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Buy new, buy old, or keep current car?

Discussion in 'Other Guitars, other instruments' started by naveed211, Oct 21, 2020.

  1. naveed211

    naveed211 Tele-Afflicted

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    So my lease end is coming up on my Subaru Legacy. I like the car quite a bit. If I bought the car, it’d be a pretty good deal versus other used cars with similar mileage and condition.

    Im also trying really hard to get out of debt. So I’ve considered just turning it in and buying a more affordable car to put more money to other debts. But I’ve had some cheaper cars before and a few have been very unreliable, which is one thing when you’re in your teens and early 20s, another when you’re in your 30s and have a wife and kid to drive around (wife has a car too, but you get the idea). I’d hate for maintenance costs to offset the cheaper initial cost.

    With the fear of maintenance, that brings me to thinking about a new car again, but to be honest I’m pretty set on one of the first two options.

    Is there one decision that makes sense financially or practically more than the other? Any experiences with those in a similar position before are appreciated.
     
  2. naveed211

    naveed211 Tele-Afflicted

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    Whoops, this was meant for the off topic forum, please move.
     
  3. DNestler

    DNestler Tele-Meister

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    If it were me, I'd buy the one you've been leasing. You know the car, you're happy with it, and you know the maintenance costs.

    I've got a 2012 Citroën DS5 Hybrid. Lovely design, great features, horrible construction. It's expensive to insure and expensive to repair. And it seems to want repairs on a monthly basis. I'm getting rid of it, as soon as I can find someone to take it!

    Daniel
     
  4. dreamingtele

    dreamingtele Friend of Leo's

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    My old man always says, drive what you can afford.

    arent cars now have a fixed price maintenance? Honestly, if you get a Toyota, they’re pretty reliable and just do a yearly maintenance despite what others say. The yearly expense you pay for maintenance goes a long way in preventing major damages and expenses in the future.

    sure, its not as comfortable as more expensive rides, or euro cars, but at least it gets you from point a to point b.

    EDIT:
    forgot to answer the question, id say buy your leased car.
     
  5. Ricky D.

    Ricky D. Doctor of Teleocity

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    Your question contains the answer.

    You say you don't want to buy a new car. You want to save money by getting a used car. So, you keep the Subaru that you know and like, or you buy some cheaper used car yet to be identified. Unless there are problems with the Subaru, I suggest keeping it.

    Do not lease another car. You get to the end and have nothing.
     
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  6. Rustbucket

    Rustbucket Poster Extraordinaire Platinum Supporter

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    I’d also buy the leased car depending on the terms. Did your lease include a clause where a portion of your payment could go toward purchase option at end? If so, would be a no-brainer.
     
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  7. naveed211

    naveed211 Tele-Afflicted

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    They gave me the residual cost to purchase when I first leased it. I’ve kept it in good condition and the mileage lower overall than the limit, so it ends up being a good price for a car in the condition and mileage.
     
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  8. glenlivet

    glenlivet Tele-Holic

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    If the buy out price/terms of the Subaru isn't to your liking, you CAN negotiate...seriously....it's not written in stone.
    But...to be a good negotiator you have to be willing to walk away, because the leasing company doesn't care...they are making out OK either way.

    If the buyout price is just to high, keep your eyes open and look for used vehicles that are 3-5 years old with 30,000 to 50,000 miles on them (10 to 12K a year or so..).
    These are *usually* off lease vehicles, (like yours) and dealers get them at some really good prices.
    Because the dealers get them cheap, you can actually negotiate on these .....start offers at about 15% below sticker. At 10%-12% below sticker the dealers are still making good $$$ and will often (at least in my experience) let 'em go just to keep inventory moving.

    Don't fall in love with a vehicle, be willing to walk away.
    Take your time, shop around.
    Buying a car is always kind of a crap shoot.....stack the odds in your favor any way you can.
     
  9. naveed211

    naveed211 Tele-Afflicted

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    That’s good advice. I almost never negotiate, but walking away for another option would be a potentially real possibility so I wouldn’t necessarily be bluffing or have to put on an act. I’ll keep that in mind.
     
  10. 1 21 gigawatts

    1 21 gigawatts Tele-Meister

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    I'm in the "no car payment" camp. People justify new cars by cost avoidance for maintenance, but if you really averaged it out, maintenance costs are probably less than one car payment per year (if that). Buy the nicest car that you can afford without a loan. Drive it for 2-3 years while saving the money that you would be paying for a car payment. That fund covers any unexpected maintenance. When it is time to get another car, you will be able to afford a nicer used car without a loan. Repeat process.

    If you buy older cars that are kind of cool, you can often recover most (sometimes more) of the purchase price when you sell it.
     
  11. charlie chitlin

    charlie chitlin Doctor of Teleocity Silver Supporter

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    Stay out of debt.
    Buy the car you need, not the car you want.
    Conserve resources, buy used.
    Be patient...plan ahead. If you leave yourself a week to buy a car, you won't find the right one
    Subarus run hot and cold; good ones are nice, bad ones are a real bummer.
    Many of them leak oil in their old age due to the "boxer" engine design; it's expensive to get it sealed back up and you have to find the right mechanic.
    Fresh, full oil is important in little engines, but super important in a Subaru.
    All wheel is great if you get lots of snow, otherwise, it's just a fuel economy suck.
    I'm finding that some of these giant used car places (we have a Car Sense near by) have pretty good prices they use for a hook, then they pour on the hard sell with extras (a guy I know got an extended warranty, but he has to get a $150 full-synthetic oil change every 3k miles).
    If you can avoid the extras, you can do well.
    The main argument, for me, from buying from a business is a warranty, even if it's only 30 days.
    Nowadays, catalytic converters are such that a car doesn't smoke until it's burning a LOT of oil, and 30 days is enough time to know if you have an oil burner.
     
