Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!
Options
Popular New Cars
Popular Used Sedans
Popular Used SUVs
Popular Used Pickup Trucks
Popular Used Hatchbacks
Popular Used Minivans
Popular Used Coupes
Popular Used Wagons
Comments
However, Volvo's tend to need more maintenance as they age than Japanese cars do. So, keep that in mind.
Even so, I would not own ANY car,short of a beater,without a warranty. Even a Toyota.
$2600 is alot for a warranty. But it really depends on how many miles you have and how many you will have when the warranty expires. If the answer to part 2 of that equation is less than 100k, then I would not buy the warranty, personally. As vmax said, it requires a good bit of maintenance, but none of that will be covered under a warranty, since its normal wear and tear.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
At 2600 or so for a warr, I'd have to say that I'm tempted to self insure. I'd be paying cash for the car, so there'd be no payment.
Thanks for the feedback!
Then why have car insurance?
Same thing, your ins co is making coin off of you.
Most people never file a claim either.
An extended warranty is just insurance.
Insurance where you pay the entire premium up front.
Because the law says you have to.
;b
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Not everywhere.
Even so, the law also states that a new car must be sold with a warranty.
If a BRAND NEW car needs a warranty,isn't a used one more likely to need one?
If you could save a couple thousand on a new car by forgoing a warranty, would you?
Diff of $267/yr.
Where is the significant difference?
And I'm sure in those places there are lots of people driving without it. God help those they hit, though.
If a BRAND NEW car needs a warranty,isn't a used one more likely to need one?
That's a loaded question, don't ya think? Depends on the used car. How many miles it has, how many it will have by the time the warranty expires, how its reliability historically is, how it was driven and cared for by its previous owner, etc, etc.
But, in this instance, we are talking about a vehicle that the person already owns and has driven for 3 years and 30k miles with no problems. Odds are very very good that the next 3 years and 30k miles will be trouble-free (at least the kind of trouble a warranty will cover). And this is true of most mass-produced cars.
Many folks believe that a car that goes 30k miles with no problems will be good for at least 80k-100k miles. But, a new car can easily be a lemon, so I (and I believe many folks) would be less inclined to give up a new-car warranty, as opposed to a proven used car with no bad history.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
( at almost the same monthly lease payment).
It's the base model with 4WD and has a $13,600 (non-negotiable) buy-out. I'm finding that it adds up to $16,000 by the time I add sales tax, extended warranty (now reading here that I shouldn't bother : - ) and registration, etc.
Why the hesitation?
Pro-New:
1. I have a 5 year old and the 2005 doesn't have side airbags - the new ones do. Safety is a big factor. Drivers are crazy in my neighborhood.
2. I work in sales and write-off most (even tho Suzie Orman says that's BS).
Pro-Buying:
1. I love the old look - not big on the new look but would probably adapt to it after a few weeks.
2. In 3 years, I'd OWN a 6 year old Rav4 with 60,000 miles on it that would probably still be worth some $$.
HELP! Any advice?
I'm not a fan of leasing except for people who have discretionary income to afford lifetime car payments. You have the ability to end the leasing cycle with a decent vehicle that like you said in 3 more years will still have great value. A lot can be said for that.
BTW, your 5 year old has lasted this long traveling in your RAV4, I wouldn't make side air bags the deciding factor.
A good quality booster with side-impact protection should do a fine job with your 5yo. Drive carefully (put down the phone) and you're already ahead of the curve.
If you truly can write-off your lease payments, then you can also depreciate your vehicle. There's very little (if any) financial advantage to leasing an average cost vehicle even when you can write-off the payments. Luxury vehicles ($40,000+) can be beneficial to lease assuming you plan to get a new one every 3 years. So once you buy this vehicle for $16,000 otd, you can depreciate up to $3,060 (current limitation) per year. You are keeping detailed mileage logs, right?? :P
Right now, your truck is prob worth $15000.
So, you'd have $1400 of trade equity, which you can apply to your new lease.
Most people who buy out a lease get rid of the car within 18 months, so chances are you won't keep the current RAV long enough to reap the benefits of not having a car payment. Also, the old RAV is going to have maintenance costs the new one won't have, tires, spark plugs, tune up etc.
I actually went to look at new boosters last night : - ) There is some info out there that says that side impact air bags don't help kids (too short).
I think either decision is a fine one. I fell in love with my Rav4 but maybe will fall in love with a new one too. (Just don't like the lines - the old one is cute - the new one is copy-cat) I'm figuring that with finance costs and a warranty, etc its going to cost me $17,000 to buy out. Keep it 6 years and it still costs $2800/year and then I have to go thru the hassle of selling it privately (but I may be ahead $6,000 that way.
I can lease a brand new one with side airbags for the same as I'm paying now - about $335 a month and then get a new one in 3 years - no hassles.
