Community Chat

[gidgetgh]

I would never lease. For me, it's like renting a car for years on end. And in the end, you have nothing to show for the payments. Might as well just go to Hertz.  And then there are all those lease issues regarding mileage and stuff. 

[Cats3000]

Go to the Kelly Blue Book website and search on the car that you want, equipped the way you want it.  It will show you the Manufacturer's Suggested Retail Price(MSRP) for the car, the price the dealer pays for the car, and a range between the two that Kelly Blue Book considers to be a "Fair Price" to pay for the vehicle.  Remember that the dealer pays LESS to the manufacturer of the car, and that for the MSRP, the key word is "SUGGESTED".  The dealer can charge whatever he wants to.  You can always vote with your feet if you don't like the price.

As for leasing, remember the "low lease price" they quote you is often for a small number of miles per year.  If you exceed that, you'll pay through the nose for the extra mileage.  The higher mileage leases will cost more.  We always buy our cars.  We buy what we can afford and either pay cash or take an auto loan.  We would never consider leasing a car.

[millieshops]

Good discussion and timely for me.

I had my 2008 car in the shop yesterday for minor stuff -  oil change, tire rotation, and pictures so I can get Toyota to replace my dashboard.

Usually, I take the dealer's ******tle home for a few hours, but yesterday I decided to stay to speak with a rep about leasing or buying a different car.  As Lotus said, what an experience!  I came home with more new knowledge than I know what to do with, and, for sure, learned that those who complain about the QVC hosts pressuring them to buy have no inkling what pressure is.

I do know what I want should I trade cars, but I also need to finish deciding just which extras I really want/need and the decision about buying or leasing turns out not to be nearly as easy as it once was.  That's also something I have to work on --and what we knew a few years back doesn't seem to apply today.

Thank heavens I don't have to get a new car becausee I really need time to work on the whole process, so I walked away with my info and a small bill for the work finished by the service department while I shopped. 

[esmeraldagooch]

This is what Dave Ramsey says about them.
ANSWER: A car fleece is basically renting a car. You pay $400 a month and at the end of the new car lease, you turn it back in. If you want to buy it, you are buying it for what they estimate at the beginning of the fleece to be the market value. At the end of the lease, it’s called the residual value. If you pay $400 a month for 60 months, you pay $24,000 before turning it in. The car will not have gone down in value more than that, because the car companies would lose money if it did. When they get the car back, you will have paid them more than the car has depreciated during that time.

During that time, you’re maintaining the car as if you owned it. You’ll get charged for excessive wear and tear, or if you put too many miles on it. If you rent it for $24,000 and it went down $15,000 in value, then it cost me $9,000 to rent this car for this period of time. That is their profit during that time.

Another thing is that the interest rates on a vehicle lease are not disclosed because the Federal Trade Commission has determined that this is not a debt, so there is no federal disclosure involved. Therefore, you have no truth in lending disclosure sheet. The interest rates you get charged are unbelievably high. That’s where you’ll realize you got screwed over.

People get sold automobile leases because they are told that it’s what sophisticated people do. But as it turns out, the car companies make more money on leasing you the car than if you bought the car with cash, according to the National Auto Dealers Association. Broke people think ‘how much down and how much a month’. Rich people think ‘how much’. If you can’t pay cash for a car, then ride a bicycle. But don’t lease a car.

[kivah]

I also suggest u go thru Costco. I believe AAA also has this service - as well as other companies. You're buying at Fleet Price - no salesman. Just go to costco.com and search Auto Buying Program. I think u fill out a form about what ur interested in buying - then salespeople call u. There's still room to negotiate when ur at the dealership.

My 29 yr old Honda Accord finally broke down 2 weeks ago. I know a salesman who works for Lexus (Lexus owns Honda and Acura dealerships). So I called him and told him that I wanted another Honda with the fewest electronics (I'm older and get confused easily). He went to the Honda dealer 2 blocks from Lexus and found a 2012 pre-owned Honda Civic with 34,500 miles -- the car was a lease - and in perfect condition. 

I've never leased a car - but most of the time, it's best to buy.

[queendiva]

Lotus- I feel your pain with car shopping. 

I am finalizing a purchase on Monday. Based on my experience, I would suggest the following:

Buy. Pay cash or finance for the least amount and time possible.

Check out Costco as others here have suggested.

I prefer Car Gurus over True Car. Very comprehensive and user friendly. I have looked for a car for over a year on this site because I buy late model used cars. What I am buying is a 2014 luxury vehicle with almost all the available options. I let someone else take the nearly $20,000.00 depreciation in exchange for a few miles on the odometer.

I know what I am willing to pay going in to the process. I could never enjoy a car that I paid too much for. Check on line and buy from a reputable dealer. It may not be the one located closest to you. You can always go to the local dealer for service, regardless of where you bought the car.

I walked out on the deal when I saw all the fees. Kept an eye on the car for a few weeks, called back several days ago and suddenly they met my price. Taking the car to my mechanic before signing the papers even though it is still under warranty and has a clean Carfax. The car I am replacing is 10 years old and still runs well, but this is the time and deal for me. lus, I thought a red car would look good under the Christmas tree, LOL.

Good Luck!

Word has it that Christmas Eve day is a good day to buy a car. Dealerships are quiet and "in the spirit" to do a deal.

[GCR18]

I have never leased a car.  I didn't like the fact that you get nothing at the end of the lease.  I know you lose money driving out the lot, but at least the car would be mine in three or four years.

[Irshgrl31201]

I am of no help here. I have never had a car payment and up until recently always bought used cars. I spent a couple thousand cash on what I could afford at the time and it wasn't until about 10 yrs ago that I got a new car (well 2 months old so I could save a couple thousand dollars) and I used cash for that too. I really didn't want a car payment. It wasn't until 2007 that I got a brand, brand new car and I still wish I would have gotten one a couple of months old just so someone else could drive it off the lot and pay thousands more. 

Car payments bug me and I also don't want to give someone that much interest either. 

[Lotus]

Thanks everyone.....I'm leaning more towards buying.....the salesman put the pressure on me to lease.  My first thought was that was because it would be worth more to the dealership in the long run.

I hate the thought of payments every month and then having nothing at the end......HIS suggestion was to turn it in and get a new one.    SUUUUURE....of course.....even more revenue for the dealership and more monthly payments for me.

You guys confirmed what I was already thinking.

[queendiva]

Lotus- remember that a selesperson can only tell you what the best deal is-for them. You must spend the time on line researching the best deal for the make/model/ options you want.

if you are looking to purchase a new car, consider the remaining inventory of 2015 models. They will be marked down now. DS bought a brand new 2013 model in January, 2014 and got a great deal. He and I had been researching prices for several months and knew a really good deal when we saw it.