Thoughts on leasing a car.

[amandad413]

So, this may be a little lengthy and I apologize in advance for that.

I currently own at 2012 Jetta with 110,000 miles on it. Its been a good car so far and will be paid off soon. My check engine light just came on a few days ago and after taking it to autozone, it doesn't sound like its a major issue. But this morning, it wouldn't start. I believe its just the battery, but I'm not quite sure and won't find out until I get home from work.

It has 1 payment left on it and will be paid off completely. I am currently in the transition of switching from one job to another and will be working from home permanently.

DB's jeep is also almost paid off (one payment left as well) and we have had a TON of issues with it. It's constantly overheating and no one can seem to figure out what's wrong with it. We've had it multiple places and they're just not figuring it out. He will be trading in his Jeep on a new car as he drives everyday for work, to multiple counties in the state. We have already had this kind of planned, as he needs something reliable.

Although we absolutely don't NEED two vehicles, we don't like to put miles on his car when we go up to the city (we live about an hour and a half south of Pittsburgh) or go on small weekend trips, just because it tends to add up.

So what I'm thinking is continue to do what we wanted to with his Jeep. We've already been looking at a few small SUVs and crossovers and have kind of figured out what we want and what we're willing to pay.

Since I won't be driving to work anymore (about 30 miles a day round trip) and we will only use this as our weekend card, would it be wise to lease? My car obviously is having some issues and I don't want us to rely on that for a back up. I've never leased before and I'm still kind of iffy on it.

Thoughts?

Also, the new job is a huge pay increase for me (5/6 dollars an hour), will be less gas money and lunch money (something I'm trying my hardest to cut back on). I will also be able to get overtime (max of 4 hrs a day) so it's a good move financial but I don't want to make a stupid decision with leasing a car.

Thanks

 

[MikeNamez]

I've only leased cars, I really don't find any draw backs as long as you don't go over the mileage. New car every 3 years and I literally can't remember the last time I've had a car break down on me or something happened that wasn't covered.

 

[Klayfish]

A few thoughts (sorry, I love these topics, cars are my life, literally).

First, maybe just see why the VW won't start. If it's just a dead battery, I don't know that's a reason not to trust it anymore. Batteries only last 3-5 years on average. If it's the original one, it's probably due. No big deal. What was the check engine light for? It would't be the battery, more than likely. Having said that, if you've gotten 110k trouble free miles out of a VW consider yourself lucky. Their reputation for "quality" is awful. Terrible. Personally, I wouldn't touch a VW with a 10 foot pole...though they are fun to drive. You could make it to 200k miles, no way to know. However, statistically, you're about to head into a money pit.

Generally speaking, from a purely financial standpoint, leasing is the worst way to own a car. It's the dealers' cash cow, you always come out on the bad end. However, it's a judgement call. Some people want a new car every few years and don't want to hassle with buying/selling and don't mind paying extra money for that. There's nothing at all wrong with it, as long as you know what you're getting in to. Leases are designed for the dealer, so be sure to fully understand the terms.

If you want to get rid of the VW, which would be the "safe" bet, and want to save money, I'd suggest looking at lightly used. For example (and I'll try not to show my anti SUV/crossover bias), buy a 2016 or 2017 Hyundai Santa Fe or CR-V or something like that. You'll get them for far less than new, still get a warranty and have a bullet proof car.

 

[OhDannyBoy]

My wife leases.

I drive 80 miles a day so I can't affordably.

 

[SharonZ]

I understand leasing and love it. For me, it works.

 

[MikeNamez]

A few thoughts (sorry, I love these topics, cars are my life, literally).

First, maybe just see why the VW won't start. If it's just a dead battery, I don't know that's a reason not to trust it anymore. Batteries only last 3-5 years on average. If it's the original one, it's probably due. No big deal. What was the check engine light for? It would't be the battery, more than likely. Having said that, if you've gotten 110k trouble free miles out of a VW consider yourself lucky. Their reputation for "quality" is awful. Terrible. Personally, I wouldn't touch a VW with a 10 foot pole...though they are fun to drive. You could make it to 200k miles, no way to know. However, statistically, you're about to head into a money pit.

