 18:49:32 GMT
Yeah, the mileage restriction would never work for us. We both drive a lot to work. I like knowing that eventually I will own the car and then don't have to make payments for a little while.
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Post by freecharlie on Aug 6, 2014 18:51:34 GMT
My friend had to get a new lease at the end of his because the amount of miles he went over would have made him damn near buy the car.
He gets a new car more often than I do.
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Post by gar on Aug 6, 2014 18:52:37 GMT
I'm 18 months into my first lease. So far so good. My mileage is pretty low and stable. You do have a car payment but you also have benefits.
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Post by christine58 on Aug 6, 2014 18:53:02 GMT
I only drive 16 miles a day so that's why I was thinking lease....thanks. Lots to think about before moving forward
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Post by christine58 on Aug 6, 2014 18:53:24 GMT
I'm 18 months into my first lease. So far so good. My mileage is pretty low and stable. You do have a car payment but you also have benefits. What are some of the benefits?
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Post by gar on Aug 6, 2014 18:59:49 GMT
I'm 18 months into my first lease. So far so good. My mileage is pretty low and stable. You do have a car payment but you also have benefits. What are some of the benefits? My agreement includes a lot of the servicing etc if my miles stay low. It's a lower interest rate than a standard car loan and there was only a small deposit. A car's value decreases immediately you take it off the forecourt but that won't affect me. I can afford to have a newer car more often than I otherwise would and that can mean a safer car in some cases.
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loco coco
Pearl Clutcher
Posts: 2,662
Jun 26, 2014 16:15:45 GMT
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Post by loco coco on Aug 6, 2014 19:08:06 GMT
I leased my car and never had a problem, I think I had 12,000 miles/year for 4 years so 48k total and I did fine. It was a lower payment, better rate, and at the time I didnt have much of a down payment. I ended up buying it when the term was over because I loved that car and Ive now had it for 8 years. Plus, when the 4 years was over the price on a new CTS had almost doubled than when I bought mine! Thinking about doing another lease when Im ready to get rid of the CTS.
I got sucked into buying a service plan that rolled into my 4 year lease. Free washes, oil changes, etc. Waste of my money, I never went all the way to the dealership for car washes and my husband changes my oil. Just be careful if you see something like this and ask yourself how much you will really use it, it may be worth it for you.
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Post by kmcginn on Aug 6, 2014 19:09:56 GMT
I am on my fourth leasae, and I love it.
I don't drive much - my last one was 3 years old and I only had 22,000 miles on it. I love the fact that every 3 yeasr I get a new car, and since you only have it for 3 or so years, all maintennance (besides gas and oil changes) are covered. If you truly don't drive more than 12,000 miles a year, it may be for you.
Keep in mind you have to have full coverage insurance - 100/300 - but with the price of new cars, a lot of people have that coverage anyway.
I just budget for my car note, and it just works for me.
It's not for everyone, but I am usually tired of my car by the third or fourth year, so leasing works for me.
Good luck on your decision.
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Post by mrgiedrnkr on Aug 6, 2014 19:30:59 GMT
One benefit in my state is that you pay the sales tax monthly rather than a large chunk up front. Our new car had $4k sales tax on it. If I would have leased, I wouldn't have had to come up with that amount. But, if you are retiring and don't drive a lot, wouldn't you rather have a car with no payment that would stay in good condition for awhile? Stacy
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Post by Peace Sign on Aug 6, 2014 19:38:49 GMT
I lease. 12,000 miles a year is just fine, but since my kids are getting older (more trips/sports, etc.) I upped it to 15,000 a year. I like having a new car every 3 years. I am single, and I need something new and reliable. I don't have a second car/person to help if something goes wrong. The car payment is low.
One thing...tell the dealer you'll not be putting any $$ down. That money can be in your bank earning interest and you can dole it out for payments when you want to. Why give someone else your money and interest? Waste of money!!
And make sure you see the math. Don't go in just asking for a $199/month payment, for example. There is wiggle room on leases, just like on car sales.
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Post by eebud on Aug 6, 2014 19:39:21 GMT
Retiring soon would make me want to purchase a car, not lease, because I would want to get the car paid for and then not have a car payment for many years. I am also assuming that you would keep your car for many years and not buy new every few years. My current vehicle is over 11 years old and DH's is 10. I think DH and I are both going to buy new in the next couple of years so that we can deal with car payments while we are both working full time. We will get them paid off very quickly this way and it will help when we start to seriously think about retiring to know that we have paid for vehicles that still have some years left in them. Also, I know that some places can be very picky about the condition the car is returned. DH has worked all his life in the auto body shop business. He has seen many customers bring in leases that the company is requiring them to pay to have all the little door dings and such fixed or they will charge them a huge fee. Also, keep in mind that at the end of the lease, you either have to buy the car or turn it in. If you turn it in, you now have $0 to go against a down payment for a new purchase or lease. You will need to save some of the payments that you saved to cover these expenses when you have to give the car back.......assuming that you will need another vehicle.
