To own or lease?????

[theGibber1]

Need some help here lads. About time to get a new car.

The issue is I am in medical sales. Which means a LOT of driving. I bought the car used 4.5 yrs ago. It had 42,000 miles on it. I still have 9 payments and the car now has 215,000 miles.

Its a lexus with a good engine but I still owe more than its worth.

Im about ready for a new car and I was considering a high milage lease. However my old man still seems to think buying is the way to go. Im not so sure with my job cause all im going to do is ruin it.

I dont know I am looking for insite.

Thanks in advance

gib

 

[layinwood]

Gibb, what kind of medical sales are you in?

 

[theGibber1]

Orthopedic, mostly sports medicine. Why? Are you in a similar field?

 

[saint]

With close to 40k miles/year I can't see how leasing could ever work out better than purchasing. I've heard of high-mileage leases at 25k miles/year but never that high. Buying a 1-2 year old used car is probably still the best way to go. Just my 2c

 

[theGibber1]

With close to 40k miles/year I can't see how leasing could ever work out better than purchasing. I've heard of high-mileage leases at 25k miles/year but never that high. Buying a 1-2 year old used car is probably still the best way to go. Just my 2c

Thanks.

I was affraid of that. Just sux knowing im going to buy something and be upside down in it.

At least my milage is a huge write off

Thanks again

 

[Woodson]

You don't have to buy just yet... Take a few months to enjoy the extra money coming in and see if it doesn't help in your decision making... no reason to be over under if you're car is still running from point A to B...

 

[layinwood]

Orthopedic, mostly sports medicine. Why? Are you in a similar field?

Not really but kind of, I do medical recruiting here in Dallas. I know most of the offices here in town but not mainy sports medicine. I steer clear because they always want PTs and OTs and I won't and don't recruit those.

 

[Griffin8s]

I am a Car Salesman at a Caddy/Saab and I have done a few leases with up to 30k per year. Before I got into sales I always thought it was better to buy if you drive alot of miles but really it is the other way around. You put so many miles on that if you can get a 24 month lease for 40k miles per year it might be worth it in the long run. Think of all the tires,brakes and maintenance you do on the car up at 215,000 mi. When if you get out of a car at 80k you have alot less cost on that stuff. Also, you will be right back in the same spot your in now. The plus side is right now your upside down in the car you are driving but if you do a 2yr lease and roll the neg. in it will be gone in 2 years and you will be scott free. You will have no car payments and you will not be upside down in anything. Best thing to do is weight your payments if you buy a car and if you lease a car and see what is best. But if you do buy a car again and roll in the neg. which right now maybe a few thousand dollars where are your going to be in 4 yrs, with a car with atleast 160,000 miles on it and even more upside down then you are today because you rolled in the neg. from the Lexus too.

Right now though with GM not leasing and everyone else tightening up a bit on their lease's you might not be able to find one that will do that 2 yrs with alot of miles for very cheap. So really look both ways and see what looks best. Not trying to sell you on one or the other but just giving you things to think about.
If you have any questions feel free to ask. GL

 

[layinwood]

What are you wanting to get and why? If I was you I would keep your car until the payments are up in 9 months. Then I would buy whatever fun car I wanted and keep the Lexus for work only. If you take care of that Lexus it should last you another 100k at least. That way you have one car payment, a car you really want and a work car you put all the miles on.

 

[theGibber1]

I am a Car Salesman at a Caddy/Saab and I have done a few leases with up to 30k per year. Before I got into sales I always thought it was better to buy if you drive alot of miles but really it is the other way around. You put so many miles on that if you can get a 24 month lease for 40k miles per year it might be worth it in the long run. Think of all the tires,brakes and maintenance you do on the car up at 215,000 mi. When if you get out of a car at 80k you have alot less cost on that stuff. Also, you will be right back in the same spot your in now. The plus side is right now your upside down in the car you are driving but if you do a 2yr lease and roll the neg. in it will be gone in 2 years and you will be scott free. You will have no car payments and you will not be upside down in anything. Best thing to do is weight your payments if you buy a car and if you lease a car and see what is best. But if you do buy a car again and roll in the neg. which right now maybe a few thousand dollars where are your going to be in 4 yrs, with a car with atleast 160,000 miles on it and even more upside down then you are today because you rolled in the neg. from the Lexus too.

