Leasing vs. Buying a Car?

[Gregg2]

Now the poster who mentioned paying yourself a car payment as savings for future automobile expenses is very wise, but not everyone can afford to do that or is disciplined enough to make it happen.

Thanks! You nailed it with the discipline angle. Afford to? Of course you can. You were doing it for 3-5 years already! You may be extending your "misery" for a couple of years or more, but if you can't make it, then use the savings to substantially reduce the amount of a new loan so that next time you don't need one!

 

[danny_w]

OK, next question. Has anybody on here had any experience with CarMax? Used Miatas are extremely rare in Central Texas, and Carmax is one of the few dealers that has one available. I drove it at lunch and loved it (2008 Grand Touring MT w/7k miles), but when I looked at the Carcheck report on their own site it noted that the car was in an auto auction earlier this year. It would seem like there must be something drastically wrong with a recent model car for it to be sold at auction, and it got me concerned about the car's history. I have read some real horror stories about CarMax on the web, but can anybody with experience chime it?

 

[Sun Baked]

OK, next question. Has anybody on here had any experience with CarMax? Used Miatas are extremely rare in Central Texas, and Carmax is one of the few dealers that has one available. I drove it at lunch and loved it (2008 Grand Touring MT w/7k miles), but when I looked at the Carcheck report on their own site it noted that the car was in an auto auction earlier this year. It would seem like there must be something drastically wrong with a recent model car for it to be sold at auction, and it got me concerned about the car's history. I have read some real horror stories about CarMax on the web, but can anybody with experience chime it?

Likely ease/loan phailbot ... or they hated it.

But in the event it was in a accident that doesn't show on carfax, lay down on the ground and look hard underneath the car -- since overspray and repairs show better behind the panels and underneath the car.

If it is a car with easy to change bulbs on the tail lights, remove em and look behind. Lift up the plastic bulb change flaps underneath the hood and look behind and inside.

Just look hard everywhere, if you find something odd, walk -- don't trust a carfax report.

Now if the dealer tends to lists the cars and no dents, no dings, no known bodywork on their vehicle listing -- you got a a better chance. Though I've only seen 1 dealer list vehicles this way, and they happened to be customer cars serviced at the dealer that they are selling again and for the vehicles they inspect and list on the internet. And sometimes is a sign that the dealer really does a full vehicle inspection.

 

[eldy]

pay cash for a used car. done and done.

 

[CylonGlitch]

I agree with what everyone else says.

1) If you want a payment forever, lease for the SHORTEST time you can. Then you get a new car every 2 years. Some people I know just want NEW cars, and don't mind the payment.

2) Buying new cars is a waste, but some people love them.

3) Used cars just off of lease are often excellent purchases.

4) Car brokers can be good, but be careful. Two years ago I picked up a 4 year old Escalade ESV with 60,000 miles for under $15,000 (originally $75,000+).

5) Paying CASH is much better then payments.

6) Whatever you get, ignore everyone else and just be happy.

 

[Gregg2]

Paying CASH is much better then payments.

Paying cash is usually better than 0 interest for two years, because the other side of the deal is $1,000 to $2,000 off the price. You come out ahead paying the non-discounted price and no interest. I was considering a 0/24 deal once, but called my bank first and asked if taking the discount and paying cash was better. I haven't seen that type of deal in a long time though.

 

[Synchromesh]

pay cash for a used car. done and done.

Personally I avoid payments and dealers like the bubonic plague so that is usually what I do. But since the OP mentioned he'll keep it for a long time, so in his case it's only worth it if he knows about cars and are either ready to fix it himself or pay others to do so. A used car is a used car and no matter how good it is (read Toyota/Honda), you'll still need to do more maintenance at 100K than at 10K. Of course, the upside is if you know what you're doing and buy a decent car for cash you can drive a car with no payments attached. Also, with an old car every ding and dent are not nearly as big of a deal. There is more but you get the picture.

About Miatas: I still own one of them and sold my first one just last year. Excellent cars but being true sports cars they have significant limitations in space and comfort. The latest one (NC) is more cushy than the previous 2 gens (NA and NB) but isn't as much fun either. I've driven all 3 generations and always stuck with the first gen. They're cheap, easy to work on (relatively speaking), and by far the most fun although excellent every day cars they aren't. OP should drive at least NB (99-05) to make up his mind.