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Post by christine58 on Aug 6, 2014 19:50:45 GMT
I lease. 12,000 miles a year is just fine, but since my kids are getting older (more trips/sports, etc.) I upped it to 15,000 a year. I like having a new car every 3 years. I am single, and I need something new and reliable. I don't have a second car/person to help if something goes wrong. The car payment is low. One thing...tell the dealer you'll not be putting any $$ down. That money can be in your bank earning interest and you can dole it out for payments when you want to. Why give someone else your money and interest? Waste of money!! And make sure you see the math. Don't go in just asking for a $199/month payment, for example. There is wiggle room on leases, just like on car sales. OH I hear you about down payments...your car loses that value as soon as you leave the parking lot. A good friend works at a big dealership here in town...will chat with him
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Post by snappinsami on Aug 6, 2014 20:34:25 GMT
We've leased cars for years and have never had any problems. Personally, I like getting a new car every couple of years for a variety of reasons. Newer cars are more reliable, and many leases cover scheduled maintenance as well as other service issues that may crop up. Leasing is also a way to perhaps drive a more expensive car than you'd be able to afford to buy. Sure, it's not for everyone. But it's worth looking into to really decide if it's for you.
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Post by Basket1lady on Aug 6, 2014 20:56:37 GMT
If driving a new car and having a payment is important to you, it's not a bad way to go. But if you don't mind driving a car for 5 years and you don't want a car payment, it's not right for you.
My dad swears by leasing. I swear I never will. But his priority is a new car and my priority is no car payment.
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Post by donna on Aug 6, 2014 21:16:50 GMT
I could never lease a car because I drive way too much. I drive a pretty long distance to work every day and then my Mom lives 3 hours away and other family is 4 hours away. We drive those distances a few times a year.
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Post by peasful1 on Aug 6, 2014 21:28:57 GMT
Car is always under warranty, new car every 2-3 years. Perks enough for me. As for mileage, no biggie. We were 100% over our mileage allowance on the last lease (a Volvo). Infiniti took it off our hands without penalty to get us into their vehicle. If anything, we are paying less for a much nicer vehicle.
Why anyone would squeeze into a small rental to avoid mileage charges is beyond me.
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luckyexwife
Pearl Clutcher
Posts: 3,069
Jun 25, 2014 21:21:08 GMT
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Post by luckyexwife on Aug 6, 2014 21:33:11 GMT
Why anyone would squeeze into a small rental to avoid mileage charges is beyond me. Just wanted to clarify, if you were talking about the people in my comment above, they either squeeze into her DH's car OR rent a larger vehicle so they have more room.
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Post by leannec on Aug 6, 2014 21:33:38 GMT
We lease one vehicle because dh can write part of it off as a business expense ... he's a realtor ...
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Post by peasful1 on Aug 6, 2014 21:48:49 GMT
Why anyone would squeeze into a small rental to avoid mileage charges is beyond me. Just wanted to clarify, if you were talking about the people in my comment above, they either squeeze into her DH's car OR rent a larger vehicle so they have more room. Thanks for clarifying but I still don't get why they would do either of those. Trading in a lease to any dealership is easy.
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Post by whipea on Aug 7, 2014 2:40:20 GMT
I am happy with leasing. I am on my third lease which will expire in about six months. My car has less than 9000 miles and I have a 12,000 a year lease. I may make year one mileage when I turn it in. Like having a new, dependable vehicle with no service costs (part of the lease included free service). I use a company car for any distance driving or fly.
To me it is exciting getting a new car every few years.
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melissa
Pearl Clutcher
Posts: 3,912
Jun 25, 2014 20:45:00 GMT
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Post by melissa on Aug 7, 2014 2:53:13 GMT
Where are all the fiscally conservative refupeas?
Leasing only makes sense from a financial viewpoint in a limited number of situations. Otherwise, it is a luxury or splurge purchase. In the end, you always pay more by continually leasing than you do by owning a vehicle. Additionally, you will also pay more in insurance because you always have a new car.
Actually, to get the most for your money with a car is to buy a used car, ideally the year it was released with low mileage and a full warranty, as in a "certified" used/pre-owned car. It takes some work to find these but they are out there. I bought my 2010 (replacing my 1995) in August 2010 with about 10K miles and the remainder of the new standard new car warranty. The dealership also included some oil changes and car washes. I paid cash so no payments and will drive it for probably 10 years. We've held on to all of our cars for 10-15 years. While a new car every 3 years would be fun, I personally would rather save my money for retirement, vacations and other things.
