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View Poll Results: Do you buy or lease your vehicle(s)?
Buy 142 87.65%
Lease 7 4.32%
Both 13 8.02%
Other (please explain) 0 0%
Voters: 162. You may not vote on this poll

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Old 03-17-2018, 04:33 PM   #21
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From a financial perspective it usually makes more sense to buy, but leasing is advantageous sometimes in these situations:
—. You can expense the lease thru your business
—. The manufacturer wants to protect their brand equity and as such significant pricing concessions only show up in leases. This is common for premium brands such as jaguar bmw etc and is usually found in a low money factor or unrealistically high residual value.

Net of this is, if you are buying a premium brand always check the lease cost, there could be a deal out there!
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Old 03-17-2018, 05:09 PM   #22
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+1 we drive our cars at least 10 years and pay cash for them.

And making payments on anything is a pain! 1 payment in full is much easier.
True, but for 0.9% I was willing to take a couple minutes to set up our auto loan on auto pay.
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Old 03-17-2018, 08:36 PM   #23
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DW wants a new Caddy Escalade.... $97,500..... finance for 72 months at 4.49%..... 3 yr lease $952/month.... she's gonna be driving her 2006 Torrent and 2007 Trailblazer for a while, then she can drive my 2004 Colorado.... and I'll walk. Ain't blowing the dough yet on that one. She can spend what she wants with the pool boy after I'm gone, and we don't have a pool.
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Old 03-17-2018, 10:06 PM   #24
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Currently we have the same number of voters (88) as the poll in 2006.

Here are the current standings:

 
2006
Buy 81 92.05%
Lease 2 2.27%
Both 5 5.68%
2018
Buy 74 84.09%
Lease 6 6.82%
Both 8 9.09%

Still showing that strong majority of voters here buy their vehicles, although leasing has increased, fwiw.

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Old 03-17-2018, 10:18 PM   #25
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^ So leasing is growing in popularity by 0.67% per year. If this trend continues it will be the preferred method by 2070.
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Old 03-18-2018, 05:24 AM   #26
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^ So leasing is growing in popularity by 0.67% per year. If this trend continues it will be the preferred method by 2070.
Well done....
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Old 03-18-2018, 06:57 AM   #27
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I think it's more difficult to understand a lease, at least for me.
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Old 03-18-2018, 08:24 AM   #28
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Both DW and I leased while w*rking so that we always had reliable and new vehicles; we both drove 20k+ miles per year.

Now DW and I have ER'ed and just bought two new vehicles for cash and plan to keep them for 10+ years; I expect we will each drive <10k miles per year.
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Old 03-18-2018, 08:32 AM   #29
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I think it's more difficult to understand a lease, at least for me.
Leasing 101, not everything but a general overview.

Negotiate price of car as normal. For Our example we will use $50k MSRP and $42.5k Actual Sales Price if you paid cash. Does Not include Title Fees.

MSRP = $50k
Sales Price = $42,500 (-15% what I got on my last car)
Lease Fee = +$900 (Acquisition fee, not negotiable)
Total CAP Cost = $43,400

Manufacturer Rebates = -$3,500 ($3,500 on my last car, End of year buy)

Total Sales Price So Far: $39,900

Residual Value of Car at end of Lease = $31,000 (62% of MSRP)

NOTE: USA Made Cars have VERY POOR Residual values, Most European, Japanese & Korean are the Best, US Cars lose the most when driven off the lot)

Car Depreciation over the 3 Years = $43,400 - $31,000 = $12,400

Lease Cost (Finance Charge) = Total CAP + Residual x Money Factor (.0012 (2.9% Interest rate) x Lease Term (36 Months) = $3,214

Sales Tax ($6.5% Example for FLA) = Depreciation + Finance Charge x 6.5% = $1,014

Total Cost of Lease for 3 Year Period = $12,901

Total Monthly Payment = $12,901 / 36 = $358.37

If you pay a one Pay Lease like I do, then the Finance charge the Money (Interest Rate) is usually reduced.

Hope this helps. As you can see, to drive a $50K car for 3 years only cost $12,901. So the rest of the price of the car is in your favorite investment vehicle making money.
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Old 03-18-2018, 08:38 AM   #30
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I think there is value to buy and to lease, as it will depend on your personal preference. The preference can be a new car every 2 - 3 years vs new every 8 - 10 years, different color every few years or the same for many years, paying for maintenance upfront in a warranty vs DIY or local mechanic, newer features vs standard features of 8 - 10 years, improved mpg, etc.