Plus, I'm thinking that in 3 years, daughter will be 8 and I don't have to load her into a carseat. Might be nice to have a different care - a jetta or something.
As for write-off, accountant takes 5/7 of the car as its used 5 days a week for business - really!
Any insight would be helpful.
Thanks-
Just using hypothetical figures here that have nothing to do with what your ride is actually worth or what your buy out is, lets say the buy out is $25K and it is worth $20K. That is a $5K difference but then you have to write the check for the miles.
I shudder to think what you spent in gas alone these past 2 years.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
MODERATOR /ADMINISTRATOR
Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
Share your vehicle reviews
2005Volvo s80 T-awd,40 K miles(in June when lease is up)climate Pkg,KBBvalues=$16.2-22.7
RV=$24,000
to turn in, I have to repair some body damage(+3K)
which I will not repair if I buy.
2005VolvoS602.5t,leather,climatepkg,30 K miles(in June when lease is up)
KBB values:$15.8-22.1
RV=20,400
To turn in,$2kmileage+2Kbody damage
Which I will not repair if I buy
To BUY I have to borrow the $ at 5%,5 years.
To LEASE NEW ? Leases are up in June,so not sure if I would look at 2009 or 2008.
To BUY NEW, still get the money at 5%(HELOC,so its variable)and would pay in 5 years.Prices-?Carsdirect says$37.9K for the S80 and $30.8K for the S60.obvoiusly 2008 prices
I am REALLY confused-and just want to save some money on my car payments!
Pay the end-of-lease charges, then start clean.. Then, you can buy or lease whatever you want..
It may hurt, but you'll be better off in the long run..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Man, this is a GREAT forum. Clear heads all around bring muddled decisions into focus.
Now, maybe I go with More miles and a cheaper car... SAFETY is my big concern with teen drivers, what about a camry?Or, maybe the s60 newly leased is still under $400/mo?
THANKS again. It looks like I will turn in both cars and ante up for the miles and etc.
I have contacted CARSDIRECT for help w/lease #'s on a 2008 S60 2.5T and S80 T. we'll see. I may end up with that,
maybe a less expensive but AS SAFE car-LIKE?????
Never looked at the c30, but now I will. Is the Camry a good or bad idea?
At that point Ill have a 5 year old volvo and, I figure the eldest will "inherit" the old car!
Is that crazy?
I grew up with 4 of us teens at he same time, all driving a dodge charger,same car for about 10 years...Not safe, but really cool...
Now, maybe I go with More miles and a cheaper car... SAFETY is my big concern with teen drivers, what about a camry?
A few quick ideas:
1) Most teens that I know have an accident of some sort (like a bump in the parking lot) in the first 36 months that they are driving. Why buy a really expensive car and put a lot of dings on it?
2) Personally, I would do an older midsized sedan that is absolutely BORING. If the reaction is "I wouldn't be caught dead in THAT," you are in the right ball park.
3) Avoid the higher profile vehicles that are easier to lose control of. They can be really difficult for new drivers.
4) I see so many people spending big dollars on "the latest and greatest safety device du jour." The same people brag that they can get 120k miles on a set of the el cheapo OEM tires. Personally, up here in the frozen north, I replace my tires every three winters no matter what the tread looks like. I buy the better rated traction tires which are usually quite affordable.
Three of the four vehicles in the ditches last night were larger SUVs while the subcompacts were humming along in the 5" of snow last night.
No, it is not true. The European Ford Focus, Mazda 3, S40, and C30 are all on the same platform, but it is a platform that was co-developed by Ford/Mazda/Volvo. So it is no more a Volvo on a Ford platform than it is a Ford on a Volvo platform.
Besides, while a platform is part of the safety picture, it is not the whole safety picture. Volvo has seats, airbags, doors, and even the metal of the body itself that is all engineered with safety in mind. These components are not shared between it and the mazda3/Focus.
That being said, the safety gap between volvo and other manufacturers has been reduced over the years. Most other manufacturers have "caught up" in many regards.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
How is BMW with buyout negotiation??
Of course, if you are 10K miles under your allotment, then that doesn't help your case any..
I'm pretty sure that they will refer you to your dealer for the extended warranty.
If you are certain that you want to buy the vehicle, with an extended warranty, you might check with your dealer. Ask them how much it would be to take the vehicle off-lease, CPO it, then sell it back to you. If the market reports show that the vehicle is worth less than the residual, you might come out ahead this way.
Good luck!
kyfdx
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Thanks for any feedback
1) Work out what you are going to have to pay for over mileage. It looks like you are doing about 18000 miles a year so you will be about 12000 miles over your allowance. 12000 miles at $0.10 per mile (or whatever your rate is) =$1200, so if you put aside $120 a month you'll be able to pay the charge.
