Author Topic: Leasing or buying my first car?  (Read 2033 times)

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Offline Serah Farron

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Leasing or buying my first car?
« on: December 19, 2016, 01:29:00 PM »
So I have steadily saved up money and increased my credit score to start either leasing or buying a new car. I just wanted to hear how you guys got your first car? Any tips or suggestions on how to approach buying a new car?

Offline Chino

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Re: Leasing or buying my first car?
« Reply #1 on: December 19, 2016, 01:31:52 PM »
If you don't drive a lot and don't mind having a car payment, lease.

Offline Hyperplex

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Re: Leasing or buying my first car?
« Reply #2 on: December 19, 2016, 01:43:40 PM »
My first car? I sold some stocks and bonds, per my dad's instructions, and bought the car outright.

As for lease vs. loan, it depends on your usage. Like Chino said, if you aren't driving great distances, a lease is a good option. If you can put a good amount down, your monthly payment should be manageable and you technically only pay for the amount of the car you use, give or take. If you drive 10k a year or less, this is a good option. Plus, you get to have a new car at the end of your lease term.  Downside, you don't actually own the car, and buying out a lease at the end of the term can be expensive. Also, not much haggling on the price because it amoritized by the dealer into the lease.

If you're driving more, or simply want to own your own car, a loan is a better way to go. You can go with whatever bank gets you the best rate, or you can finance through the dealer. Again, the more you put down, the better your payments will be. Upside is there is no mileage limit to your use of the car because it's yours. One major thing to consider with a loan is gap coverage. Depending on how much you put down and the total price of the car, gap coverage protects if you were to total the car and happen to owe more than it's worth at the time of totalling. For example, if you owe $12,000 on your car, and you get into an accident and total it, and the total reimbursement value of the car is only $8,500, you're then $3,500 in the hole to cover the difference in what you owe. Gap coverage covers that, but it's an extra cost when you buy the car. Just something to think about.
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Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #3 on: December 19, 2016, 01:47:06 PM »
Yeah, driving will only be to and from work and college and occasionally trips.

Would I save more buy leasing the car? I heard car dealers had many tricks and traps that they used and I've read online for it, but I'm not that experienced.

Will I have to cosign also?

Offline bosk1

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Re: Leasing or buying my first car?
« Reply #4 on: December 19, 2016, 01:52:15 PM »
Best advice:  Save and buy a used car with cash.

Paying interest for a car loan is a rip off and is throwing away your hard-earned money.  Other than my very first car, which I made the mistaken of taking out a loan for, the only time I have ever had a car payment is when we have gotten 0% deals because, in that situation, we are not throwing away money by paying interest to the bank.  Yes, there is some sacrifice involved in terms of "It would be so cool to have a band new [car X]" and instead settling for something slightly less cool and used.  But once the new car smell wears off (literally), the feeling of not having a car payment is worth a lot more than the temporary euphoria of having a new car. 

Leasing is a MUCH worse deal.  Dealers only offer leases because it makes them money, so let's look at the math for a second to see why it is a great deal for them and a terrible deal for the consumer.  Think about it.  The dealer has to figure in what the car will be worth after it massively depreciates (50%-70% of its value) during the term of the lease.  Who pays for that?  You do.  Your lease payment is comprised of (1) that depreciation, (2) a premium (their raw profit), AND (3) the interest rate.  At least if you take out a loan and buy the car, you are skipping item #2.  With a lease, you are paying extra.  Here is a detailed explanation, if you care to listen:  https://www.daveramsey.com/askdave/posts/10367  I think he gets a couple of minor details wrong.  And add to that the fact that every situation is unique, and he is just making a blanket assessment of auto leases in general.  But in general, he gets it pretty right.
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Offline Chino

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Re: Leasing or buying my first car?
« Reply #5 on: December 19, 2016, 01:56:47 PM »
Yeah, driving will only be to and from work and college and occasionally trips.