Right now though with GM not leasing and everyone else tightening up a bit on their lease's you might not be able to find one that will do that 2 yrs with alot of miles for very cheap. So really look both ways and see what looks best. Not trying to sell you on one or the other but just giving you things to think about.
If you have any questions feel free to ask. GL

Great stuff!

You cant imagine the cost of up keep when you drive this much.

Oil changes every other month. Tires, timing belts, brakes, filters etc

I go through this stuff twice as much as a regular driver. And it seems the older it gets it needs repairs even more frequently.
Just had 700 bucks of work done on it the other day. This after I just had it in the shop in April.

Starting to add up

 

[theGibber1]

What are you wanting to get and why? If I was you I would keep your car until the payments are up in 9 months. Then I would buy whatever fun car I wanted and keep the Lexus for work only. If you take care of that Lexus it should last you another 100k at least. That way you have one car payment, a car you really want and a work car you put all the miles on.

I have beat the shit out of this car. And besides the standard maintenance, I have never had a problem. It is amazing how well she has held up. So I am now and forever shall be a Lexus owner.

I have thought about your work car idea. I was thinking of leasing this baby for the weekends and business meetings.

 

[redsfann]

Great stuff!

You cant imagine the cost of up keep when you drive this much.

Oil changes every other month. Tires, timing belts, brakes, filters etc

I go through this stuff twice as much as a regular driver. And it seems the older it gets it needs repairs even more frequently.
Just had 700 bucks of work done on it the other day. This after I just had it in the shop in April.

Starting to add up

This was me with my last work car. i drive approx. 25K a year--last car was a 1997 Mazda 626 that I finally sold to the H.S. kid down the street when it hit 250K.
Last couple of years I really was putting money into it--timing belts, brakes, etc etc....
Told myself I won't do that again. I bought a 2005 Huyndai Sonata (paid cash for it in 2007 off an Enterprise lot)-it only had 26K then-it now has 71K--I'll drive it until the repair bills starting coming quickly--ideally, I'd like to get 4 more years out of it, putting me at 170-180K miles.
Good luck in whatever you decide to do, Gibber.

 

[The Joker]

Talk to your accountant. Mine always gives me the best advice in those scenarios.

 

[ageecee]

Dave Ramsey says:



1-Never lease a vehicle

2-Buy a used car with cash unless you have a million dollars then you can buy a new one.

 

[Box and one]

ageecee...my wife is a big time dave ramsey follower...we are on his plan..but I'm in a predicament about leasing and buying....my mom passed away 2 months ago....she leased a 2008 toyota corolla....I have paid the last two installments....toyota has told me I have several options...show her death certificate and pay the last 13 months of her lease..they said her death doesn't cancel the lease...she pays $165.00 month...they said either I pay it or her estate will....I can for $200.00 put my name on the lease and continue to pay the last 13 months of the lease... or I can buy the car...the cost is $11,500..that would include everything..no more lease,etc.....my thinking is why would I surrender the car and pay for its return when I can keep it and drive it the next 13 months and pay the same amount...so I probaly would do that..but....the milage on the car is unreal...my mom put on 3,000 miles..in almost 2 yrs...I put on 4,000 since she passed away...the blue book value on the car with only 8,000 miles on it is about $13,000-14,000....its in mint condition..at $165 for 13 months I owe them $1,745..if i return it or keep it...so isn't it better for me to just buy it..am I missing something...
I can pay cash for it since my mom left me in her will some money...don't have to deal with my wife who lives and dies with Ramsey....am I missing something ???