 

[steve2112]

OK, next question. Has anybody on here had any experience with CarMax? Used Miatas are extremely rare in Central Texas, and Carmax is one of the few dealers that has one available. I drove it at lunch and loved it (2008 Grand Touring MT w/7k miles), but when I looked at the Carcheck report on their own site it noted that the car was in an auto auction earlier this year. It would seem like there must be something drastically wrong with a recent model car for it to be sold at auction, and it got me concerned about the car's history. I have read some real horror stories about CarMax on the web, but can anybody with experience chime it?

I bought my current car from CarMax. My mother also bought her latest car from them. Because of the no-haggle pricing, the cost was probably more than it would have been at a normal dealer, but it was worth it for me. The customer service was good, with not much pressure. I wouldn't call it "no pressure", as the salesperson kept wanting to show me a bunch of different cars. It wasn't nearly as bad as other dealers, though.

I did use their service, but just to be certain, I ran it through Carfax as well. I wouldn't worry about the auction thing too much. Dealers will often send cars to auction if they sit on the lot too long without selling. A specialized car like the Miata could have been on the lot a for a while.

 

[danny_w]

I bought my current car from CarMax. My mother also bought her latest car from them. Because of the no-haggle pricing, the cost was probably more than it would have been at a normal dealer, but it was worth it for me. The customer service was good, with not much pressure. I wouldn't call it "no pressure", as the salesperson kept wanting to show me a bunch of different cars. It wasn't nearly as bad as other dealers, though.

I did use their service, but just to be certain, I ran it through Carfax as well. I wouldn't worry about the auction thing too much. Dealers will often send cars to auction if they sit on the lot too long without selling. A specialized car like the Miata could have been on the lot a for a while.

Thanks.

 

[danny_w]

About Miatas: I still own one of them and sold my first one just last year. Excellent cars but being true sports cars they have significant limitations in space and comfort. The latest one (NC) is more cushy than the previous 2 gens (NA and NB) but isn't as much fun either. I've driven all 3 generations and always stuck with the first gen. They're cheap, easy to work on (relatively speaking), and by far the most fun although excellent every day cars they aren't. OP should drive at least NB (99-05) to make up his mind.

I have a friend at work with the NB (I think) and he swears by it because it is lighter and he claims more agile. The one that I drove today was an NC (2008) model and (to me) was immensely fun to drive, since I haven't been in a roadster of any kind in maybe 15 years. I realize that it will be a VERY big change from what I have been used to but (I think) I am prepared for that. The only thing that really bothers me and makes me uneasy is the lack of a spare tire; even my MGs and Fiats had spare tires. Flats are rare, but still...

 

[mstrze]

Agreed, plus a longer factory warranty (3yrs vs about 9mos). That has some level of comfort.

You will still have the remainder of the factory warranty. My 2007 KIA purchased through Enterprise Car Rental had an A/C compressor fail. In summer 2009. Completely covered under warranty at a KIA dealer.

Arguably...yes, the factory warranty WILL be shorter than if you buy it new, but is the extra year (assuming you buy last year's model) of coverage worth 30-40% of the cost of the car? Heck, bank that extra $5,000-$15,000 and I guarantee, you will be able to afford ANY repair after the warranty expires.

 

[danny_w]

You will still have the remainder of the factory warranty. My 2007 KIA purchased through Enterprise Car Rental had an A/C compressor fail. In summer 2009. Completely covered under warranty at a KIA dealer.

Arguably...yes, the factory warranty WILL be shorter than if you buy it new, but is the extra year (assuming you buy last year's model) of coverage worth 30-40% of the cost of the car? Heck, bank that extra $5,000-$15,000 and I guarantee, you will be able to afford ANY repair after the warranty expires.

All of the cars I am looking at are within $1-$2k of each other and the used ones are 2008 with less that a year of warranty remaining (but they are nicer models with things I don't really need). There are no newer used Miatas in Austin.

 

[mstrze]

Well at a 1-2K price difference, it won't matter much (although with financing, that original 1-2K could nearly double by the end of the term).

It's just your preference as to what the car comes with. If you are happy with the stripped-down new version and it will give greater peace of mind owning a new one, go for it I suppose.

 

[eldy]

synchomesh n dannyboy.

very cool that you're interested in miatas! i have an nb sitting in storage. it's a '95 that had 79k miles when i picked it a few years ago for 3.6k cash. manual everything! i've put less than 1k miles on it and it runs and handles great. someday it will be a track car. the only thing i've done to it was change all the fluids, change the spark plugs and wires, and a new soft top w/ glass window.

 

[danny_w]

I bought a new 2009 Miata Sport 5sp at lunch and will pick it up later today. The "new car smell" and warranty won out in the end, and it was cheaper than most of the used models that I looked at too (albeit with less features).