Would I save more buy leasing the car? I heard car dealers had many tricks and traps that they used and I've read online for it, but I'm not that experienced.

Will I have to cosign also?

You will likely need a cosigner, yes, unless you're buying the car with a cash or check that day. You may or may not save money. It depends. If you buy a car outright, or even finance one, and you don't have any kind of service plan or a crap warranty, you're on the hook for repairs. If some freak thing happens to your transmission, your water pump fails, or your timing belt decides to break, you're not only on the hook to fix it, but you have to pay the tow to get it wherever it needs to go. That alone can be a couple hundred bucks depending where you are. If you have a lease, anything like that would be covered.


Offline Phoenix87x

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Re: Leasing or buying my first car?
« Reply #6 on: December 19, 2016, 01:58:27 PM »
Buy a used car with cash, end of story. Especially for your very first car

Less debt, less stress.

If you lease, you are just renting the car. Sure they cover maintenance, but there's super reliable and cheap cars out there right now.

Right now you can get a 98 toyota corolla with reasonable miles on it for around $3000. And as long as you keep up on the maintenance, they run forever. Its a perfect commuter car and a damn fine first car.

I've had my current corolla for 5 years. Over a 100,000 miles and besides tires, i have never had a problem.

Save the cool stuff for later down the line once you get established.

DO NOT LEASE. And NO CAR LOANS either. Avoid any and all debt and avoid any extra financial obligations that you don't need to.

Go with a 98 toyota corolla or 98 honda civic and they last so long you could literally give it to your future kid for their first car. Seriously

« Last Edit: December 19, 2016, 02:04:21 PM by Phoenix87x »

Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #7 on: December 19, 2016, 02:01:54 PM »
Yeah. I just spoke to my dad about it and he said that buying a used car is the best way to go.

All awesome responses, thank you soo much. You guys are awesome, I knew I could count on this site.

Offline bosk1

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Re: Leasing or buying my first car?
« Reply #8 on: December 19, 2016, 02:04:12 PM »
Buy a used car with cash, end of story. Especially for your very first car

Less debt, less stress.

If you lease, you are just renting the car. Sure they cover maintenance, but there's super reliable and cheap cars out there right now.

Right now you can get a 98 toyota corolla with reasonable miles on it for around $3000. And as long as you keep up on the maintenance, they run forever. Its a perfect commuter car and a damn fine first car.

I've had my current corolla for 5 years. Over a 100,000 miles and besides tires, i have never had a problem.

Save the cool stuff for later down the line once you get established.

DO NOT LEASE. And NO CAR LOANS either. Avoid any and all debt and avoid any extra financial obligations that you don't need to.

Go with a 98 toyota corolla or 98 honda civic and they last so long you could literally give it to your future kids for their first car. Seriously

^Yup, all that.  And a car like a Corolla or a Honda Civic will easily give you well over 200,000 miles even if abused.  If it is reasonably well maintained, you may get close to 300k or more before they die.
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Offline cramx3

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Re: Leasing or buying my first car?
« Reply #9 on: December 19, 2016, 02:11:17 PM »
I would say buying a used car with cash is probably the best bet for your first car that will give you the most bang for your buck.  Especially as a new driver since you most likely will ding it up a bit.

However, I personally am a fan of buying over leasing in terms of getting value for your dollar.  But it also depends on what kind of car and how you will use it. 

My first car was a lease that was bought out at the end.  Saved from money from working as a child and paid the monthly payments due to my high school job.  But I followed my parents advice and one of my first of many lessons on how not to follow my parents money advice.  I think that car was a huge waste of money personally. 

My next car (and my current car) I bought new and put a very small downpayment on it, but over paid by month and eventually owned it outright in 4 years.  I have now been driving it for 2 more years with no payments and being that I bought it new and took car of it, it has cost me very little in terms of maintenance.  Now when I go shopping for my next car in the future, I have a car to sell as well as I can save up for my next down payment by not making that $300 a month payment on the car. 

