i've never bought a new car, but for most people who do the payments are the big factor. the one time i did buy a car on finance, it wasn't the total price that was the issue. and that's the thing, most people who buy a new car aren't walking in with a briefcase full of cash. they're going in trying to make the best deal they can.
the "price" of any car is really meaningless. in this day and age of financing the total price is irrelavent, it's the monthly cost that counts. you can go on thinking that people who finance a car are stupid. obviously it would be cheaper if you have 30 grand cash but for 90% (no i can't cite it) of the population that's not an option.
so i bought a 3 yearold car. it had 19k miles when i bought it and we talked them down to a point where the payments would be 150 a month. that's the point. the majority of the population lives on credit so, to suggest it makes more sense to pay up front cash or lease than to buy a car on a plan, is not just naive, but incredibly arrogant.
honestly, I considered getting a vehicle that was like 2 or 3 years old with decent mileage, but there wasn't a whole lot available that I trusted - and most, at least around me, are previously leased vehicles which are generally abused because they were leased - I just didnt wanna deal with another headache.
It took me a while to come to the amount I was willing to spend and finance and while I'm not thrilled about payiing (ultimately) more for the car than it's worth, it's an evil that I couldn't avoid. Toyotas are pretty much the leaders when it comes to resale value, even 10 years later so I do have some comfort in that knowledge - of course with my luck, in 10 years electric hybrids will all be the rage and I'll be fucked.
goat is paying about 30 bucks less a month than he should be, outstanding job goat.
Kid Afrika Wrote:Mileage is a concern for many people with leasing. I don't put a ton of mileage on my vehicles, so it's not a problem for me. As far as payments...
On the same day, my mother bought a 2003 Ford Escape and I leased a 2003 Dodge Durango SLT. Here's the tale of the tape...
My down payment on a $33,000 Durango, $1,000, monthly payment, $410. 39-month lease.
My mother's down payment on a $24,000 Escape, $5,000, monthly payment, $425. 60-month financing.
So, that's another advantage (IMO) to leasing... less down, lower payment. And to be totally honest, if it weren't for leasing, I'd be driving about a $12,000 car and paying the same $410/month.
you got hosed on you moms car. what % rate did you get?
on the other hand, i don't see how you were able to lease the durango so cheaply. do you know what the money factor was?
Here's the deal, I have been friendly with people at this dealership for over 10 years. My family and I have bought several cars from them over that time and I used to do them a lot of favors when I was installing alarms and radios. So, when I leased my Escape in 2001, they got me approved with shit credit and a ton of outstanding debts. It was funny to hear the sales manager say, "he doesn't have the credit to meet that payment on a lease", only to be over-ruled by the dealership manager who said, "it's Brandt, just make it happen". So I left in my new Escape.
When I went to get the Durango, I orginally was going to get an Explorer, but wasn't really set on it. Then, the Dodge dealer heard I was getting a car and said he could work me a better deal on a better truck. So, I got an SLT 4x4 for the same price that I could've gotten a minimally outfitted Explorer (cloth, p/w, p/l, no frills, 6 cyl). In the end, I thought the Durango was a better looking truck and that the V8, 3rd row, and better 4wd diff really sealed the deal. So, they worked the numbers and probably applied a rebate or two and got me where I needed to be payment wise.
As for the Escape, there were no deals running on the Escape when she bought it. She could've gotten a much lower payment on a lease, but she doesn't think leasing is beneficial and she also puts a lot of mileage on her cars. Now that I look back at it, she may have gotten a 48 month loan. I'm really not sure. I do know that the payments and the amount down is correct, though.
To Tricia's assertion, if you can't afford to buy furniture, you can rent to own from rent-a-center. And sure, you'll be paying only $30/week for a fully outfitted living room with electronics et. al. Unfortunately, you'll also pay about an 800% mark-up by the time your done.
It's the proverbial rock and a hard place. You can put down as much as you can on a loan, which for most people is about $5K or so, and then finance the rest for as long as it takes to get your payments where they need to be. But again, you end up paying so much interest it'll drive ya mad. My advice? Lease or save as long as you can before buying. If all else fails, buy a car that is within your means.