New Car Lease | Imamother

nywife

Thu, Jan 22 2015, 1:47 pm

Wow everyone's leases are so expensive!
I pay 230$ a month, no money down, for a 2014 accord

asp40

Thu, Jan 22 2015, 1:50 pm

Purchasing a car is always better financially than leasing. Even better is purchasing a certified pre owned vehicle form a dealer. Eventually your car will be paid off and you will not have any payments. And you own something to trade in. A lease is just renting a car.

amother

Thu, Jan 22 2015, 1:53 pm

it seems like most people here are leasing small cars. That's not an option for us, we need a larger car.

-OP

TwinsMommy

Thu, Jan 22 2015, 2:07 pm

Cfriedman.... I wasn't given an option to spread payments over the course of more years.

cfriedman2

Thu, Jan 22 2015, 2:22 pm

The option from who? The dealer you bought the car from's finance dept? You dont have to get your financing through them. I privately got financing through PenFed (where everyone can get financing from) and only did a 3 year option but they have 4/5/6 year options as well.

TwinsMommy

Thu, Jan 22 2015, 2:25 pm

I didn't qualify for so many financing options... Poor credit. I BARELY qualified for the lease.

ruchelbuckle

Thu, Jan 22 2015, 2:34 pm

cfriedman2 wrote:

twins mommy when you talk about not being able to afford a used car bc of payments that are more than $300 a month why cant you get a car and finance it over the course of 5/6 years and keep your payments at that amount? Maybe you wont get your 2013 accord but you could get one thats a little older but still in good shape. I got a 2012 accord with under 30,000 miles for $15,000 and was paying under $200 a month on my finance. I did put money down but I also only did a 3 year finance option. I could have put a lot less money down (or none) and just did a longer option. A 15,000 used car financed through Penfed at their current rate of 2.99 would cost you $269 a month 5 years and then you own the car. So essentially you would have gotten 1 year older model then you have paid for 2 more years less then what you pay monthly and you would own the car. Maintenance is low and if you are so worried about that you can purchase a warranty that you can add to your finance plan.

I will never understand those who say its more financially sought to lease vs buying a used car

I think part of the problem is that people don't want to be in a situation that they are hit with expensive repairs at the same time while they are still paying off the financing,. So if you have the cash to do a large down payment, and be paying around $200 a month for 3 years--- thats one thing. But with larger cars (minivans/SUVs, etc), it might be harder to find one in that price point-- does that make sense?

For example, lets say today I decide to go shopping for a used Honda Odyssey. Lets say I want from 2011-2012. Those are still pretty pricey-- probably close to 20K if not more. I would probably have a hard time finding something thats cheap enough that I could pay it off in 5 years, without a huge downpayment.

If I got a loan from PenFed @2.99%, I would be paying about $360 a month for 5 years. Sure, after 5 years I own it, but then its almost a 10 year old minivan. Depending on how many miles I've put on it, it might be almost ready for some serious repair work.

Does that make sense? I hope I explained it well. Again, I think depending on the type of car. For a small car, you might do better buying. Also, it depends what the used car market is like in your area (that can fluctuate, too).

I've never leased, and have always bought used cars. Personally, my car already had a bar mitzvah, and I have no plans for something new, as much as I would love one! But, I can understand where leasing can make sense, depending on the circumstances.

cfriedman2

Thu, Jan 22 2015, 2:39 pm

fair, I didnt take into account the bad credit. just curious though wouldnt it have been cheaper to lease an american car instead of the honda? Maybe a ford or chevy?

greenfire

Thu, Jan 22 2015, 2:43 pm

if you do the research the average person can buy 4 new cars in their lifetime ...

leased cars might be cheaper per monthly rate - but the insurance rates are through the roof]

say you buy a car and pay it over 5 years & have it an additional 5 years [no payments - cheaper insurance rates] you can sell it for a down-payment on the next car

every car is going to need repairs -

barring any unforeseen circumstances I.e. fire in the engine - you would basically have a car that, if well-maintained, lasts 10ish years

ruchelbuckle

Thu, Jan 22 2015, 2:50 pm

cfriedman2 wrote:

fair, I didnt take into account the bad credit. just curious though wouldnt it have been cheaper to lease an american car instead of the honda? Maybe a ford or chevy?

sure! but not everyone can resist the social pressure! EVERYONE drives an Odyssey in some places. Only low-class poor people drive American cars. Rolling Eyes

If I was going to lease, I would lease a dodge minivan. what do I care if the transmission goes after a few years? I won't own it anymore!

also, regarding minivans-- I think only the more expensive companies make 8 seaters-- if thats important to you.

regarding insurance rates-- thats a big generalization. Insurance rates are based on so many different factors. a person would really need to do an apples-to-apples comparison to make a statement like that.

