Lease or buy???

[vbgagnon]

Here goes guys, I'm getting whacked out by the price of gas and want to ditch the suv. I'm mainly looking at a vw jetta. The thing is I've never even looked into a lease. I don't know whats involved, or what fees are involved. I'm sure you guys have dealt with it before and would like some insight to the lease world.

From what I understand it pretty much depends on how many miles you use it, and what condition its in when its time to turn it in. We put about 10k miles a year on our family vehicles.

Any insight guys?

 

[Candyman]

Here's my 2 cents..
I leased a van once. Once. And it was not very pleasant. If you're going to lease, make sure the dealer is VERY explicit about what things are covered and what things you are responsible for. Make sure you are very certain about mileage restrictions. Also, make sure you're aware of all info pertaining to the maintenance of the vehicle. The reality is that when you lease, you're essentially renting the vehicle for the term of the lease. Most dealers expect the vehicle to be in pristine condition when you turn it in. Any minor flaws or work needed will be charged to you at a healthy price. We had a stone chip in the windshield and they were all over it. Plus it was a Dodge and it was crap. Blew a head gasket at like 35,000 miles. That cost us a bunch. Any dings, dents, scratches will have to be fixed at your expense unless your insurance will cover it. Also, we lived in California when we leased it. A year later we moved to New York. The dealer said that wouldn't be a problem and that we could turn it in to a dealer in NY. But the lease company said no way. That we had to return it to Huntington Beach. And if we couldn't, we had to pay for the vehicle to be returned there. It was insane. I personally will never lease a vehicle again. Yes, the payments are a bit cheaper. But the car isn't yours. The only way you can actually "own" it is to buy out the lease or buy the car at the end of your lease. And generally speaking there's no equity in the vehicle when you're done. If you're the kind of person that likes to drive a new car every couple of years, this can work well for you because you don't have a loan that you could end up up-side down on. But if you plan on keeping the car for 5 or more years, you're better off buying and at least enjoying some of the trade-in value that you'll have down the road.

 

[vbgagnon]

Thanks for the info candyman, anybody anything good to say? :shrug:

 

[cvec7]

Also, here's a thought, wheather or not you want to mess w/ it or not, but I figure I'll throw it out here just in case...give you something else to consider...

If you are looking at the jetta, you could get the TDI Diesel, and then make your biodiesel fuel for it, for $0.70-1.00 a gallon, but I'm not sure if you're willing to get started into that....
But, just something to think about...

 

[vbgagnon]

If I do the lease thing its going to be a diesel, they are very hard to come by but thats the plan.

 

[FastEddy]

If its not a company car most leases don't make sense.
If you want a new car every 2-3 years and you don't put a lot of miles on it it MAY be worth looking into.

Candy made most of the logical arguments against doing it. The only thing left to say is if you can afford to buy a car because the payments are to high its an alternative.

 

[jetmechG550]

Agreed with Candyman and FastEddy. I leased once and will most likely never lease again. I was always on the plus side with my cars so when I sold or traded in I had something coming to me. Well the realization came when we turned in the Durango a couple of months ago, ain't got poop now. When the turn in inspection was done the company that did it told me anything that can be covered up with a credit card is acceptable as normal wear and tear. I'm a fanatic when it comes to my vehicles but I was always worried about the "old lady and the shopping cart" even more so when I was out with the leased car. Also, the mileage is a ball buster, you are always sweatin it, especially if a life situation changes like a new job that's a further drive. Good luck on your decision.

 

[Monster_GT_Kid]

ya biodesiel would be the way yo go at like $.60 a gallon i seen how they did it on spike tvs trucks. he is wat u would need to make it though.
Biodiesel

 

[cvec7]

Yes, that's if you want to pay $3000 for the processing unit, and re-coup your losses from buying the damn thing in 15-20 months... Whereas, you can build your own for under $800....

 

[Monster_GT_Kid]

i know but that thing is killer it makes so much. its kinda a trade off though one of those. which would save u in the long run. Or the gas prices now.

 

[4u2nv]

My outlook is why pay the same bill each month, and then in a couple of years you have to give it back, than when if you bought it, youd actually get to own it after a few years. I myself would never lease anything. I worked at a Ford dealership for 4 years, so I kinda know how they aim.

 

[Mr T-Maxx]

Tough Decision!

I was never a fan of leasing, because of what some others here have said...you turn it back in and you have nothing. True, but in a good bit of the cases where you finance a car for 4...5....6 years, once it's paid off, again you don't have much.

Crunch the numbers....a two year lease will have a payment about equal to 1/2 of the payment for a 5 year loan on the same vehicle. Take both scenarios out two years and see what you have. How much have you spent on the loan and what is the vehicle worth at that point vs. what you will spend on the total term of the lease.

