My choices to buy or lease this time around - PeachParts Mercedes-Benz Forum

yosshimura · #1 10-08-2010, 02:04 AM

I guess I'll start this thread here in off topic.. I want to get some thoughts on my choice of car to get next (by the eoy).

Issues / criteria?

I drive alot, about 20K miles per year, spend about $350 in gas per month!
Now, I am driving a 2004 Mustang GT, 5 speed, and 100 shot of N20.. Love it.
Up to this Mustang, which has 92K miles (I bought with 30K miles about 3 yrs ago), I typically drive the cars until 100K miles or so and trade in after I get a little tired of the repairs. Now, for the Mustang I spent $1K for the ac last week, granted it is the ONLY repair I've had to do in 3 years, other than a battery and brakes.
Wishful thinking? Imagine driving a CPO E350 and not havingi any problems in three years , or no more than $1K. lol

I was entertaining leasing this time and not getting to the 100k miles or to the point where the car becomes a money pit. So I went to look at the 2011 BMW 328.. Leasing with 20K miles per year with the couple of options I wanted was about $650, with first and last month up front. But then when I was thinking about the $650 car payment, I figured I really had more options...

2011 BMW 328 leased
2007-2008 MB E3500 w/sport package. I've been seeing these for about $29K to $33K with under 40K miles and CPO.. very tempting...
2010 Mustang GT - With the new 5.0 coming out for 2011 with 400+ horsepower, the dealerrs are giving away the left over 2010's. I am going to look at a red one , 5 spd (2010) that a dealer has this wknd. MSRP is $29K and dealer quoted me about $24,500... very tempting discount and price for a BRAND NEW CAR.

Keep in mind, I am going to NO LONGER keep a car more than 2-3 years, weather leased or purchased. So I also have to forecast how upside down I could potentially be at time of trade.. hence the benefit of leasing..

The threshold for comfort on the monthly payment would be $700.. that's it, not $726 or $750 lol... $700.

I know being an MB board It's going to be alot of MB choice, that's fine.. give me your thoughts and why...

I am not concerned about "ride" or "speed" etc, as I know all three cars are very different cars... Not expecting a Ford to ride like an MB, and not expecting an entry level BMW to be as smooth as the MB nor as fast as the mustang.. lol

Thanks

EDIT... Driving a 100K miles 10 years old MB is not an option; paying cash is not an option or a need at this moment in time, and realistically with the miles I drive I NEED a reliable car, hence no MB that I could pay cash would be worthwhile... If I was worried about car pmts I keep my Mustang... but I am NOT going to deal with the head aches of break downs, not in a german car nor an american. You can see my last 100 posts on here 3-4 years ago were all about "how much is this to fix" or "how do I change this part".. I'm done and been done for years in driving something that I have to work on to keep on the road. I love working on my cars but for fun, NOT to get me back on the road or to get me to the office on Mon am. lol.. thanks

#2 10-08-2010, 02:10 AM

Never lease a car. Never borrow money to buy a car. Pay cash; if you don't have enough cash, buy a cheaper car.

yosshimura · #3 10-08-2010, 02:13 AM

Quote:

Originally Posted by Craig

Never lease a car. Never borrow money to buy a car. Pay cash; if you don't have enough cash, buy a cheaper car.

Thanks for the thought. I'll keep that in mind,

when I have $30K sitting around. Pay cash or finance, you are still going to loose money, no way around it. It's a depreciating asset.

Skid Row Joe · #4 10-08-2010, 02:16 AM

Quote:

Originally Posted by yosshimura

Thanks for the thought. I'll keep that in mind,

when I have $30K sitting around. Pay cash or finance, you are still going to loose money, no way around it. It's a depreciating asset.

He's not living in the real world of new cars in 2010.

Unless he can cite EXACT exampes for you - leasing is dirt cheap for your car buying purposes.

TylerH860 · #5 10-08-2010, 02:16 AM

Quote:

Originally Posted by yosshimura

Thanks for the thought. I'll keep that in mind,

when I have $30K sitting around. Pay cash or finance, you are still going to loose money, no way around it. It's a depreciating asset.

Yes, you lose money either way, but you are going to lose alot more money financing, and continue a cycle of debt with car payments for the rest of your life.

Skid Row Joe · #6 10-08-2010, 02:21 AM

Quote:

Originally Posted by TylerH860

Yes, you lose money either way, but you are going to lose alot more money financing, and continue a cycle of debt with car payments for the rest of your life.

