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To the car salesmen on ES


THUNDERDOME

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So I'm looking at buying a used car. I intend on trading it in after a couple years so my friend told me it would probably be smarter to lease a car. So here's what I was offered and I want you guys to tell me if I am getting hosed or not.

2015 nissan altima sv with the navigation package...... 1500 down and my payments would be 310 a month for a 36 month lease.

I'm not the best at understanding interest rates and numbers and all that so if anybody here could let me know if this sounds like a decent payment or not I'd appreciate it

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I guess including the backstory would have helped. I have a car that I use for work that is totally paid off. I have a lifetime warranty on it so I have no need to trade it in. My deductible is $100 and they fix whatever is wrong with the car mechanical. So that would be my work vehicle, the next vehicle I buy I wouldn't drive too much but it would help me to avoid rental car cost when I do have to put my work vehicle in the shop.

Since it has over 200,000 miles usually when I put it in the shop for repair work under the warranty they have it for five or six days. So having another vehicle would help me avoid a 3 to 5hundred dollar rental bill every other month.

12000 miles would be allowance and I would put 1500 down

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Buy a used car. Especially if you are only driving it for a few years. Why trade it in ?  Keep it and use it as your daily driver until it dies. Buy a new car and use it for your weekend car, or event car.

 

You are looking at nearly 13k for a car that you will get no trade value for at all. Add on insurance, add on maintenance.

 

A used car is a no brainer in this case.

 

The only reason to lease a car is if you plan on trading after every lease, plan on limiting miles, plan on buying the leased car at the end of the lease.

 

EDIT: Meant 13k - Thanks Elessar.

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IF you end up leasing (which may or may not be a good move depending on your longterm goals for the car) you need a few things to figure out if you're getting a good deal. You need to know what your sales price is, what the car's residual will be, and what financing rate this is based on. You can negotiate the sales price, and maybe the financing rate to a degree (big maybe).

Regardless, you should figure out what invoice price is on the car and not purchase it if your sales price is a dime more. Often you can negotiate to below invoice.

But i think if you want to have a car that is paid off in a few years, buying is the way to go.

*Source: I've purchased 3 cars and leased one, getting ready to buy used to replace my current lease

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Sorry, leasing is never/almost never smarter. 

 

Buying a good, reliable used car and trading it in in a few years is the best use of your money. 

 

Based on what you posted, your total spend over 3 years is $12,660. AND you may still have to pay some kind of restocking fee or penalties if the car isn't in mint condition or you go over your miles, which could be a couple of thousand dollars. 

 

On the other hand, I did a quick search on autotrader and found a 2013 Nissan Altima SV with navigation for $17,000. At that price, if you put a $1,500 downpayment, get it financed at 5% for 60 months your payments would be $306. When you trade it in after 5 years, you can expect about $5,000 for a trade-in (based on what a 2010 model with 124,000 miles on it would trade-in for today). 

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So you are going to pay $310 dollars a month or $620 every other month to drive a new ride?  Hey if you want to drive a new ride, just say so.  The lease isn't a good deal ever.

 

You should buy used.  Leasing is NEVER smart.

Did I say that?

I agree that leasing is never a good idea, but could a case be made for people who can deduct the cost of leasing as a business expense?

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If you end up buying used, keep in mind that they paid several thousand dollars less for the car than they have it listed at. You've got room to negotiate the price down.

And for used car financing, do yourself a favor and donate $15 or whatever to an organization that will make you eligible to join PenFed. 2.49% financing on used cars. Can't beat it. https://penfed.org/New-Auto-Loan/

You'll save hundreds, maybe thousands depending on what rate you would have had otherwise.

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is this the 2.5L?  should be able to get it for ~$23K

 

Yeah. At that point he should just buy the damn thing.

 

BTW - I looked up car rentals and you can rent a midsize-fullsize car for less than 200 a week...if I picked it up a noon tomorrow from DCA.

 

That's what Hotwire and such are for. Smaller cars are even less. Hope they aren't beating you with insurance. Most credit cards take care of the insurance, as does most insurance.

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