(Although I spent all that money on my home HVAC unit so its back to saving again, but since I owned that car, it didn't break the bank to make another major purchase plus I still have a great car to drive).  I would very much buy another Honda car again as I feel I got great value for my dollar on my 2010 Civic.... but I don't think I'd buy a Dodge again (my first car, which btw cost more and lasted much less)

Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #10 on: December 19, 2016, 02:15:26 PM »
Gotcha. :tup

In terms of buying a used car. Should I buy it at a dealership? I'm looking for a car with efficient gas mileage like a hybrid. Thats all I'm asking for. Around how many dealerships should I visit?

Some suggestions from parents and friends are:
1) Nissan leaf
2) Prius
3) smart car
4) Ford Focus

Also isn't buying with cars better to increase credit score?

Offline cramx3

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Re: Leasing or buying my first car?
« Reply #11 on: December 19, 2016, 02:20:20 PM »
Gotcha. :tup

In terms of buying a used car. Should I buy it at a dealership? I'm looking for a car with efficient gas mileage like a hybrid. Thats all I'm asking for. Around how many dealerships should I visit?

Some suggestions from parents and friends are:
1) Nissan leaf
2) Prius
3) smart car
4) Ford Focus

Also isn't buying with cars better to increase credit score?

I'm not a big car guy to be able to properly give advice on which cars to buy.  But why do you want a hybrid?  (not judging, just curious why you are limiting yourself to this).  Also you said driving to/from work, but what's more important is an estimate on how many miles you will drive.  Since a lease only includes so many miles, you can end up spending a lot more if you drive more than what you paid for.

And another thing to consider is car insurance which will relate to what kind of car you buy as well. 

Offline El Barto

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Re: Leasing or buying my first car?
« Reply #12 on: December 19, 2016, 02:47:02 PM »
What you buy comes down to what you really want. Keep in mind that if most of your driving is on the highway then a hybrid probably won't help you all that much.

And I'm not a fan of dealerships. In this case you're simply paying them a markup for finding the car you want first. My advice is always to figure out exactly what you want, find it from a local person, have it professionally inspected and then buy it if it's a good deal for you.
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Offline bosk1

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Re: Leasing or buying my first car?
« Reply #13 on: December 19, 2016, 02:52:34 PM »
Nothing wrong with getting a hybrid or electric, but based on the needs you described, I don't think there is a compelling reason to go that route.  Unless you are doing a LOT of driving, you will not notice any significant gas savings over a car like a Civic or a Corolla, and you can get a non-hybrid used Civic or Corolla (or similar car) a lot cheaper than you can get a hybrid.  And if you are going with something older, something to consider is that if the battery goes out on your old hybrid, it may cost anywhere from $1,000 to $3,000 or more to replace (and if you want to go electric/hybrid for the sake of being environmentally conscious, a small car that gets good mileage, even if not a hybrid, is going to have close to the same environmental impact as an electric/hybrid). 

As far as where to buy, here are some thoughts:

I would start off at CarMax to just test drive and try out a lot of different cars to see what you like and get a feel for how they handle and how much they cost.  Since they carry all kinds of different brands, and usually have a big selection, you can really become familiar with what you like just by spending a few hours there on a Saturday or Sunday afternoon sitting in some cars, doing some test drives, and asking questions.  The sales staff are usually low pressure and don't care if you don't end up buying anything.  Treat it as research.  But you probably do not want to ultimately buy from them, since you can almost always get a better deal elsewhere (because they go straight off the KBB value, with a certain percentage profit margin, and they do not allow you to haggle on the price at all). 

After shopping/test driving at CarMax, go to Craigslist and start some searches for the types of cars you are looking for.  I would advise looking at dealerships AND private sellers initially, see a few, and then decide.  By doing these two steps, you should start to feel like you have a good sense of what you like and how much it SHOULD reasonably cost.  That way, you know you are getting a good deal with whatever you end up buying.