Generally speaking, from a purely financial standpoint, leasing is the worst way to own a car. It's the dealers' cash cow, you always come out on the bad end. However, it's a judgement call. Some people want a new car every few years and don't want to hassle with buying/selling and don't mind paying extra money for that. There's nothing at all wrong with it, as long as you know what you're getting in to. Leases are designed for the dealer, so be sure to fully understand the terms.

If you want to get rid of the VW, which would be the "safe" bet, and want to save money, I'd suggest looking at lightly used. For example (and I'll try not to show my anti SUV/crossover bias), buy a 2016 or 2017 Hyundai Santa Fe or CR-V or something like that. You'll get them for far less than new, still get a warranty and have a bullet proof car.

Leasing is always about the deal you negotiate. I've had at least two times, the dealer realized they screwed themselves after I had already signed. They had me re-sign so they could move the money around and not make it look like a loss for them.

 

[amandad413]

A few thoughts (sorry, I love these topics, cars are my life, literally).

First, maybe just see why the VW won't start. If it's just a dead battery, I don't know that's a reason not to trust it anymore. Batteries only last 3-5 years on average. If it's the original one, it's probably due. No big deal. What was the check engine light for? It would't be the battery, more than likely. Having said that, if you've gotten 110k trouble free miles out of a VW consider yourself lucky. Their reputation for "quality" is awful. Terrible. Personally, I wouldn't touch a VW with a 10 foot pole...though they are fun to drive. You could make it to 200k miles, no way to know. However, statistically, you're about to head into a money pit.

Generally speaking, from a purely financial standpoint, leasing is the worst way to own a car. It's the dealers' cash cow, you always come out on the bad end. However, it's a judgement call. Some people want a new car every few years and don't want to hassle with buying/selling and don't mind paying extra money for that. There's nothing at all wrong with it, as long as you know what you're getting in to. Leases are designed for the dealer, so be sure to fully understand the terms.

If you want to get rid of the VW, which would be the "safe" bet, and want to save money, I'd suggest looking at lightly used. For example (and I'll try not to show my anti SUV/crossover bias), buy a 2016 or 2017 Hyundai Santa Fe or CR-V or something like that. You'll get them for far less than new, still get a warranty and have a bullet proof car.

Thanks for the thought! If I remember correctly they said the check engine light was just a misfire (a piston misfire maybe) I'll have to see if I still have the paper they printed for me.

My Dad had told me that VW are known for the water pump to go bad around 100,000 and I haven't replaced that yet (I've just been putting off the cost honestly because its so pricey) so I'm hoping that's not associated with it. But I'm 99.9% sure its the battery, as it is the original and seems to be the problem.

Thanks for the advice!

 

[amandad413]

I've only leased cars, I really don't find any draw backs as long as you don't go over the mileage. New car every 3 years and I literally can't remember the last time I've had a car break down on me or something happened that wasn't covered.

That's exactly what I'm thinking. I think with the huge decrease in the amount I'll be driving (trips to the grocery store for me are only about 4.5miles) is really pushing me towards a lease.

 

[MikeNamez]

That's exactly what I'm thinking. I think with the huge decrease in the amount I'll be driving (trips to the grocery store for me are only about 4.5miles) is really pushing me towards a lease.

You can also beet up on the cars pretty good which they consider "Normal wear and tear". As long as things aren't dented or interiors ripped you won't run into any issues returning. Every leased car i have ever had gets washed/cleaned once, the day before i bring it back lol.

Also something to keep in mind is once you get towards the end of your lease and you have a bunch of miles left, use them. You can rack up the miles on the lease (as long as you don't go over) and save them on the car you own.

 

[Friend of MM]

My 2 Cents, If you decide to lease, choose a car you won't out grow that has low depreciation. A vehicle that holds its value can help keep your payment lower (if dealer is honest about its residual value) and helps if you have a Insurance claim where the car is a total loss. Stay within the mileage limits. Just as you are changing jobs now, work conditions can change, sometimes unexpectedly. Will the lease still be good if you needed to drive to work more frequently? Try to only lease for as long as the bumper to bumper portion of your new car warranty lasts, this will help keep any major repair costs down. Whether you Lease or Buy, pick a car you can afford and have a payment in mind. Don't tell Dealership what you want your monthly payment to be, you may be willing to spend more than their offer turns out to be. If they know the amount they will gladly find a way to inflate the payment to match your higher number. Anytime a number is offered by them, find away to say it needs to be lower without giving your target payment away. One last suggestion, ask about "Fees" or any additional Charges that they may attempt to add at signing, like Documentation Fees, Extended Coverage Plans etc. I don't mean the fees your State charges, just the ones a Dealer tries to Add!

