Time for a new car lease......

[RWilson2526]

Well its that time again to get a new lease on a car for my wife. No matter how many times we do this I always feel like I have no idea if I am getting hosed or not.

Anybody have any recent car lease numbers. The best I think I have so far is a Mercury Mariner with most of the bells and whistles. Approx $27,500 MSRP. 39 mos/39,000 miles, $1000 down and $349/mos.

He refused to throw in the trailer hitch and let me walk so it might be a good deal (although we had our 5 year old with us at 7:00 pm so he knew we werent staying that night to sign a deal anyway)


And I know half of you are going to say "I never buy something I cant pay for outright" but somebody has to keep this economy going!

 

[bhammer]

Re: Time for a new car lease......

The best way to determine what kind of deal you are getting is to find out what the residual value is at the end of the term. Then, subtract that from the sticker price and that is what you are effectivley buying... Now, look at your payment and term and add some in for the finance charge. Of course, a lease is only a good deal if you don't keep the cars for long. Heck, I lease two vehicles and if they offered it on a boat,I'd probably do that too as I get tired of stuff pretty quick. My wife accusses me that I'd lease her too if I could. Ohh, and any type of credit doesn't really help the economy as much as cold hard cash does....

 

[642mx]

Re: Time for a new car lease......

No matter how many times we do this I always feel like I have no idea if I am getting hosed or not.

And I know half of you are going to say "I never buy something I cant pay for outright" but somebody has to keep this economy going!

I think you answered your own question. If you lease, you lose. $349 a month for 3 years and you get nothing at the end of 36 months. Leases only make sense if you have extra money to spend to keep yourself in a new vehicle or if you have a business and need a write off.

If I was you, look for a zero interest deal on a new SUV. Get something affordable and keep it. When its paid off you can spend the extra money on your boat!

 

[SgtMaj]

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[SgtMaj]

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[roscoe]

Re: Time for a new car lease......

27,500 msrp should be a 22,000 or less cash price.


You should be able to buy a 2-3 year old of the same model for $15,000 or less, several on ebay right now with 20k miles.
In 3 years its paid for and you will still have a vehicle with under 60k miles.

Does she need an suv? Does she need a low mileage vehicle?
There's one with 83k miles for 8,000.

IF you have to have a new vehicle, and you have to lease it, the way to do it is to negotiate a cash price for the vehicle you want, then negotiate a lease deal based on that price. Then compare it to what you would pay and have left over, if you purchased it for the same price.

 

[RWilson2526]

Re: Time for a new car lease......

The difference in gas consumption for an SUV and a fuel efficient car right now, more than make up the difference between 0% interest and 20% interest.

I spend an extra $200/mo. in gas because I bought an affordable SUV... if you have the option to get something more fuel efficient, go for it, it's just not worth it not to anymore.

I agree about the gas prices....and although she will be the primary driver to work each day we need it to pull the boat and also use it as the family car. We added a baby to the family back in November and now the 4 of us cant fit into my benchseat pickup. We labored back and forth about just going with a car and taking both vehichles when its time to take the boat out, but we finally decided against it and go for the smallest SUV that will tow.

 

[tashasdaddy]

Re: Time for a new car lease......

we have a 2005 Mariner, 2.3 4 banger. great car, but if you are going to tow with it, you need the 6 cylinder. and stay out of overdrive when towing. i put my hitch on in about 30 minutes, myself. i agree there is no future, in a lease.

 

[bhammer]

Re: Time for a new car lease......

All, not to get off from the OPs question but not all personal leases are a waist of money and that broad spectrum statement is incorrect. If you are in the mindset to get a new car every couple of years, they are beneficial because the majority of time, you cannot make of the depreciation difference. Every car is different and the leasing companies use several different methods to determine the lease value; including residual value, their cost of money, your credit worthiness and so on... On my last 3 leases, I have actually bought the car back from the leasing company (American Honda Finance) and sold / traded for another lease. I did this because the market value for the auto was better that the Residual Value payment or TV (termination value). In my case, it worked out for a Honda Accord, Acura TL and Acura MDX. The amount I paid into the lease, compared to what my final expenses were against what I would have paid for it with a typical loan, I came out ahead.

