Lease or buy
 

I would like some opinions on leasing or buying. I love my MBs but both are getting old with high mileage. We are retired, in our low 70s and want to travel some while we still can. I have been thinking about a Hyundia Genisis, new or used or lease. I can lease for 6 years for what a 3 year old car cost. I can buy a new one for the cost of a 10 year lease. Leasing every 3 years and we would always have a 'new' car. Buy a 3 year old car and we would never have a new car but would possibly have someone elses problems. Buy a new one and have a 'new' car for a few years and then have an old car.
Lease a car and at the end of the lease I have nothing. Buy new and in 3 years I own a 3 year old car. Buy a 3 year old car and in 3 years I have a 6 year old car.
This could go on for ever. Soooo, what do I do.
Keep in mind, we may only have another 10 years to drive on any kind of long trip.

Thanks

PaulM

For a modern high end car? Lease, far cheaper.

People say with a lease you always have a payment, sure but when you pay cash your money is gone all at once, your still paying for the car.


I used to be very anti leasing but it makes sense in a lot of situations. I could lease a slightly more expensive version of my truck for $100 less than what I'm paying per month now. If I leased I would have no repair or maintenance concerns, just drop it off for a $29.95 oil change 3-4 times. Sure in a few years my truck will be paid off, but it will be a few years old and right at the mileage point where it will start needing work. With a lease I'd just get another new truck.

You end up paying either way.

Hard to say. Generally leasing originally was a tool to write all your yearly costs off in the given year for business. Even at 73 myself I would not lease. As a general rule overall it costs you more and I could only see the application if the value of the brand depreciated fast. Also if you do not drive the yearly allowance in miles. There is no credit given. Now if you go over is another story.

I have owned Hyudia products and question many things about them. On the other hand many seemed to have been happy with them.

Up till reciently their depreciation curve has also been steep. I do not follow them anymore so am not certain if this still applies. We also have a rust problem here you may not have. As a result there seem to be few older models of this brand on the road locally.

Tyler who purchased one when he was just ending his period as a used car dealer a year or so ago. Might be worth dropping a personal message to. He purchased a very upscale Huyundai product and was much less than happy with it.

Personally as an old goat I have become used to the Toyota and Honda products as daily drivers. They seem to stay pretty reliable and have a decent usually easily realized resale value. I kind of know what to expect out of them as well. Toyotas seem a little better than Hondas at this time.

These are just my opinions at the same time. People should do as they want.

Also at 73 I realize I will have to hand in my drivers licence when the time comes than I feel less than competent behind the wheel. I have no wish to hurt anyone. The wife being five years younger will have to pick up more of the driving load instead at that time I suspect.

How about renting a car for an occasional 'long' trip?

One vehicle I'd considering were I in your situation would be on buying a pre-owned MB E250 or GLK250 diesel, from perhaps an MB dealer with the extended warranty, or not.

However, it seems your sights are set on a Hyundai.

When you put it on paper, leasing can look awfully attractive in many cases. Keep in mind that the lease is 'time-specific' versus buying the same unit - 'time-specific.' When that is the yardstick used (time) the lease wins handily.

With a lease, you are primarily financing the depreciation of a vehicle over the term of the lease. If you have two new vehicles with the same negotiated purchase price, the vehicle with the greater depreciation will be more expensive to lease, absent some type of subsidy by a manufacturer-supported leasing company. I would bet that a Honda would be cheaper to lease than a comparable Hyundai.

I leased a new SAAB Turbo in 1987
 

My experience was quite positive. The bottom line was that I could not afford to buy that car at that time but I was easily able to lease it. The true value showed when the car was stolen from my apartment parking lot while I was serving an 18 month sentence in the Pentagon. I was two years into a three year lease at that time. I picked up the phone and told the leasing company that someone had stolen THEIR car. The response was " Sorry. Do you want another one?" I said no, so the insurance company rented me a car and did the cost analysis. The end result was the lease was satisfied and I received a check for $600.

