Leasing my first car.

[Dex]

I leased a wife once.  Gave her back after 8 months.  Cost me several thousand.  It was an interesting 8 months, but I wouldn't recommend it. 

Did she have heated front seats tho?

[Happy Panther]

There is not much lease advice. Leasing is like buying a house with $0 down. Not financially sound but you get more house and lots of young people do it so they can get more house. Cars are worse since there is no interest tax deductions or value of living.

 

So you already know that this is not a good fiscal decision. I would want to know what your mom thinks is beneficial to you in this potential transaction as there is almost no upside. No good accountant would advise you of this unless there is tax benefits. Your point that you want to have a new car every few years and/or take advantage of new car technology is fine and your personal taste. I buy stupid poo all the time

 

Here is my advice

 

1) Make a spreadsheet and see how much money you will lose compared to buying. You should at least understand what you are giving up.

2) Check the interest calcs on the spot or beforehand. Dealers fudge with this all the time. Another simple calculation you can do online or in a spreadsheet.

3) Enjoy your car

 

 

[Luck's neckbeard]

Appreciate the feedback. However I personally like the idea of getting a new car every 3 years. I don't feel like paying off a car I really don't even want for 5-7 years. Leasing is also cheaper monthly payments.

Not after you add in a down payment.

Leasing or buying a brand new vehicle is a waste of

[Luck's neckbeard]

Like I said in my previous post I personally like getting a new car every 3 years. I'm not trashing buying a car because it does make more sense finqcially. What pisses me off is you coming into my thread and essentially calling me an idiot for wanting to lease.

Because you are an idiot. There's not any difference in driving a new car 3 years or 5 years. A 5 year old vehicle with 60-70k miles will look & run just as good as a new vehicle. Trading in your vehicle every 5 years is a waste of money, 3 is retardedly stupid. Why so set in every "3" years? Let me guess, you're in your mid-20s & just got your first big boy job? Now you want to blow every last penny you can financially afford on a new, expensive vehicle?

When I was 24 I leased a new $50k Corvette. My twin brother bought a brand new VW Golf Diesel. After 4 years I was out $8,500 & owned nothing. My brother was out $18,000 & owned a 50mpg VW that was still worth $13,000.

It's cheaper to buy a vehicle every 5 years than to lease one every 3 years. If the vehicle you want "can't be paid off in 5 years" then newsflash, it's more vehicle than you can afford. If you think there's a difference in a 3 year old vehicle & 5 year vehicle that has been properly taken care of, you're a fool & dealerships will see you coming from a mile away.

My father in law owns a Nissan dealership in Florida. He doesn't make money off vehicle sales, he makes money off leases.

Bolded part is the key. I hope you're putting around 20% of your earnings into savings & another 20% into a 401k, Roth, etc? Otherwise you're just like every other foolish 20-something year old blowing money on a useless car you really can't afford.

[Luck's neckbeard]

Malabo, why do some of you guys think trading in a vehicle every 1-3 years will save on "maintenance" costs? As long as you change the oil every 3-5k miles & deive like an adult, no new vehicle is gonna need maintenance for 6-8 years or 125k plus miles. The only thing you're gonna have to replace us the tires $500 & possibly brake pads $100.

If you just want a brand new vehicle every year, that's fine. But don't try to think you're saving money. You're not.

[Dex]

Because you are an idiot. There's not any difference in driving a new car 3 years or 5 years. A 5 year old vehicle with 60-70k miles will look & run just as good as a new vehicle. Trading in your vehicle every 5 years is a waste of money, 3 is retardedly stupid. Why so set in every "3" years? Let me guess, you're in your mid-20s & just got your first big boy job? Now you want to blow every last penny you can financially afford on a new, expensive vehicle?

When I was 24 I leased a new $50k Corvette. My twin brother bought a brand new VW Golf Diesel. After 4 years I was out $8,500 & owned nothing. My brother was out $18,000 & owned a 50mpg VW that was still worth $13,000.

It's cheaper to buy a vehicle every 5 years than to lease one every 3 years. If the vehicle you want "can't be paid off in 5 years" then newsflash, it's more vehicle than you can afford. If you think there's a difference in a 3 year old vehicle & 5 year vehicle that has been properly taken care of, you're a fool & dealerships will see you coming from a mile away.

My father in law owns a Nissan dealership in Florida. He doesn't make money off vehicle sales, he makes money off leases.

Bolded part is the key. I hope you're putting around 20% of your earnings into savings & another 20% into a 401k, Roth, etc? Otherwise you're just like every other foolish 20-something year old blowing money on a useless car you really can't afford.

Don't call me an idiot it hits me right in the feels. *cries* I'll take another look at buying and considering I'll be purchasing an AWD car it has decent resale value. Perhaps I'll go for the base model $21,000 instead of the $27,000 model to ease the cost.

[Davidson Deac II]

Did she have heated front seats tho?

 

 

[Luck's neckbeard]

Don't call me an idiot it hits me right in the feels. *cries* I'll take another look at buying and considering I'll be purchasing an AWD car it has decent resale value. Perhaps I'll go for the base model $21,000 instead of the $27,000 model to ease the cost.

If a loaded 2015 model is $27k, you could probably find a 2013-14 model with 15-20k miles for $18-20k. Brand new vehicles plummet in value, then maintain & steadily decrease over time. That would be a much, much better investment. In 5 years when you go to resale, a loaded options vehicle will be worth much more than a base model.