Many people don't factor in Time Value of Money or the cost of money, which I do. At the company I work for, we do this all day, but just for more expensive modes of transportation, corporate aircraft.

Now, I know of people who get a lease, so they can "get more car for the money" and then refinance the TV at the termination of the lease. There is no case I have seen that this makes any sense and you loose money every time... But, if you want a new car every couple of years and don't mind treating it like a utility payment, a lease is the right way to go.

 

[bruceb58]

Re: Time for a new car lease......

Friends don't let friends lease.

 

[RWilson2526]

Re: Time for a new car lease......

we have a 2005 Mariner, 2.3 4 banger. great car, but if you are going to tow with it, you need the 6 cylinder. and stay out of overdrive when towing. i put my hitch on in about 30 minutes, myself. i agree there is no future, in a lease.

TD, thanks for the info...definitely looking at the 6 cyl. How difficult was the wiring. I did my own hitch on my Silverado but it was a piece of cake because it was pre-wired and all I had to do was plug into the harness hanging down under the bumper. Doesnt look like the Mariner has that and was wondering if it was going to be a pain.

 

[RWilson2526]

Re: Time for a new car lease......

Well due in no small part to all of your's advice I broke from tradition and did not lease a new vehicle. Even more conservative we purchsased a pre-owned Honda Pilot. Nice vehicle....was a lease turn in...32,000 miles 2005. got for probably 8k or so less than a new smaller SUV. wasnt crazy about that lesser gas mileage but I felt more comfortable with a little larger vehicle in front of my boat while towing.

BHammer I do agree with you though.....I have had that mindset for 4 lease cycles ....It was nice to get into a new car every 3 years...fixed monthly expense...no major maintenance to ever consider....

I think what put me over to the other side was the cost of infant day care coming up this september. (dont get me started on the expense of daycare!!! All I can say is that for you people that have family around that help with watching the kids you should send them on an all expense paid vacation. )


Although in the short run I could have gotten into a lease cheaper on a monthly basis I should be able to reap some benefits down the road.

 

[199675hpforce]

Leases are for punks

Leases are for punks

ive put a pencil to leases never come out right. Id be careful trucks are not selling right now except toyota tacomas. Only person that ive talked to mentioned leasing was the way to go a bankrupt guy my sister was dating and car salesman lol. Do the math its stupid, get a honda fit stripped out $13k drive it two years then sell $10k your out $1500 each year not bad.

 

[642mx]

Re: Time for a new car lease......

Well due in no small part to all of your's advice I broke from tradition and did not lease a new vehicle. Even more conservative we purchsased a pre-owned Honda Pilot. Nice vehicle....was a lease turn in...32,000 miles 2005. got for probably 8k or so less than a new smaller SUV. wasnt crazy about that lesser gas mileage but I felt more comfortable with a little larger vehicle in front of my boat while towing.

BHammer I do agree with you though.....I have had that mindset for 4 lease cycles ....It was nice to get into a new car every 3 years...fixed monthly expense...no major maintenance to ever consider....

I think what put me over to the other side was the cost of infant day care coming up this september. (dont get me started on the expense of daycare!!! All I can say is that for you people that have family around that help with watching the kids you should send them on an all expense paid vacation. )


Although in the short run I could have gotten into a lease cheaper on a monthly basis I should be able to reap some benefits down the road.

Congrats on your purchase. You did the right thing, now you can pay it off and its yours to keep.

 

[arboldt]

Re: Time for a new car lease......

Congratulations on your purchase. I, too, think you've done the right thing and gotten a great deal.

Generally speaking, the longer you have a vehicle, the lower your overall cost, until major repairs start to exceed half of its age-diminished value. For us, that seems to happen around 200,000 miles. That's why Consumer Reports -- and so many on this group -- urge avoiding leases.

A couple years ago we got a 2007 Honda CRV as our tow vehicle -- and all-around family vehicle. It's a 4 cylinder, so many would consider it underpowered. But comparing to the vehicle it replaced, it's wonderful. Of course, our boat is small (boat and trailer with a full fuel tank under 1100#), and we're not the kind to try and tow in lots of mountains at 80 mph. We do notice fuel consumption goes way up when we tow, but we really don't tow that much.

Now to enjoy youir family time on the water.