Cars - Leasing vs. buying used for cash?
Mar 27th 2019, 6:55 pm
#16
Lost in BE Cyberspace
Joined: Jun 2011
Location: Los Angeles
Posts: 6,159
Re: Cars - Leasing vs. buying used for cash?
The algorithms are complex.
In addition, as mentioned many times, many credit cards come with great deals on points. Put everything on the card and pay it off before the next pay cycle and you can be well on your way to free flights and hotels. That pays for our flight home every year.
Also, many credit cards come with sign on bonuses like 50,000 points etc...and...it's ok to cancel and get new cards every few years in order to get the new bonuses. Just something for later...
Last edited by Hotscot; Mar 27th 2019 at 7:04 pm.
Mar 27th 2019, 6:56 pm
#17
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,854
Re: Cars - Leasing vs. buying used for cash?
Yes, I had thought about the credit score thing but wouldn't renting a home do that too? We will be renting from the same time we'd be leasing a car so I figured we'd still build up the same amount of credit history...?
We will definitely need a car (most likely 2!) as we will not be living in NY but are looking to settle in CT so hubby will need one to commute (at least to the train) and I will need to be mobile with 2 kids and a household to run.
Leasing the kind of car we'd want/need for our family would cost us in excess of $12,000 over a 2 year period and that is for only 1 car! Surely for that kind of money you'd be able to pick up a decent second hand SUV...? NO???
I totally hear what you're saying about not using up all our money on a car and that is my main worry as well. That's why I came to the wise people of BE for advice 
We will definitely need a car (most likely 2!) as we will not be living in NY but are looking to settle in CT so hubby will need one to commute (at least to the train) and I will need to be mobile with 2 kids and a household to run.
Leasing the kind of car we'd want/need for our family would cost us in excess of $12,000 over a 2 year period and that is for only 1 car! Surely for that kind of money you'd be able to pick up a decent second hand SUV...? NO???
I totally hear what you're saying about not using up all our money on a car and that is my main worry as well. That's why I came to the wise people of BE for advice My main priority is safety so both cars are AWD/SUV. These are both average size cars in our area, lots of smaller sedans and also bigger SUV’s / trucks.
As a data point we have a leased Subaru Forster for $315 a month over 4 years and this price includes the cost of serving it. We have only put about 5k miles a year on it and use it for daycare, shopping, activities and longer trips as it’s a lease and will be giving it back with way to few miles on it.
And a 7 seater Mitsubishi Outlander GT brought on 0% APR over 6 years with 100k / 10 Year warrenty costs us $420 a month, this we have put less than 3k miles a year on, it’s a station and weekend car.
Insurance for both fully Comp is about $250 a month plus $25 extra for an Umbrella policy. This includes new car replacement and uninsured motorist cover and I think the limits were 500/100 which is well above state minimums.
It sound like you are looking at something like a Volvo XC90 or a loaded Highlander or Pilot based on the cost you quoted.
Last edited by tht; Mar 27th 2019 at 7:00 pm.
Mar 27th 2019, 6:59 pm
#18
Lost in BE Cyberspace
Joined: Jun 2011
Location: Los Angeles
Posts: 6,159
Re: Cars - Leasing vs. buying used for cash?
I bought a new Mazda 3. $620 a month. (Haggled the price, got two free services thrown in, and minuscule interest rate.)
But I miss my old Honda Civic with 250K on it. What a dependable, if not very exciting, drive.
(Mrs. H. made me do it...)
Last edited by Hotscot; Mar 27th 2019 at 7:04 pm.
Mar 27th 2019, 7:08 pm
#20
Austin. TX.
Joined: Sep 2013
Posts: 5,930
Re: Cars - Leasing vs. buying used for cash?
OH is leasing a sporty one for $240 a month with 15 k miles and servicing included...
Mar 27th 2019, 7:19 pm
#21
Lost in BE Cyberspace
Joined: Jun 2011
Location: Los Angeles
Posts: 6,159
Re: Cars - Leasing vs. buying used for cash?
Mar 27th 2019, 7:24 pm
#23
Lost in BE Cyberspace
Joined: Jun 2011
Location: Los Angeles
Posts: 6,159
Mar 27th 2019, 8:30 pm
#24
Forum Regular
Thread Starter
Joined: Feb 2009
Posts: 199
Re: Cars - Leasing vs. buying used for cash?
Wow!! Ok.....
