Car purchase thoughts

[CHCRandy]

I was just wondering what some of your opinions are on this deal. To start with, I would normally not even consider a lease or brand new vehicle, but in this case I think it is worth at least getting other opinions. If I lease this car it will be with the intention of buying at lease end. The MSRP sticker is around $26,000, the cheapest I can purchase instead of leasing with GM employee discount is $21,000. They are offering an employee lease right now for the same car, $0 down, $0 deposit, $160-170 a month for 23 months, then I can buy at lease end for $13,400.....am I missing something or does this mean I am buying the car for around $17,300...or $4000 cheaper by leasing? I think even if I lease it, pay the lease up for 2 years then buy the car outright...I would still be ahead.

What's your opinions.

 

[Moparracer89]

If it sounds too good to be true, it usually is. Dealers are sly, I'd dig deeper into the lease agreement.

 

[Dead Duck]

I will never giving a car dealer my money ever again.

Last time I felt like I sent his kid to college just on the interest alone.

 

[ccomstock001]

One thing to watch out for would be how many miles you can drive per year. I knew some people who had no issues that there was a limit to how many miles they could drive until they had it serviced and had a giant bill for overage.

 

[WebSnyper]

One thing to watch out for would be how many miles you can drive per year. I knew some people who had no issues that there was a limit to how many miles they could drive until they had it serviced and had a giant bill for overage.

Does that kick in, even if you buy the car at the end of the lease? I've only leased 2 cars in the past (at the same time), and built in enough miles that it was not an issue (I didn't buy the cars), but thought on mine, the overage clause did not kick in, until the end, when the lease was finished/terminated.

 

[CHCRandy]

Does that kick in, even if you buy the car at the end of the lease? I've only leased 2 cars in the past (at the same time), and built in enough miles that it was not an issue (I didn't buy the cars), but thought on mine, the overage clause did not kick in, until the end, when the lease was finished/terminated.

That is how this lease is. It is an ultra low mileage lease, 10,000 miles a year, .25 per mile over 20,000 at turn in, unless you purchase. To be honest, my wife won't even drive it that much.....but if she did, it is irrelevant since I plan on buying the car anyway. I just can't understand who/why they take the loss on the total price paid for car. Is it because the 25% depreciation comes while leasing, which makes that hit on them?

 

[Peter Potamus]

IMO you should never lease a vehicle under any circumstance. Have someone read the lease agreement and explain each part of it to you in layman's terms.

 

[BehindBlueI's]

I was just wondering what some of your opinions are on this deal. To start with, I would normally not even consider a lease or brand new vehicle, but in this case I think it is worth at least getting other opinions. If I lease this car it will be with the intention of buying at lease end. The MSRP sticker is around $26,000, the cheapest I can purchase instead of leasing with GM employee discount is $21,000. They are offering an employee lease right now for the same car, $0 down, $0 deposit, $160-170 a month for 23 months, then I can buy at lease end for $13,400.....am I missing something or does this mean I am buying the car for around $17,300...or $4000 cheaper by leasing? I think even if I lease it, pay the lease up for 2 years then buy the car outright...I would still be ahead.

What's your opinions.

My wife's current vehicle was $1k cheaper to lease + purchase than to purchase outright, even if you paid cash and had no interest, and that was with Chrysler employee pricing. If you run the numbers and it comes out cheaper, it is cheaper. There are no hidden tricks or traps, the buyout is the buyout. Mileage is irrelevant if you purchase it. Sometimes manufacturers run specials just to get the cars out there and off the lots, and if you buy that particular make and trim package you can come out really nicely.

Your goal should be to have the cash to buy it without financing at the end of the lease.

 

[JettaKnight]

IMO you should never lease a vehicle under any circumstance. Have someone read the lease agreement and explain each part of it to you in layman's terms.

Why?

 

[JettaKnight]

Sounds like a great deal. It's the end of the month so maybe they got to move cars out the door. Sometimes you you can't look a gift horse in the mouth.

Go for it, and be happy you found a great deal.

 

[churchmouse]

I have had 2 Lease vehicles and bought them out at the end of the program. I feel I broke even on them.