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caro
Drama Llama
Refupea 1130
Posts: 5,222
Jun 26, 2014 14:10:36 GMT
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Post by caro on Aug 7, 2014 2:56:33 GMT
I've leased two SUVs and had no problem going into and out of the leases. I bought my last SUV because buying was cheaper or I probably would have leased again.
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Nanner
Drama Llama
Posts: 5,987
Jun 25, 2014 23:13:23 GMT
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Post by Nanner on Aug 7, 2014 3:22:46 GMT
We have leased vehicles, but we put on so many miles, it was the wrong thing for us to do. One of ours, we had a $4,000 over mileage payment if we were to turn it back in. So we just bought it out, even though I didn't like it (minivan). The latest one, when we decided to buy it out - well, they added on $800 in administration costs. I nearly blew a gasket! $800. They ended up cutting that amount drastically, but it took some talking.
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Post by eebud on Aug 7, 2014 13:08:05 GMT
We have done 3 leases so far and had a good experience with each one. The 3rd one we bought the car at the end of the lease and gave it to DD. She's on her own and it is the last car she'll get from us! I have been driving my current car for 12 years and we are beginning to discuss trading it in. Since I put less than 12,000 miles/year on a car (my car now only has 119,000 miles), we are seriously considering a lease. Safety and technology features are changing at a faster clip lately. Leasing would allow us to stay on top of those changes. Retiring soon would make me want to purchase a car, not lease, because I would want to get the car paid for and then not have a car payment for many years. I am also assuming that you would keep your car for many years and not buy new every few years. My current vehicle is over 11 years old and DH's is 10. I think DH and I are both going to buy new in the next couple of years so that we can deal with car payments while we are both working full time. We will get them paid off very quickly this way and it will help when we start to seriously think about retiring to know that we have paid for vehicles that still have some years left in them. Also, I know that some places can be very picky about the condition the car is returned. DH has worked all his life in the auto body shop business. He has seen many customers bring in leases that the company is requiring them to pay to have all the little door dings and such fixed or they will charge them a huge fee. Also, keep in mind that at the end of the lease, you either have to buy the car or turn it in. If you turn it in, you now have $0 to go against a down payment for a new purchase or lease. You will need to save some of the payments that you saved to cover these expenses when you have to give the car back.......assuming that you will need another vehicle. While having a paid off car is nice, it is still going to cost you money each year in maintenance and service costs. Of course you will have maintenance and service costs. Those are a fraction of the cost of car payments on new cars that also have service and maintenance costs. My vehicle is 11 years old. I have put a few sets of brake pads (new pads are not expensive) and 2 or 3 sets of tires (the biggest expenses I have had). I also had a $1k repair done once. I get the oil changed regularly as well as the other fluid changes that need to be done periodically. That's about it. My expenses for driving a car with no car payment for over 6 years have cost me about the same as 1 years worth of car payments..........probably less...............My car will get replaced when I no longer feel that it is reliable to travel by myself in or when major things start to go wrong; however, we do want newer, paid off vehicles, before we start to seriously look at retiring.
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Post by Fairlyoddparent on Aug 7, 2014 13:32:04 GMT
If money were not an object I would change cars every 2 to 3 years. I love new cars so leasing is very appealing to me. Unfortunately, I put a lot of miles on my cars. Today is the first anniversary of me owning the car I currently drive. I have put over 23,000 miles on it. I don't feel like I drive an unusually high amount of miles but I must.
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Post by tuva42 on Aug 7, 2014 13:35:24 GMT
Every financial advisor will tell you its a bad idea. Buy a good car, pay it off in 4 years and you could easily have another 6 years of a good car with no payment at all.
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grinningcat
Pearl Clutcher
Posts: 4,663
Jun 26, 2014 13:06:35 GMT
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Post by grinningcat on Aug 7, 2014 13:38:13 GMT
Leasing is the way to go. I have no desire to own a car. I get a new one every four years so I am not saddled with the grossly expensive maintenance, it's nice to have something well maintained and functional.
Quite frankly, everyone that I know who owns a car outright just bitches about the high cost of maintaining old cars. No thanks. I'd rather have a monthly payment for a new car and not deal with having to drop thousands of dollars on an engine or other major part.
Not to mention, getting into and out of a lease is easy peasy lemon squeezy. My lease is ending in October, this is the first vehicle that I've leased that I have even debated buying out and I'm not sure I want to. Why bother when I can get something pretty and new and perfectly functioning? It will be as easy as walking into the dealership and exchanging one set of keys for another.
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Post by gar on Aug 7, 2014 15:12:53 GMT
Every financial advisor will tell you its a bad idea. Buy a good car, pay it off in 4 years and you could easily have another 6 years of a good car with no payment at all. But every mechanic might not agree. I don't want to drive a 10 year old car and pay for the increasing running and repair bills. Not everyone has the same priorities.
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