 

[Synchromesh]

I have a friend at work with the NB (I think) and he swears by it because it is lighter and he claims more agile. The one that I drove today was an NC (2008) model and (to me) was immensely fun to drive, since I haven't been in a roadster of any kind in maybe 15 years. I realize that it will be a VERY big change from what I have been used to but (I think) I am prepared for that. The only thing that really bothers me and makes me uneasy is the lack of a spare tire; even my MGs and Fiats had spare tires. Flats are rare, but still...

NB is lighter than NC but not NA. If you can find a base NA or better yet - an R-package NA, they're the lightest and the latter is usually more powerful. I own an R-package which is basically a showroom racer. It has LSD, factory aero bits and even AC which was an option but no power anything or cruise control. Suspension is stiff too. Handles great but it is kind of rough on Boston roads.

Didn't know NCs don't have spare tires. Bummer. But it's probably because the damn thing takes like quarter of the trunk in my NA.

synchomesh n dannyboy.

very cool that you're interested in miatas! i have an nb sitting in storage. it's a '95 that had 79k miles when i picked it a few years ago for 3.6k cash. manual everything! i've put less than 1k miles on it and it runs and handles great. someday it will be a track car. the only thing i've done to it was change all the fluids, change the spark plugs and wires, and a new soft top w/ glass window.

Actually a '95 would be the NA. Pop up headlights, right? NA was '90-97, NB - '99-05, NC '06-present. Does yours have front and rear under bumper skirts as well as small factory trunk spoiler? Yellow Bilstein shocks?

 

[danny_w]

I got the last new 2009 Miata Sport 5sp in Texas, and I picked it up last night; I sort of wanted the 6sp Touring but there are none in Texas at all, and the Grand Touring was too expensive and had things on it (leather for one) that I did not want. I think it is going to be a real blast from the past; my last roadster was about 18 years ago and it was a totally worn out Fiat 124 spyder. I love it! I am going on a day trip this weekend to try it out. And the weather here is just perfect right now for driving with the top down; it has been cold and rainy until this week, so this is perfect timing.

 

[Synchromesh]

Congrats! NCs are very nice cars. Much better daily driver than either NA or NB. Not as much fun imho but it's quite a subjective measure. Hope you enjoy it!

 

[danny_w]

Congrats! NCs are very nice cars. Much better daily driver than either NA or NB. Not as much fun imho but it's quite a subjective measure. Hope you enjoy it!

Thanks, I am sure that I will enjoy it immensely. I can't wait to take it out this weekend!

 

[DakotaGuy]

Yeah, that's also true. You can choose your mileage limit with most leases (higher limit=higher lease payments). You have to guess. If you guess too high, you pay more each month than you have to. If you guess too low, you pay a penalty when you turn the car in. My car is only 11 months old and is already just under 16,000 miles, thanks to a few road trips that I had never planned on taking when I bought the car so I might've gotten a lease allowing 36,000 miles over 3 years, and I would be way over when I turn the car in.

I leased my car on a 3 year/15,000 mile year lease. I thought I would drive it more, but then I took a new job and moved closer to family so I don't drive as much anymore. Right now I am at the 2 year mark with only 22,000 miles on it. I guess I am going to have to plan a big road trip this summer to use up some of those miles. I am not sure if I will lease next time around. It is just hard to know how much you will drive if things change.

 

[wvuwhat]

I picked up a 2009 Accord Coupe as a Honda Certified Pre-Owned car. I've got warranty until 100K miles (currently at 16xxx). I paid a little more than a non-certified car, but I wanted the reassurance of a VERY good warranty. With that said, I still came in just under what they wanted for a lease for a '10 model. If I knew what my work commute was going to be, I would go for a lease, but mileage was a key deciding factor for me.

 

[eldy]

Actually a '95 would be the NA. Pop up headlights, right? NA was '90-97, NB - '99-05, NC '06-present. Does yours have front and rear under bumper skirts as well as small factory trunk spoiler? Yellow Bilstein shocks?

You're right synch! No aero kit or yellow shocks, but it does have A/C. Haven't been on the Miata forums in a while!

 

[Love]

Nope, not going to find it. And please, if you've found a rental company that actually rents out decent cars like BMWs, please, let me know so I can use them next time I need to rent a car..

http://www.gtaexotics.ca/dev/

The publicized lecture faints inside the owner.

 

[Synchromesh]

You're right synch! No aero kit or yellow shocks, but it does have A/C. Haven't been on the Miata forums in a while!

That would make it just the regular base package car with AC option. Those are nice too because they're quite light and the manual steering rack is better than the boosted one imho.