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Old 03-25-2017, 08:09 AM   #21
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It's clear that most people believe owning is financially more prudent than leasing. But as Racy said, at 67 perhaps it's time to stop worrying about that stuff and just do what makes you happy.

We've spent our entire lives worrying about these financial details. At what age do we just get to do whatever we want even if it's not the most financially sound choice?
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Old 03-25-2017, 08:19 AM   #22
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You have already incurred the bulk of the depreciation expense. Why give that benefit to someone else?

We drove our Camry for eighteen years prior to giving it to our son. We did not need two vehicles in retirement. Our Accord is ten years old. We have owned it for seven. We expect to drive it for another ten years. We are not willing to play the tradeup game.
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Old 03-25-2017, 08:23 AM   #23
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............ At what age do we just get to do whatever we want even if it's not the most financially sound choice?
For me, that would be when I can be sure I can afford ten years in an Alzheimer's care unit without bankrupting my spouse.
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Old 03-25-2017, 09:24 AM   #24
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98 Town Car 118K/mi., 96 Cadillac SLS...89K/mi.
Total miles/yr for both cars about 2500. Cost has been almost nil until this year. Incompetent garages have cost about $2500 without fixing the nuisance problems.
The farthest point we drive to is Walmart, about 1 1/2 miles away, and my camp on the lake, ten times a year 25 miles away.
I expect we'll pour another $3000 to $5000 in repairs.
Not too many cost effective options that I can see.
That's about the worst of my problems at this time...

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Old 03-25-2017, 09:52 AM   #25
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Thanks for responses as to whether at some age, lease makes more sense.
Financially - probably not. Leasing makes sense financially in certain circumstances but that has more to do with miles driven versus age.

If you're deciding this based on money, just keep your current car. If you, on the other hand, prefer a new car every three years go for it. It's nice to keep up on technology and it's nice to have options. For example, you may not like the Acadia. With a lease, no problem, get something different when the lease is over. As you age, you may want a different style of vehicle. Right now, I'm leasing a pick-up truck. I moved this year and it was very helpful. Next lease, I may go back to a sedan. Want to try out that new electric car (Bolt)? Leasing is less risky if you don't like it.

I've leased for the past 15 years or so. I really like a new car every two years. I'm struggling with continuing leasing as I move into retirement because financially it doesn't work out. Personally (non-financially), it works out great.
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Old 03-25-2017, 09:59 AM   #26
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Cars in Retirement

Thanks all for presenting both sides so well. I had DW read also. Probably leaning toward keeping and paying off at this point. It will always be low mileage, so we can always have a decent trade-in value in the future.
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Old 03-25-2017, 10:10 AM   #27
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What Harley said

We buy new cars and then we maintain them and drive them for 12 to 15+ years.

The Car Dealer is not your friend...
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Old 03-25-2017, 10:32 AM   #28
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Thanks all for presenting both sides so well. I had DW read also. Probably leaning toward keeping and paying off at this point. It will always be low mileage, so we can always have a decent trade-in value in the future.
Good conclusion!

my '09 car is creeping up on 100K and I have had no issues outside of the normal maintenance which is truly pretty cheap. I *personally* can't see why I would ever lease a car since it's almost NEVER a great financial transactions, but that is just my opinion
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Old 03-25-2017, 11:04 AM   #29
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I think that it depends on your wishes and desires.

We spend a fair amount on travel each year. I suspect more than the average retiree. We enjoy it. On the other hand, we have never been car proud as it were. Don't care if our care is not a late model or not. We don't really think about it as long as it is running well and it is not costing an arm and a leg to keep it on the road. Others like a new car more often. To each their own.
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Old 03-25-2017, 11:11 AM   #30
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If you don't drive very much, why do you want to lease a car? Let's go to the extreme, if you do not drive at all, do you want to lease a car and put it in your garage?

I might rent cars if I want to drive a lot of miles for vacations, and my own car is no longer reliable (more than 10 years old?).
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Old 03-25-2017, 11:26 AM   #31
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+1. The trade in/lease deal is financially better for the dealer (and worse for you) or he wouldn't have offered it. I vote for keeping your car.
Another vote for keeping the car. Im MY experience, there DOES typically come a time when repairs become so significant that it is worth replacing the car, but with THIS low a mileage, you are a long way from that point.
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Old 03-25-2017, 11:57 AM   #32
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You have already incurred the bulk of the depreciation expense. Why give that benefit to someone else?