The upside from buying from CarMax or a dealership is that you usually should get a limited warranty of some type.  The downside is, you overpay.  You will get the best deal if you can find a friend of relative that is fairly knowledgable about cars and buying from a third party.  There is always some risk involved in doing that.  But it is how you get the best deals, as long as you are comfortable that the person you are shopping with has enough knowledge to make sure you aren't buying a lemon.  If buying from anywhere OTHER than CarMax, whether dealer or third party, demand to see a Car Fax report.  That will tell you whether the car has been in any major accidents.  In general, unless you are a wiz at car-related repairs or know someone who is, stay away from a car with a "salvage title."  You want a clean title (meaning the car has never been in a serious accident that totaled it out). 

If you don't know much about cars, I know it can be intimidating.  Hopefully, you have a friend or relative that can help.  A few things to look for, other than just seeing how it handles when you drive it, and checking to make sure it has a clean title:  Look at at least four places:  (1) Look under the hood.  Is the engine relatively clean for the car's age?  Some wear and dirtiness is okay.  But if the entire engine is black and grimy, that should be red flag.  Check the oil.  Is it clean, or black and burnt looking?  If the latter, it probably means either poor maintenance or a problem with the car.  Look at the belts.  Do they look like they are in good shape, or do they look worn out or cracked?  If you have a friend that is more knowledgeable about what to look at under the hood, great.  But those are the basics.

(2) With the car off, stand behind the car and have a friend start the engine.  Is there a puff of white smoke?  If so, you have problems and don't want that car.  The exhaust should look normal.  But in an older car, an initial black puff at startup isn't usually a problem.  White is.

(3)  Check the tread on the tires.  Are any of them bald?

(4)  Under the hood, in the trunk, in the wheel wells, and in the door jambs, look for evidence of the car being re-painted.  Not necessarily a problem.  But if it becomes obvious that the car has been given a fresh coat of pain, you want to know why.  Is there maybe an accident in the car's history that they aren't telling you about?

In addition to all that, if anything just feels odd or out of place about the transaction, don't buy the car.  No matter how much you like it, you will find another one you like just as much within a week or two.  It isn't worth it if something just doesn't feel right or feels shady.

Hope this helps.  FYI, I just went through this same process.  I was in a car accident.  And money is a bit tighter than normal right now, so although we could have taken money out of savings to buy a much nicer, newer car, I bought a 2004 Civic with 140k miles on it for under $4,000.  It has a few minor issues, but nothing we can't handle.  Overall, I'm happy with it.  I miss my better car, but this one will be reliable for the next few years, and then I can upgrade.  Not going into debt or overpaying will be worth it in the long run.  If you can keep a similar perspective, I think you will be happy with the long-term effects of the decision.
« Last Edit: December 19, 2016, 03:05:37 PM by bosk1 »
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Offline Skeever

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Re: Leasing or buying my first car?
« Reply #14 on: December 19, 2016, 03:00:56 PM »
I can attest to what Bosk is saying.

I spent 20k on a brand new Honda Civic out of college. My wife spent 2k on a 10+ year old Honda Civic out of college. A couple years ago during subzero temperatures, guess which car started and which one didn't? Hint: mine didn't start  :lol

One thing I'll add that I don't know if Bosk has said... make sure you see maintenance logs on your used car. My wife bought her car from someone a friend knew had maintained it on time over 10+ years. That's really important, and I would never buy anything used without seeing a proper maintenance log, or at least maintenance records.

Offline El Barto

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Re: Leasing or buying my first car?
« Reply #15 on: December 19, 2016, 03:17:11 PM »
Anybody worth a damn that sells a car is going to clean the engine, change the oil, fix the cheap stuff and do away with any noticeable problems. That's why you have to have a PPI done on it. Should run about $150. Ideally you want the PPI done by an indie that specializes in that particular make. There are always faults with specific cars and those are the ones you want to find.

