Thoughts on buy or lease new car, Technology changing fast

[rjk514]

Looking for your thoughts on whether we should buy (cash) a new 2007 or lease one for 24 to 36 months.. we normally keep a car till it drops, but with the way automotive technology is changing ,ie. gas/electric, deisel, etc might it not be better to lease new for about two years to see how new car
technology changes in the short term..we know we might have to pay a bit more for the lease, but if we buy a gas engine (high mpg) one now, and car
Mfgs. go to electric/gas or some other tech. in 2 or 3 years, the lease would allow us to walk away at the end of our lease and then we then could reasses options.. ( I also think prices will come down on a new car
purchases as more people make less money, etc, you know the deleting of the middle class )

 

[lazygood4nothinbum]

there was a good discussion on this a while back, a search might bring it up. my auto industry friend tells me if you keep a car for 3 years or less, lease; 5 years or more, buy.

the financing on my t-bird lease is ford-subsidized so i got a deal i couldn't refuse. i'm considering the next 5 years of roadtrips so will purchase, due both to the above-mentioned advice of my friend and because i don't want monthly limits on miles driven.

if i was concerned about future technology, i'd never have bought this computer so i could type this response.

 

[lets-retire]

I doubt any car manufacturers will have a large segment of any new technology in the next 2-3 years. I think they will mostly work to improve the technology already on the market and try to make it more mainstream.

Hydrogen is still too young to have made many in-roads to society. The infrastructure for those vehicles isn't capable of supporting the large numbers and it will take longer than 2-4 years to develop it to be a viable alternative.

I think most of the "electric car" improvements will be made to the hybrid vehicles, making them larger and stronger. As a great man once said "Americans buy their cars by the pound".

Just my opinion, but I'd most likely buy, then when I am ready to replace that car in 15 years the now new technology will have been improved and proven reliable.

 

[lets-retire]

Wrong button

 

[73ss454]

I'll make this simple for you. I just retired after 34 years in the car biz.
Don't lease cars!

If your real smart you'll buy an american car that's 2 years old because of the quick depreciation. Or buy a Honda, Toyota, or Nissan new. Then keep your choice till the wheels fall off.

If your not smart or have more money than sense lease a car.

That's all you need to know.

 

[Nords]

Looking for your thoughts on whether we should buy (cash) a new 2007 or lease one for 24 to 36 months.. we normally keep a car till it drops, but with the way automotive technology is changing ,ie. gas/electric, deisel, etc might it not be better to lease new for about two years to see how new car technology changes in the short term..

Auto technology is always changing, sometimes for the better, and there's nothing wrong with the cars made between 2001-2006. You can buy used for a lot cheaper and let everyone else test out the latest technology for you. A few years later when they're done playing with it you can buy it at half-price (or less).

We're very happy to see the latest tech on the road because we know that it means the current tech will soon be on sale for greatly reduced prices.

We're seeing 2006/7 Priuses on the road now, and we're seeing 2004 Priuses every week on Craigslist for about $12K-$15K... plenty tech to play with.

 

[Jay_Gatsby]

Auto technology is always changing, sometimes for the better, and there's nothing wrong with the cars made between 2001-2006. You can buy used for a lot cheaper and let everyone else test out the latest technology for you. A few years later when they're done playing with it you can buy it at half-price (or less).

We're very happy to see the latest tech on the road because we know that it means the current tech will soon be on sale for greatly reduced prices.

We're seeing 2006/7 Priuses on the road now, and we're seeing 2004 Priuses every week on Craigslist for about $12K-$15K... plenty of tech to play with.

Interesting info on the Prius from wikipedia: http://en.wikipedia.org/wiki/Toyota_Prius

With a smaller and lower voltage NiMH battery and a boost converter to step the voltage up to 500 V, the 2004 model was more powerful (2 seconds faster in 0 to 96 km/h acceleration) and is 15% more fuel efficient than the previous generation Prius, with 60 miles per US gallon (4.3 L/100 km) city and 51 miles per US gallon (4.7 L/100 km) highway (according to the EPA). When driven appropriately, commuting and mixed suburban drivers are reporting fuel consumption of 45 to 50 miles per US gallon (5.2 to 4.7 L/100 km).

The 2006 Prius introduced some minor cosmetic changes, along with optional features such as advanced airbags, a rear-view camera, an upgraded audio system (including a line-in port), an updated Navigation DVD with new user interface, and a higher-resolution LCD display.

