Car Lease v. Buying

[Yehuda57]

Nice

[Ver hut gazugt]

I don't know the specifics of your case, but it doesn't match up with any scenario I've encountered. IME, the optimal scenario is buying a 1-3 year old car, using it for 3-5 years, and rolling into the next one.

That’s why the whole debate is not so simple. I got my last two minivan leases for about 250-270 a month now I took out a 16k for a 5 year old minivan. Did not make my first payment yet but it will be around 280-290 range. Plus my down payment and I might get a 2k 7 year parts warranty.

[Lurker]

That’s why the whole debate is not so simple. I got my last two minivan leases for about 250-270 a month now I took out a 16k for a 5 year old minivan. Did not make my first payment yet but it will be around 280-290 range. Plus my down payment and I might get a 2k 7 year parts warranty.

Right now, you're paying a premium for used cars. Based on the little research I did for a family member, it's more worth it to buy new than used right now. That's an anomaly created by very unusual circumstances. Usually, it's pretty simple. When you lease, you're covering the depreciation and then some, and you still don't own it when it's done.

[Kobe Bryant]

I don't know the specifics of your case, but it doesn't match up with any scenario I've encountered. IME, the optimal scenario is buying a 2-3 year old car with cash. using it for 3 years, and rolling into the next one.

FTFM

[Lurker]

FTFM

I agree, usually. My window is a little bigger because I find it varies on the vehicle type and market conditions.

[Dan]

That’s why the whole debate is not so simple. I got my last two minivan leases for about 250-270 a month now I took out a 16k for a 5 year old minivan. Did not make my first payment yet but it will be around 280-290 range. Plus my down payment and I might get a 2k 7 year parts warranty.

Actually it's very simple. Our Odyssey just turned 8. It's been essentially free for several years and will be until it has to be replaced.
I don't understand the folks with a new one every 3 years, but worse yet is that they think they're coming out ahead.

[EliJelly]

Actually it's very simple. Our Odyssey just turned 8. It's been essentially free for several years and will be until it has to be replaced.
I don't understand the folks with a new one every 3 years, but worse yet is that they think they're coming out ahead.

You bought it new or used?

[Fish Tank]

I would say housing, tuition, and health insurance are the three largest expenses of the Jewish household, followed by food and (high standard) clothing.

What about making simchos such as weddings etc? They cost a fortune. . .

What about yom tov? Pesach isn't cheap... (I understand it can fall under the food/clothing category, but there's more to it)

[Yehuda57]

Actually it's very simple. Our Odyssey just turned 8. It's been essentially free for several years and will be until it has to be replaced.
I don't understand the folks with a new one every 3 years, but worse yet is that they think they're coming out ahead.

You can't bring a raya from 2021 anyway

[ExGingi]

Actually it's very simple. Our Odyssey just turned 8. It's been essentially free for several years and will be until it has to be replaced.
I don't understand the folks with a new one every 3 years, but worse yet is that they think they're coming out ahead.

Sometimes there are other factors involved. I've been leasing for a few years due to other factors. By the time my last lease ended, those factors were gone, but unfortunately I didn't have the time or energy to go car shopping, so I'm stuck with another lease. Hopefully the last one.

[EliJelly]

Sometimes there are other factors involved. I've been leasing for a few years due to other factors. By the time my last lease ended, those factors were gone, but unfortunately I didn't have the time or energy to go car shopping, so I'm stuck with another lease. Hopefully the last one.

If you're happy with your car and you didn't abuse it much then buying it out yourself can be a great option, especially nowadays with the insane prices. And you can sell it after a few years for a nice price. Used minivans are selling high.

[Lurker]

Used minivans are selling high.

Minivans usually retain value very nicely.

[Euclid]

Actually it's very simple. Our Odyssey just turned 8. It's been essentially free for several years and will be until it has to be replaced.
I don't understand the folks with a new one every 3 years, but worse yet is that they think they're coming out ahead.

Have you done any maintenance/repairs on it? Other than typical: oil changes/tires etc?

[Dan]

You bought it new or used?

New.
I bought a 7 year Hondacare warranty for something like $900.

[Dan]

Have you done any maintenance/repairs on it? Other than typical: oil changes/tires etc?

A couple minor repairs covered by Hondacare, probably broke even on the warranty, which is just fine as it gave peace of mind for the period where the car actually cost something.
Warranty expired a year ago, nothing needed since then. But it's free anyway at this point, so I imagine we'll drive it until it needs major repair and then sell for what we can get for it and start again.

[AsherO]

You can't bring a raya from 2021 anyway

לשיטתו

אין מביאין ראיה מדן

A couple minor repairs covered by Hondacare, probably broke even on the warranty, which is just fine as it gave peace of mind for the period where the car actually cost something.
Warranty expired a year ago, nothing needed since then. But it's free anyway at this point, so I imagine we'll drive it until it needs major repair and then sell for what we can get for it and start again.

The trick is to cut your losses optimally before the small repairs start adding up. How many miles on it?

[Euclid]

A couple minor repairs covered by Hondacare

How long did the repair take; were you able to schedule it when it worked best for you?

[Dan]

How long did the repair take; were you able to schedule it when it worked best for you?

Did it together with oil changes, a couple hours tops. Easy scheduling.

[Lurker]

Actually it's very simple. Our Odyssey just turned 8. It's been essentially free for several years and will be until it has to be replaced.

If you sell it now before it needs repairs and still has significant value, you can lower the out of pocket cost on the van you have for the next 8 years.

[AsherO]

If you sell it now before it needs repairs and still has significant value, you can lower the out of pocket cost on the van you have for the next 8 years.

What about if he expects it to still last a while without expensive repairs? The premium he'll get for it now might be a wash because he'll be paying a premium on whatever buys now because of current market prices.