Also, always take a dispassionate friend along when car shopping. When shopping for something you really like and want, you're your own worst enemy and you always want somebody who's really on your side with you to be the voice of reason.
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Offline bosk1

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Re: Leasing or buying my first car?
« Reply #16 on: December 19, 2016, 03:28:01 PM »
Anybody worth a damn that sells a car is going to clean the engine, change the oil, fix the cheap stuff and do away with any noticeable problems. That's why you have to have a PPI done on it. Should run about $150. Ideally you want the PPI done by an indie that specializes in that particular make. There are always faults with specific cars and those are the ones you want to find.

Also, always take a dispassionate friend along when car shopping. When shopping for something you really like and want, you're your own worst enemy and you always want somebody who's really on your side with you to be the voice of reason.
I agree with all of that.  That's why, as to the issues I mention under the hood, if you see ANY of that, it is an obvious red flag. 
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Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #17 on: December 19, 2016, 03:40:35 PM »
I have a few questions and a few comments to add, but I'm busy right now so I'll write down the responses a couple hours later. Thanks guys!

Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #18 on: December 19, 2016, 08:03:35 PM »
I'm not a big car guy to be able to properly give advice on which cars to buy.  But why do you want a hybrid?  (not judging, just curious why you are limiting yourself to this).

Ah yeah, I don't mind! :)
First of all, I have no information on cars at all, but many people I know always tell me: "Get a Prius. It will save you hundreds and hundreds of dollars of gas money.

Also you said driving to/from work, but what's more important is an estimate on how many miles you will drive.  Since a lease only includes so many miles, you can end up spending a lot more if you drive more than what you paid for.

Around a week, I drive up to 50+ miles including some shopping I go with my friends or to go lunch or dinner. Work also isn't that close. Around 5 miles to work.

And another thing to consider is car insurance which will relate to what kind of car you buy as well.

Ah yes. Thankfully, my parents had given me my license when I was 16 and have kept a really clean record until now. Also, since I worked my butt off in school, and with good grades, the insurance totals around $132.02.

What you buy comes down to what you really want. Keep in mind that if most of your driving is on the highway then a hybrid probably won't help you all that much.

And I'm not a fan of dealerships. In this case you're simply paying them a markup for finding the car you want first. My advice is always to figure out exactly what you want, find it from a local person, have it professionally inspected and then buy it if it's a good deal for you.

I only take local streets. Highways I rarely take. :)
Ah yes. I went with my dad to a dealership today to ask for a car and he would not let us go. He kept on pressuring us and kept on trying to ask us to buy the dang car today as it will be gone soon. Thankfully, we left without any more hassle. Thanks for the advice.

Nothing wrong with getting a hybrid or electric, but based on the needs you described, I don't think there is a compelling reason to go that route.  Unless you are doing a LOT of driving, you will not notice any significant gas savings over a car like a Civic or a Corolla, and you can get a non-hybrid used Civic or Corolla (or similar car) a lot cheaper than you can get a hybrid. 

Huh, really? If that is so, I don't really need a hybrid. Yeah, I don't drive too much. If that is the case, I could settle for a Civic or a Corolla.

And if you are going with something older, something to consider is that if the battery goes out on your old hybrid, it may cost anywhere from $1,000 to $3,000 or more to replace (and if you want to go electric/hybrid for the sake of being environmentally conscious, a small car that gets good mileage, even if not a hybrid, is going to have close to the same environmental impact as an electric/hybrid). 

Ah, I'm trying to look into the 2012-2014 range of cars. Not too old and not the most recent ones. Oh yeah, I have no knowledge of all the battery and all those stuff so I'm gonna need someone else to help me out with that.

