Car Leasing

bhuffman · May 2014

Anyone do this? Any Leaser Beware scenarios?

We have always bought our cars, but we have been kicking around doing a 3 year lease on a new car.

My DH would like to buy a luxury car when I graduate, but he is needing to replace his car before that (desperately). He currently drives a 10 year old Accord. We do not feel comfortable buying his luxury car while I am in school bc we don't think that's the best idea while I am back in school. We also don't want to buy a car that we don't really want to keep for the long haul so we are throwing around the idea of a lease until I'm finished. My car is a 2013 and won't need to be replaced for a long time. Anyway, does this scenario make sense or am I missing something.

Also, I should say we could afford his #1 car payment now, but we really want to hold off on that size of payment until I'm finished with school. Also, we are comfortable having car debt.

Edited for grammar

rosesandpetals · May 2014

We leased a car. We weren't sure we wanted to keep it so we leased and decided we could just turn it in at the end and be even or we could buy it out. We decided to buy it out.

Our mileage was 12k miles per year and like 5 cents for every mile over or something like that. We didn't come anywhere near that, though. At the end of the lease, you either have to turn the car in or pay them what is left on the car. So if you put a lot of miles on the car then I would either plan to buy it out at the end (then there's no penalty for going over the mileage) or sell it to another person and pay them money to the car dealership and then there's no penalty.

I'm glad we did it. The payments were lower initially which let us save up money and since it was brand new, everything was covered under the warranty.

Oh, and don't do anything to the car unless it's done by the dealership. Don't get the windows tinted somewhere or have it painted or whatever. That kind of goes without saying but some people do it.

bhuffman · May 2014

@Gastro‌ that is a good idea about Certified Preowned.

penguingrrl · May 2014

Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.

rosesandpetals · May 2014

penguingrrl said:

Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.

Oh, and get gap insurance! Worth it in case you have an accident.

bhuffman · May 2014

penguingrrl said:
Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.

It has some issues and he does feel a bit self conscious when he drives coworkers and potential employees around. He is moving up in his company and he wants to "look" the part. I get that seems ridiculous, and we DO try to plan ahead when he knows he is driving others to send my car that day, but meetings/outings sometimes randomly appear. He doesn't want to trade cars since I have the kids during the day and he wants them in the safer/more reliable car.

jensriot · May 2014

roses&65335678 said:

penguingrrl said:

Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.

Oh, and get gap insurance! Worth it in case you have an accident.

Is gap optional? I always thought it was part of the lease.

We lease and have for a long time. Before kids it was a fun way to try out new cars and not have to worry about them forever. Now, we are looking to buy my car when the lease us up. It has allowed us to try out cars while our family was growing without committing for too long.

Yes, be careful of mileage. Always negotiate. I would go in with a down payment and payment in mind and say "this is what I will pay for that car". I wish I had done that with my current lease, I probably could've gotten the payment I really wanted.

notkateanymore · May 2014

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

lexusolsen · May 2014

KateMW said:
We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

I didn't know you could lease a Geo!

bumpuser8448316 · May 2014

bhuffman said:

Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.
It has some issues and he does feel a bit self conscious when he drives coworkers and potential employees around. He is moving up in his company and he wants to "look" the part. I get that seems ridiculous, and we DO try to plan ahead when he knows he is driving others to send my car that day, but meetings/outings sometimes randomly appear. He doesn't want to trade cars since I have the kids during the day and he wants them in the safer/more reliable car.

IMO, that's a legit reason t drive a newer/nicer car. I have never leased a car but it sounds like in this situation it might work out for you

bumpuser8448316 · May 2014

KateMW said:

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

Eh. My parents get new cars every 4 years but they buy. They can well afford the payments so who the hell cares if that's how they choose to spend their money.

penguingrrl · May 2014

KateMW said:

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

I think I was bugged by the dramatic attitude about a ten year old car. I actually have no issue with leasing and may well move toward that in the future, but acting like a 10 year old honda is some rickwry death trap got under my skin. Possibly because I drive a 10 year old honda.

bumpuser8448316 · May 2014

penguingrrl said:

KateMW said:

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

I think I was bugged by the dramatic attitude about a ten year old car. I actually have no issue with leasing and may well move toward that in the future, but acting like a 10 year old honda is some rickwry death trap got under my skin. Possibly because I drive a 10 year old honda.

She said nothing dramatic about it being a 10 year old car.

penguingrrl · May 2014

QueSyrah said:

penguingrrl said:

KateMW said:

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

I think I was bugged by the dramatic attitude about a ten year old car. I actually have no issue with leasing and may well move toward that in the future, but acting like a 10 year old honda is some rickwry death trap got under my skin. Possibly because I drive a 10 year old honda.

