Cars; Leasing vs Buying

I've been having a lot of problems with a used car my mom bought for me to use. Against my sisters and mine advice she did not get the car looked at by a mechanic before buying it :rolleyes: . So now we are having A LOT of problems with it. We are pretty sure the engine is basically done. The starter needs fixed and we think something called a catalitic convertor (sp) needs to be replaced. My friends grandfather is a mechanic and these are just the things he found without really getting his hands dirty.

So I have been considering leasing a car. Of course my mom would have to co-sign or sign for me; however I would make all payments. I just got a promotion at work along with a nice pay raise so I know that I will be bringing in enough money to cover at least a $200 to $300 monthly payment. I have always said that leasing a car is like throwing your money out a window. However with just purchasing a car and not being able to, at this time, afford a down payment on a car I think leasing would be a good option for me. I would get the shortest lease, a year (if you can) or two year plan.

I was wondering what your guys ideas are. I know that some people lease cars and I would like to hear what they have to say. Anyone who knows anything your knowledge is welcome!

Thanks,
Ash

Unless you are buying a new car every 2-3 years, (which I doubt many people can do - unless they're using it as a business expense) leasing a car is such a waste of money, IMO.

You have nothing to show at the end of your lease, you're basically 'renting' the car. And if you drive quite a bit, forget about it.

My husband leased his first truck and ended up going over the mileage by something like 10,000 miles in the 3 years he had it. It cost him SO much extra.

And they tried to get him to buy it when his lease ran out, but he would've still had to put a down payment on it, even after he did 3 years prior when he first got it :rolleyes:

For myself, I will NEVER lease a car, ever. The reason is, in my line of work, we lease office equiptment to businesses. There are definitely situations where leases work out to the benefit of the CUSTOMER but not many times. We make SO much money from these customers -- they pay more for their equiptment in the long run; when the lease runs out we get their used equiptment back for free (and can turn around and re-sell it to the next customer); and then we lease them another brand new one, again for a nice tidy sum of $$$.

As for a car, IMHO, it is *so* much better to go find a used car that has just come off lease. The reason is that the first customer took the depreciation; the car is only a couple of years old, and in most cases still very reliable (of course, I would get it checked out by a mechanic whom I trusted); and because the first customer probably had a limit of how many miles they could drive, it likely has very low mileage.

My last 2 vehicles I have purchased like that, and I have only paid $4500 each for a 3 year old car. The first was a Dodge Stratus, and then I upgraded to a mini-van. If I had purchased the Dodge new, it would have been like $17,000; so in eight years, I have had 2 nearly new cars for $9000, and I am so far ahead of the game.

SO, is there anyway that you can get by for 2-3 months with this new raise, and just save your money aside, and come up with a downpayment??

Just FYI-

Catalytic Converter.........between $200-300 installed. A Cat will cause numerous problems with the engine, if the cat is damaged the engine won't be able to breathe.

Starter..........Between $100-400 installed.

One hell of a lot cheaper than a new/used/leased car.

Pay a good mechanic a little money to go through it (NOT A DEALERSHIP!!!!!!!!!!)
Find a local mechanic who people trust.

FIgure out what is critical to the car, and figure out cost. Chances are it will be cheaper by a short ton of money than buying or leasing anything.

I'm a big fan of leasing. I have such huge fears of breaking down and being stranded, it's well worth it to me(not that you can't break down in a brand new lease car). Of course I'm making payments all the time but I would rather have the security leasing gives me. At the end of the three year period, you have the option to buy the car and you can make up your mind if you want to do that or just get another one. It works for me but leasing is not for everybody. It's more expensive in insurance and you're always making payments. If this isn't for you, go another route. Just my opinion for what it's worth. :)

I was told that if you drive alot, leasing is not for you. They estimate that you drive 12,000/year. You go over that and you get hit with other charges.

I've always bought my cars and keep them till they die.

A lot of places have "certified pre-owned" vehicles. My one and only brand new car probably lost 3 grand in value when I drove it off the lot. 15 years ago a bought a Corolla with 19K on it. I drove it until it had 190K (11 years), sold it to a mechanic and it's still bumming around 4 years later.

I've leased, bought new, and bought used.

If you keep your driving within the contract limits, I think leasing has some pluses. It's the dealership that deals with any problems, not you. Routine stuff is usually covered, so the car is maintained well. In most cases, leasing is actually a cheaper monthly cost than purchasing. With a lease, you always have a nice reliable vehicle.

Cars are not money-making investments (unless you are a collector). Buying new means you loose thousands of dollars as you drive it off the lot. Buying used is great if you get a decent vehicle & don't run into major problems, and you have the vehicle longer than it takes to get it paid off.

Bottom line, for a reliable vehicle, you're going to put out apx. the same for a lease or a used vehicle + it's repairs, so it's a wash in my book. That's been my experience.

Good luck!

Quote:

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Originally Posted by Lady's Human

Just FYI-

Catalytic Converter.........between $200-300 installed. A Cat will cause numerous problems with the engine, if the cat is damaged the engine won't be able to breathe.

Starter..........Between $100-400 installed.

One hell of a lot cheaper than a new/used/leased car.

Pay a good mechanic a little money to go through it (NOT A DEALERSHIP!!!!!!!!!!)
Find a local mechanic who people trust.

FIgure out what is critical to the car, and figure out cost. Chances are it will be cheaper by a short ton of money than buying or leasing anything.

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That sounds like a terrific plan. If the mechanic won't do it, spend the $30 or so that AAA charges for their auto diagnostic service - they go through the WHOLE car and you get a written report to take to your mechanic.

If you opt to spring for a new car, many if not all dealerships right now have special deals with no $$ down and very low % financing - they're hurting for buyers and doing just about anything to get you to buy a new car.

