This is LH, and he basically said leasing is a waste of money vs. buying - which we all know it is not.
Thanks for your opinion, but I will say what I want.
That’s not what he said at all.
Pointing out some of the downsides of leasing (ongoing car payments, mileage limits, fees) does not equal saying leasing is just a waste of money.
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The thing is with buyout is essentially you have to promise to yourself to keep the car for AT LEAST another 5 or more years for it to make sense.
Also, with you plan to put 50% upfront and get a loan for another half - remember, if the car is totaled, money could be gone easily be gone.
If you will go this path - keep the cash, finance the whole thing (rate are low) and get GAP insurance.
This way you get to keep the cash and insurance will pay out the difference between the value of the car at the time of loss and outstanding loan balance.
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“That’s not what he said at all”
Uhhh, yes he did:
“If you don’t buy this car, you can keep leasing, however, eventually (unless you want to throw away money forever), you have to spend at least $20k or so and buy.”
Call it for what it is, you can send him your “feel goods” in private.
What was cost of ownership on that car?
Not saying they don’t have value, just saying it can be cheaper to lease, no major maintenance and cheaper payments. I look at cost, not how much money I got out of car after 8 years of dumping money into it.
That is the similar math juggling I used to convert my wife into Leasing rather than Buying. So far I have been getting lease deals cheap enough for friends and family to copy on so we will be Leasing in the forseeable future, unless we get a really good purchasing deal. I also tried the CPO vs New concept but she hasn’t budge on that front yet.
One should obviously do the math in a bit more detail when comparing, and if one were trying to minimize their cost expenditure for buying, they’d probably not be buying a brand new $50k car every 10 years, but the important point is that the math doesn’t work out that differently.
There was a great thread on here from someone that bought a cpo 3 series and held it for 8 years, then added up all of his costs. The effective monthly payment wasn’t that different from what it would have cost him to just keep leasing a new 3 series over and over.
I am too lazy to read this however the best pre-owned vehicle you can buy is the one where you have been the only owner.
*unless you’re a crappy owner and crash it all the time.
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Please tell me it is not the non-turbo 4 cylinder, driving that was intolerable for my Wife.
I would say no matter what motor, do not buy it.
Why? the residual is too high. When we bought our’s it was 26.3% off MSRP. You did not get enough of a discount/rebate to begin with which made the lease a bad deal.
Bear
Not sure I follow… comparing a car’s purchase price against its wholesale value is always going to generate a negative number
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Not if there’s equity in the car.
Used car market isn’t depressed. This past week has been absolutely insane.
Prices at auction and lease purchases are considerably higher than they were pre-pandemic.
As I stated earlier, a lack of new car inventory would push focus to used cars.
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Used car market is unaffected by the influx of rental cars flooding it?
It’s easy to see what your car is worth on Cargurus. In my professional opinion you cold sell the car at $24,235-ish. In this case RV is almost spot on.
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Completely unaffected. People are buying them by the boatloads. Our UCM hasn’t been able to buy anything, it has all been running for over retail at auction.
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Which rarely happens even in the good times … now with Carvana, Vroom etc having dropped their bids, it’s almost next to impossible.
I just don’t think it’s a good indicator because the results are lopsided. You’re hardly ever going to get a positive result.
We’ll be in the same boat in 2 years. We really like our Tiguan and we’re way under miles (and will continue to be so), plus like your Santa Fe, it has a longer warranty (6yr/72k) so it won’t immediately drop out of coverage. Not sure where the actual value will be in relation to lease end buyout at this time, but the wife does want a few more features (around view camera, park sensors), so that may ultimately drive is to return and lease again more so then the value.
That said, if you’re happy with your SF, it’s features, it’s reliability, it maybe be worth buying it out even if it’s a bit above replacement value, since like our Honda friend said, the best used car is the one you already know. But I’d at least scope out new car lease offers before you make the final decision.
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Probably depends on the brand and maybe the model. The ones that are common rentals must surely be affected.
Shouldn’t surprise anyone if LR/RR is unaffected