If you just want a "brand new" vehicle, many folks do & that's fine, just understand you're going to lose quite a bit of money. I wouldn't recommend a brand new vehicle unless it's something you're going to own for 10+ years & drive into the ground.

Selling every 5 years it's better to look at a certified vehicle that's maybe 1-2 years old & has under 20k miles. While it's not a "brand new" vehicle, it's still practically new & will not give you any trouble for the time you'll own it. And you'll lose MUCH less money with a resale.

Alternatively, if you're dead set on a brand new vehicle, find a 2014 model. Right now 2015 models are a premium & dealers will be looking to get rid of any 2014 models, & they'll do so at a huge discount.

In fact, I bought my wife a brand new VW last month. I paid $18,000 for a brand new, loaded 2014 VW Jetta TDI. The loaded 2015 models on the lot were $24,500.

[Happy Panther]

Bolded part is the key. I hope you're putting around 20% of your earnings into savings & another 20% into a 401k, Roth, etc? Otherwise you're just like every other foolish 20-something year old blowing money on a useless car you really can't afford.

 

 

Don't call me an idiot it hits me right in the feels. *cries* I'll take another look at buying and considering I'll be purchasing an AWD car it has decent resale value. Perhaps I'll go for the base model $21,000 instead of the $27,000 model to ease the cost.

 

Yeah take into account your other financial questions.

 

Buying a house soon? Having kids? Will you be making 2x what you are now in 10 years? or 5x or 10x? or stay at home dad?

 

I bought a new car when i was 25 but had a pretty clear vision of where I would be over the next 10 years. 

 

Which was apparently driving a scooter when I was 31 with no house and no kids but that is a different story.

[Dex]

Yeah take into account your other financial questions.

 

Buying a house soon? Having kids? Will you be making 2x what you are now in 10 years? or 5x or 10x? or stay at home dad?

 

I bought a new car when i was 25 but had a pretty clear vision of where I would be over the next 10 years. 

 

Which was apparently driving a scooter when I was 31 with no house and no kids but that is a different story.

Ugh car shopping is supposed to be fun.

[Luck's neckbeard]

Yeah take into account your other financial questions.

Buying a house soon? Having kids? Will you be making 2x what you are now in 10 years? or 5x or 10x? or stay at home dad?

I bought a new car when i was 25 but had a pretty clear vision of where I would be over the next 10 years.

Which was apparently driving a scooter when I was 31 with no house and no kids but that is a different story.

This.

Listen to the old guys. We aren't bashing, just trying to keep you from making the same mistakes we did. If I had listened to my dad when I was in my early 20s, I would've drove a new yet affordable car instead of expensive new sports cars, my house would be paid off, & I'd have about $100,000 more in my retirement.

Then again, to each their own.

I have friends who have expensive tricked out trucks, boats, ATVs, a huge house & mortgage, going on vacations all the time, etc & live it up & spend every penny they make. They're pretty much all in debt up to their eyeballs. They say they don't care because they're gonna enjoy themselves while they're young. They don't care about having to work when they're old & broke because they could die tomorrow, then what is all that frugal living & saving good for?

Then I have other friends who are tight wads. They've drove the same beat up car for 15 years, have a small house that is paid off, & dump all their money into savings & retirement. They think buying expensive vehicles & homes is stupid & a waste of money. They'll be retired in their 50s or early 60s & have enough money put away to travel & enjoy themselves, & do as they please without a worry in the world.

Honestly, is there a right or wrong? Both sides have merits & flaws. Personally I've come to think its best to be somewhere in the middle. Don't blow every dime you make, but don't pinch pennies either. Buy the things you want & do things things you want, but also save money too & plan ahead.

[Dex]

This.

Listen to the old guys. We aren't bashing, just trying to keep you from making the same mistakes we did. If I had listened to my dad when I was in my early 20s, I would've drove a new yet affordable car instead of expensive new sports cars, my house would be paid off, & I'd have about $100,000 more in my retirement.

Then again, to each their own.

I have friends who have expensive tricked out trucks, boats, ATVs, a huge house & mortgage, going on vacations all the time, etc & live it up & spend every penny they make. They're pretty much all in debt up to their eyeballs. They say they don't care because they're gonna enjoy themselves while they're young. They don't care about having to work when they're old & broke because they could die tomorrow, then what is all that frugal living & saving good for?

Then I have other friends who are tight wads. They've drove the same beat up car for 15 years, have a small house that is paid off, & dump all their money into savings & retirement. They think buying expensive vehicles & homes is stupid & a waste of money. They'll be retired in their 50s or early 60s & have enough money put away to travel & enjoy themselves, & do as they please without a worry in the world.

Honestly, is there a right or wrong? Both sides have merits & flaws. Personally I've come to think its best to be somewhere in the middle. Don't blow every dime you make, but don't pinch pennies either. Buy the things you want & do things things you want, but also save money too & plan ahead.

With the budget I have planned I should be able to put $800 a month into savings if I lease. Most likely around $600 if I buy a car. That's after I pay bills and stuff.

[Arroz con Panther]

Dex, I have nothing for you except to see if the dealership has a "recent graduate" discount.  When I purchased my car, I got 1k off for graduating in the last year.  It may be a little, but its still a lot to a recent graduate.

[Dex]

Dex, I have nothing for you except to see if the dealership has a "recent graduate" discount.  When I purchased my car, I got 1k off for graduating in the last year.  It may be a little, but its still a lot to a recent graduate.

Thanks for the tip!