Buy New Cars or Lease?

Colleen

New member
Joined
Apr 23, 2014
Location
Arizona
We've had more cars than I can count over our lifetime. We've leased and owned. We lost money leasing because we didn't understand the "process" of turning a lease in early. We were naive, to say the least, and the car manager knew it and took us for a ride...literally.

He was unscrupulous and when we walked in the dealership to ask questions about what was involved with turning in our car early and purchasing one, he jumped right on it. At the time, we leased (from another state) a 2013 Nissan Pathfinder Platinum edition and loved the car. He took our keys and pressured us and practically held us hostage for 5 1/2 hours. He wanted our car because he had a buyer already in mind. He wore us down and it cost us dearly. He refused to give us our keys back and we were ready to call the police. We didn't realize the unpaid lease would be rolled into the car we purchased. No one told us that. It was an expensive lesson to learn. We're still upside down on our car :(

We learned much later that he was fired right after that. We contacted Nissan when we got home but I don't know if it had any effect on his outcome. It didn't matter. We are still stuck with a huge car payment. Two more years to go.

We didn't have any problem with the lease itself...just a terrible car manager.
 

Mrs. Robinson

Well-known member
Joined
Jan 22, 2014
Location
Lakeport,California
I have done both as well. When I leased,I always made sure it was something that would really hold it`s value. I put a lot of miles on my cars back then and as son as they hit 100,000 miles,I would sell them. Never just turned them in (if they were leased) and on to the next. My last car,an `04 Chevy Tahoe,that I put 265,000 miles on,I purchased with 0% interest (do they even offer that anymore?)But my current car,a 2018 GMC Acadia,I leased,given that I wasn`t positive that I would like it,having driven only Tahoes or Suburbans since 1979. But I love it,so if I continue to love it,I will eventually purchase it.
 

treeguy64

Hari Om, y'all!
Joined
Aug 11, 2017
Location
Austin, TX.
IMO having the cash/investments on hand to buy a vehicle outright is sometimes better than actually paying cash for the vehicle.

It pays to do the math.
Wait, what am I missing, here? So, it's better to have the cash on hand, but never buy the vehicle??? How does that work, if you actually need the vehicle?
 

win231

Well-known member
Joined
Mar 13, 2019
Location
CA
We've had more cars than I can count over our lifetime. We've leased and owned. We lost money leasing because we didn't understand the "process" of turning a lease in early. We were naive, to say the least, and the car manager knew it and took us for a ride...literally.

He was unscrupulous and when we walked in the dealership to ask questions about what was involved with turning in our car early and purchasing one, he jumped right on it. At the time, we leased (from another state) a 2013 Nissan Pathfinder Platinum edition and loved the car. He took our keys and pressured us and practically held us hostage for 5 1/2 hours. He wanted our car because he had a buyer already in mind. He wore us down and it cost us dearly. He refused to give us our keys back and we were ready to call the police. We didn't realize the unpaid lease would be rolled into the car we purchased. No one told us that. It was an expensive lesson to learn. We're still upside down on our car :(

We learned much later that he was fired right after that. We contacted Nissan when we got home but I don't know if it had any effect on his outcome. It didn't matter. We are still stuck with a huge car payment. Two more years to go.

We didn't have any problem with the lease itself...just a terrible car manager.
I've turned in 3 leased cars early - 2 of them 10 months early. I never lost a penny. The dealers are usually so anxious to lease another car, they're willing to pay off the lease on my car, as long as they know they'll make some money when they sell it.

He "took your keys?" "pressured you?" "held you hostage?" No one can do any of those things without your help. Sorry, but your problem was a lack of assertiveness.
 

Colleen

New member
Joined
Apr 23, 2014
Location
Arizona
I've turned in 3 leased cars early - 2 of them 10 months early. I never lost a penny. The dealers are usually so anxious to lease another car, they're willing to pay off the lease on my car, as long as they know they'll make some money when they sell it.