We drove our Camry for eighteen years prior to giving it to our son. We did not need two vehicles in retirement. Our Accord is ten years old. We have owned it for seven. We expect to drive it for another ten years. We are not willing to play the tradeup game.
Totally a personal decision,but if I have the money I'm not putting me or my DH in an obsolete car without the latest safety features. There is nothing frugal about that in my opinion. At 10 years it's well behind the curve safety wise.
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Old 03-25-2017, 12:02 PM   #33
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A friend of mine bought an old widows car with low mileage and had nothing but problems. Seem they age just as fast if not driven.
There are maintenance items on a car that are affected by the mileage or usage of the vehicle. There are other items that are affected by age and not as much by mileage. These are mostly the rubber and plastic items - so seals, hoses, trim, belts (age and miles), etc. You can do things to minimize this wear but at some point you may need to fix them. Case in point, I just last week replaced the taillight seals (rubber) on my 2005 sports car with only 60K miles because they were leaking.

You are also right that little driving or short trips only can lead to problems. If you are only driving short runs of 5-10 miles or less you should try to get one longer run once a month or at least every few months. The engine and exhaust system need the heat from such a run to get rid of moisture that builds up in various places.
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Old 03-25-2017, 12:12 PM   #34
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When working, I administered some of the largest lease fleets in the U.S. I also taught dealerships how to sell leasing.

Most leases are done at MSRP--at very high profit margins. And not all leases are created equal since some have acquisition fees and fees when you turn them in. Dealers very often hit a "HOME RUN" when they convert a purchaser into a lessee. Many people know how to negotiate the purchase of an automobile, however very, very few know how to negotiate to get the lowest lease payment.

If you like your GMC Terrain, just keep it.
I've never leased, but I'm thinking of leasing a car for my 16 year old daughter. Other than wanting a 30 month term, I know nothing about negotiating leases. What do I need to know?
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Old 03-25-2017, 12:35 PM   #35
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To refinance the car would be a wiser choice than to lease. That way you could get a super low payment. Going the way you are going of course is the best path if it is not to painful.
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Old 03-25-2017, 01:11 PM   #36
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98 Town Car 118K/mi., 96 Cadillac SLS...89K/mi.
Total miles/yr for both cars about 2500.
I'm driving more than that every month, without considering rental cars.
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Old 03-25-2017, 01:34 PM   #37
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I guess my 93 Explorer with 140k KM original owned since Nov/92 would not be considered safe enough? It has ABS and 2 air bags. It is my weekly driver in Mexico.
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Old 03-25-2017, 01:37 PM   #38
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Nothing wrong with leasing if it fits in your budget and you enjoy driving a new car. People on financial forums love to hate on leasing but I lease my car, a very nice German SUV, for a few reasons. Main ones are:

1. I am a car guy and enjoy the latest models, technology, safety
2. I like driving a car under full warranty (haven't paid a repair bill in a long time)
3. I don't drive too many miles so I can lease with the lowest mileage allowance.
4. My total annual car expenses are less than 2% of my income
5. Why tie up my cash in a depreciating asset?

In your situation I wouldn't just jump into another GM product but why not go test drive some other brands? A new Honda CR-V for example which gets GREAT reviews, excellent crash test results, etc.
Many people will always have a car payment. Why not have a lower payment?
Why sink so much $ into the car at the time of a purchase? Sales taxes in many places are 5% to 7%, when leasing taxes is often just on the amount of the base monthly rental payment.
Why should you bet on the direction of the used car market? Especially if the car's a new technology wonder like electric or hybrid.
How are you at selling used cars? Leasing takes the worry and pressure off you since you just walk away at lease end.
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Old 03-25-2017, 03:21 PM   #39
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Historically I've always paid cash, drove the car 10yrs, then sold or donated it.
Then I discovered plug-in Hybrids and pure-electric vehicles. Game changers. For these silent and emission-free cars, it's all about battery technology and driving distance. The ever-changing technology of these vehicles make leasing the better way to go in most cases. This may not be the case in 10 years as the technology matures. Government rebates are easier when you lease as well.
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Old 03-25-2017, 03:22 PM   #40
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I guess my 93 Explorer with 140k KM original owned since Nov/92 would not be considered safe enough? It has ABS and 2 air bags. It is my weekly driver in Mexico.
I got you beaten. I have a 97 Explorer with 200k miles original owned, but I only drive it occasionally, 5 miles each way max. But it serves as a backup car. No need for car rental if we need one.
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