We are looking at an SUV (Ford Explorer or similar - I'd like an Expedition but definitely out of our price range - we need a big car with kids and dogs to ferry around, plus we're into camping etc....) and hubby wants a pickup truck (when in Rome.... ) and we're being quoted $5-600 a month plus down payment, not including servicing, tax, insurance..... Do we need to haggle more?
And sorry, I don't get the thing about being charged property tax on cars??
We are looking at an SUV (Ford Explorer or similar - I'd like an Expedition but definitely out of our price range - we need a big car with kids and dogs to ferry around, plus we're into camping etc....) and hubby wants a pickup truck (when in Rome....
) and we're being quoted $5-600 a month plus down payment, not including servicing, tax, insurance..... Do we need to haggle more?And sorry, I don't get the thing about being charged property tax on cars??
Mar 27th 2019, 8:38 pm
#25
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: Cars - Leasing vs. buying used for cash?
It sounds like you might do better to get something smaller and rent an SUV for camping trips, assuming that you aren't actually, realistically, going to be camping every weekend. Alternatively you might look into renting, or even buying, a small box trailer for camping trips. U-haul will rent you a small box trailer quite inexpensively.
I think it is a relatively common mistake for Brits moving over to buy a huuuge SUV for all those visits from family, camping trips etc, and then only really need all that extra space a few times a year.
At this point I would like to say that I think you are now discovering why we abandoned NYC and the surrounding area very soon after we arrived in 2001. We headed south and went from paying stoopid money to rent a 500sqft apartment in Westchester County, to buying a 2,800sqft house and five acres, and having more money to spend despite taking a paycut. It's not how much you're paid, it's what you can do with it!
Last edited by Pulaski; Mar 27th 2019 at 9:37 pm.
Mar 27th 2019, 8:44 pm
#26
Lost in BE Cyberspace
Joined: Jun 2011
Location: Los Angeles
Posts: 6,159
Re: Cars - Leasing vs. buying used for cash?
FYI
To renew registration here in CA for my Mazda and Mr's H's Mini Cooper was $552.
(Regarding SUV's, over here they all seem to be shiny and unblemished.)
To renew registration here in CA for my Mazda and Mr's H's Mini Cooper was $552.
(Regarding SUV's, over here they all seem to be shiny and unblemished.
)
Mar 27th 2019, 9:30 pm
#27
Joined: Feb 2002
Posts: 6,848
Re: Cars - Leasing vs. buying used for cash?
Btw; over here (well, certainly in New Jersey - it may be different in other US States) all prices and coverage for car insurance is not annually, it is for six months only!
When we first moved here (spouse on an L1-A visa) it was initially very difficult to get car insurance until we got NJ driving licenses within 30 days of residency in the State; indeed the car dealer told my spouse that he couldn’t sell him the car without a State licence (we had/have no idea if this is/was true or not). We had to go via an insurance broker and got cover through the Chubb insurance company. They are excellent but expensive.
After about a year or so we went online and got insurance through www.geico.com
It is usually cheaper to get household and car insurance from the same insurance company.
When we first moved here (spouse on an L1-A visa) it was initially very difficult to get car insurance until we got NJ driving licenses within 30 days of residency in the State; indeed the car dealer told my spouse that he couldn’t sell him the car without a State licence (we had/have no idea if this is/was true or not). We had to go via an insurance broker and got cover through the Chubb insurance company. They are excellent but expensive.
After about a year or so we went online and got insurance through www.geico.com
It is usually cheaper to get household and car insurance from the same insurance company.
Mar 27th 2019, 9:46 pm
#28
BE Forum Addict
Joined: Mar 2015
Location: NC, USA (ex Yorkshire)
Posts: 4,375
Re: Cars - Leasing vs. buying used for cash?
To you, maybe, but don't make sweeping statements without backing them up!
Some people (not me) prefer to lease and have a relatively new, higher grade car in their driveway and will have a monthly payment whatever, so it can make sense to lease. It all depends on priorities.
So, to go back to your statement, it is extremely ignorant to assume that because it's not right for you, it's not right for everyone.
OP, whilst I personally wouldn't lease, it's up to you what you want. There are some good cars to be had out there, but remember, unless specifically stated in the ad, most cars are sold 'as-is', without any kind of warranty or comeback. Also be aware of added fees on top of the asking price (tax, title, registration and even a document fee of up to and in excess of $800 alone!!)
Some people (not me) prefer to lease and have a relatively new, higher grade car in their driveway and will have a monthly payment whatever, so it can make sense to lease. It all depends on priorities.