As far as where to buy, here are some thoughts:

I would start off at CarMax to just test drive and try out a lot of different cars to see what you like and get a feel for how they handle and how much they cost.  Since they carry all kinds of different brands, and usually have a big selection, you can really become familiar with what you like just by spending a few hours there on a Saturday or Sunday afternoon sitting in some cars, doing some test drives, and asking questions.  The sales staff are usually low pressure and don't care if you don't end up buying anything.  Treat it as research.  But you probably do not want to ultimately buy from them, since you can almost always get a better deal elsewhere (because they go straight off the KBB value, with a certain percentage profit margin, and they do not allow you to haggle on the price at all). 

Unfortunately, the nearest car max for me is 3 hours and 30 minutes away from. Is it worth travelling that much??


After shopping/test driving at CarMax, go to Craigslist and start some searches for the types of cars you are looking for.  I would advise looking at dealerships AND private sellers initially, see a few, and then decide.  By doing these two steps, you should start to feel like you have a good sense of what you like and how much it SHOULD reasonably cost.  That way, you know you are getting a good deal with whatever you end up buying.

Craiglist is good. Good call! :)


The upside from buying from CarMax or a dealership is that you usually should get a limited warranty of some type.  The downside is, you overpay.  You will get the best deal if you can find a friend of relative that is fairly knowledgable about cars and buying from a third party.  There is always some risk involved in doing that.  But it is how you get the best deals, as long as you are comfortable that the person you are shopping with has enough knowledge to make sure you aren't buying a lemon.  If buying from anywhere OTHER than CarMax, whether dealer or third party, demand to see a Car Fax report.  That will tell you whether the car has been in any major accidents.  In general, unless you are a wiz at car-related repairs or know someone who is, stay away from a car with a "salvage title."  You want a clean title (meaning the car has never been in a serious accident that totaled it out). 

Ah yes, I read online that I should always see the Car Fax report and if they refuse, I should just walk out of the dealership saying, "Hell no." Or something along those lines. :)

And yeah, for the third party, I will have to ask around as I don't know anyone at the top of my head right now.


If you don't know much about cars, I know it can be intimidating.  Hopefully, you have a friend or relative that can help.  A few things to look for, other than just seeing how it handles when you drive it, and checking to make sure it has a clean title:  Look at at least four places:  (1) Look under the hood.  Is the engine relatively clean for the car's age?  Some wear and dirtiness is okay.  But if the entire engine is black and grimy, that should be red flag.  Check the oil.  Is it clean, or black and burnt looking?  If the latter, it probably means either poor maintenance or a problem with the car.  Look at the belts.  Do they look like they are in good shape, or do they look worn out or cracked?  If you have a friend that is more knowledgeable about what to look at under the hood, great.  But those are the basics.

Yeah. Venturing to the outside world for me was the greatest fear because back then I had absolute no knowledge on how to get a job, pay my taxes, manage my credit card, etc. But overtime I learned and I know in the end, I will be able to buy a nice car without too much hassle.


(2) With the car off, stand behind the car and have a friend start the engine.  Is there a puff of white smoke?  If so, you have problems and don't want that car.  The exhaust should look normal.  But in an older car, an initial black puff at startup isn't usually a problem.  White is.

(3)  Check the tread on the tires.  Are any of them bald?

(4)  Under the hood, in the trunk, in the wheel wells, and in the door jambs, look for evidence of the car being re-painted.  Not necessarily a problem.  But if it becomes obvious that the car has been given a fresh coat of pain, you want to know why.  Is there maybe an accident in the car's history that they aren't telling you about?

All useful advice I will follow. If you hadn't posted that, I might have bought a wrecked car. Snap shotting this lol.


In addition to all that, if anything just feels odd or out of place about the transaction, don't buy the car.  No matter how much you like it, you will find another one you like just as much within a week or two.  It isn't worth it if something just doesn't feel right or feels shady.

Yeah. Sometimes I get a gut feeling that something is wrong and it ends up happening. I was out buying shopping one day for some clothes and I saw this really cool dress on Forever 21 and the seller told me that this was for final sale and this was the cheapest out of all the stores that sold them. It was around 123.99. Something felt so wrong about that guy so I declined and the next day, I went to Ross because my friend desperately wanted to browse clothes and I saw that same dress on clearance for 49.99.