  12. jvin248

    jvin248 Poster Extraordinaire

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    .

    I haven't had a car payment in probably fifteen years.
    No new car payment or lease in more than twenty five years.





    (also pay attention to miles per gallon, track your expenses and you'll appreciate a fuel sipper -- giving you more guitar spending loot).

    .
     
    Last edited: Oct 21, 2020
  13. Whatizitman

    Whatizitman Friend of Leo's

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    The dealer and/or lease company will expect to have you by the b@ll$. Your options are to leave the car with them and walk away, do the buyout and drive away, or lease another.

    If you have the time and patience, doing the buyout and selling will likely get you the most, if you want to move to a newer and/or more affordable car. Legacies have decent residuals, I believe. Someone will want your car, if it's in good shape and low miles. You might get a chunk of change left from the sell, and then have cash leverage on your next buy, used or new.

    If you don't want to deal with all that, you only have two options. And the leverage is on their side on both.

    Now that you have leased a car, it will be carved in stone in your brain that the only way to make leasing work for you is if you never plan on buying a car again, and are ok with having a car rent payment for the rest of your life.
     
    Last edited: Oct 21, 2020
  14. VintageSG

    VintageSG Friend of Leo's Ad Free Member

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    Do you need two cars?
    Subaru make great cars, until they go wrong. Grab yer ankles and smile at the bill time.
    Bangernomics can save dividends if the right banger is chosen. Avoid anything European. A well maintained Honda or Toyota costs less than a belt/water pump/tensioner swap on a Subaru. Don't think of the lease so far as a sunk cost. Could you do without for a few months while you save for a car?. Just put half/three quarters of your current lease payment, in cash, in a jar each month for four months, then look at the banknotes.
     
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  15. Pualee

    Pualee Tele-Holic

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    If you buy used, make sure you can get a verifiable history of maintenance performed on the car! You want to see the regular maintenance is done regularly, and not surprises such as major repairs.

    With the lease, you probably know it is good. With anything else there is a risk.

    I'm personally not sure the deal is there like in the old days for buying used rather than new, so I can't make a recommendation.

    I have always had really good luck running any kind of car to 300,000 miles. That is how you get out of debt - buy not buying new or used until the current car is done. I do perform all recommended maintenance, even the costly ones that come up every few years.
     
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  16. tery

    tery Doctor of Teleocity

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    I buy what I can afford ... and am thankful for it .
     
  17. rockymtnguitar

    rockymtnguitar Tele-Holic Silver Supporter

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    I'd buy it, especially if you can negotiate a bit. It's "the devil you know" car - you know it's maintenance history, accident history, quirks, etc. In Wisconsin, in winter, I suspect a Subaru is a good thing to have. You didn't really say how old, how much, or how many miles, so it's tough to gauge. My 2010 Outback is paid off, 123,000 miles, and running solid. Not as sexy as I'd like, and I need to put less aggressive tires on to recover some mileage, but it's a great car, safe, reliable, and comfortable. I see car payments as a necessary debt (at least in my situation) - but they don't have to be both necessary and excessive. I can't imagine I'd ever buy new again.
     
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  18. naveed211

    naveed211 Tele-Afflicted

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    Yup, currently in WI, planning to move to Iowa in the next year, but their winters aren’t much better. I’ve always been more stress free driving AWD, even though years ago I had a Camry that was a nice reliable car otherwise.

    If I’m diligent I could have the Subaru paid off in about three years, but that’d be without putting much money into savings or other debt. And I’d probably be around 100k miles on it at that time, so I could drive with (hopefully) relative confidence for years to come.

    For a cheaper used car, I could pay it off in a year or two, may have a bit more miles on it at that time, I’m guessing I’d be buying a car that already had like 100k on it (probably Toyota and just deal with the no AWD).
     
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  19. bettyseldest

    bettyseldest Friend of Leo's

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    I bought my first car in my late twenties. I have always bought used, between 3 and 5 years old and from £3k to £5.5k. When I bought my first car back in '85 I felt vulnerable. Owning a car was like having a cheque book full of pre-signed cheques, just waiting to hand out the next one. Since then things have improved enormously. Whilst I know no ore about cars than I ever did, I generally take them from around 50k miles to 200k. I get them serviced locally at an independent garage, and if I spend more than £500 a year in servicing, tyres and repairs I feel badly done by. Yes, you will hear the odd horror story, but cars are so much more reliable thaan they were thirty or forty years ago.

    There is a lot to be said for keeping the "devil you know", but don't be afraid to walk away.

    My current car has 190k miles on the clock, though with the current situation has done less than 300 miles since mid February, I am happy owning it, but it will need replacing in the next year or so. My dilema is will this car last long enough until EVs with a 200 mile+ range are available in the used markets (I won't be able to buy a £5k replacement this time). Diesel and petrol will soon be a thing of the past, time to move on.
     
  20. etype

    etype Tele-Afflicted

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    We had a Chevy Traverse (bought new in 2009) and it averaged about $2,500 in repairs every year. Not so bad under warrantee, but a pain once we were paying. Once it was paid off (about the same time the warrantee expired), those repairs were still less than a new car payment. But my wife hated driving it, it got 16mpg, and once kids were old enough we didn't need the space (2018), we bought a used Toyota RAV4 Hybrid. Two years later it still hasn't been in the shop and it gets 32mpg.

    If this car has been trustworthy and you like it, I'd say buy it.
     
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