My mom (no financial wiz) leased two vehicles, and I told her that she better not lease a third... but, the fact is that leasing might just be a decent option for her now that she drives so little.
"Bipartisan" usually means that a bigger than normal deception is happening.
George Carlin
The the most expensive way to own a car is a consumer lease. The second most expensive way is to buy a new car. I'm not saying either is bad or you shouldn't do it if you can afford it. Just realize it is the most expensive way to own a car. You are paying a super premium for the "New car smell". The depreciation in the first 2-3 years is huge. The cost of ownership of the first 3 years is the largest due to the loss in value. The loss in value far exceeds the maintenance cost on a reasonable car.
I buy those cars that are turned in from a lease at half the price of new. I then drive the car for another150k to 200k. Yes I have some maintenance and repairs but it is at the fraction of a cost of buying or leasing every 3 years.
Just a rough example using big picture math.
lease or buy at 3 years and drive 50k miles. If you loose $12000 in depreciation that is 24 cents a mile. Plus increased of Tax and insurance not included in calculation.
buy a three year old car at $12000 + $8000 maintenance (which should be on the high side). And drive 150k miles that is 13 cents a mile. My last car that I just got rid of was $10000 + about $5000 maintenance and drove 180k since purchase before I hit a deer and totaled. Cost of ownership about 8 cents per mile.
every cars depreciation rate and expected miles and reliability is different but you can use general estimates to figure you cost per mile to own. I always buy cars with proven reliability history and drive to 200k plus miles.
Unless you fully intend to get another brand new car in 2-3 years, or you're writing it off as a business expense, a lease is the most expensive way to go.
New v used CAN be a different story. When I bought my Toyota Tacoma brand new, I paid several thousand less than identical 1-3 year old used models on the lot. I still haven't figured that one out.
- I am a rifleman with a poorly chosen screen name. -
"Slow is smooth, smooth is fast, and speed is the economy of motion" - Scott Jedlinski
I purchased my last car new, something I never do, because I bought it as a toy I intend to keep for the rest of my life. I have now spent almost as much modding it as the purchase price with more mods in the works.
You Sir, are correct in that. It gives me considerable pride to be able to tell the owners of a certain brand of "premium" vehicle that "My car had been on the road for 5 years by the time your brand was created!"
-Zorba, "The Veiled Male"
"If you get it and didn't work for it, someone else worked for it and didn't get it..."
My 2000 Tundra is about ready to get its third timing belt. Bought it from my brother for $10,000. He put the first timing belt in and I just ordered my second one, has 295,000 on it so far. I have put about 2500 dollars into it for suspension work, radiator and starter.
I have bought a total pf 6 new cars and if you are willing to put in some time doing it can usually come out OK. Bought a new Buick in 1983 and granted only kept it for one year but got $200 less then I paid for it. That one took hours of haggling.
We've purchased two new vehicles over the years, with the rest being used. Depreciation is a thing, and it should be read in ALL CAPS, bolded and underlined. Our Town & Country was purchased in '02 and was very well equipped. Everything except leather & power opening doors. Put 16K down on it and financed the rest. Less than 3 years later, and with less than 50K on the odometer, I couldn't get any trade offers more than $8500... and that was purchasing a similarly priced and equipped newer T & C. On that case, I would have done MUCH better to lease instead of purchase... but I'd have done better still to have just purchased a newer used vehicle and driven it until the wheels fell off. If your deciding criteria is cost per mile of operation, by used and drive it a billion miles... but, be prepared to deal with vehicle issues over time. If you're someone who wants/needs to have the "peace of mind" that a new vehicle offers, then go that route. Don't get me wrong, I REALLY like new vehicles and I would happily play with all the goo gaws and gadgets for days on end... I just hate paying for them.
"Bipartisan" usually means that a bigger than normal deception is happening.
George Carlin
I don't drive that many miles, but wouldn't consider a lease. I don't want to drive domeone else's car. My truck is 12 years old; I've had for four or five years or so, got 149K and runs fine.
Concealed carry is for protection, open carry is for attention.
Replies
George Carlin
I buy those cars that are turned in from a lease at half the price of new. I then drive the car for another150k to 200k. Yes I have some maintenance and repairs but it is at the fraction of a cost of buying or leasing every 3 years.
Just a rough example using big picture math.
lease or buy at 3 years and drive 50k miles. If you loose $12000 in depreciation that is 24 cents a mile. Plus increased of Tax and insurance not included in calculation.
buy a three year old car at $12000 + $8000 maintenance (which should be on the high side). And drive 150k miles that is 13 cents a mile. My last car that I just got rid of was $10000 + about $5000 maintenance and drove 180k since purchase before I hit a deer and totaled. Cost of ownership about 8 cents per mile.
every cars depreciation rate and expected miles and reliability is different but you can use general estimates to figure you cost per mile to own. I always buy cars with proven reliability history and drive to 200k plus miles.
New v used CAN be a different story. When I bought my Toyota Tacoma brand new, I paid several thousand less than identical 1-3 year old used models on the lot. I still haven't figured that one out.
"Slow is smooth, smooth is fast, and speed is the economy of motion" - Scott Jedlinski
George Carlin