The 2007 Prius carries over the newer features from 2006 (also slightly higher price), while making the advanced and side-curtain airbags standard on all models. Also available is a Touring Edition that includes an elongated larger rear spoiler as well as larger, sharper-pointed 7-spoke 16" alloy wheels with plastic hub cab cover to protect it from scratches when parking against the curb. In addition, the Touring Edition also comes with a firmer European tuned suspension, standard high-intensity-discharge (HID) headlights and integrated (non-HID) fog lights.

The Prius is scheduled for a redesign for the 2009 model with a significant number of upgrades. It has been mentioned that the new Prius will receive an upgrade in petrol engine from 1.5 liters to 1.8 liters. It will also receive new smaller and more powerful lithium ion batteries which should give the new Prius more cabin space. The upgraded specifications of the vehicle will give it vastly improved mileage rumored to be between 80-113 MPG as well as improved acceleration giving it a sprint time of less than 10 seconds in 0-62 MPH. The body is also redesigned to give a more sleek sport look.

All in all, it sounds like buying a 2004 Prius is the right thing to do until the redesign in 2009.

 

[renferme]

a friend bought a Prius and was very disappointed with the mileage.
He could have done just as well with a Corolla for thousands less.
And the battery when it wears out costs something like $2000 - ouch!
My opinion: hybrids cost too much, no discount off the sticker.
I'm driving a 2000 Camry now, with 121k miles on it and it still drives like a new car.
Plan to get a lot more miles on it before I buy my next Toyota.
73ss454 is right: never lease a car.
.

 

[dumpster56]

a friend bought a Prius and was very disappointed with the mileage.
He could have done just as well with a Corolla for thousands less.
And the battery when it wears out costs something like $2000 - ouch!
My opinion: hybrids cost too much, no discount off the sticker.
I'm driving a 2000 Camry now, with 121k miles on it and it still drives like a new car.
Plan to get a lot more miles on it before I buy my next Toyota.
73ss454 is right: never lease a car.
.

Never lease a car. Drove my old volvo 240 300,000 miles until things were falling off the car on the highway. Had the baby towed back home when the exhaust system fell off cat converter and all on route 78 and still sold it for 500 dollars when she was 14 years old.

 

[windsurf]

I've now got close to 80k on my '04 Prius. Only one glitch (LCD screen at 75k) and Toyota covered it 40k past the warranty. The hybrid system is warrantied for 100,000k. It drives great, has as much interior space as a Camry and puts out almost no pollution. In warm weather, I get well over 50mpg at 65mph on the freeway. In the winter, overall milage drops to the mid 40's but everyone's milage drops in the winter around here. I paid 28k off the lot and it has great sound, nav system, side airbags, vehicle stability control, voice recog controls, climate control, high intensity headlights, alloy wheels, etc., etc. I'm no pygmy but have plenty of room. We drive this car everywhere rather than my wife's Lexus RX300 which, at this rate, will probably last 20 years. After reading the above post re Prius' design future, I'll enjoy this one 'til the "09's arrive.

 

[LOL!]

What useful new technology is found in cars that wasn't there 10 years ago?
I can only think of side-impact airbags. We traded in a '95 Camry for a '06 Ford. The new car doesn't have anything different than the 12 year old car.

As for electric/hybrid/diesel stuff ... I did include the word "useful" in my first sentence.

 

[Texas Proud]

Remember.... you have diminishing returns....

If you are getting 18 to 20 mpg... then 30 is FANTASTIC...

If you are getting 30 or so, then 40 is good...

If you are getting 40, then 50 is just OK...

If you are getting 50, 60 does not save you much at all...

 

[Linney]

Looking for your thoughts on whether we should buy (cash) a new 2007 or lease one for 24 to 36 months.. we normally keep a car till it drops, but with the way automotive technology is changing ,ie. gas/electric, deisel, etc might it not be better to lease new for about two years to see how new car technology changes in the short term
.
.
( I also think prices will come down on a new car purchases as more people make less money, etc, you know the deleting of the middle class )

Why not do what millionaires do -- buy used (reference books: "The Millionaire Next Door" and "The Millionaire Mind")

Personally, I almost always buy new and drive my cars until they expire. But recently we needed a more short-term vehicle so we bought a used truck which has a solid reputation as a trouble-free vehicle -- and even with the extensive mechanical check and a few repairs, we came out well ahead of buying new when you factor in price paid + taxes, licensing and insurance.