He's going through cars like underwear - there's no way you can come out buying them that frequently - even if every one, no especially if every one is paid for in cash. No way whatsoever.

This guy has lease written all over his MO (modus operendi.)

His money will go further not buying.

Skid Row Joe · #7 10-08-2010, 02:24 AM

He's fixing to drop a fortune on buying a new 2011 BMW.

There's no way a lease is more money than buying a new 2011 BMW, for the time he'll be entertained with one.

yosshimura · #8 10-08-2010, 02:24 AM

I can't get into a new E350 for $700 on a lease, I would be in a C class (I want to be a Mercedes when I grow up, lol)... and I am not really feeling that car. My friend just bought a 2009 with 15k miles, and it's beautiful, though.

Graplr · #9 10-08-2010, 09:28 AM

Quote:

Originally Posted by Skid Row Joe

He's going through cars like underwear -

There lies the problem. 20k/year is not that much. I have easily put that much on my SD per year for the last three plus years for easily 1/10 of the money more likely closer to 1/30 the cost he has spent on cars driving the same amount. He WANTS to drive a new car. He does not NEED to drive a new car.

I probably could sell my car right now for what I paid for it 3.5 years ago. Tell me again that all cars are a depreciating asset...

I agree with Craig. If the guy can afford $700/month then he should by a $1000 car and put the $700 per month into a car savings account. 700 x 12 = $8400. In one year he could buy a very nice car for $8400 cash.

#10 10-08-2010, 02:17 AM

Quote:

Originally Posted by yosshimura

Thanks for the thought. I'll keep that in mind,

when I have $30K sitting around. Pay cash or finance, you are still going to loose money, no way around it. It's a depreciating asset.

If you can afford $700/month, you should have $30k available. If you don't, you should not be shopping for a new car. Good luck.

Skid Row Joe · #11 10-08-2010, 02:13 AM

Quote:

Originally Posted by Craig

Never lease a car. Never borrow money to buy a car. Pay cash; if you don't have enough cash, buy a cheaper car.

Totally wrong.

The numbers and frequency of cars yosshimura is going through, LEASING is the only way to come out on car buying.

LEASE, yosshimura, you'll save a fortune - any car leasing outfit can analyse and customize a lease, and show you in black and white the money you will save in doing so.

TylerH860 · #12 10-08-2010, 02:18 AM

Quote:

Originally Posted by Skid Row Joe

Totally wrong.

The numbers and frequency of cars yosshimura is going through, LEASING is the only way to come out on car buying.

LEASE, yosshimura, you'llsave a fortune - any car leasing outfit can analyse the money you will save in doing so.

That is true, if you feel the need to switch a car every 3 years (yikes) the least crazy route would be to lease. A lease can be negotiated just as easily as buying; the dealer makes the same money either way.

#13 10-08-2010, 02:29 AM

Quote:

Originally Posted by TylerH860

That is true, if you feel the need to switch a car every 3 years (yikes) the least crazy route would be to lease. A lease can be negotiated just as easily as buying; the dealer makes the same money either way.

I don't know if leasing is slightly less stupid than financing under those conditions, but buying a new car every three years makes no sense unless you are liquid enough to pay cash. Leasing simply introduces a third party and reduces your down payment; someone else to profit off the fact that you are buying something you can't afford. Borrowing money to buy/lease a depreciating asset is a great way to reduce your net worth.

layback40 · #14 10-08-2010, 06:15 AM

It looks like we may be having a problem with wants v/s needs here.
If there is a genuine need for such a car, like a job that requires you to transport high end clients that would be unimpressed & so not do biz with some one in a cheaper car, then Joe has the right advice.
If the car is only to build ones ego & impress the neighbors, then lease/finance will be a fool & his money are soon parted.
It is concerning that there is a blanket limit of $700/month, makes one think that it could be a case of ones ego being bigger than ones pocket !
Apart from the sort of situation describe initially, if you are burning a car every couple of years, you may be considering the wrong models. Best get something that does not have the built in longevity. Go for something that will give the cheapest total running cost with the required reliability over the few years you plan on having it. Probably a 4 cylinder ricer. As the OP has stated, he doesnt have the money to pay for the car anyway.

#15 10-08-2010, 06:59 AM

Good points, based on the OPs posts (and the fact that he currently drives a mustang) I assumed he did not "need" this car. Based on the limit of $700, I assumed he couldn't really afford it anyway. If I'm wrong, he should go for it; otherwise, he should buy something in his price range.