Buy vs Lease: Is this a good deal?

[wonderspark]

That's the one 'X' factor only you can know... happiness. It does have value.

I'm of the opinion that any car becomes routine from the inside, especially in the heavy traffic you described. I believe those two hours you spend in the car every day won't be that much better in a Mercedes, but I don't know what you do in traffic. I listen to music, and that's best improved with a good stereo system and Dynamat / Brown Bread, not the hood ornament that you'll be looking at.

 

[yg17]

I just paid off my car last week and am looking forward to several years with no car payment. I can't understand why anyone would want to lease.

Yes, for the money I paid each month, I could've had a nicer car, but assuming a 3 yr/36,000 mile lease, I would be returning the car this month with 51,000 miles in the clock and paying a hefty fee for that overage, only to start the entire process over again.

My car is my car. Not the bank's car. But my car. I own it now, and damn, does that feel good.

 

[WoodNUFC]

I just paid off my car last week and am looking forward to several years with no car payment. I can't understand why anyone would want to lease.

Yes, for the money I paid each month, I could've had a nicer car, but assuming a 3 yr/36,000 mile lease, I would be returning the car this month with 51,000 miles in the clock and paying a hefty fee for that overage, only to start the entire process over again.

My car is my car. Not the bank's car. But my car. I own it now, and damn, does that feel good.

My wife and I are looking for a new car - my poor Impala hasn't fared too well after hitting 155,000- and they were really pushing us to lease the car we want - with better options - that frankly were too expensive and not at all necessary for our circumstance. I agree with you and a lot of the other commenters here. I'd much rather own my car after a couple years and have an asset, than pay a payment for 24/36 months and have nothing to show for it.

If, OP, you are able to write off the lease payments, then I can understand the desire to lease. You really have to think about the economics of the situation, though. That $10k you are upside down is not going to disappear with a lease. You will have to pay it - and by the looks of the numbers, upfront. That is less than ideal. (which you seems to be ok with).

I guess the way the numbers look to me, you will be losing quite a bit of money in this deal. Have you thought about selling the cars privately? You'd almost certainly get more for the cars than trade-in value. You'd still lose money, but not as much I'd think. (Could be wrong, I haven't looked at Blue Book Value).

We are obviously in two very different financial situations, so I'm not preaching at you on what you should do. Just telling you what I'd do in that situation. Only you can make the decision in this case.

 

[Spink10]

thanks again for the replies. I sincerely appreciate it.

I guess I was too focused on the fact that:
1) I'm looking at a $140-$390/month difference for two undeniably better cars (maybe even $ less) Sure, there's still the issue of owning vs leasing.
2) I do have around $10,000 of negative equity on the vehicles I own, so I guess I saw this as a "way out" of a mistake I made last year. But I guess you're saying that in your opinion, this would be another mistake?

I guess the issue here is that I don't see this as something I want to own. What I see is that I'm paying $709/month for Y car and with $850-$1100 I would drive Y*3,4,5,6 (subjective) in quality.

I'm a young guy, I have a pretty safe and amazing job, make (very) good money, always wanted a mercedes, dream car, this opportunity came, thought it was worth pursuing.. maybe not. guess i was hoping for someone to focus on the numeral facts and own vs. lease, and chrysler/jeep vs mercedes, and what I got vs. deal offered.

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...Please focus on the details on the message, no need to over generalize, be sarcastic, funny (?) and patronize. Don't even need to get upset over this, but trust me I make a pretty good living and I could wake up tomorrow and go buy an e class, cash.. You don't know me, I just asked you focused on the numbers and info I gave you. Guess you preferred the other route.

It's called priorities.. the $10,000.00 and $1,100.00/month is something I can (easily) do. These numbers are limits I set myself, from the priorities I have. It could easily be $30k DP and $2k/month payments, it's something i have, but something I don't want to do..

whatever..

You asked for financial advise - he gave it accurately - embrace it

 

[Rodimus Prime]

I just paid off my car last week and am looking forward to several years with no car payment. I can't understand why anyone would want to lease.

Yes, for the money I paid each month, I could've had a nicer car, but assuming a 3 yr/36,000 mile lease, I would be returning the car this month with 51,000 miles in the clock and paying a hefty fee for that overage, only to start the entire process over again.

My car is my car. Not the bank's car. But my car. I own it now, and damn, does that feel good.

I pick up from my dad the view that driving ones car into the ground is a good thing. By the time the car is replaced it is not worth much. Heck often times the tax write off for donating the car is more than the trade in value.
Owning a car for 10 years is a good thing. My current car is 8 years old. Now if everything goes as planned I want to be able to replace it this year as a treat to myself for finishing degree 2 and finding a job.

 

[PigDog]

What has been suggested here from several on this thread is not to lease, and I might even go the route of getting out, selling or trading the leases on one of the car lease exchange sites.

Buy the car pre owned and save more, I fail to see the difference in a well maintained 3 year old Mercedes compared to a new one.

Oh and I do have a Mercedes but I might also point you to a 3 year old BMW 335i convertible which has a lot more fun value.

I hope my words have not taken this thread too off track.

 

[rocknblogger]

Did think about that, definitely a negative to add to the cons.



I actually didn't want to get in to that, nor did I need to, but you initiated the reply streak by being personal, vs basing your comments on the facts I provided.

And yes I would be asking the same question, as a matter of fact I am. One year ago the priority was a new, bigger house + new vehicles (since we had a new child).. that didn't leave a lot of room for a GLK and a C class. Sure you understand.. This year it is.. (tbcont.)



(cont.) Now could I have waited one year? Potentially.. Should I have picked more temporary vehicles, by not getting into this hole? Sure.. but then again I got a large cash flow from work late last year which opened this new window, while keeping its in-family priority level. I was sincerely looking to keep these cars for more time.. but the deal I described above is offered now.. and the way I see it, for an extra (repeating myself here) $140-$390/month I would get two undeniably better cars.. no? Thoughts?

No, because in the end you won't own anything. If you told that you were buying these vehicles then okay I can see it. But you're going from two cars that in the end you would own outright to two cars that in the end you're going to walk away from after paying thousands just to drive them for a while.

I would run from this deal as fast as possible. Leasing is not a good deal for the lessee. That's why you see all these great leasing deals. The dealer/bank always wins in the end.

 

[LumbermanSVO]

I could wake up tomorrow and go buy an e class, cash

If you are smart enough to earn the money to pay cash for these brand new cars, then why aren't you smart enough actually do that and not pay any interest on said cars?

 

[mgartner0622]

Sigh.... where is Suze Orman when you need her...

 

[wordoflife]

^^ I'd be afraid to here what she'd say!

so it's really a matter of simply fulfilling a dream, a brand I love, that my family always drove.. guess wanted to get on track with keeping the legacy?

Sorry, but this doesn't mean anything at all - regardless of how much you rationalize it.