Need Car Buying/Leasing Advice

dancherboijrdancherboijr Member Posts: 3
edited June 2018 in General
Hello all! First post!

Getting right to it, I'm a almost 20 year old college student who in the next couple months, will need to be acquiring a vehicle to get to school. I am working pretty much full time this summer, and I've limited my budget to $13,000, or under 200 a month for a 5yr loan.

I've received advice from my father and he has been recommending leasing a new vehicle, specifically a 2017 Hyundai Veloster, which the deal is $2000 down, $190 a month for 3yrs, at a discounted price of $14,500. It's not a bad idea but for me personally, I don't see the appeal in that car in particular, and its really lackluster 130hp.

So basically I am looking for a sporty sedan, coupe, or hatchback that is reliable, fun to drive, and semi-practical. I would love to hear your advice for which route I should take, I understand going private seller is a tad more risky than a dealer, but I plan on driving the vehicle Im looking at to my mechanic to give an inspection. I would like the vehicle to also last me beyond my payment plan if possible, so around or less than 50k miles I think would be optimal.

Thanks,
Joe

Comments

  • inuvikinuvik OregonMember Posts: 160
    I can't recommend that you lease a vehicle. You're basically renting the vehicle with a mileage allowance. Ever mile you've gone over your allotment at the end of the lease will result in a extra charge. Any damage to the car when you return the vehicle at the end of the lease you'll be charged for. The last thing you need as a college student is a car payment. Insurance costs can be huge for younger drivers so you should take that into consideration also. Get something reliable, cheap and boring. Your bank account will thank you in the long run.
  • roxieixorroxieixor Member Posts: 27
    Do you know of any leases (Acura, Lexus, Audi, Volvo, Nissan, Infinity, ...) that allow you to purchase extra miles (above their 15K/year maximum lease) AND will refund the cost if you don't use all of the purchased miles or reduce your buy-out cost at the end of the lease?

    I need to pay $0 down.
    If for example the lease for 15K per year is $400/month and the buyout is X, can I somehow pay $600/month and reduce the buyout to Y?

    Or, which one has the highest maximum mileage that would reduce the buyout the most?
  • kyfdxkyfdx Moderator Posts: 210,348
    roxieixor said:

    Do you know of any leases (Acura, Lexus, Audi, Volvo, Nissan, Infinity, ...) that allow you to purchase extra miles (above their 15K/year maximum lease) AND will refund the cost if you don't use all of the purchased miles or reduce your buy-out cost at the end of the lease?

    I need to pay $0 down.
    If for example the lease for 15K per year is $400/month and the buyout is X, can I somehow pay $600/month and reduce the buyout to Y?

    Or, which one has the highest maximum mileage that would reduce the buyout the most?

    All of those makes will let you buy extra miles that will reduce the price, but I don't know if they will refund unused miles.

    It's possible they would have a business lease with a lower residual/higher payment, but good luck finding an F&I manager that has any knowledge of it.

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  • roxieixorroxieixor Member Posts: 27
    kyfdx said:

    roxieixor said:

    Do you know of any leases (Acura, Lexus, Audi, Volvo, Nissan, Infinity, ...) that allow you to purchase extra miles (above their 15K/year maximum lease) AND will refund the cost if you don't use all of the purchased miles or reduce your buy-out cost at the end of the lease?

    I need to pay $0 down.
    If for example the lease for 15K per year is $400/month and the buyout is X, can I somehow pay $600/month and reduce the buyout to Y?

    Or, which one has the highest maximum mileage that would reduce the buyout the most?

    All of those makes will let you buy extra miles that will reduce the price, but I don't know if they will refund unused miles.

    It's possible they would have a business lease with a lower residual/higher payment, but good luck finding an F&I manager that has any knowledge of it.

    You're right, finding the right person is key.

    So I guess they will all let you buy extra miles. Here is how I understand it. In addition the maximum mileage plan of 15,000 miles per year, you can buy extra miles: Acura at $0.10 per mile, Volvo at $0.20 per mile, Lexus at $0.20 per mile. Non of them refund unused miles. Volvo shows an "adjustmed residual" which is the original residual minus the value of the purchased miles. Acura said the residual doesn't change, but the end of lease purchase price is decreased by the value of the purchased miles.
  • kyfdxkyfdx Moderator Posts: 210,348
    roxieixor said:

    kyfdx said:

    roxieixor said:

    Do you know of any leases (Acura, Lexus, Audi, Volvo, Nissan, Infinity, ...) that allow you to purchase extra miles (above their 15K/year maximum lease) AND will refund the cost if you don't use all of the purchased miles or reduce your buy-out cost at the end of the lease?

    I need to pay $0 down.
    If for example the lease for 15K per year is $400/month and the buyout is X, can I somehow pay $600/month and reduce the buyout to Y?

    Or, which one has the highest maximum mileage that would reduce the buyout the most?

    All of those makes will let you buy extra miles that will reduce the price, but I don't know if they will refund unused miles.

    It's possible they would have a business lease with a lower residual/higher payment, but good luck finding an F&I manager that has any knowledge of it.

    You're right, finding the right person is key.

    So I guess they will all let you buy extra miles. Here is how I understand it. In addition the maximum mileage plan of 15,000 miles per year, you can buy extra miles: Acura at $0.10 per mile, Volvo at $0.20 per mile, Lexus at $0.20 per mile. Non of them refund unused miles. Volvo shows an "adjustmed residual" which is the original residual minus the value of the purchased miles. Acura said the residual doesn't change, but the end of lease purchase price is decreased by the value of the purchased miles.
    Almost every make has some sort of business lease for high mileage customers. Of course, it might require you to title it in a business name, and the terms might not be as good.

    It sounds like your employer will cover your lease payment, and you are trying to profit from it at lease end?

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