So, to go back to your statement, it is extremely ignorant to assume that because it's not right for you, it's not right for everyone.
OP, whilst I personally wouldn't lease, it's up to you what you want. There are some good cars to be had out there, but remember, unless specifically stated in the ad, most cars are sold 'as-is', without any kind of warranty or comeback. Also be aware of added fees on top of the asking price (tax, title, registration and even a document fee of up to and in excess of $800 alone!!)
Thanks for describing the wrong priorities that a lot of the western world has - giving a crap what others think about the car on the driveway.
Both my neighbors have flashier cars than me. Do I care? No. Because I know that I saved up for a car with cash long before I moved to the USA. I also have a pool in the back yard and neither of those do, but average Joe driving down the road wouldn't know that. Oh well. Probably for the better.
Our two paid for in cash cars are plenty safe enough and roomy enough for a family. My only regret is not buying a truck. Oh well, one day. I think it should be common knowledge that typical American sedans are roomier than British ones.
I also have needed a credit score for nothing. Utilities we gave a deposit, same for when we rented, and now I have a mortgage it was manually underwritten with no credit check required. The only crap it has given is when signing up for the internet plan I needed to prove my identity.
Mar 27th 2019, 9:50 pm
#29
BE Forum Addict
Joined: Mar 2015
Location: NC, USA (ex Yorkshire)
Posts: 4,375
Re: Cars - Leasing vs. buying used for cash?
Btw; over here (well, certainly in New Jersey - it may be different in other US States) all prices and coverage for car insurance is not annually, it is for six months only!
When we first moved here (spouse on an L1-A visa) it was initially very difficult to get car insurance until we got NJ driving licenses within 30 days of residency in the State; indeed the car dealer told my spouse that he couldn’t sell him the car without a State licence (we had/have no idea if this is/was true or not). We had to go via an insurance broker and got cover through the Chubb insurance company. They are excellent but expensive.
After about a year or so we went online and got insurance through www.geico.com
It is usually cheaper to get household and car insurance from the same insurance company.
When we first moved here (spouse on an L1-A visa) it was initially very difficult to get car insurance until we got NJ driving licenses within 30 days of residency in the State; indeed the car dealer told my spouse that he couldn’t sell him the car without a State licence (we had/have no idea if this is/was true or not). We had to go via an insurance broker and got cover through the Chubb insurance company. They are excellent but expensive.
After about a year or so we went online and got insurance through www.geico.com
It is usually cheaper to get household and car insurance from the same insurance company.
Mar 27th 2019, 10:26 pm
#30
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,854
Re: Cars - Leasing vs. buying used for cash?
It's like "road tax" (Brit-speak), but based on a notional value, so a more expensive vehicle has higher tax assessed.
It sounds like you might do better to get something smaller and rent an SUV for camping trips, assuming that you aren't actually, realistically, going to be camping every weekend. Alternatively you might look into renting, or even buying, a small box trailer for camping trips. U-haul will rent you a small box trailer quite inexpensively.
I think it is a relatively common mistake for Brits moving over to buy a huuuge SUV for all those visits from family, camping trips etc, and then only really need all that extra space a few times a year.
At this point I would like to say that I think you are now discovering why we abandoned NYC and the surrounding area very soon after we arrived in 2001. We headed south and went from paying stoopid money to rent a 500sqft apartment in Westchester County, to buying a 2,800sqft house and five acres, and having more money to spend despite taking a paycut. It's not how much you're paid, it's what you can do with it!
It sounds like you might do better to get something smaller and rent an SUV for camping trips, assuming that you aren't actually, realistically, going to be camping every weekend. Alternatively you might look into renting, or even buying, a small box trailer for camping trips. U-haul will rent you a small box trailer quite inexpensively.
I think it is a relatively common mistake for Brits moving over to buy a huuuge SUV for all those visits from family, camping trips etc, and then only really need all that extra space a few times a year.
At this point I would like to say that I think you are now discovering why we abandoned NYC and the surrounding area very soon after we arrived in 2001. We headed south and went from paying stoopid money to rent a 500sqft apartment in Westchester County, to buying a 2,800sqft house and five acres, and having more money to spend despite taking a paycut. It's not how much you're paid, it's what you can do with it!
https://www.ct.gov/dmv/cwp/view.asp?a=801&q=244526
The “property tax” is in addition to that and is different based on what eachbtown charges:
https://www.fairfieldct.org/content/...012/13463.aspx