 

[Tactically Fat]

Get the buyout amount in writing, from someone in a position that matters, on official letterhead.

What kind of car is it? What's their historical sale point/value at 2 years old and 20k miles?

 

[AtTheMurph]

why not just buy the two year old car for $13k (or less)?

 

[GodFearinGunTotin]

Get the buyout amount in writing, from someone in a position that matters, on official letterhead.

What kind of car is it? What's their historical sale point/value at 2 years old and 20k miles?

why not just buy the two year old car for $13k (or less)?

This is where the point of interest is it seems to me. If you're going to buy a new car anyway, the lease/buy seems to be worth it. if you're just wanting a nice, dependable car to drive and you don't care about putting the first 20K miles on it, I agree with these guys. How much are they going for, used, at this age and mileage? If it's less, then you have a decision to make. If they're going for more than your lease drop-off amount, you might be doing the right thing by lease/buy.

It's been 10 years since we've bought a new car, so this is an interesting twist in financing.

 

[BehindBlueI's]

why not just buy the two year old car for $13k (or less)?

I doubt the car is selling at half MSRP as a two year old vehicle with reasonable miles. The OP is getting employee pricing, which is below invoice - hold back, and likely getting all the rebates on top of that.

I know the common knowledge is never lease/always buy used, but you have to run the numbers for yourself and your situation, especially now that used cars are holding their value more than in the past. Buying new, especially if you can get a deep discount like employee pricing, and holding long term can make a lot of sense.

 

[churchmouse]

This is where the point of interest is it seems to me. If you're going to buy a new car anyway, the lease/buy seems to be worth it. if you're just wanting a nice, dependable car to drive and you don't care about putting the first 20K miles on it, I agree with these guys. How much are they going for, used, at this age and mileage? If it's less, then you have a decision to make. If they're going for more than your lease drop-off amount, you might be doing the right thing by lease/buy.

It's been 10 years since we've bought a new car, so this is an interesting twist in financing.

Think with me on this. Nothing party's like a rental which is what your are basically getting when you by a used program car. The previous people are just drivers, not owners. Different mindset. Oil changes......maybe. Tire rotations......Ha. They run them ragged and turn in the keys to pick up another one.

If you put the 1st 20K on it with the intentions of owning you will take care of it.

 

[seedubs1]

This. The used market is difficult these days. I only buy used. It takes me a lot longer now than it did 10 years ago to find something that's reasonably priced and not beat to death. And when I do find one, it's either already sold or the seller has 10 people lined up behind me to buy it.

My wife's car, I contacted the guy 2 hours after he posted it. It was a 2002 VW beetle with 80k on it for $4800. Needed the timing belt / water pump done, which isn't cheap, needed new tires, and needed a new skid plate. That's $1200 worth of stuff it needed. I drove up to get it 8 hours after he posted it, and he had a list of 8 other people ready to come buy it. I haggled him down to $4400 cash, and that was it. The used market is nuts. I wish it was like the old days.....

I doubt the car is selling at half MSRP as a two year old vehicle with reasonable miles. The OP is getting employee pricing, which is below invoice - hold back, and likely getting all the rebates on top of that.

I know the common knowledge is never lease/always buy used, but you have to run the numbers for yourself and your situation, especially now that used cars are holding their value more than in the past. Buying new, especially if you can get a deep discount like employee pricing, and holding long term can make a lot of sense.

 

[CHCRandy]

It is a 2015 Malibu LT2. A 2013 is going for $15,000 to $18,000 with 20K......used.

That is why I think I am missing something. Seems like a no brainer to take the lease, even if I instantly pay the 2 year lease then buy it outright next week. Still seems cheaper........by quite a bit.

 

[CHCRandy]

why not just buy the two year old car for $13k (or less)?

Good luck finding that!

 

[seedubs1]

Put your money that you would use to buy it outright now into smart investments. Money in hand is worth holding on to until you have to use it.

It is a 2015 Malibu LT2. A 2013 is going for $15,000 to $18,000 with 20K......used.

That is why I think I am missing something. Seems like a no brainer to take the lease, even if I instantly pay the 2 year lease then buy it outright next week. Still seems cheaper........by quite a bit.