She said nothing dramatic about it being a 10 year old car.

She said they try to avoid having the kids in it. And they "desperately" need to replace it. IDK, seemed dramatic. Maybe because that's the nicer of my two cars and it never occurred to me to be embarrassed about it or worried about safety in it.

bumpuser8448316 · May 2014

penguingrrl said:

QueSyrah said:

penguingrrl said:

KateMW said:

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

I think I was bugged by the dramatic attitude about a ten year old car. I actually have no issue with leasing and may well move toward that in the future, but acting like a 10 year old honda is some rickwry death trap got under my skin. Possibly because I drive a 10 year old honda.

She said nothing dramatic about it being a 10 year old car.

She said they try to avoid having the kids in it. And they "desperately" need to replace it. IDK, seemed dramatic. Maybe because that's the nicer of my two cars and it never occurred to me to be embarrassed about it or worried about safety in it.

Did something get deleted? I just re read this entire thread and I don't see where she said that...

ETA okay I see where she said they don't drive the kids in it. But she also said it had issues. If we had a car with issues if probably opt not to drive the kids in it too. :shrug: I think you're overreacting

penguingrrl · May 2014

bhuffman said:

Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.
It has some issues and he does feel a bit self conscious when he drives coworkers and potential employees around. He is moving up in his company and he wants to "look" the part. I get that seems ridiculous, and we DO try to plan ahead when he knows he is driving others to send my car that day, but meetings/outings sometimes randomly appear. He doesn't want to trade cars since I have the kids during the day and he wants them in the safer/more reliable car.

Right here she said they don't want the kids in it. I could understand that sentiment for some cars (and even some that I've owned) but it's a bit dramatic for a 10 year old honda.

notkateanymore · May 2014

QueSyrah said:

penguingrrl said:

KateMW said:

We lease our cars. I have no desire to drive a car forever. LOL I'd love a show of hands of people who just rolled their eyes, but honestly IDGAF...I love getting a new car every three years.

I think I was bugged by the dramatic attitude about a ten year old car. I actually have no issue with leasing and may well move toward that in the future, but acting like a 10 year old honda is some rickwry death trap got under my skin. Possibly because I drive a 10 year old honda.

She said nothing dramatic about it being a 10 year old car.

Exactly...she just said her husband didn't want to drive an junker car which he seems to have. There can be nice 10 year old cars and complete pieces of shit. I think if you're driving around co-workers, employees and clients in your car, it's important to have one you are proud of.

notkateanymore · May 2014

LalaMama81 said:

I read it as you did PG and was trying to figure out how a 10 year old Honda was somehow some hoopdy. Obviously, if there actually is a mechanical issue, I get it. And I get that for driving around clients might not be as nice.

But we just sold a 14 year old car and DH is now driving my 9 year old car. Neither were unsafe or dangerous. The 14 year old didn't look pretty anymore but was functional and safe.

I also seem to have issues w/ cars, so there is that, too.

To answer the actual question, no, leasing is not something we would do. I think it's a waste of money and we would prefer to keep a car that we own longer than that.

Just because you think a 14 year old car is fine, doesn't mean everybody has to agree with you.

notkateanymore · May 2014

penguingrrl said:

bhuffman said:

Is there a reason he desperately needs to replace his car? A ten year old honda is a baby! If he wants to get a luxury car when you finish why not avoid a payment and keep his current car and save that money?

If you do decide to lease be careful about mileage limits since going over the miles can be very expensive. And from what I've always heard negotiate so you don't have a down payment. I see that on a ton of financial blogs.
It has some issues and he does feel a bit self conscious when he drives coworkers and potential employees around. He is moving up in his company and he wants to "look" the part. I get that seems ridiculous, and we DO try to plan ahead when he knows he is driving others to send my car that day, but meetings/outings sometimes randomly appear. He doesn't want to trade cars since I have the kids during the day and he wants them in the safer/more reliable car.

Right here she said they don't want the kids in it. I could understand that sentiment for some cars (and even some that I've owned) but it's a bit dramatic for a 10 year old honda.

You have absolutely zero idea of the condition of the car...

notkateanymore · May 2014

It must have been your Geo I bought @kimbus22

notkateanymore · May 2014

LalaMama81 said:

Of course they don't have to. I don't care if they agree or not, like PG I was reacting to the safety issue more than anything. It could be a POS hazard, but I would be surprised if a 10 year old monday was that bad off.

I would also think if having a nice car for work was important that the job would provide for that w/ a vehicle or allowance for one. But, that is not an area of business I am familiar with.

We don't get a vehicle allowance...why would you think that?

