Buy New Cars or Lease?

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 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.
 
win231 said:
Another advantage to leasing that seniors should consider: With a new car every 3 years, you don't have to worry about being stranded with a dead battery or any other mechanical problem. Waiting for help can end badly for anyone - especially seniors who are easier prey.
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That's what you keep a gun in your car for.

 
Aunt Bea said:
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.
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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?
 
Colleen said:
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.
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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.
 
win231 said:
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.
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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.
 
Colleen said:
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.
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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.
 
Trade said:
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.
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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

IZNZVub.jpg
 
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Uptosnuff said:
Marie's thread about her flat tire made me think about whether it's better to buy or lease a car. I have always bought cars, both new and used and have never leased. I know many people that do, though. What are your experiences with leasing over buying? Which do you think is better?
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Lately, I have been thinking about this very thing. We have a 2000 Buick LeSabre (great car) with over 190,000+ miles on it; mechanic told us it should be good to 250,000. Runs great. I really, really don't want a new car -- don't need all the electronics (heck, I have a flip phone! ;-). It seems like today's cars have a lot more problems than when I was young. They were so much simpler and easy to fix compared to the new cars. Anyway, I was leaning towards a used car (if a car is needed) but then you don't really know what's you're buying (unless you get those "certified" cars... ;-) -- yeah, right, certified by the place that wants to sell it to you!). If needed, I think I will try to convince my husband to go the leasing route. At our ages (71 and 78), I think that is probably the way to go. Any helpful comments? Thanks.
 
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Irene said:
Lately, I have been thinking about this very thing. We have a 2000 Buick LeSabre (great car) with over 190,000+ miles on it; mechanic told us it should be good to 250,000. Runs great. I really, really don't want a new car -- don't need all the electronics (heck, I have a flip phone! ;-). It seems like today's cars have a lot more problems than when I was young. They were so much simpler and easy to fix compared to the new cars. Anyway, I was leaning towards a used car (if a car is needed) but then you don't really know what's you're buying (unless you get those "certified" cars... ;-) -- yeah, right, certified by the place that wants to sell it to you!). If needed, I think I will try to convince my husband to go the leasing route. At our ages (71 and 78), I think that is probably the way to go. Any helpful comments? Thanks.
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I know there is a lot of negativity about leasing, but my husband and I have done that a couple times in the past and had a good experience with it.

We average about 6,000 miles a year on a car so that's half of the "allowed" in a lease. Our payments were a lot less than buying and after 3 years we had the option to "purchase" the remainder of the car's value. We always turned it in and got another lease. We were able to get a "luxury" car without paying a huge price. It's covered with the same kind of warranty but we never had any issues that we needed to use it.

Frankly, I wish we would have leased another vehicle instead of buying one in 2017. Now, we have a large car payment for 6 years instead of a smaller one for 3.
 
Colleen said:
I know there is a lot of negativity about leasing, but my husband and I have done that a couple times in the past and had a good experience with it.

We average about 6,000 miles a year on a car so that's half of the "allowed" in a lease. Our payments were a lot less than buying and after 3 years we had the option to "purchase" the remainder of the car's value. We always turned it in and got another lease. We were able to get a "luxury" car without paying a huge price. It's covered with the same kind of warranty but we never had any issues that we needed to use it.

Frankly, I wish we would have leased another vehicle instead of buying one in 2017. Now, we have a large car payment for 6 years instead of a smaller one for 3.
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Colleen -- Yeah, but then you OWN it. So I'm still torn. Appreciate your response.
 
Irene said:
Colleen -- Yeah, but then you OWN it. So I'm still torn. Appreciate your response.
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Yes, that's true. You also OWN all the repairs, etc. as the car gets older and loses it's value. As soon as you drive a car off the lot, it depreciates 20%. I can drive a new car every 3 years (with a lesser payment) and turn it back in and get another new car. I'm not stuck with a car I don't like that I have to pay for for 6 years and by that time, if I trade it, it isn't worth anything.

You do what suits you best. Sounds like you've already made up your mind, so why comment??
 
Colleen said:
Yes, that's true. You also OWN all the repairs, etc. as the car gets older and loses it's value. As soon as you drive a car off the lot, it depreciates 20%. I can drive a new car every 3 years (with a lesser payment) and turn it back in and get another new car. I'm not stuck with a car I don't like that I have to pay for for 6 years and by that time, if I trade it, it isn't worth anything.

You do what suits you best. Sounds like you've already made up your mind, so why comment??
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No, actually, I haven't made up my mind. That's why I came in to read others' opinions, if and when I need to make that decision .
Thanks. Appreciate your kind remarks. (You know, people like you are why I rarely post on forums, even "senior" forums that I would think would be kinder than the norm.)
 


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