I had a couple of other factors that put me over the top on my decision to go with the lease.

That being said, I'm currently 15 months into a 24 month lease....so far so good. I have also heard the nightmares that can occur when you turn them in. I asked a lot of questions about the turn in procedure....then i asked more questions......I guess I'll find out in June.

Since my experience isn't over, I can't give ya a "good" experience story, but I hope that I made the right decision.

Take your time, look at all the options, Good Luck!

Mr T

 

[Plaidfish]

Here's what stopped me from leasing:
I used to go on cycling rides w/ the owner of Gunther VW here in S Fl...he said he'd get me a great deal on the 25th anniversary GTI.....I could lease one for like 150/mo @ 3yrs.....or buy for 300/mo for 5yrs.....I wasn't in a position to spend 300/mo on a car so I looked at leases.....now I was 27....made decent money but was also paying for my ex to go to school and her car already......I looked at insurance and to insure me on a lease was going to be 400/mo.....and to insure it to buy would have been 160/mo.......so inth elong run buying would have been a cheaper monthly bill.....check and see what rates they give you on th elease vs. buying......I ended up buying a used bronco and paid for it outright just so I didn't have the monthly bill

Oh and at the time I only had 1 speeding ticket almmost 2 years old.....I got 1 more since then and I still get F'd by insurance companies....Evil pricks

 

[FastEddy]

If you keep the car you have now and do the math, will it cost you less just to keep the one you have?

30,000 miles a year x2 @ 15mpg = 4000 gallons @3.00 = 12k in fuel. If you new car gets 30mpg your at 6k in fuel.

A new car will cost a minimum of 350.00 a month most likely more. 350 x 24 = $8,400. Thats (-2400) in just fuel V payment.

There are more numbers involved and I'm sure they are different then the ones I posted but do the math to see how long your investment will take to pay off. Don't forget to see what the cost of insurance is on a new car as well it will make a difference.

As good as it may feel to think your beating the system, sometimes its cheaper to keeper.

If you don't mind, would you post the real numbers that you are working with? It will be interesting to see.

 

[jon2]

I am thinking of getting the Toyota Prius on a buy plan with gas these days. The whole Lease option sucks as I drive a lot and to be charged per mile over the allowed mileage sucks. Long term it sucks short term if you know that it is a dedicated ride that won't exceed the mileage..maybe. Like it has been said, if it is a company car yeas but a personal car I would think twice.

 

[wannarunem]

I am thinking of getting the Toyota Prius on a buy plan with gas these days.

jon2...i know for a fact as it stands right now, you wont save all that much money intially on a Prius..well, any hybrid for that matter. I have read that it takes years of owning the car before you start seeing the savings. Theres been several articles on this..MSN, Foxnews, CNN and probably other networks. Also, no one really knows how much a battery for these types of cars will cost. Some estimates put them at 3,000-5,000 a piece. Its still a guess right now since no one has yet to buy one. But in the long run..sure you will save money...just not for a while.

 

[sweetdiesel]

If it's all about monthly payments, pay cash and get yourself a 4 cylinder beater car to drive for the next year or so until you can afford to drive. You'll save on insurance and not have to worry about monthly payments.

Lease vs buy, in the end a car is one of the fastest depreciating purchases you can make, especially if you buy new. They depreciate quickly with the first three years being the worst.

Do you have your heart set on the Jetta? Take a look at the corolla, civic, and sentra. All are compact cars which are as reliable if not more than the jetta and also get decent fuel mileage.

 

[jon2]

jon2...i know for a fact as it stands right now, you wont save all that much money intially on a Prius..well, any hybrid for that matter. I have read that it takes years of owning the car before you start seeing the savings. Theres been several articles on this..MSN, Foxnews, CNN and probably other networks. Also, no one really knows how much a battery for these types of cars will cost. Some estimates put them at 3,000-5,000 a piece. Its still a guess right now since no one has yet to buy one. But in the long run..sure you will save money...just not for a while.

True on the battery, but how often is it changed? I do know my friend fills up to near 20 bucks and has driven to Vegas and back on ONE TANK.... That is a saving right there.

 

[Plaidfish]

with all that savings you might be able to afford a bunny ranch trip
:jk: jon........how far are you from vague-ass?

 

[vbgagnon]

Right now I'm paying 350 a month for my trailblazer, we put 10k miles on it last year, and the insurance is about 600 full coverage per year. I know its not that much money, but its getting crazy. Fuel is up to 3.39 per gal. I've been calling around and they won't give me squat for my trailblazer so it looks like I'm going to keep it. Like eddy said It won't be worth it in the long run.

Just the fact that the wife is going to be driving it this winter I think it will be worth not worring about her traveling by herself and with the baby.