 

[Woodson]

ageecee...my wife is a big time dave ramsey follower...we are on his plan..but I'm in a predicament about leasing and buying....my mom passed away 2 months ago....she leased a 2008 toyota corolla....I have paid the last two installments....toyota has told me I have several options...show her death certificate and pay the last 13 months of her lease..they said her death doesn't cancel the lease...she pays $165.00 month...they said either I pay it or her estate will....I can for $200.00 put my name on the lease and continue to pay the last 13 months of the lease... or I can buy the car...the cost is $11,500..that would include everything..no more lease,etc.....my thinking is why would I surrender the car and pay for its return when I can keep it and drive it the next 13 months and pay the same amount...so I probaly would do that..but....the milage on the car is unreal...my mom put on 3,000 miles..in almost 2 yrs...I put on 4,000 since she passed away...the blue book value on the car with only 8,000 miles on it is about $13,000-14,000....its in mint condition..at $165 for 13 months I owe them $1,745..if i return it or keep it...so isn't it better for me to just buy it..am I missing something...
I can pay cash for it since my mom left me in her will some money...don't have to deal with my wife who lives and dies with Ramsey....am I missing something ???

I too have followed Ramsey for some time now. I believe he would ask several unknown factors including:

Do you currently have debt that you could pay off with the additional 12K you have inherited?

Do you have an emergency fund with 3-6 months in it? Depending on your current step, for beginners this is only 1k.

Is your current bankroll for the coming basketball season at its max?

Just throwing that out there..

I see your point Box, sounds like a steal if you like the car.

 

[ageecee]

ageecee...my wife is a big time dave ramsey follower...we are on his plan..but I'm in a predicament about leasing and buying....my mom passed away 2 months ago....she leased a 2008 toyota corolla....I have paid the last two installments....toyota has told me I have several options...show her death certificate and pay the last 13 months of her lease..they said her death doesn't cancel the lease...she pays $165.00 month...they said either I pay it or her estate will....I can for $200.00 put my name on the lease and continue to pay the last 13 months of the lease... or I can buy the car...the cost is $11,500..that would include everything..no more lease,etc.....my thinking is why would I surrender the car and pay for its return when I can keep it and drive it the next 13 months and pay the same amount...so I probaly would do that..but....the milage on the car is unreal...my mom put on 3,000 miles..in almost 2 yrs...I put on 4,000 since she passed away...the blue book value on the car with only 8,000 miles on it is about $13,000-14,000....its in mint condition..at $165 for 13 months I owe them $1,745..if i return it or keep it...so isn't it better for me to just buy it..am I missing something...
I can pay cash for it since my mom left me in her will some money...don't have to deal with my wife who lives and dies with Ramsey....am I missing something ???

I agree with Woodson.


1-If you like the car and can pay cash for it then i would go ahead and buy it

2-Im assuming you are going to sell your other car?

3-Would definetely pay off debt with inheritance or pay off debt with other means of income.

4-Or if you dont want the car then cant the inheritance pay the remaining 13 months of lease?

 

[AR182]

i once read an article by an economist who basically said that people should purchase things that appreciate & rent things that depreciate.....& have been leasing ever since.....also don't like taking my car in for repairs or service...

when i was selling in the 1980's & early 1990's i used to get leases with 18,000 miles...& never went over it...but driving in nyc & the suburbs are alot different than what you are putting on gib...

good luck with whatever you decide on...

 

[Box and one]

Is your current bankroll for the coming basketball season at its max?
Woodson...that was great...lol

Thank's ageecee...think I'm going to buy the car.I have no debt what so ever other then my house mortgage....by getting my full retirement and a per diem on top of that has been unreal this year...my wife has payed off everything..she even has those ramsey envelopes everywhere.....
my moms estate isn't too bad..once I sell her house it will be pretty good....but buying the car would be easy.It's almost like a brand new car..its the typical car owned by an old woman who drove to church everyday,to the grocery store and thats it...thanks..

 

[ageecee]

Is your current bankroll for the coming basketball season at its max?
Woodson...that was great...lol

Thank's ageecee...think I'm going to buy the car.I have no debt what so ever other then my house mortgage....by getting my full retirement and a per diem on top of that has been unreal this year...my wife has payed off everything..she even has those ramsey envelopes everywhere.....
my moms estate isn't too bad..once I sell her house it will be pretty good....but buying the car would be easy.It's almost like a brand new car..its the typical car owned by an old woman who drove to church everyday,to the grocery store and thats it...thanks..

No debt other than the mortgage your in good shape Box. Pay cash for the car and its a no brainer.