Yeah don’t do that, just lease again. It’ll be four years down the road and you’ll have 7 year old Hyundai to get rid of that won’t be worth squat, better to drive something nice and new then flush money into this thing.
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I wouldnt advise asking a leasing forum what to do. If you want folks to lean towards leasing another car ash for advice here, if you want people to tell you to purchase ask on bogleheads.org.
Anyway, say you lease another vehicle at $399 a month for 36 months - you would have paid another ~$15k and be trapped in this cycle of perpetual leasing. If you want to end the cycle eventually you have to buy something and keep it.
Keep leasing for 20 years at $399 a month = $95,760
Or you can buy a car every 10 years = ~$50,000
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.
I leased my current car for the first time and I hate it. I don’t want to worry about miles, disposition fees, scratches, etc… I rather just purchase and have more control.
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I just sold my 8 year old 100k miles Base Sonata for 4K (the car had 2k of damage that I discounted for), essentially selling for 6k. This is when used cars values are depressed.
Really tired of people saying 8 year old cars don’t have value.
A $400/ mo lease shopped well is a car that’s easily $45-50k new. Buy one of those every 10 years means $90-100k over 20 years. That sure sounds an awful lot like about the same price as leasing at $399 /mo for the same time. Other than not having to pay for any maintenance, which on a 5-10 year old car can be significant. Oh, and you don’t have to drive a 10 year old car.
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Are you saying we are biased?
OP, I agree. If the car has been trouble free, keep it.
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That’s not nice. We welcome all points of view, even diverging ones.
@kwarden13 is a member who has contributed to this forum
@DailyDriven bro, you are the one who needs to mind his attitude
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Look, I made a comment earlier explaining my position. I deleted it to be more concise and fair, as well as attempting to reword to be more civil.
For certain depreciating assets, say a bimmer, it makes much more sense to lease than buy and be stuck with an expensive Af upkeep, payment, and have to foot the bill of devaluement in case of an accident.
However, purchasing a reliable long term car is a great option, in certain scenarios. My stereotypical Asian genes can’t stress this enough, do. the. math. If it makes sense to buy this car out comparing it to values of pre owned or certified (they don’t but for other brands) cars, accounting for maintenance (then comparing to a lease), go for it.
However, your comment of 50k finance, 399 lease imo is flawed. 50k over 5 years, with say a Covid finance special at 0% is still 833/month + tax. If you need tires twice, brakes twice, oil changes every 10,7.5, or even 5k miles, add 2 brake jobs, 2 sets of nice tires, and costs add up over 10 years, assuming nothing breaks.
At that point we’re not looking at the returns that investing 400/month for 5 years could have netted in any investment, but you get my point at the comparison you have.
Most of the time it doesn’t, but checking and running the numbers doesn’t hurt. Leasing has its place for cars that don’t retain value, but more popular and reliable cars like Honda’s, Toyota’s (we see you 85% rv taco), and Kias do have a place and sense to finance or lease with a ridiculously cheap payment less than 300/month on a 40-50k truck.
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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.