OT: Buying/Leasing a new car

Discussion in 'Rutgers Football' started by Plum Street, Jul 31, 2020.

  1. Plum Street

    Plum Street All American
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    I I know this is a good spot to ask . I was looking for the old thread on this , but didn’t see it with my search feature. Going to be in the market soon for a new ride .
    Usually buy a new car, treat it well and keep it at least 10 years. But not opposed to buying used or leasing this time around if it makes sense .
    Would like a larger type car or a midsize to smallish SUV because I am a bigger dude . Would be looking at non luxury brands if new.
    Any tips with purchase/leasing and good vehicles to look at.

    Thanks ! And yes I know Honda Accords are the best
     
  2. miketd1

    miketd1 All American
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    Buy if it’s Japanese.
    Lease if it’s European.
    Buy Tesla if it’s American.
     
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  3. yessir321

    yessir321 Junior
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    If you plan on keeping your vehicle long term you will pay much more over time doing a lease than a buy. If you want to start getting something new under warranty every 3 years and don’t mind always having a payment, leasing is the way to go. No wrong answer or way to do it, just depends on your plans for ownership (I worked in the car business for 5 years)

    as for good cars to look at, what are your needs?
     
  4. chrisru99

    chrisru99 All Conference
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    Use the RODO APP your welcome. They do all the work for you and now you can buy or lease by using the RODO APP. Car dealerships hate them.
     
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  5. ashokan

    ashokan Heisman Winner
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  6. Tango Two

    Tango Two Moderator
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    Listen to this :

    https://www.daveramsey.com/askdave/other/10367
     
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  7. yessir321

    yessir321 Junior
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    and pay more doing it that way.... Reality is Carmax, Carvana and all the apps make more per car than any dealer. Yes that is a fact... Here's the thing, don't go into the process thinking every car dealer or salesman is a slimeball. I promise you from doing it personally for years that you won't get anyone to work hard for you doing that. You'll here from know it all's here but I was in the business like I said and yes there are still good, honest dealers and salespeople. You will pay less than with the apps, and you help a salesman with a commission... it's better overall. Not to mention cars have so much new technology that's come out over the last 10 years and good luck getting an app or youtube to explain it properly... I think it's hilarious that so many people criticize self checkouts and automation in stores but don't consider car salesman as people....
     
    7 yessir321, Jul 31, 2020
    Last edited: Jul 31, 2020
  8. koleszar

    koleszar Heisman Winner
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    We've applied his budgeting practices to our lives. We're not as strict as Dave Ramsey wants you to be, but have no car payments, no credit card balances and 30 yr. mortgage will be paid off in less than 15 yrs.. We got tired of being a slave to the bank. If you break everything down, you'll realize how much of your hard earned money vanishes to the bank and the little frivolous spending really does add up.
     
    8 koleszar, Jul 31, 2020
    Last edited: Jul 31, 2020
  9. Tango Two

    Tango Two Moderator
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    He is sometimes overboard but if you apply the basic principles he teaches you are better off than if you don’t.

    He calls a lease a fleece for a reason.
     
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  10. koleszar

    koleszar Heisman Winner
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    Exactly, you take his basic principles and tailor them to your life. If you do strictly Dave's gazelle way, it's rice and beans your entire life without actually living life till you retire.(No thanks, Dave)

    It was tough for my wife at 1st, but then once she saw her bank accounts rising at an alarming rate it just reinforced her to keep going. Now in 5yrs. the house will be paid off instead of having 17 more to go. That's 17 yrs. of interest now in my pocket.
     
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  11. miketd1

    miketd1 All American
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    I’m still driving my 2004 Civic coupe.

    Gonna drive it until the wheels fall off.

    Saving me (conservatively) $300/m for the last 10 years. Invested that money instead.

    #feelsgoodman
     
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  12. koleszar

    koleszar Heisman Winner
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    As I like to say, "you've broken the consumerism cycle". It's tough to do and not many can. But once you do, you open up a whole new free world for yourself. Banks and retailers have one agenda and one agenda only. To keep you in that cycle and they have your psychology down pat to keep you there.
     
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  13. Cincinnati Kid

    Cincinnati Kid Redshirt
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    Ramsey also says you should not buy a new car unless you are a millionaire. His reasoning, I believe, is there is too much of a depreciation in value.
     
  14. koleszar

    koleszar Heisman Winner
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    And this is where you take his basic principles and apply them to your life. Like @Tango Two said sometimes he goes way overboard. A guy worth $73 mil. can lose sight that people need to live and enjoy life too. We disagree with some things he says but follow his basic principles and you'll be much better off. You don't have to buy any of his stuff we didn't. We just listened to his podcasts and got the gist of how to do it.
     
