Just what is a good deal?

kyfdx · May 2011

...are always good for a laugh, later...

Get something cheap... then, see what happens..

darrvao777 · May 2011

Wow thanks for the spate of useful and quick replies!!

So I've narrowed it down to a short term lease (24-36 months) versus financing a used vehicle.

I'm having trouble getting the monthly payments on the used car to match that of the leased vehicles.

So would it not be in my best interest to lease a car for 24-36 months to bridge me to a time period when I would have more cash? (because of the cheaper monthly payments?)

Or it makes more financial sense to make payments toward I car that I would ultimately own? (even if it means higher monthly payments?) I'm not quite convinced I would want to keep that vehicle in 2-3 years time but I guess for frugality's sake, I could certainly make do with it for a little while longer.

mac24 · May 2011

So I've narrowed it down to a short term lease (24-36 months) versus financing a used vehicle.

A lease buys you the use of the vehicle as opposed to ownership.
A lease can have tax advantages, but for someone starting out I doubt that would apply.

Personally I'd buy with as large a down payment as I could scrape together, then I'd overpay the balance each month until it hurt, so as to get it paid off as soon as possible.
When it's paid off, you own it; when the lease finishes you have nothing.

qbrozen · May 2011

If you can't get the purchase number to look good, you may be using the wrong numbers. Are you comparing a 3yr lease to 3yr loan? Cause that will be misleading. On a 3yr lease, you are only paying about 45% of the car. So, to compare fairly, it should be looked at vs a 6yr loan. Not that you should get a 6yr loan.... Just pointing out that this is a more accurate comparison of the two.

explorerx4 · May 2011

How many miles a year to you expect to drive?
That can make a difference when considering leasing.

darrvao777 · May 2011

I have a limited travel routine and could probably get away with <10000 miles per year so I would think the usual lease allowance of 12000-13000 miles would be enough.

I guess financing a used vehicle does provide me with more flexibility in case I wanted to use the car for recreational trips instead of solely for commuting.

I tried extending out the financing term to ~72 months to match up with a 36 month lease, I've been looking at leasing a Camry or Subaru for ~$200 a month and haven't been able to find a similarly competitive used vehicle for $200 a month even over 72 months.

tallman1 · May 2011

But remember, as others have pointed out: if you lease, you are renting and will have nothing after 3 years. If you buy, you will own a car. Even though there will be some depreciation, it certainly won't be zero.

qbrozen · May 2011

I seriously doubt the lease on a Camry REALLY comes out to ~200/mo. Usually that involves a cap reduction, plus your bank fee and security deposit up front. Then add taxes.

darrvao777 · May 2011

Wanted to say thanks again for being so helpful and providing such quick replies!

Gonna start my used car search in earnest this week with the goal of purchasing a car by the end of June/July

(The lease is still an option but I've relegated it really as a backup option at this point)

Thanks again for all the help!

I'm sure I will be back with more questions along the car search

Kirstie_H · May 2011

Good choice!

The thing is, if you purchase a used vehicle at a good price and pay as much as you can each month (meaning, as much OVER the required monthly payment as you can), in a couple of years your trade-in should act as a decent downpayment on your next vehicle.

robbieg · June 2011

If you want a 200 a month car payment. Look at a compact car. Think, Civic, Mazda3, Elantra, Corolla etc. Only look at a Subie if you live up north. AWD is really a waste in Florida for example.

I would finance a nes for no longer than 5 years. If you are going to be making 150,000 in a couple of years. You can pay off a 17,000 car pretty quickly.

higgledy · July 2011

I saw some old cars on fitzmall.com for $688. At that price, if it lasts 3 or 4 months you made money.

turn1p · August 2011

I hope this is the right discussion for this question.

I'm seeing all these big Events for certain manufactuerers that i've been considering and all the offers end at the end of the month. I'm curious as to wether now is the best time to get the lease that I want or will there be better offers say November/December time?

Just what is a good deal?

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