tsarina, go out now and buy a copy of Consumer Reports - the issue that just hit the newstands is their yearly Auto issue. Every year, ConsumerReports devotes an entire issue just to cars - looking at the current models, and also reporting on the resale value and reliability on all the major models of the past 5 years or so. The magazine also gives tips on what to look for when buying a used car, and how to get the best deals when negotiatiing and arranging financing.
Read the auto issue of Consumer Reports FIRST, before you even think of looking at cars or test-driving - you’ll be glad you did. You’ll know which makes and models to stay away from!
When you DO find a used car you think might work for you, take it to a mechanic for a thorough inspection before you purchase it. That way, you’ll know up front what problems you’ll be dealing with.
No disagreement with the above. However, if you want a new car every three years, leasing is the way to go. Otherwise, the above advice is very sound.
To me, the key to the relative merits of buying and leasing is contained in the advertisements from car dealers. Every ad I see these days tells you about the lease price, not about the selling price. This indicates to me that the dealers really, really want you to lease a car.
All true. Dealers prefer people who buy new cars every three years, not folks who hold onto their cars for 12-15 years, although loyal long termers do generate service income at full shop rate.
What a lot of folks who lease miss is that the selling price of the vehicle is negotiable whether they lease or buy. Most get confused in the inevitable apples vs. axe handles comparisons and lose sight of this key fact, although if you see a monthly payment in an ad that ends in 99 or somesuch you can be sure that the lessee is certainly not paying list price–everyone, including the dealer, shares in getting to that attractive payment.
Nonehteless, a $1,000 discount off the window sticker price of a new vehicle financed at 0.00% for 60 months yields a $16.67 reduction in monthly payment whereas the same discount on a 36 month leased vehicle yields a lesser monthly payment reduction, perhaps $9-10.00 dollars per month, depending.
So, if you want a new car every three years, do your homework and lease it. Otherwise, there are cheaper ways to do it.
BONUS: (almost) never put money down on a lease. If the quoted payment requires a down payment plus tax, title and license up front, find out what the monthly payment balloons to with no money out of pocket at lease inception other than first payment and security deposit, if required. This way, you get a clearer idea what this baby is really costing you. Add insurance, gas, oil and tire rotations and that’s it.
BONUS II: most leasing companies require significantly higher insurance coverage than the state minimum which can be significant to the non-risk averse set when trading in an older car.