Hope this helps.  FYI, I just went through this same process.  I was in a car accident.  And money is a bit tighter than normal right now, so although we could have taken money out of savings to buy a much nicer, newer car, I bought a 2004 Civic with 140k miles on it for under $4,000.  It has a few minor issues, but nothing we can't handle.  Overall, I'm happy with it.  I miss my better car, but this one will be reliable for the next few years, and then I can upgrade.  Not going into debt or overpaying will be worth it in the long run.  If you can keep a similar perspective, I think you will be happy with the long-term effects of the decision.

This definitely helped! You were in my shoes and you helped me to understand much more. :D
And I hope you are ok and everyone is safe after the car accident. I know it can be very brutal and scary. And yeah, I don't want an extremely fancy car that looks cool and all that. I'm just looking for a car that works, no matter how beat up it is. Safe and efficient. Done.

I can attest to what Bosk is saying.

I spent 20k on a brand new Honda Civic out of college. My wife spent 2k on a 10+ year old Honda Civic out of college. A couple years ago during subzero temperatures, guess which car started and which one didn't? Hint: mine didn't start  :lol

One thing I'll add that I don't know if Bosk has said... make sure you see maintenance logs on your used car. My wife bought her car from someone a friend knew had maintained it on time over 10+ years. That's really important, and I would never buy anything used without seeing a proper maintenance log, or at least maintenance records.

Oh wow, thanks for that. I totally thought that your new car would be the one to start. xD
Great, thanks for the information. Will keep it to heart when checking a new car and will update progress.

Offline cramx3

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Re: Leasing or buying my first car?
« Reply #19 on: December 20, 2016, 08:22:35 AM »
Also you said driving to/from work, but what's more important is an estimate on how many miles you will drive.  Since a lease only includes so many miles, you can end up spending a lot more if you drive more than what you paid for.

Around a week, I drive up to 50+ miles including some shopping I go with my friends or to go lunch or dinner. Work also isn't that close. Around 5 miles to work.

 :lol 5 miles is extremely close.  I drive 70 miles round trip to work daily.

Offline ZKX-2099

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Re: Leasing or buying my first car?
« Reply #20 on: December 20, 2016, 09:10:30 AM »
Gotcha. :tup

In terms of buying a used car. Should I buy it at a dealership? I'm looking for a car with efficient gas mileage like a hybrid. Thats all I'm asking for. Around how many dealerships should I visit?

Some suggestions from parents and friends are:
1) Nissan leaf
2) Prius
3) smart car
4) Ford Focus

Also isn't buying with cars better to increase credit score?

I would add the Scion/Toyota iQ to that list. I bought one a few months ago. Love it. Much like a Smart car but better, slightly bigger and more reliable.

https://en.wikipedia.org/wiki/Toyota_iQ#Scion_iQ

Offline cramx3

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Re: Leasing or buying my first car?
« Reply #21 on: December 20, 2016, 09:29:19 AM »
I personally would never buy a smart car.  Maybe if I lived in Europe where the cars in general are smaller.  I feel like a smart car is just asking to get demolished.

Offline Stadler

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Re: Leasing or buying my first car?
« Reply #22 on: December 20, 2016, 09:38:07 AM »
Also you said driving to/from work, but what's more important is an estimate on how many miles you will drive.  Since a lease only includes so many miles, you can end up spending a lot more if you drive more than what you paid for.

Around a week, I drive up to 50+ miles including some shopping I go with my friends or to go lunch or dinner. Work also isn't that close. Around 5 miles to work.

 
 :lol 5 miles is extremely close.  I drive 70 miles round trip to work daily.