Last edited by ruchelbuckle on Thu, Jan 22 2015, 2:52 pm; edited 1 time in total

cfriedman2

Thu, Jan 22 2015, 2:51 pm

ruchelbuckle wrote:

If you look around you can find a used honda odyssey for under 20k. Maybe not a fully loaded one but you can deff find one. plus a 2012 car after a 5 year loan is 8 years old. Most cars now are made much better then they were years ago and you would not be paying on an average $300 a month in repair work. (which would be your costs on a new lease at least if you went ahead and leased a new car) After a few years of owning the car outright you would probably need a new car (prob when the car hits around the 11/12 year mark) but since you are already used to paying the $360 a month you were for the finance you could set that money aside each month in a separate account which could be used for repairs or when the time comes for a down payment on a new car. Additionally, once you do buy a new car you would be able to hopefully get some value for your car when you sell/trade it in.

Also remember that cars all come with a manufacturer warrenty for the big parts that is transfered even when bought used. Honda's is 5 years generally and Hyundai has ones up to 10 years.

$20,000 2012 used honda odyssey for 5 years financed at $360 a month and you own it outright in 2020. Car is 8 years old
after you own it you put aside $360 a month for the next 3 years (the car should easily last that long if not longer) = $12,960 either to use for repairs along the next 3 years or as a down payment on a new car when the car dies. Then Repeat. Only difference now is that you have a higher down payment and lease should be less time and less money.

cfriedman2

Thu, Jan 22 2015, 2:53 pm

ruchelbuckle wrote:

sure! but not everyone can resist the social pressure! In some places, only non jews don't drive Odysseys!!! Smile

dodge minivans have terrible car seat set ups. dont go with Dodge if thats imp to you. Also my mom had a dodge caravan last her for almost 12 years. Was still going when she traded it in and I see plenty of them still on the streets today

amother

Thu, Jan 22 2015, 3:21 pm

I was leasing an altima for $299 a month, really wanted the highlander but would have cost me $500 a month for leather option. Instead I bought a 2011 MDX which I financed, my monthly payments are $351 and I plan to sell it in a few years when I need a bigger car. This way I got my leather seats and suv with affordable monthly payment Smile

ruchelbuckle

Thu, Jan 22 2015, 6:14 pm

cfriedman2 wrote:

I think you maybe just proved my point..... Sometimes the cheapest kind won't work for someone. Smile

I think the more expensive car you're looking to buy, it might make more sense to lease.

Whatever! I still hold that usually leasing isn't the most financially sound decision, but I could hear (see scenario above) how sometimes it might make more sense. BTW, the used car market varies regionally. I know where I live, it's tighter. If I were to buy something, I would just assume call one of the frum dealers in Brooklyn or Lakewood and have them "ship" it to me. I would probably come out even if I did that.

OP-- I hope you find something that works for you! Definetly call the frum places that were mentioned: Wheels to Lease, Plaza Auto Leasing, Diamond, and Blueberry. Also call your local dealerships and see what they can offer you. Hatzlacha!!

TwinsMommy

Thu, Jan 22 2015, 8:56 pm

I didn't even test drive Fords.... we've had bad luck in the past with Chevy. We wanted a car with a little room in the back seat so when my husband drives and pushes the seat back he's not CRUSHING our kid in the car seat (we have twin 8 year olds who were in car seats and are now in high back boosters). We had that problem with our Saturn---- just NOT big enough for the 4 of us. Maybe we could have found a Ford that would have worked, but we're happy with our accord.

rochelp

Thu, Jan 22 2015, 10:32 pm

Where did you get that lease from? for $250 a month with no money down

gp2.0

Thu, Jan 22 2015, 10:39 pm

amother wrote:

The same thing happened with our toyota. We had to get rid of it because the engine didn't last past 60k miles. We now lease & have the option of buying the car when the lease is up or leasing another new car.

Huh. That's interesting. Ours also died around 60k miles.