 

[F M All]

What useful new technology is found in cars that wasn't there 10 years ago?
I can only think of side-impact airbags. We traded in a '95 Camry for a '06 Ford. The new car doesn't have anything different than the 12 year old car.

As for electric/hybrid/diesel stuff ... I did include the word "useful" in my first sentence.

The anti skid stuff is useful - enough to be mandatory soon.

 

[magellan_nh]

Although we used to be more frugal, our current vehicles were both purchased new (our first new cars) and I have to admit I really liked the feeling of driving off in a brand new car.

I'm tempted to upgrade DW's 2003 Rav 4 since the newer models have stability control and side-curtain air bags. Safety is one area of innovation that can really sway me.

Once you decide you want a newer model (say 10-25k miles), the new market starts to look more attractive since the reliable brands seem to hold their value. I'd still say buying new results in higher costs, but not that much.

To me, one of the biggest factors in the new/used/lease debate is what it generally costs you to get rid of an old car. This is a classic trade-off between hassle factor and cost. I've never done a trade-in because I think it complicates the deal too much and it usually results in you forfeiting a couple thousand dollars. The downside of selling it yourself is you need to be able to handle the cash flow implications of owning both cars for a while.

I generally use www.cars.com to sell our used cars. I set the price right (based on what other cars are available on cars.com in our market) and it usually takes around a month to find a buyer.

Jim

 

[FinanceDude]

I'll make this simple for you. I just retired after 34 years in the car biz.
Don't lease cars!

If your real smart you'll buy an american car that's 2 years old because of the quick depreciation. Or buy a Honda, Toyota, or Nissan new. Then keep your choice till the wheels fall off.

If your not smart or have more money than sense lease a car.

That's all you need to know.

I agree with that statement..............

Just advised a client's son to buy a Pontiac Vibe over a Toyota Matrix. It's basically the same car, but since one had the Pontiac Badge on it, he got it for $3000 less than the Matrix. Same car, $3000 less, made in the same plant on the same line?

Honda and Toyota don't need to deal.......folks are willing to pay sticker a lot of the time.

Good to know stuff like that.

 

[Retire Soon]

You made a good point!

 

[lazygood4nothinbum]

i love racing off green lights. the top is down, the wind in my hair and i'm being thrown against the back of the seat.

on the way to home depot two cigarette smoking old hippies with a peace sign still hanging from their rear view mirror catch up to me at a red light. she rolls down her window, smoke pours out, and--apparently thinking i was in a rush rather than just having fun--says to me "you didn't get very far." i looked at her with my straightest face and said indignantly, "i didn't get very far? you're still in the 1960s."

point being, i drive cars pretty hard so i wouldn't buy a used car from me.

 

[Nords]

point being, i drive cars pretty hard so i wouldn't buy a used car from me.

I wouldn't pay you very much for it anyway...

 

[lazygood4nothinbum]

not a problem. i'm sure you already pay more for your kid than i do for my convertible. now if i could only find a convertible that will take care of me in my old age.

 

[mathjak107]

if you like getting a new car every 3 years or so its usually cheaper to lease it. in fact if you will be buying and trading it in at a a wholesale price to the dealer after 3 years to get a new car it most definately works out cheaper to lease.

keeping it more than 3 years or cant stay within the terms of a lease than buy it.

 

[FinanceDude]

if you like getting a new car every 3 years or so its usually cheaper to lease it. in fact if you will be buying and trading it in at a a wholesale price to the dealer after 3 years to get a new car it most definately works out cheaper to lease.

keeping it more than 3 years or cant stay within the terms of a lease than buy it.

Wonder how many LBYM folks get new cars every 3 years??

 

[rjk514]

Hey, another thought, if you lease a car, you will have the money you would have spent upfront still drawing interest in some type of acct.
while you still make monthly payments for a 3 yr. period.. just another
thing to consider...3 yrs from now there should be some type
of changes to auto technology for the better...

 

[lazygood4nothinbum]

auto industry bud just called to tell me kruse ( http://tinyurl.com/uv7sk ) is in town for the weekend. think i'll hop on my bicycle and check out the inventory.

don't know what a lease would run but pretty sure my swr won't cover it. likely wouldn't make much of a car for cross-country roadtrips anyway, what with no built-in navigation and all...

 

[73ss454]

Wonder how many LBYM folks get new cars every 3 years??

Hey FD, did you take look at some of the net worth's on the board for this year. Many of these folks can afford to lease.