WORD.  I was going to write that as well, but I didn't want to seem too curmudgeonly.  :)

Offline pogoowner

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Re: Leasing or buying my first car?
« Reply #23 on: December 20, 2016, 10:36:35 AM »
Any commute that takes less the 30 minutes is a dream, as far as I'm concerned. For about 7 months, I did 110 miles round trip to work daily. I know some people have it even worse, but talk about destroying your car AND your body.

Offline bosk1

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Re: Leasing or buying my first car?
« Reply #24 on: December 20, 2016, 10:39:19 AM »
Also you said driving to/from work, but what's more important is an estimate on how many miles you will drive.  Since a lease only includes so many miles, you can end up spending a lot more if you drive more than what you paid for.

Around a week, I drive up to 50+ miles including some shopping I go with my friends or to go lunch or dinner. Work also isn't that close. Around 5 miles to work.

 
 :lol 5 miles is extremely close.  I drive 70 miles round trip to work daily.

WORD.  I was going to write that as well, but I didn't want to seem too curmudgeonly.  :)

I wouldn't worry.  Anybody who thinks 5 miles is a long work commute is likely either a teenager or European.
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Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #25 on: December 20, 2016, 10:40:38 AM »
:lol
OK, well I guess it isn't, lol.

Offline Phoenix87x

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Re: Leasing or buying my first car?
« Reply #26 on: December 20, 2016, 10:43:19 AM »
I used to walk 2.5 miles to high school before getting my first car. So much better once I got the car though

My commute now is 40 miles total daily. I will definitely make sure my place is closer to work when done school though. Long commutes can be tough.

Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #27 on: December 20, 2016, 10:47:44 AM »
Yeah I agree.

Commuting to college without a car is a total nightmare.

Offline eric42434224

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Re: Leasing or buying my first car?
« Reply #28 on: December 21, 2016, 11:01:13 AM »
In Feb/March, my commute will go to FIVE FUCKING MINUTES Max.  Not kidding.  We are opening a brand new, built from scratch, state of the art, corporate campus, and I could literally walk to work.  If the lights cooperate, it will be 3 minutes, but that likely wont happen that time of morning.

I am a proponent of the buy, pay off, and use for 10 years kind of guy.  That really is the best path financially.  At my age, I really like having no car payments, and I really take care of my vehicles so they look practically new....plus I dont really have the need to have the nice new model every 3 years.

 
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Offline 7th

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Re: Leasing or buying my first car?
« Reply #29 on: December 21, 2016, 01:08:12 PM »
Not to diss on the new car experience, but buy used.  A gently used vehicle, still under warranty is going to be a better value than a new vehicle.  You've undoubtedly heard the "drive it off the lot and lose 10%-20%" thing, well it's mostly true.  Let somebody else eat that depreciation. 
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Offline Serah Farron

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Re: Leasing or buying my first car?
« Reply #30 on: December 21, 2016, 01:11:19 PM »
Ah yes, that's totally fine. Before buying a car, I'd always had that mentality of getting that new car with the new gadgets and all those stuff, but I'm content to settle for a working used car.

Offline cramx3

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Re: Leasing or buying my first car?
« Reply #31 on: December 21, 2016, 01:49:28 PM »
Not to diss on the new car experience, but buy used.  A gently used vehicle, still under warranty is going to be a better value than a new vehicle.  You've undoubtedly heard the "drive it off the lot and lose 10%-20%" thing, well it's mostly true.  Let somebody else eat that depreciation.

Yea, I personally like new cars because even with the 20% value lost after driving it off the lot which is true, I feel as an idiot with car mechanics, I'll feel a lot better on the road knowing that it's not likely to break down or cause issue that I can't troubleshoot/fix myself.

Having said that, I am considering buying a used car next year.  Essentially I am going to run my civic to the ground as my daily commuter car, but I am considering the idea of buying a more sporty but older/used car for cheap as like a weekend vehicle and maybe something I could tinker with and learn more about car mechanics.  I have a few friends who love cars and doing stuff like that, it could be interesting to learn and take pride in my own toy car as well as have a nicer ride than a civic when I want to have a night out on the town.