I've bought and held all my cars in the past on average 8 - 10 years. I'll be in the market for a new or newer car later this year to replace a 10 year family minivan. When I look at the cost of total ownership (about $325 per month, cash purchase plus maintenance & repairs factored in which could of been higher as I shopped for various deals) vs. potential leasing ($300 - 400 per month). So, in my case, buying and leasing is about the same cost range. The increase on monthly cost for a newer car sooner could be worth it.

Note: It's really not fair to say keeping a car 8+ years is the same as driving a new car every 2-3 years, so the cost savings is not real. The person the elects to drive an older car is getting what they want, just like the person with the new car. Same as buying Walmart jeans $15 vs Levi's jeans $40 vs those fancy ripped jeans $100, one is making a personal choice. While it covers your a$ $, it's not the same. ;-)

My family needs will be changing in a few years, i.e. kid's activity changing, less road trips, etc. so another mini-van might not be ideal long term, we will see, so leasing may give us some wanted flexibility.

In my case, even tho I am considering ER or semi-ER in the next few years, I'm thinking leasing a car for the first time may be a good option.
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Old 03-18-2018, 08:59 AM   #31
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I like the idea of leasing, but my annual mileage is high enough that the extra charges would make it much too expensive.
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Old 03-18-2018, 09:04 AM   #32
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For those who have leased I am curious about the hassle factor when you return the car. Do they nickle and dime you for scratches, dings and tire wear or are they reasonable?
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Old 03-18-2018, 09:08 AM   #33
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For those who have leased I am curious about the hassle factor when you return the car. Do they nickle and dime you for scratches, dings and tire wear or are they reasonable?
Last 4 cars never had an issue. The return rules are very clear and explained on the lease document.
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Old 03-18-2018, 09:12 AM   #34
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Both DW and I leased while w*rking so that we always had reliable and new vehicles; we both drove 20k+ miles per year.
I've driven that much or more for 25 years, and have always assumed that that much driving made leasing uneconomical.
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Old 03-18-2018, 09:19 AM   #35
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I've driven that much or more for 25 years, and have always assumed that that much driving made leasing uneconomical.
It is true, if you do more than 15k a year it is not economical. We average about 10k and lease accordingly.

We do want to do some driving in a few years and will probably buy a 3 year old car that is off lease. Especially as Diesels are getting out of favor now thanks to VW. My last BMW diesel did 45mpg. Comparable gas cars could not touch it.

I think I will look for a used Mercedes E250 BlueTec to buy in a couple of years. Should be well out of favor by then.
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Old 03-18-2018, 09:22 AM   #36
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^ So leasing is growing in popularity by 0.67% per year. If this trend continues it will be the preferred method by 2070.
I thought numbers was hard.
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Old 03-18-2018, 09:23 AM   #37
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For those who have leased I am curious about the hassle factor when you return the car. Do they nickle and dime you for scratches, dings and tire wear or are they reasonable?
No, never had a problem. They send you a plastic card with a hole in it the size of a half-dollar with instructions saying any dents or scratches that exceed the size of the hole may be assessed a cost to repair. Also a tire wear gauge.

They either send someone out to your vehicle to inspect it or you take it to the dealer. In my experience these inspectors are not the most thorough people.

I always get the security deposit waived.
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Old 03-18-2018, 09:26 AM   #38
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Disclaimer - I am not in the auto industry, just a consumer. More miles driven regardless of purchase (depreciation) vs lease (fee for extra miles), cost is based on the car and residual value.

https://www.edmunds.com/car-leasing/...t-for-you.html
Probably the biggest misconception in the lease conversation concerns mileage limits.

Many car shoppers think that 12,000 miles per year is the maximum allowable mileage that can be had on a lease, but that's not always the case. Most leases can be tailored to allow for many more annual miles than the standard 12,000. In some cases, banks are willing to let a potential car lessee sign up for as many as 100,000 miles to be driven over the life of the typical three-year lease.

These miles don't come for free, of course. However, when you agree on these extra miles at the beginning of a lease, the mileage costs are cheaper than end-of-lease excess mileage charges. The driver of a high-mileage lease is essentially buying extra miles up front and adding the cost of the extra miles to the standard lease payment.
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Old 03-18-2018, 09:26 AM   #39
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I thought numbers was hard.
They is. Took me a while to do that ciphering.
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Old 03-18-2018, 09:42 AM   #40
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^ So leasing is growing in popularity by 0.67% per year. If this trend continues it will be the preferred method by 2070.
Unless there's some exponential growth driven by outside factors.

A hundred + years ago someone might make the same claim on a poll of "Horse or Horseless Carriage?"
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