  15. Plum Street

    Plum Street All American
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    so what are you supposed to do when it’s time to get a car and replace the 10-15 year old one ? I assume buy an older model ?
     
  16. koleszar

    koleszar Heisman Winner
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    The idea is to own the car instead of leasing. Banks and retailers want to push you to what you can't afford, thus putting you in their trap of loans compounded by interest. The idea is to buy what you can afford. As you accumulate more wealth because now your money is making you money, instead of going to the bank, you can then afford a better car.

    So on and so on, you're continually improving your situation instead of being stuck in a hamster wheel. It's not a get rich quick scheme it takes time, due diligence and patience. We've been following his principles for 3 yrs. and they are working improving our quality of life. No more worry about this payment or that one. With emergency funds for most contingencies.
     
    16 koleszar, Jul 31, 2020
    Last edited: Jul 31, 2020
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  17. Plum Street

    Plum Street All American
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    That makes sense . Like i said I usually buy and keep for about 10 years
     
  18. koleszar

    koleszar Heisman Winner
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    Then you're following one of his basic principles and didn't know it. I suspect you follow a lot of his principles already. By listening to his podcasts it helped us make a comprehensive plan on what we needed to do to stop being a slave to the banks. It's all basic common sense. Which no one wants to listen to because it requires sacrifice and you're not going to get rich quick. But eventually you will.
     
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  19. miketd1

    miketd1 All American
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    There are many paths to wealth.

    But a path accessible to nearly every middle class American is to avoid 1.) purchasing too much house and 2.) purchasing too much car.

    Just get those right and you’re waaaaay ahead of the coupon cutters and Black Friday crazies.
     
  20. Plum Street

    Plum Street All American
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    You’re probably right . But I usually buy a new car . Which depreciates fast . I would assume that’s not a great strategy ?
     
  21. koleszar

    koleszar Heisman Winner
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    Like I said previously Dave Ramsey goes over board from time to time. If you want a new car(don't lease) and can afford it without being car poor, then live your life. We bought a farm, wife always wanted a farm, we could afford it, weren't house poor so bought it. Ramsey would tells us it was a mistake. But we decided to live our life not wait to start living till 60. However, we use him as a guide and his principles work it just takes time. Our world is impatient so people will scoff at him.
     
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  22. T2Kplus10

    T2Kplus10 Hall of Famer
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    Leasing = stupid (financially)

    Unless you get a business write-off.
     
  23. RUevolution36

    RUevolution36 All Conference
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    There's a balance that can be struck. Glad you were able to find it. My wife and I certainly aren't frugal, but we will be completely debt free in 5-6 years, if not sooner. Bought a house 2 years ago, will have it paid off as soon as possible. We pay for our cars in full the day we sign. We do dine out a lot, buy too much stuff, and go on nice vacations. But what's the point of painfully saving for 30-40 years when many of the things we like to do will not be so easy when we are older.
     
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  24. RUDave_01

    RUDave_01 Junior
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    Going back to the OP's question, I would try to figure out the total cost over 10 years for each option. Leasing can easily cost $12-15k over three years, but you don't have to worry about expensive repairs as the car ages.

    I personally don't find leasing too appealing, but it may make sense for some individuals (especially those that continually want the latest tech and safety features in their car). I would rather get a car paid off in 4-5 years and then put that payment in my own pocket for the next 5 years where I can then either pay in cash or put down a significant downpayment the next go around.

    To the guys above talking about Dave Ramsey, you're spot on. Unless you're tens of thousands in "bad" debt and are struggling to stay afloat, just apply his principles and you'll see long term success.
     
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  25. RUaMoose

    RUaMoose Heisman Winner
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    Better to buy a used car about 2-3 years old and with low mileage -- under 40k with cash. This way you avoid the worst of the depreciation which is steepest the first two years. Don't think I'll ever buy another new car even though I can certainly afford it. Just not a smart move financially. Lease ? Forget about it. I'll let Dave Ramsey speak to that

    https://www.daveramsey.com/askdave/other/10367
     
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  26. yesrutgers01

    yesrutgers01 Hall of Famer
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    It sometimes depends on someone's lifestyle and wishes are for their car.
    I used to always purchase but mainly because I was driving 20-35k miles per year in sales. But because of sales, lifestyle, needs and also just what I like, I would be purchasing vehicles anywhere in the 50-90k range. And I did try to keep for at least a couple of years after the payments ended.
    And every damn time I was ready to buy another new car, the damn hassle of either trading in or selling the previous car just pissed me off. As the more expensive vehicles with more luxury, lose so much more value. I would then have to find 10-20k to put down on the next car and go through it again.
    Now, I drive much much less. But I still like what I like and do need to have a certain type of vehicle for my job. And I am way past an Accord or Camry.
    So, last go around, wife and I went with leases.And with hers, it was really nice because the trading value of her previous vehicle got her into a 3 year 36k miles, maintenance, tire/wheel with nothing out of pocket and no payment. Mine was half the payment for 3 years lease vs purchase with minimal down. Will get into a 2nd lease and those 6 years will cost me about what it would have for a 5-6 year purchase. But not stresses or hassles.
     