I did not do it again because I became enamored with old Benz and also found myself able to buy what I wanted for cash. I guess what I am saying is Do Not Fear the Lease. My only advice is to put very little or no money up front. The leasing companies like you to have a "vested interest" in the car. In a lease everything is negotiable. Miles driven, "down payment", level of maintenance included. Your negotiations and selections will make the monthly payment go up or down. You simply need only find a level of comfort and enjoy a car you may not be able to afford to buy.

Also I would be reluctant to lease a vehicle for a longer term than its warranty.

Thanks everyone. I get the idea that a lease is an option. I am thinking more about being able to come out better than buying outright as far as depreciation is concerned. I won't have to worry about repairs, etc. After 3 years, do it again or buy the car from the leasing company if it turns out to be a good car. If I bought the car out right it would cost me more than what the lease would be. From what I have found out, the 3 year lease will cost me about 12K but if I buy it then sell it in 3 years the depreciation will be about 15K. That is at current prices for new and used.
I mentioned the Genisis because they are getting good reviews and higher ratings than the E350 which cost about 50% more for the same features.
I will do more research.

Thanks again

PaulM

The last car we picked up for the wife. A one year lease Toyota return with 5 K miles on it. They usually assign them to dealers to sell.

These short term leases are a resale problem as they do not come with zero to very low financing options. So they seem to be depreciated more than one would expect. We picked it up for 7-8 K less than the same unit brand new. This car would have been about twenty one thousand new after negotiations..

I think for our next car we might approach a leasing arm directly. Her car is only worth about a thousand or so less than we paid for it a couple of years ago currently.

I usually just put a sign in the side window of her older car basically stating older ladies car well taken care of and they are gone. Maybe it is the price we ask or perhaps what the wife projects when approached.

The buyers never seem to haggle. To be fair she is also a very gentle user of cars other than when she writes them off. :( I always hope she is past that point. Again to be fair the write offs were not really her fault basically. Still the buyers land up with excellent fairly low mile cars in great condition for the ones that have survived this fate.

We have an arrangement with cars that may amuse some. It does me from time to time.

#1 she usually has no choice of color only make and model and options.

#2 it is preferable to her that I never use it but can keep it for myself after the next car is purchased if I wish. The car is hers not ours until then.

#3 occasionally when the urge takes her she may suggest me taking it to town to fill the tank etc. During my other needs that day. I think this upcoming week will have a new tires day incorporated.

#4 We do not have a his or her money situation except it seems when it comes to cars. I must locate them and arrange all things.

#5 another newer car is desired about every three to four years by her.

#6 She has indicated she will soon be wanting a new jetta. Personally I do not think this is the greatest ideal so it will not be owned past the warranty period. Getting my hands on one at the right price may also be a little harder. It also means she will have to drive a five speed again in that brand.

#7 It is a game. Perhaps for both of us. She picks up enough milage at approximmatly .60 cents a mile it is far from funny and that goes into her investment account. I manage the account with a simple rule she has. I am never to lose money with that account. When I study her expense sheets it is truly amazing. They are legitimate but very creative at the same time. They are also never questioned.

#8 She is smart enough to have arranged this scenario years ago. Never saying anything about the overall creativity she has employed. As in number seven it is just a game to her I believe.

Unless you're sure you're going to be comfortable with a Hyundai, I certainly wouldn't be deadset on leasing, and subsequently buying one. As I understand it, they're substandard automobiles, as contrasted with more prime examples of automobiles.

Yes, they are substandard to the E350 but they cost less. My plan now is to rent one for a few days, drive it 200 or 300 miles and then decide if it is for us. If not, we will move on. It may end up that we keep the SEL and take our chances. We both love it and know we will never find a prefect replacement for it. In our 14 years of ownership it has never let us down.

PaulM

His opinion is of someone who has never owned and probably never even sat in one ;) keep that in mind.


Sent from an abacus

Can't you buy a slightly used certified MB? That way the largest chunk of depreciation is gone and you can get a car with an unlimited.milage warranty. My GL was two months old and less than 1,500 miles when I purchased. I got an extra year and 50,000 mile factory warranty with a close to $20k discount off the car when it was new.

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