Quote:

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Originally Posted by Lady's Human

Just FYI-

Catalytic Converter.........between $200-300 installed. A Cat will cause numerous problems with the engine, if the cat is damaged the engine won't be able to breathe.

Starter..........Between $100-400 installed.

One hell of a lot cheaper than a new/used/leased car.

Pay a good mechanic a little money to go through it (NOT A DEALERSHIP!!!!!!!!!!)
Find a local mechanic who people trust.

FIgure out what is critical to the car, and figure out cost. Chances are it will be cheaper by a short ton of money than buying or leasing anything.

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Thanks Lady's Human for all the infromation. I already know the prices and such. I had a mechanic look at it and give me prices (although it was in my own drive way and just estimates). When we first bought the car it broke down within 2 weeks of having it. So I replaced the started ($250) which was what the problem was at the time. I drove it for another week, it broke down, yet again. We were able to jump it and get it going only to have it break down the next day. My headlights dim from bright to almost no light at all while I'm driving. So they think my alternator is bad. I forget what its called but something like a spin wheel? I'm not sure, it some kind of fan in the engine. They think that it may also be broken. You can't look at it without takeing the starter out, but when you go to start the car all you hear is that wheel going round and round and nothing happeing. When we could get my car to start every time we turned it on it sounded like metal grinding on metal . So, my car is currently broke down in my driveway and we can't get it anywhere without a tow truck. To me it seems like one problem after another after another. So lets say I fix these few hundred dollars worth of problems and go home with a nice "fixed" car. My mind set is whats gonna break next? I really need a reliable, usable car. And to me this car is not it.

Quote:

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Originally Posted by Cookiebaker

My last 2 vehicles I have purchased like that, and I have only paid $4500 each for a 3 year old car.
so in eight years, I have had 2 nearly new cars for $9000, and I am so far ahead of the game.

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That’s a really good deal on such a new car. I really need a car in 6 weeks though for a class I’m enrolled in. However, I do think that maybe I could work something out until I could save up enough money to buy a car for that price. Is that a normal price for a car like that? Or did you get really good deals?


Thanks everyone! I really apreciate the opinions and suggestions. Keep them coming.

Ashley

Most of the time if you're having issues like that with the starter motor it's because the starter was improperly installed. The starter gear is bronze, the flywheel teeth which the bronze gear engages are steel. while it is possible to break teeth on the flywheel, most of the time the starter is just not properly shimmed.

Autozone will check your battery for you for free, a dead battery will give you similar symptoms to a dead alternator. It could be something as simple as a loose or corroded ground wire.

It sounds like what you really need is an actual mechanic, as opposed to a parts changer.

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Originally Posted by Lady's Human

Most of the time if you're having issues like that with the starter motor it's because the starter was improperly installed. The starter gear is bronze, the flywheel teeth which the bronze gear engages are steel. while it is possible to break teeth on the flywheel, most of the time the starter is just not properly shimmed.

Autozone will check your battery for you for free, a dead battery will give you similar symptoms to a dead alternator. It could be something as simple as a loose or corroded ground wire.

It sounds like what you really need is an actual mechanic, as opposed to a parts changer.

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I'll have to agree with you on the last one! LOL. Our "parts changer" is my sisters boyfriends brother who is a mechanic for Honda. He is helpful, and has done a lot of work on the car for free, but I am to a point where I just want to take the hunk of junk to a garage so they can pull things out and inspect it like it needs. The guy who I refer to in my previouse post as the mechanic who looked in my car is a mechanic and has been doing it for 30 or more years and is very well trusted. However he is not the one who installed the starter. I find it funny that you mention Auto Zone. We were just outside trying out hardest to get the darn thing to start so we could take it over there. I know they have those test to see if the alternator or the battery are working, and thats what we are hopeing to do, if it will ever start, which seems unlikly.

You seem to very knowledgeable in cars and I really apreicate your advice..

Ashley

Ashley, year/make/model of this beastie?

Honda Civic LX - 1997

BUh Bye.

Civics aren't bad cars, but they are on the disposable end of the spectrum.

I'd suggest looking at a hyundai or a kia, both are cheap, reliable transportation.

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Originally Posted by Lady's Human

BUh Bye.

Civics aren't bad cars, but they are on the disposable end of the spectrum.

I'd suggest looking at a hyundai or a kia, both are cheap, reliable transportation.

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lmao! I was rolling on the ground when I read this. So I have to ask because you obviously know a lot about cars. Is it worth trying to fix this car? Or should I start saving for a new one?

Ash

I would repair it enough to where it has some trade in value (As in functionally running), and find something you like. If you go with a used vehicle, have a mechanic from OUTSIDE of the dealer you're buying from go over the car. If they won't allow that, run, run far. I would also suggest getting a carfax history report on anything you buy. Key things to look at on a vehicle history are serious front or side collisions. .Unibody cars don't repair very well after those.

Quote:

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Originally Posted by Lady's Human

I would repair it enough to where it has some trade in value (As in functionally running), and find something you like. If you go with a used vehicle, have a mechanic from OUTSIDE of the dealer you're buying from go over the car. If they won't allow that, run, run far. I would also suggest getting a carfax history report on anything you buy. Key things to look at on a vehicle history are serious front or side collisions. .Unibody cars don't repair very well after those.

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I told my mom to get the car we have now looked at by a mechanic before she bought. But she insisted it was fine :rolleyes: now look what happened. LOL. I have, and I'm sure she has, learned her lessson. Thanks for all the help, I really apreciate it.

Ash

If you put a lot of miles on a car like I do, don't lease. They will charge you for any extra miles you put on the car over what they allow!