03-05-2017 01:49 PM
DH is going to be replacing his SUV soon. We have been debating leasing vs purchasing. We have never leased prior and generally have kept our vehicles for 5-7 years, sometimes longer.
We are retired, I am in my mid 60s, DH is 70. We are debt free, excellent credit rating and financially stable for now and foreseeable future.
Mileage for us will not be an issue, we only drive about 5000 miles annually.
What he likes about leasing is being able to get a new vehicle every 2-3 years and being able to afford a higher end vehicle, even though will be slightly more costly then owning.
We plan on talking with friends and others who have leased, but otherwise are looking for opinions on the ins & outs, reliable references to read to get an understanding on doing comparison of leasing vs purchase.
Appreciate your thoughts and opinions.
03-05-2017 02:03 PM
I decided to lease when I had to purchase a car after my dear husband passed away. I like the idea of a new car every 3 years. I don't have an issue with mileage and nice to know it will be dependable. Leasing isn't as it was years ago. We leased many years ago and the rules have changed a lot. The payment is reasonable and no money down which works for me since a car is such a depreciating item. I just found out the insurance requirements have gone down. I will continue to lease. Hope this helped.
03-05-2017 02:06 PM
My sister leased a couple times over the years, but did so for lack of finances. She had no issues. I think leasing is a match for what your husband wants out of it. Whenever I contemplate a new car, I go to Barnes and Noble and get a book or two. I know those stores are dwindling, but I like having an actual book to study aspects of the transaction/car before making a decision.
03-05-2017 02:08 PM
I just purchased a new 2017 Ford Escape and I love it. I had a 2001 Toyota Solara that I purchased new and I only had 55,000 miles on it. I don't drive that much but at the age of nearly 71, I was having difficulty getting in and out as it's low to the ground. Like you, I have a very high credit score, am debt free, and financially comfortable so I had the option of buying or leasing. With leasing, as you stated, you get a new vehicle every 3 years and the payments are a bit lower BUT it's like renting an apartment vs, buying a home...you always have a payment and own nothing. I decided to purchase my car because I take excellent care of my vehicle and because of my good credit, I was able to get 60 months at 0% interest. When I consulted with my financial advisor he said, 'While 60 months is a long time, you'll have the car that long, if not longer, so use their money (0%) and in 5 years your payments will cease. If money is not an issue, like in our cases, it's just a matter of what suits you best. If you are not prone to keeping a vehicle for a long time, perhaps leasing is the way to go
I probably haven't been much assistance in helping you make a decision but I do wish you and DH best of luck in whatever you decide. docsgirl
03-05-2017 02:15 PM
When my husband died I leased a vehicle thinking I'd just get a new one every year like he and I used to do.
However, I forgot how lazy I am. I just kept renewing the lease. I never went over the mileage because I don't drive much.
Finally, I had to come off of the lease. My daughter (rightfully) told me to buy the car because I have an Acura and they hold their value. They really hold their value!
When someone wrecked my car a few years later. My insurance company invested a few dollars less than $20,000 into my previously leased car to fix it. They said Acuras hold their value. The entire car was almost rebuilt. Ha!
This past Fall I bought a new Acura 2017. I love it. My best friend liked mine so much she bought a 2015 Acura. They are wonderful cars.
I think leasing would probably be the best deal for you because you probably won't travel much and that way when you stop driving your family wouldn't be stuck with a car to get rid of.
I just paid cash for my car and will give it to my granddaughte who will be driving when I stop (in about 2 years). My daughter keeps their cars forever.
I hate to drive and look forward to using Uber AND this granddaughter....Ha!
03-05-2017 02:19 PM
Years ago I leased 2 vehicles but got out of the plan after the second vehicle. The balloon payment, if I decided I wanted to keep the car was frightening. I also did not like leasing because I enjoy not having a car note (for a while at least); and I love owning my own car. Having the leasing option is wonderful and I am happy it is available for consumers.
03-05-2017 02:33 PM
Can you negotiate a lease? You can negotiate the price of a new car for purchase. For a person with no debt and excellent credit you need put little or no $ down on the purchase and negotiate a great deal if you are a good deal maker. You can pay off a financed car anytime you choose and have the $ to do so. Not to be morbid, but what happens to a leased car if the owner can no longer drive, or worse? Are you not obligated to the terms of the lease? If that happened with a purchased car it could be sold. I have leased and owned. I need to finance a purchase, but I can pay it off any time and I like having a car with no payments for several years after. You will always have payments with a lease and sometimes $ owed at the end. Purchase rates, especially on new cars can be as low as 0% for five or more years. That's why I finance and leave my cash to invest- especially in today's market.
My preference is to buy a one to three year old luxury car with one previous owner or an end of year model. Let someone else pay the depreciation. I drive what I love for as long as possible (last car maybe too long, 153K miles), then sell it on Craig's list. Even with high mileage I still recouped enough to cover almost a year of payments on my "new" car. Cars are generally built to drive much longer (over 100K miles) so to me it does not make economic sense to get a brand new car every three years. There is no right or wrong way to own a car; it's what works for you. If you have never leased a car I urge you to learn as much as you can about leasing before you ever set foot in the shark tank AKA the car dealership.
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