  27. T2Kplus10

    T2Kplus10 Hall of Famer
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    Definitely true, but when it comes down to dollars and cents, it is more expensive to lease. We all make decisions regarding lifestyle and wants vs needs. Hey, we buy new. Not as bad as leasing, but not as financially prudent as buying a slightly used car.
     
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  28. TODDB33

    TODDB33 All Conference
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    Leased cars for many years. Paid thru my business so wasn't so bad.
    If you lease and then decide to purchase your leased car you usually end up paying close to full sticker slightly less. Beauty of this is your payment for the time frame is less than if you were to buy car outright from beginning. I leased car for three years then bought it out and paid for another 3 years. Total amt of monthly payment was less than what I would have paid for outright 72 month purchase.
     
  29. yesrutgers01

    yesrutgers01 Hall of Famer
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    It has come out very close to the same for me. The difference is if you do keep your car for 10 years. Then the purchase is always beneficial. But if you are buying another car within a year or two of your final payment, it is about the same. And then, instead of coming up with 3-4k down for the next least, you are coming up with 10-15k to put down.
    What I don't like about a lease...f-ing 3 years go by so damn fast and it reminds you just how old you are getting hahaha
     
  30. letitrip2

    letitrip2 Senior
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    Really bad time to buy either a used car or a new car - just no inventory out there at all right now. Wait if you can. As for buy or lease it all depends on the deal and the vehicle your want to drive. I am a big Dave Ramsey fan but sometimes leasing works especially if you want the luxury/reliability of a new car and can accurately estimate mileage needs.
     
    30 letitrip2, Aug 2, 2020
    Last edited: Aug 2, 2020
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  31. BigWill

    BigWill Senior
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    I used to go to a friend of mine that had a dealership at the Shore. Leased because I could write it off. Now I'm just in the habit of leasing and no hassle with repairs or out of warrantry issues.
    Found another Shore dealership, buddy sold his, and have used the same salesman for 10 years. He makes a commission and gives me good service and advice on what options I need or don't need.

    If you have credit card debt at least try to negotiate the interest rate.
    Pay off your home early and refinance when rates allow, THEY DO NOW.
    Take advantage of what the IRS allows and LIVE your life NOW but PLAN for the FUTURE.
     
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  32. Plum Street

    Plum Street All American
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    Leaning towards buying new and keeping for a few years after payments are done . Anyone have experience with CVT transmissions ? Seems they’re common in nissan , Subaru, some Honda’s . I expect these transmissions can cause problems if I am looking to keep car more than 7 years 100k miles
     
  33. chrisru99

    chrisru99 All Conference
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    Do you sell cars?
     
  34. yessir321

    yessir321 Junior
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    I don't. used to be in the business though
     
  35. yessir321

    yessir321 Junior
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    I made a post a few months ago saying this was going to happen but some didn't want to listen. As soon as the inventory levels started peaking I made a post because GM's I know from the area who I still am friends with advised me of what was going to happen. I said 2 months ago the time to buy was then... At this point I would advise against buying unless neccessary for the next few months
     
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  36. yessir321

    yessir321 Junior
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    feel free to pm me if you want to avoid the riff raff. I work in the medical sales field now but was in the car business from 2012-2018 and am very familiar with the process and how to ensure you get the best deal. Just an offer to a fellow RU fan feel free to take it or leave it I won't be offended. There are a lot of dealers that charge a lot of "BS" fees and I can help you navigate those waters
     
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  37. yessir321

    yessir321 Junior
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    This is true with models outside of Suburu and Honda bc those brands do not sell to fleet companies therefor depreciate at a far less rate than say Hyundai, Ford, Nissan, etc. Especially if you are financing manufacturers often have special rates and by the time you add up the difference between a new a pre -owned its often within $3000 between cost and extra interest paid on pre-owned vehicles.

    Again, this is only true with Honda's, Suburu's and Jeep Wranglers
     
  38. Plum Street

    Plum Street All American
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    I would like to take you up on your offer .. I can’t initiate a PM though.
     
  39. yessir321

    yessir321 Junior
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    email me, ruyessir321@outlook.com
     
  40. yessir321

    yessir321 Junior
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    gonna be unable to log in for a while soon though. might be until tomorrow that I can respond
     
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