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S/O is it cheaper to finance a new car or lease?

 
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amother




OP
 

Post  Wed, Oct 28 2020, 3:53 pm
If you finance a new car because you're not putting all the money upfront is that less expensive with interest than leasing or about the same?
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amother




Aqua
 

Post  Wed, Oct 28 2020, 3:59 pm
I managed to get a 5 year finance at 0% now during Covid. I'm paying a slightly higher amount than I did on my lease, but after 5 years the car will be mine.
(Bought car for 29k, payments are a little less than $500 monthly. Lease was a little less than $400 monthly.)
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amother




Jetblack
 

Post  Wed, Oct 28 2020, 4:53 pm
amother [ Aqua ] wrote:
I managed to get a 5 year finance at 0% now during Covid. I'm paying a slightly higher amount than I did on my lease, but after 5 years the car will be mine.
(Bought car for 29k, payments are a little less than $500 monthly. Lease was a little less than $400 monthly.)


Just curious what the make model and mileage of the car was when you purchased it
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amother




Aqua
 

Post  Wed, Oct 28 2020, 6:07 pm
amother [ Jetblack ] wrote:
Just curious what the make model and mileage of the car was when you purchased it


Toyota Rav4 2019. Had about 30000 miles I think
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amother




OP
 

Post  Fri, Oct 30 2020, 2:16 pm
amother [ Aqua ] wrote:
Toyota Rav4 2019. Had about 30000 miles I think

So you didn't buy it new?
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amother




Aqua
 

Post  Fri, Oct 30 2020, 4:03 pm
amother [ OP ] wrote:
So you didn't buy it new?


Nope. 6 months old.
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amother




Denim
 

Post  Fri, Oct 30 2020, 4:28 pm
Like previous poster, we finance almost new vehicles for the best savings and value. Cars lose a ton of value in the first few years even though they are generally still in excellent condition. So we pay much less than new overall. Considering that we buy cars that last and take good care of them, our cars have a good lifespan and we pay much much less than leasing. Even considering maintenance and repairs over the years.
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Amarante




 
 
 
 

Post  Fri, Oct 30 2020, 5:56 pm
While it is true that cars depreciate enormously as skin as you drive off the lot, it is not necessarily a bad economic choice to purchase a new car if you are the kind of car owner who keeps a car for a decade or more. The initial depreciation is economically irrelevant if you own the car for that many years.

You know the history of the car and are sure that it has been properly maintained. Also a good used car is nit that inexpensive. When I bought my last car, I was surprised at how expensive well rated used cars were with lowish mileage.

So used versus new really depends on a variety of factors. If you buy a new car after new models have been released, you can often get a bargain. That it isn’t the newest model doesn’t matter if you intend to keep it for many years.
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amother




OP
 

Post  Sat, Oct 31 2020, 8:16 pm
amother [ Aqua ] wrote:
Nope. 6 months old.
where do you buy cars that are 6 months old?
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Mommyg8




 
 
 
 

Post  Sat, Oct 31 2020, 8:20 pm
amother [ OP ] wrote:
where do you buy cars that are 6 months old?


My car dealer got it for me (dont ask me how!). We saved over 5000 dollars by buying a six month old car.
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amother




Jetblack
 

Post  Sat, Oct 31 2020, 9:57 pm
To the poster that got the Rav4 how much did you pay for it? What was the trim? And did you check the carfax to make sure there weren’t any accidents or flood damage?
The reason I’m asking is because I’m in the car business I can tell you with 100% confidence there is no such thing as 0% finance. The finance charge is rolled in there somehow. You must have paid all kinds of made up fees that went straight to the dealer in exchange for that finance.
When you buy a vehicle all you should be paying is the price for the vehicle and you should do your research and make sure it’s the right value. You should be paying a couple hundred for registration if the dealer is doing it for you. $95 for a temp tag and state taxes. That’s it! Any other fees are all bogus.

Now leasing or financing...
I do both.
So here’s my unbiased experienced answer.
If you absolutely need a new car and not used then lease, Bec you will never get ahead when buying a new car unless you drive it for more than you financed it for.
If you’re the type that needs a brand new car there’s a very good shot you won’t last that long without wanting a newer model. Therefore leasing is a better option for you. You’re getting a new model every three years brand new.
Additionally if you will be getting any other brand then a Toyota/Lexus or Honda/Acura and some select vehicles such as a Jeep Wrangler or a Chevy Tahoe, then you are way better off leasing Bec all other vehicles depreciate very very quickly. The other brands mentioned above hold their value the longest.
There’s something called gap insurance- it’s an addition to an auto policy that insure the gap between what you owe and the value of your vehicle.
The minute you drive off a lot with a new car the car depreciates by thousands of dollars just because it’s now preowned. It’ll take about two years to make up that value and by then the car is worth even less because it’s now two years older. You’re always going to be trying to get ahead.
However if you purchase a used vehicle And keep it for a year or two and then trade it in you will still be ahead assuming there were no accidents or damage to the car.
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amother




Blush
 

Post  Sat, Oct 31 2020, 10:00 pm
Mommyg8 wrote:
My car dealer got it for me (dont ask me how!). We saved over 5000 dollars by buying a six month old car.


A six month old car with 30,000 miles is a real anomaly.

The "standard" mileage for cars is between 12,000 and 18,000 miles a year. Of course, wear and tear is a factor since highway miles in low density areas is not as hard on a car as equivalent miles that are driven in a city with lots of stop and go traffic. Extreme temperatures will also age a car.

So someone must have been driving the car in unusual circumstances to have 30,000 miles after only six months.
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amother




Jetblack
 

Post  Sat, Oct 31 2020, 10:01 pm
Sorry, I just saw that you posted that you paid 29k. The true purchase price of such a car should not be more than 23k...
And does the 29 include taxes?
I’m assuming you got the LE ..
We did a recent sale of a 2018 with 50k for less than 19k... and that’s an older body still so give it 3k more.... still nowhere near 29k
You cld get a fully loaded 2018 highlander for less than that...
I don’t mean to make you feel horrible about your purchase. Just to bring some awareness. There’s a lot of dishonesty in the car dealing industry with very few honest options... it’s really important to educate yourself before making such a large purchase.
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amother




Jetblack
 

Post  Sat, Oct 31 2020, 10:03 pm
amother [ Blush ] wrote:
A six month old car with 30,000 miles is a real anomaly.

The "standard" mileage for cars is between 12,000 and 18,000 miles a year. Of course, wear and tear is a factor since highway miles in low density areas is not as hard on a car as equivalent miles that are driven in a city with lots of stop and go traffic. Extreme temperatures will also age a car.

So someone must have been driving the car in unusual circumstances to have 30,000 miles after only six months.


Correct
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