Mrs.Greg · May 2014

Not that I know squat about vehicle repairs but would it cheaper to fix the Honda so you guys could trade cars? Or is it simply the age that makes it "unsafe" your kids?

bumpuser8448316 · May 2014

Look, I traded in my 14 year old Camry for a brand new minivan in January. I'm not against old cars. But why would you get offended if someone else doesn't like driving a 10 year old car. And why are you glazing over the fact that she said it had issues? You'd really drive your kids around in a vehicle you knew wasn reliable? I highly doubt that

magentawarped · May 2014

We have two cars that are roughly the same age...we drive the kids in one, we don't in the other. My husband's car has issues.

And I totally understand wanting to look the part for clients and such.

Y'all will argue anything.

AprilLVE · May 2014

Just because she says her other vehicle is safer doesn't mean she thinks an older car is unsafe. If her other car is bigger, newer, traction control this and crumple zone that, it probably is safer. Doesn't mean anyone thinks the Honda is a death trap.

As for leasing, it sounds like a decent option, given you don't want to keep the car a long time. As long as you won't have a problem staying under the mileage, it could be a good deal. When I got my first car, my dad made me do a comparison by breaking it down to cost per mile. If you really want to know which is the cheaper way to go, do that!

penguingrrl · May 2014

I thought about it further. I think what I took issue to is that she framed a want (a newer car) as a desperate need. Had she said "his car is getting older so we want something to use temporarily until we can get what we really want" I wouldn't have gotten insulted (and I do feel insulted as it feels like she's suggesting my kids are riding around in a death trap). It seems like a small thing to many, but out of 7 cars I've owned in my life only three were newer than 10 years old when I bought them. So I have trouble understanding how it could be a desperate need versus a want. And a want I get and if they can afford it great! Go on and lease a car (which does sound like a good option in her case). But calling it a desperate diminishes what a desperate need really is.

magentawarped · May 2014

penguingrrl said:
I thought about it further. I think what I took issue to is that she framed a want (a newer car) as a desperate need. Had she said "his car is getting older so we want something to use temporarily until we can get what we really want" I wouldn't have gotten insulted (and I do feel insulted as it feels like she's suggesting my kids are riding around in a death trap). It seems like a small thing to many, but out of 7 cars I've owned in my life only three were newer than 10 years old when I bought them. So I have trouble understanding how it could be a desperate need versus a want. And a want I get and if they can afford it great! Go on and lease a car (which does sound like a good option in her case). But calling it a desperate diminishes what a desperate need really is.

So, am I a terrible person if I say that I desperately need a haircut? Hyperbole is fun.

bumpuser8448316 · May 2014

The way I read it was that a new car was a desperate need. Why not get the car you want instead of just any old cheap car if you need a new car anyway

penguingrrl · May 2014

Gastro said:

I thought about it further. I think what I took issue to is that she framed a want (a newer car) as a desperate need. Had she said "his car is getting older so we want something to use temporarily until we can get what we really want" I wouldn't have gotten insulted (and I do feel insulted as it feels like she's suggesting my kids are riding around in a death trap). It seems like a small thing to many, but out of 7 cars I've owned in my life only three were newer than 10 years old when I bought them. So I have trouble understanding how it could be a desperate need versus a want. And a want I get and if they can afford it great! Go on and lease a car (which does sound like a good option in her case). But calling it a desperate diminishes what a desperate need really is.

I think you are overly sensitive when people want more expensive items and state safety as one of the reasons. She never said his Honda was a death trap. You said the same to me when I said I had a more expensive car seat. You took it like I was saying your car seats were inferior when I was saying this car seat is better for me because x, y, z. All car seats and cars in the market meet the minimum safety requirements.

Not at all. My kids are in expensive seats (radians for harnessed, diono and britax for booster) because those were the seats that met our needs. I just pointed out that less expensive seats are just as safe because a lot of people reading don't know that and I've run into many people who feel their kids are at risk for being in them.

Mrs.Greg · May 2014

I'm pretty sure OP was simply comparing her own vehicle to her DH's. She wasn't saying all 10-year-old vehicles are unsafe. Just that she and her DH feel more comfortable with their kids in her newer car than in her DH's car that has some issues.

notkateanymore · May 2014

Gastro said:

I thought about it further. I think what I took issue to is that she framed a want (a newer car) as a desperate need. Had she said "his car is getting older so we want something to use temporarily until we can get what we really want" I wouldn't have gotten insulted (and I do feel insulted as it feels like she's suggesting my kids are riding around in a death trap). It seems like a small thing to many, but out of 7 cars I've owned in my life only three were newer than 10 years old when I bought them. So I have trouble understanding how it could be a desperate need versus a want. And a want I get and if they can afford it great! Go on and lease a car (which does sound like a good option in her case). But calling it a desperate diminishes what a desperate need really is.

