I’m self employed. Drive around 12-15k a year for business and 8k personal.
Wondering if leasing makes sense?
Currently i buy a car for 5 years/100k, add on the extended warranty to cover be until that point. And then move on… However I’d like to refresh my car every 3yr/60k, and thinking if i could make leasing work
You’re probably better off buying a CPO that has 2-3 years of warranty remaining since you’ll get a 100k or unlimited mileage warranty then trading/selling it at the end of the warranty period. Basically what you’re doing now but it sounds like you’re buying new cars whereas the CPO warranty is usually better for high-mileage drivers.
Also, I recommend Tesla’s for high-mileage drivers since they require minimal maintenance but in that case you’d be better off financing a new Model 3
What kind of cars are you looking at and what’s your budget? Obv the decision to lease vs buy is partially dependent on the RV and MF relative to resale values and financing APR
I drive between 18k to 21k miles per year due to work and family road trips. For the past 7 years, I own one car and lease one for 10k mpy. Havent kept any of the owned cars for more than 18 months and have spent only about $1500 to $2000 on depreciation on each vehicle. If your current car is paid off and mechanically good condition, maybe keep it and lease an additional car to split the mileage. You can also look into 18k mile leases where yiu will be pre paying for miles above 15k mpy.
What have you purchased and had so little depreciation in?
Really comes down to the numbers, cash flow, what kind of car you want etc. Maybe lease two cars. What’s it cost you to buy?
From my research, Lexus offers the best CPO warranty with six years and unlimited mileage from the original in service date. Most other luxury brands offer a four or five year warranty. You best off getting a CPO Lexus loaner IMO
My current car is a loaded 2017 gti that i got october of 2016 , after the warranty i dropped almost 40k in cash on it with plans on keeping it 5 years. Only major maintenance i should be liable for will be brakes and tires due to the warranty. It’s currently worth 17k ballpark. I still enjoy driving it, but i have the itch for something new now that i just got my mom an xc60 inscription lease
@Isacr That’s good to know about lexus, thank you
I think for $40k you could buy a gti and a half, new even
Hondas and Acura.
To the OP. I drive the kind of miles you do. Maybe 24k miles/year.
I’ve done the buy lightly used, the very used, the new and now I’m leasing. I have owned many vehicles over the years.
So I drive 24k/year, the wife drives (at most) 6k/year. We have 2 leases going each with 15k/miles per year and then switch cars at mid-lease. And the cost is no more than buying lightly used cars. We get new cars, the wife likes having the OEM roadside assistance to change a flat tire (or whatever).
It works for us.
This is my situation, basically and is how we’re making leasing work for us.