 

[Klayfish]

Leasing is always about the deal you negotiate. I've had at least two times, the dealer realized they screwed themselves after I had already signed. They had me re-sign so they could move the money around and not make it look like a loss for them.

Sure, any car purchase is about negotiating. However, leasing is the profit cow for the dealer. The consumer comes out on the wrong end of it, pretty much every time. I literally can't count how many cars I've had, and only one was a lease. It was a Nissan Leaf back when there were big gov't and state subsidies for EVs. Since you got a huge rebate from those governments, the lease turned out to cost next to nothing. Now, the only car I'd consider leasing is a German or Italian car, simply because I'd rather hedge my bets and not deal with the nearly inevitable disasters they are as they age. So for BMW, MB, Audi/VW, Fiat, I'd much rather drive it two years and hand it back to the dealer before things go wrong (in Fiat's case, things go wrong as soon as you drive off the lot...LOL). Again, leasing is absolutely fine if you fully understand what it's about and don't mind using that extra disposable income. We all spend money on things we enjoy, if leasing works for you, great. I also wouldn't suggest that you can beat a leased car and get away with it. That may work if you're turning in a lease for another one, as they want to try to get you into a new car. But if you're just turning it in, be prepared for them to pick over it with a very fine tooth comb. Then pay lots of fees.

Thanks for the thought! If I remember correctly they said the check engine light was just a misfire (a piston misfire maybe) I'll have to see if I still have the paper they printed for me.

My Dad had told me that VW are known for the water pump to go bad around 100,000 and I haven't replaced that yet (I've just been putting off the cost honestly because its so pricey) so I'm hoping that's not associated with it. But I'm 99.9% sure its the battery, as it is the original and seems to be the problem.

Thanks for the advice!

VWs are known for a lot more than water pumps. Electrical systems are disasters. A misfire would definitely be in a piston, that's the only place it could be. But the cause of that can be varied. The code the computer spit out should give you (or a mechanic) a good indication of what the root cause may be.

Maybe try swapping the battery and then going from there?

 

[MikeNamez]

That may work if you're turning in a lease for another one, as they want to try to get you into a new car. But if you're just turning it in, be prepared for them to pick over it with a very fine tooth comb. Then pay lots of fees.

My last car a Honda CRV i snapped the antenna off of it and put it back on with electrical tape. Dropped the keys off and went and picked up a buick, no issues at all. Had a 2006 Lexus IS that a basketball hoop fell on and took a gouge out of the driver door. Through some black paint over it returned no issues. The only issue i've ever had was going over the miles. I agree though leasing vs buying works differently for everyone. I only lease and my fiance only buys lol.

 

[TheSouthernBelle]

So, this may be a little lengthy and I apologize in advance for that.

I currently own at 2012 Jetta with 110,000 miles on it. Its been a good car so far and will be paid off soon. My check engine light just came on a few days ago and after taking it to autozone, it doesn't sound like its a major issue. But this morning, it wouldn't start. I believe its just the battery, but I'm not quite sure and won't find out until I get home from work.

It has 1 payment left on it and will be paid off completely. I am currently in the transition of switching from one job to another and will be working from home permanently.

DB's jeep is also almost paid off (one payment left as well) and we have had a TON of issues with it. It's constantly overheating and no one can seem to figure out what's wrong with it. We've had it multiple places and they're just not figuring it out. He will be trading in his Jeep on a new car as he drives everyday for work, to multiple counties in the state. We have already had this kind of planned, as he needs something reliable.

Although we absolutely don't NEED two vehicles, we don't like to put miles on his car when we go up to the city (we live about an hour and a half south of Pittsburgh) or go on small weekend trips, just because it tends to add up.

So what I'm thinking is continue to do what we wanted to with his Jeep. We've already been looking at a few small SUVs and crossovers and have kind of figured out what we want and what we're willing to pay.

Since I won't be driving to work anymore (about 30 miles a day round trip) and we will only use this as our weekend card, would it be wise to lease? My car obviously is having some issues and I don't want us to rely on that for a back up. I've never leased before and I'm still kind of iffy on it.