He "took your keys?" "pressured you?" "held you hostage?" No one can do any of those things without your help. Sorry, but your problem was a lack of assertiveness.
Thanks for the "encouraging" words. No, we're not assertive people. We learned a valuable lesson, though. Have a Happy Father's Day, anyway.

Oh, and BTW...this is how a traditional lease is handled. I don't know what you had as you "say" you never lost a penny by turning it in early. :

This is a traditional lease termination, and it is an expensive option. When you return the vehicle to the dealership, you will be required to pay all penalties. In some cases,you may be required to make all outstanding payments, and pay additional penalties on top of any other fees.

This is a quote from JD Powers.
 

win231

Well-known member
Joined
Mar 13, 2019
Location
CA
Thanks for the "encouraging" words. No, we're not assertive people. We learned a valuable lesson, though. Have a Happy Father's Day, anyway.

Oh, and BTW...this is how a traditional lease is handled. I don't know what you had as you "say" you never lost a penny by turning it in early. :

This is a traditional lease termination, and it is an expensive option. When you return the vehicle to the dealership, you will be required to pay all penalties. In some cases,you may be required to make all outstanding payments, and pay additional penalties on top of any other fees.

This is a quote from JD Powers.
Yes, I'm aware of that info. With the two cars I considered turning in early, I simply said, "I won't pay any penalties or payments. If you want to lease me a new car, those are MY conditions; if you don't, no problem; I'll go elsewhere or I'll drive the car until the lease expires."
Dealers act differently when they realize who they're dealing with. When I'm shopping for a car, I'M the boss, not them. Yeah...that "assertiveness thing."

A few years ago, a co-worker asked me how I'm able to have a new car every 3 years. She had a 20-year-old Volvo that was falling apart & constantly needing expensive repairs & she was frequently without a car during repairs. I asked her why she kept that car for so long.

She said, "It's a good car."

I said, "Well, maybe if it was a classic & worth a lot of money, it would be OK, but it's not a classic & you're spending a lot on repairs, so why don't you trade it in & get a new car?"

She said, "I can't afford a new car...even the down payment is more than I can afford."

I said, "You can afford to lease a new car & you'll have a reliable car that won't need repairs."

She said, "Volvos are expensive now."

I said, "Why do you have to have a Volvo; you can lease a new Toyota Camry for around $250.00/month & use your Volvo for a down payment. With what you're spending on repairs, you'll be money ahead."

She said, "My mechanic told me my Volvo is a good car & it's worth keeping because they don't make them like that any more."

I said, "What do you expect your mechanic to say? You expect him to be honest with you? He knows if you get rid of your car, he'll never see you or your checkbook again."

I went to the dealership with her & she left with a new Camry she could afford - her dilapidated car was the down payment. $250.00/month. She was stunned.
 

Uptosnuff

Active member
Joined
Nov 5, 2017
Location
Omaha
Original Poster
Does anyone know if you can get a tax write-off for leasing a car if you have an LLC?
 

Gary O'

Well-known member
Joined
Aug 4, 2017
Location
Oregon
My philosophy on vehicles is buy new, keep it well maintained, and drive it till it's ready for the junkyard.

My 2009 Accord has 120,000 miles on it and shows no signs of giving up the ghost (knock on wood). Since I'm 72 it might very well outlast me.
Yup

Bought my '99 Wrangler new
Paid cash
It has around 250,000 miles on it
Some, very hard miles (it ain't no virgin to stump jumping)

But

Keeping oils/filters changed and everthing PM'd is key

 
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Uptosnuff

Active member
Joined
Nov 5, 2017
Location
Omaha
Original Poster
What is an LLC? If the car is for personal use, I don't think you can get a tax break.
An LLC is a limited liability company. We have one because we own rental houses. If we lease a vehicle, we would use for getting around to our houses. Carrying equipment for maintenance, etc.
 


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