To lease or to buy

[Table 5]

Originally Posted by pylon

D'oh, 6 speed.... TIPTRONIC. The receptionist isn't up on her transmission lingo. So close, yet one pedal away from what you want.

Bah! That's been the case in my search most of the time unfortunately.....all the good stuff is there and then I take a look at the shifter and it's swing and a miss! It's the one thing I can't compromise on.

Thanks for checking regardless.

[Table 5]

Originally Posted by Sliver

Take the price of a GTI - not sure what it is but say it's $32,000. If I had that money to spend on a car, I would get a two-year old Audi, BMW, Infinity or any number of cars that are better in every way for the same price.

Much like leasing, buying used can give you the chance to buy a car that would normally be out of your station in life. I went this route...was considering buying a new GTI or A3 or 128i.....and ended up with a gently-used used Cayman instead. All great cars in their own right, but the fun factor of the one I ended up with is just out of this world. Not everyone wants to or has the time to put in the effort of course, but I spent the time to find the right type of owner (older, somewhat anal guy who refused to even drive it in the rain, and who babied the crap out of it), which hopefully minimizes any possible issues. So far, no regrets!

[Sliver]

Originally Posted by Table 5

Much like leasing, buying used can give you the chance to buy a car that would normally be out of your station in life. I went this route...was considering buying a new GTI or A3 or 128i.....and ended up with a gently-used used Cayman instead. All great cars in their own right, but the fun factor of the one I ended up with is just out of this world. Not everyone wants to or has the time to put in the effort of course, but I spent the time to find the right type of owner (older, somewhat anal guy who refused to even drive it in the rain, and who babied the crap out of it), which hopefully minimizes any possible issues. So far, no regrets!

Sweet car!

[Table 5]

Originally Posted by Sliver

Sweet car!

Thanks, loving it so far. You would hate the HP-rating though.

[pylon]

Originally Posted by Table 5

Much like leasing, buying used can give you the chance to buy a car that would normally be out of your station in life. I went this route...was considering buying a new GTI or A3 or 128i.....and ended up with a gently-used used Cayman instead. All great cars in their own right, but the fun factor of the one I ended up with is just out of this world. Not everyone wants to or has the time to put in the effort of course, but I spent the time to find the right type of owner (older, somewhat anal guy who refused to even drive it in the rain, and who babied the crap out of it), which hopefully minimizes any possible issues. So far, no regrets!

In that case, then, how about a super sweet 135i with an M package. Red on Beige leather, 32k and a stick too.

This car came in a month after I got my 11 GTI. If it was here before then, I would have cut a cheque for it in a heartbeat, and I would be a BMW owner instead.

[Sliver]

Originally Posted by Table 5

Thanks, loving it so far. You would hate the HP-rating though.

Haha I could live with it I'm sure. Don't want something too fast to teach the kids to drive in.

[Table 5]

Originally Posted by pylon

In that case, then, how about a super sweet 135i with an M package. Red on Beige leather, 32k and a stick too.

Love the 135i, but there have been way too many fuel pump issues with that particular turbo engine. That's why I was going with the 128i, it has a rock solid NA that's been around for a while, and I felt it drove pretty great as is. I was actually ready to sign on the dotted line for Euro-Delivery on the car, but the salesman took way too long to get back to me, and in the meantime I decided to take a quick look at one more alternative....

Now Im actually looking for something for the wife...she's not really the 135i target audience, ha.

[photon]

So we talked about it tonight and we're going to replace our 2000 Passat soon, so now I have to decide if I want to get a new car or one a few years old.

And have to decide on what car to get. The Murano is the "throw-the-stuff-in-the-car-and-drive-to-BC" vehicle and will eventually get replaced by a nice wagon of some kind, so this car is just a car car.

Part of me wants to go with a G37 Coupe or a Hyundai Genesis Coupe, but a 3 Series BMW or A4 is probably better (if they weren't so common). I'd love an A5, but might be too much $$.

[REDVAN]

Just financed a new vehicle tonight... yay!

[Red John]

In the midst of shopping for a new car, and am noticing a lot of manufacturers (like VW and Chev for example) offering something called "VW Select" and "Smart Purchase" respectively...supposedly it is like leasing and balloon financing rolled into one.

Your payments begin similar to that of a lease, and after a 36-month period you have the option to return the car or buy it out or simply continue to make payments on the residual. However you own the car the entire time.

Wondering if those in the know, could give me the low-down on this new third option and where it fits into the lease vs. buy argument...what are the advantages and disadvantages of this option?

It seems like the best of both worlds...but if the manufacturers are now offering it, it has to be advantageous to them in some way, so I'm a bit wary.

Please help.

[bizaro86]

Originally Posted by Sliver

I agree with you that people should be able to buy a luxury item if they can afford one. The thing is, people who lease new cars often can't afford them. To me, you can afford to buy a $32,000 car if you have $32,000 in the bank, not if you have $400/month.

Your travel example would only be a good comparison against leasing if you were travelling first class on debt, staying in hotels beyond your means and not having any memories to show for it in the end. Then people would question your judgement in the same way they question leasing.

