Car Lease v. Buying

[yelped]

$16.5K.
All shy of Carvana, but thanks!

How much is selling locally for? My old car was in a different age and price bracket, but sold it locally for more than the offers.

Also, sometimes dealers can pay more than these offers. Maybe a dealer in NY/NJ can make a high offer. 

[yungermanchik]

Yes, $19,000.
Anyone else worth trying?

car shadchan whatsapp

[avromie7]

Closing out the books with some quick and dirty math on this one.

Spent ~$40K plus $720 for an 84 month Hondacare warranty. Only did routine maintenance and had a couple Hondacare claims to break even on that.

Kept the car for 111 months, which means it was free for the past 46 months after the calculated breakeven point above, ignoring the car's remaining value.

Carvana says they will pay me $19,715 for it, so ignoring the time value of money, means the car actually cost about $21,000 including tax and warranty. That imputes a breakeven point of 34 months, which would mean it was free for the past 77 months.

You can quibble with the math (feel free to point out any errors @farmbochur), but this is just a no-brainer folks. Just last Shabbos I argued with someone who said they couldn't afford to buy a car, which is why they lease a new Odyssey every 2 or 3 years. 

How many miles does your '14 have?

[pointer]

Closing out the books with some quick and dirty math on this one.

Spent ~$40K plus $720 for an 84 month Hondacare warranty. Only did routine maintenance and had a couple Hondacare claims to break even on that.

Kept the car for 111 months, which means it was free for the past 46 months after the calculated breakeven point above, ignoring the car's remaining value.

Carvana says they will pay me $19,715 for it, so ignoring the time value of money, means the car actually cost about $21,000 including tax and warranty. That imputes a breakeven point of 34 months, which would mean it was free for the past 77 months.

You can quibble with the math (feel free to point out any errors @farmbochur), but this is just a no-brainer folks. Just last Shabbos I argued with someone who said they couldn't afford to buy a car, which is why they lease a new Odyssey every 2 or 3 years. 

How much did you pay for breaks/rotors and tires which you generally don’t need when leasing.
Of course leasing is the most expensive way to drive a car, Just want the numbers to be more accurate.

[Ver hut gazugt]

Closing out the books with some quick and dirty math on this one.

Spent ~$40K plus $720 for an 84 month Hondacare warranty. Only did routine maintenance and had a couple Hondacare claims to break even on that.

Kept the car for 111 months, which means it was free for the past 46 months after the calculated breakeven point above, ignoring the car's remaining value.

Carvana says they will pay me $19,715 for it, so ignoring the time value of money, means the car actually cost about $21,000 including tax and warranty. That imputes a breakeven point of 34 months, which would mean it was free for the past 77 months.

You can quibble with the math (feel free to point out any errors @farmbochur), but this is just a no-brainer folks. Just last Shabbos I argued with someone who said they couldn't afford to buy a car, which is why they lease a new Odyssey every 2 or 3 years. 

wow nice that’s a nice amount of time to have a car.
 If you take out Covid crazy prices for used cars it would probably go for less.
In absolute number you are correct ( slightly ) however, a lot of people need to pay by month, financing 40k would cost 600-750 a month, compared to 235-275 that the Pacifica was going for before Covid.

[drosenberg88429]

Carvana says they will pay me $19,715 for it, so ignoring the time value of money, means the car actually cost about $21,000 including tax and warranty. That imputes a breakeven point of 34 months, which would mean it was free for the past 77 months.

That's incredible.

It's arguable that the buyout you're getting is inflated due to current conditions and can't be taken into account for future, but even if you'd assume that normal value would be $10k, these are still fairly compelling numbers. Of course, it would be vehicle dependant if the reliability and stress free maintenance of vehicle could be depended on to hold up for 10 years, but assuming it could, you effectively spent $250/m for what would otherwise be more like $400+ averaged over past 10 years (taking covid inflated lease rates and vehicle buyout out of calculation).

[Shaya E]

Closing out the books with some quick and dirty math on this one.

Spent ~$40K plus $720 for an 84 month Hondacare warranty. Only did routine maintenance and had a couple Hondacare claims to break even on that.