I think you are overly sensitive when people want more expensive items and state safety as one of the reasons. She never said his Honda was a death trap. You said the same to me when I said I had a more expensive car seat. You took it like I was saying your car seats were inferior when I was saying this car seat is better for me because x, y, z. All car seats and cars in the market meet the minimum safety requirements.

I agree with this 100%

dizzycooks · May 2014

Personally I'm a fan if buying what I need when I need it. If I have wants that exceed my needs then I need to decide if I can make it work. She said they can afford the car they really want but prefer not to spend the money. Personally I'd avoid leasing since they are planning to buy soon anyway. I'd make the old car work until it died by trading on days he will have clients or when I'm not going far with the kids. When it dies or has a problem beyond worth fixing then I would just buy the car I really want as long as I can afford it (which she said they could). Of course I'm like PG, I had an older car for a long time and we just decided each day who would take which car based on needs. Now even though our cars are newer (2 and 7 years old) I choose the SUV when the weather sucks because I don't trust the little car.

magentawarped · May 2014

QueSyrah said:
The way I read it was that a new car was a desperate need. Why not get the car you want instead of just any old cheap car if you need a new car anyway

I read it as two separate points.
Point 1: DH needs to buy a different car because his has issues and they don't want the kids in it.

Point 2: DH has a job where appearances are important, so he'd like a newer car.

Need=car. Want=new car.

And I've realized that I have no idea why I care, other than I hate when people seem to be acting intentionally dense and confrontational. No one actually thinks that OP literally feels that they'll die without a new Lexus or something.

bumpuser8448316 · May 2014

magentawarped said:

The way I read it was that a new car was a desperate need. Why not get the car you want instead of just any old cheap car if you need a new car anyway
I read it as two separate points. Point 1: DH needs to buy a different car because his has issues and they don't want the kids in it. Point 2: DH has a job where appearances are important, so he'd like a newer car. Need=car. Want=new car. And I've realized that I have no idea why I care, other than I hate when people seem to be acting intentionally dense and confrontational. No one actually thinks that OP literally feels that they'll die without a new Lexus or something.

I totally agree, you worded it better than I did. When my car needed replaced in Jan we NEEDED a new car. I WANTED a minivan so that's what I got. Same concept here I think.

rosesandpetals · May 2014

I get confused when people say leases are a waste of money. If you buy out the car at the end, it costs *exactly* the same amount of money. You just don't have an obligation to buy it at the end, you can turn it in and owe nothing if you want. It's a great way to try out a car if you aren't sure you want to keep it.

I think getting a new car every 3 years is a waste of money so if you just keep leasing and turning in cars every 3 years then yeah you are wasting money. But if you have the money to waste then who cares? We all waste money on something.

magentawarped · May 2014

wife07mom09 said:
Bad financial decision. Buy whatever car you can pay cash for. Period.

Well, there you have it. Our resident expert has spoken.

bhuffman · May 2014

Okay, sorry I was gone. I did not mean to offend anyone else about what kind of car they drive. If my husband drove his Honda for forever it would not matter to me. His car does have some mechanical issues and he does need a newer car for himself.
As for driving the kids, of course we drive our children in it when needed, but usually put them in my newer car.
As for his job, he works for a Pharma company and not in sales. He does not get a company car. However, he does all the hiring for his specific group and its project and he takes potential employees to dinner or lunches when they are brought in for interviews. He also drives visiting employees from other sites. He needs a reliable car for all these reasons.

As for the word, "desperately", I stand by my dramatic word choice. He either needs to completely drop a substantial amount on his current car or spend the $ on a nicer newer one.

And again, I do not care or judge what you drive.

magentawarped · May 2014

wife07mom09 said:
Bad financial decision. Buy whatever car you can pay cash for. Period.

Also...

rosesandpetals · May 2014

magentawarped said:

Bad financial decision. Buy whatever car you can pay cash for. Period.
Well, there you have it. Our resident expert has spoken.

Not sure why she liked my post since I was defending leasing, lol.

notkateanymore · May 2014

magentawarped said:

Bad financial decision. Buy whatever car you can pay cash for. Period.
Well, there you have it. Our resident expert has spoken.

Makes me want to go out and lease an extra car.

eaglesfan700 · May 2014

I personally like to buy because I keep cars for a long time. It makes sense for H to lease (which he just did for the first time two years ago) because he needs to have a nice looking car for work. He was going to buy this car after the lease is up, but I think it is better for him to lease something new. He does get a car allowance from his company

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