Fair enough. I'm coming from the assumption that anyone considering leasing a new car could afford to pay cash for the car, but has chosen to lease it for other reasons. (Tax deductibility if business, better use of funds elsewhere, return the car option). That's the only way I would consider it, but I also get that not everyone has the same values as me regarding money.

[calgaryrocks]

Originally Posted by bizaro86

Fair enough. I'm coming from the assumption that anyone considering leasing a new car could afford to pay cash for the car, but has chosen to lease it for other reasons. (Tax deductibility if business, better use of funds elsewhere, return the car option). That's the only way I would consider it, but I also get that not everyone has the same values as me regarding money.

if you are saving up money for a downpayment on a house (20% is no small amount) but also want a new car, you may have the cash, but would be better off putting that towards a house. of course then maybe you shouldn't be getting a new car, unless you make enough monthly to more than pay for a mortgage and lease a car

[photon]

What about the Jaguar XF (non-supercharged)?

I'm not used to an RWD car though.

[Cowboy89]

Originally Posted by calgaryrocks

if you are saving up money for a downpayment on a house (20% is no small amount) but also want a new car, you may have the cash, but would be better off putting that towards a house. of course then maybe you shouldn't be getting a new car, unless you make enough monthly to more than pay for a mortgage and lease a car

This is why I love owning bank stocks. Think of the interest coming out of a typical consumer that has a house and has to have new car but can't afford a down payment on both!

[Table 5]

Pylon, was gonna pm you but figured others might be interested in the answers for their own needs....

1) My wife and I just moved to Canada. We're looking to lease a car. Does our American credit transfer over here or are we basically teens with no credit?

2)Can you lease a CPO?

3)I'm looking for something relatively affordable and small, but that also has good cargo capacity or flexible in terms of space. My wife is an interior designer so she needs to be able to carry a chair/coffee table etc once i a while. Most likely with an auto transmission (booooo!). Ideally under 17-18k, max 22k. Current contenders....Kia Sportage, Hyundai Elantra Touring, Nissan Cube, Kia Soul, VW Golf Wagon. Got anything in that realm in your lot?

[bubbsy]

i had created the thread, and am happy to announce the first purchase of a car in my life. I've had a car through marriage for a few years, and prior to that lived downtown TO so didn't really need a car, but it sure feels good, as i pick it up at the end of this week.

Pylon thanx for your words of wisdom on the topic!

[Table 5]

What'd you end up getting?

[Sliver]

Originally Posted by Table 5

2)Can you lease a CPO?

I've been wondering this as well. The lease is up on my Tacoma work truck and I'd like something bigger and more imposing like an F-150 FX4 or something for my next lease, but would want it at about the $425/month I'm paying for my Tacoma right now. Doubt I could get a new one for that.

Originally Posted by Table 5

3)I'm looking for something relatively affordable and small, but that also has good cargo capacity or flexible in terms of space. My wife is an interior designer so she needs to be able to carry a chair/coffee table etc once i a while. Most likely with an auto transmission (booooo!). Ideally under 17-18k, max 22k. Current contenders....Kia Sportage, Hyundai Elantra Touring, Nissan Cube, Kia Soul, VW Golf Wagon. Got anything in that realm in your lot?

Out of all those, I think the Cube would be the best from a style perspective for a company car for an interior designer. If I was hiring her I would think well of her choice, anyway. The Golf Wagons look really awesome, but I doubt it would have the versatility in cargo area like the Cube, although maybe a bit more of an upscale look if that's what she's going for.

I don't think the Soul, Sportage or Elantra give off the right type of vibe for her business and wouldn't make as good of a first impression as the others.

[bubbsy]

Originally Posted by Table 5

What'd you end up getting?

an A4. We actually had a conditional sale done on a C300 4matic (condition was we needed to do one last check on the audi dealership), and the a4 won based on price, warranty and test drive (benz felt very heavy to drive).

Both were 08s, off lease, with lower than avg mileage/year.

[Table 5]

Originally Posted by Sliver

Out of all those, I think the Cube would be the best from a style perspective for a company car for an interior designer. If I was hiring her I would think well of her choice, anyway. The Golf Wagons look really awesome, but I doubt it would have the versatility in cargo area like the Cube, although maybe a bit more of an upscale look if that's what she's going for.

Didn't even give the Cube a chance, she's not a fan of the boxy cars (Cube, Soul, xB)!

Did a little window shopping over the last few days....and her favorite new car so far has been a bit of a surprise, the Kia Rio 5. Basically, the cheapest of them all and she likes it the most. It definitely looks great from the outside (looks like a Seat Leon), but we didn't get a chance to test-drive it yet (although from the TTAC reviews it should be rather zippy).

Hyundai was a big disappointment to be honest....based on all the hype, I was expecting more from the interiors. I think KIA has it's brother beat, the Peter Schreyer (Chief Designer at KIA, used to be at Audi) designs are really well done.

Mazda 2/3's were good, but they don't do leasing apparently.

Also took a look at a Merc B200 today....too expensive new, but a 3-4 year old CPO is in in the ballpark. Definitely the most refined of all the cars, and really practical as well (massive cargo area when seats are folded). Also has some "designer cache", which is appreciated in her line of work.