Kept the car for 111 months, which means it was free for the past 46 months after the calculated breakeven point above, ignoring the car's remaining value.

Carvana says they will pay me $19,715 for it, so ignoring the time value of money, means the car actually cost about $21,000 including tax and warranty. That imputes a breakeven point of 34 months, which would mean it was free for the past 77 months.

You can quibble with the math (feel free to point out any errors @farmbochur), but this is just a no-brainer folks. Just last Shabbos I argued with someone who said they couldn't afford to buy a car, which is why they lease a new Odyssey every 2 or 3 years. 

The time value of money is a factor in paying monthly or as a lump sum as well, not just for the 20k back at the end.

Put another way, if you aren't factoring in the time value of money, if you would have invested that 40k in the best no risk investments at the time, how much would you have now? One could argue that was the amount you paid. Obviously this isn't factoring in the time value of money in reverse. Reality is somewhere in between.

Btw I'm a car buyer, just pointing out the facts though.

[cholent]

Yes, $19,000.
Anyone else worth trying?

Driveway came in way above everyone else for me. Great experience

[farmbochur]

Closing out the books with some quick and dirty math on this one.

Spent ~$40K plus $720 for an 84 month Hondacare warranty. Only did routine maintenance and had a couple Hondacare claims to break even on that.

Kept the car for 111 months, which means it was free for the past 46 months after the calculated breakeven point above, ignoring the car's remaining value.

Carvana says they will pay me $19,715 for it, so ignoring the time value of money, means the car actually cost about $21,000 including tax and warranty. That imputes a breakeven point of 34 months, which would mean it was free for the past 77 months.

You can quibble with the math (feel free to point out any errors @farmbochur), but this is just a no-brainer folks. Just last Shabbos I argued with someone who said they couldn't afford to buy a car, which is why they lease a new Odyssey every 2 or 3 years. 

By purchasing the vehicle, you paid $40k Aug'13 and received $19.7k in Nov'22.

Doing so spared you from spending $616/month for 111 months.

Based on these numbers, I compute an effective interest rate of 17.6%. Do I have these numbers correct?

Components that's obviously wrong with this calculation is that it assumes (A) no changes to your monthly lease payment and (B) no marginal value on buying & flipping the car at the end of the lease. Not sure how to account for those variables.

[haltkup]

Hope it's ok to post here:

Willing to pay $$ for anyone that can find/negotiate an odyssey or sienna at MSRP. Obviously will pay more if you can get below msrp.

Willing to pickup up anywhere in the east coast (or anywhere < 12 hour drive from lakewood).

Pm for more details!

Today in shul (Monsey) saw ad “ready for pickup this week” 2023 EXL 47.5k+ tax. Not sure if that’s MSRP or not

[Dan]

Today in shul (Monsey) saw ad “ready for pickup this week” 2023 EXL 47.5k+ tax. Not sure if that’s MSRP or not

Way above MSRP.

[Dan]

Carvana was amazing.
Splurged for the $75 for them to pick up the old car, I handed them the keys+title, signed a contract, they took off my old plates, and had the funds transferred into my account.
2 minutes and done.

[CountValentine]

Way above MSRP.

Maybe a great price because it is loaded. 

[Joel]

Want a higher trim and want 8 seats, which makes the Sianna a non-starter from what I can see.

Toyota has Lane Tracing Assist which is great for long trips

[CountValentine]

Toyota has Lane Tracing Assist which is great for long trips

Lane assist is great for short trips like when I am eating my hotdogs.

[Joel]

Lane assist is great for short trips like when I am eating my hotdogs.

You need more then 1 hand on wheel?

[CountValentine]

You need more then 1 hand on wheel?

I need two hands for the dog. They pile on the toppings!!!

[EliJelly]

I need two hands for the dog. They pile on the toppings!!!

With the 20 oz coke and all for $1.50?

[WonderingYid]

Just a matter of finding one sitting on a lot somewhere that they want to move and then negotiating. I'm happy to drive 2 hours to save $10,000 off what I was quoted locally.

How much "extras" are they selling you with that?
Warranties, VIN Etching etc...

[WonderingYid]

Dan, which website did you use for the vehicle search?