2) By all means lease again if that suits you, but contract for 18000 miles a year. The monthly payment will be higher, but no nasty surprise at the end.
But what I do with that math is figure out what my best option is.
To give an example ...
lease is $250/mo. I hit my 24k mile limit with 7 payments remaining. I can either pay the remaining payments now and get out of the lease (or trade it in and pay the negative equity ... whichever is lower of those 2 options) or I can continue to drive and pay the extra miles at the end. If miles are 18 cents each and I will go over by 10k, that's $1800. But I only have $1750 in payments remaining. So I may opt to terminate early and start over. Of course, there are other possible costs to take into consideration, like paying out-of-pocket costs on a new lease ... but you would have to pay those in 7 months anyway.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
The KBB suggested retail value is 15,795.
The KBB private party value is 13,250
The KBB trade in value 10550.
I don't know much about cars and was wondering if it would be a good decision if the I bought it. Also if I do, does TFS ever negotitate the price they are willing to sell it for?
Thanks for the help.
So, your buyout price is pretty good.
Just have to decide if you want to keep the car.
I just recieved a bill from Mazda for the excess mileage, which i could understand if I had turned the car back in but it was purchased. My lease says nothing about paying for excess mileage when you purchase the car. I have traded in 3 previous cars by buying/trading in at the end of the lease and have never been charged excess mileage.
What should I do?
The car may not have been worth what the residual / buy out was on the lease so they may have just taken it from you and then turned it in "for you". Nice of them, wasn't it?
I would call Mazda and ask them where the car is and who turned it in and to what dealership and ask who signed the odo statement, etc. It could be some kind of mistake, but if the car was returned at lease end to a Mazda dealership then you would owe for excess wear and tear and for over miles. Then you have to go talk to the Honda dealer to see what happened and try to get the money from them to pay what Mazda says you owe.
Did you call Mazda to tell them what was going on after you "Traded" the car in? You should have. Keep in mind it is their car and you are / were just renting it, so once you did anything with it you should have called them and told them who had the car and what the deal was on it. Then follow up every day or two with the lease bank to make sure the car got paid off by the dealer. Then if anything goes wrong you will catch it right away and can start trying to fix it.
I haved traded cars before the end of lease a couple of times and once dealer got the payoff, but didn't get around to paying for it for several WEEKS. I was worried another payment would come due before the dealer paid up - or that the payoff would no longer be good and I would owe the extra interest. I DID tell the lease bank that day that a dealer had purchased the car and offered to fax them a copy of the paperwork, then when the dealer was slow to pay they went after THEM and not me - though I was ultimately responsible for the car in any case.
Dennis
1. Our car is in good shape and under mileage. But we have one small ding where someone opened their door and hit the car. What fees should we expect, and would it benefit us to have the ding fixed ourselves?
2. We are looking at trading into a larger SUV (despite gas prices, we need to be able to tow). According to Edmunds the residual value is low on these, so the payments are higher than to purchase. We lease because we like to have a vehicle with a warranty. Is it wiser to lease and not risk being up-side down, or purchase now while there is good interest ?
Thanks in advance for any thoughts.
This car market and credit crisis is not the time to buy big not unless you can truly afford it.
In any case, who is your lease with? Most of the captive lease banks have "forgiveness" built into the turn in so you don't get hit with fees for dents and dings. Most 3rd party banks do not. When I had a BMW they mailed you a plastic gauge thing to measure scratches, dents, dings, interior holes, etc. If there were no more than x per panel or car and they were all smaller than the gauge measured for that item then no charge. Honda probably has the BEST forgiveness with up to $500 per "thing" and up to $1,500 per vehicle in forgiveness. Small paint chips and little dings are considered normal wear and tear and don't even count towards the money. I turned in my 05 S2000 with low tread on the rear tires (less then 4/32") and was charged nothing - even though new rubber from TireRack would have been $203 EACH plus shipping, mounting, and balancing.
In any case, get a pre lease end inspection done and they will tell you what is "wrong" and how much, if any, they will charge you for turning it in with that defect. Then you have the option of getting it fixed at your expense or paying them after you turn it in. Be sure to point out the ding you know about so it will be noted and perhaps not charged for.
I agree with your other reply, you might want to seriously look at a used SUV when the time comes if this trend continues. Folks are dumping them at big losses and car lots are overflowing with them - a super time to buy. That said, by the time March gets here the makers may be giving them away with huge incentives and cheap load and lease deals. Captive lease banks have residuals that do not have to echo real world expected prices - they can have low rates and high residuals to make low lease payments and move products. My wife's Pilot is leased at 0.31% effective finance rate. Over the course of the 3 year lease the interest we will pay is less than $200 - total. Now that is a cheap lease . Get a deal like that, and I would probably not bother with a used SUV.
Dennis
What year is the Pilot?