Thoughts?

Also, the new job is a huge pay increase for me (5/6 dollars an hour), will be less gas money and lunch money (something I'm trying my hardest to cut back on). I will also be able to get overtime (max of 4 hrs a day) so it's a good move financial but I don't want to make a stupid decision with leasing a car.

Thanks

I am not a car guru and don't know much about cars and nearing the end of their life cycles but your cars both you and your DB are not that old if they are about almost paid off. 100K miles isn't that many. Sounds like you need to find a trustworthy mechanic to look at his Jeep and your car.

Also as far as leasing, it's about one of the dumbest financial moves someone can make. You are renting a car basically. Most people lease bc it "affords" them a nicer car than they could really afford to buy/finance. Do yourself a favor and google Dave Ramsey and Leasing, it'll open your eyes.

 

[MrsPete]

Keep in mind that people have widely varying goals when they go to pick a new car.

My goals: Have a dependable and comfortable car that'll cost as little as possible. That particular goal is incompatible with leasing, so I always buy. I bought my current car new, and I've treated it like a baby -- it is now 10 1/2 years old and probably can make it to 15-18 years. Even if I'd made payments (which I didn't -- I paid cash), the car would've been paid off now for about 6 years, meaning I would've been driving payment-free for a long time already. Suits me fine.

Leasing is another word for renting.
It's a way to make sure you always have a car payment.

 

[kymom99]

So you are going to get a new car and your BF will keep driving the jeep? Sounds like his is the one that needs to be replaced. Or am I misunderstanding?

I reread and now I see hevis getting a new car too. It sounds like you could keep the vw either for you since you work from home or let him drive it for a while.

 

[antmaril]

I understand leasing and love it. For me, it works.

It works for me, too. I haven’t owned a car since 1992.

 

[tvguy]

No secret I am not a fan of leasing cars (or buying them for that matter)
I replaced my family car in June that I had for 31 years. Bought a new car, but MAN the dealer really really pushed hard for us to lease. "Better incentives, lower payment" was the line he used.
I actually thought about leasing instead of buying my next car, as this is the car we will be using for our retirement trips when we retire in about 2 years. Paying for repairs instead of always having a monthly payment helped us save money for our kids college and our retirement. Our hope is to have this car paid off before we retire, and enter retirement with no car payment of any kind for years. If it doesn't work out I may reconsider leasing. But given I got 31 years from the vehicle it replace, I will be 92 when I've had this car 31 years!

 

[wishuponastar1984]

I am not a fan of leasing. It does sound like the Jeep needs to be replaced but I would not just throw in the towel on the VW. I would get it repaired and try to drive it for another 6 to 9 months so you could save those payments for a nice downpayment for when you decide to get a new car. You don't need a new car as you won't be driving daily. In a two-car family, I would try to rotate getting new cars so you only have one car payment

 

[TheSouthernBelle]

Keep in mind that people have widely varying goals when they go to pick a new car.

My goals: Have a dependable and comfortable car that'll cost as little as possible. That particular goal is incompatible with leasing, so I always buy. I bought my current car new, and I've treated it like a baby -- it is now 10 1/2 years old and probably can make it to 15-18 years. Even if I'd made payments (which I didn't -- I paid cash), the car would've been paid off now for about 6 years, meaning I would've been driving payment-free for a long time already. Suits me fine.

Leasing is another word for renting.
It's a way to make sure you always have a car payment.

Yes yes and more yes! People have become way to complacent with always having a car payment. I used to think that leasing was a great way to "own a car worry free, no hassle maintenance, or less stress" but there is truly no stress or worry in knowing I own my car outright and NOT having a payment!!

 

[MikeNamez]

Yes yes and more yes! People have become way to complacent with always having a car payment. I used to think that leasing was a great way to "own a car worry free, no hassle maintenance, or less stress" but there is truly no stress or worry in knowing I own my car outright and NOT having a payment!!

Its truly different for everyone. I could never own a care because I would never ever take care of it. A leased car as long as its not dented and over miles, I drop it off and never think about it again. I think I've gotten 4 oil changes in 2 years and still have not cleaned it since i picked it up. In a year from know, i drop it off and go find something else, yes i have a payment but no stress about caring for it.