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Leasing a car
Organichu
poopspeesRegistered User regular
poopspeesRegistered User regular
So, relevant facts:
-I'm 21
-I'm male
-I am blind in one eye (this may affect insurance rates, I dunno)
-I've never driven before
-I have no one who can 'sponsor' me on their insurance
-I know nothing about car repair (I couldn't change a tire or oil or anything basic)
Those things said, would leasing be intelligent for me? I don't need to 'stay on top' of the new car hierarchy, but I don't want an '88 with 220k miles, either. I don't have any friends who are mechanics, and so I'm looking at newer cars (though 'cheaper' newer cars, like the Mazda3) that have less mileage. This brings me to my question: would leasing be an intelligent option for me?
Pros, as I see:
-payments are cheaper than purchasing, which is good since I'll be looking at newer (and therefore costlier) cars
-the leasing agency covers any major defects/repairs
Cons, as I see:
-leasing sticks me with more comprehensive insurance requirements, as I understand it, and as a first time young male i'm going to struggle enough with basic liability
-that's it, I think, which is why I'm coming to you guys
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I've read a few 'lease versus buy' calculators online but the major concern for me (that doesn't seem to be stressed in those tutorials) is the insurance factor. They seem to hint that lease agreements mandate very comprehensive coverage, and I know I'm going to be reamed already...
I could use some advice.
-I'm 21
-I'm male
-I am blind in one eye (this may affect insurance rates, I dunno)
-I've never driven before
-I have no one who can 'sponsor' me on their insurance
-I know nothing about car repair (I couldn't change a tire or oil or anything basic)
Those things said, would leasing be intelligent for me? I don't need to 'stay on top' of the new car hierarchy, but I don't want an '88 with 220k miles, either. I don't have any friends who are mechanics, and so I'm looking at newer cars (though 'cheaper' newer cars, like the Mazda3) that have less mileage. This brings me to my question: would leasing be an intelligent option for me?
Pros, as I see:
-payments are cheaper than purchasing, which is good since I'll be looking at newer (and therefore costlier) cars
-the leasing agency covers any major defects/repairs
Cons, as I see:
-leasing sticks me with more comprehensive insurance requirements, as I understand it, and as a first time young male i'm going to struggle enough with basic liability
-that's it, I think, which is why I'm coming to you guys
---
I've read a few 'lease versus buy' calculators online but the major concern for me (that doesn't seem to be stressed in those tutorials) is the insurance factor. They seem to hint that lease agreements mandate very comprehensive coverage, and I know I'm going to be reamed already...
I could use some advice.
Organichu on
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Also, you said you've never driven before. Do you have a license? Depending on where you live, you may not even be able to drive by yourself for up to a year.
The online quote places I perused want a license number and I haven't yet acquired mine.
I don't have my license yet. I haven't taken the test.
In my state there is no mandatory waiting period between obtaining your permit and applying for your license (as long as you are over 18).
As for leasing vs. buying from a pure cost perspective, it depends on two things. How much do you intend to drive and how long you want to keep the car. If you're the kind of person who's going to want to change cars often (every few years), then leasing may be an option. If you're like me, you will drive a car until it just won't run anymore (I drove my last car for fifteen years, and would still be driving it if I hadn't been in an accident), then leasing is not for you or cost effective.
Also, in the first five years in the life of a car, you'd probably want it fully insured anyway, and if you are financing the car, the insurance company will probably require comprehensive insurance anyway.
Get your license and start getting quotes from multiple companies, but expect to be somewhat disappointed regardless. I hate to be the bearer of bad news, but that's just the way it's going to be.
And it's your first car, you will get into a few fender benders. Better to use the downpayment/deposit for a lease to buy a beater outright, carry liability, and save the hundreds of dollars a month you would've been spending on a lease payment and higher insurance, and put that into a fund for repairs or new car.
I definitely don't need a new car every few years. If the overall costs of leasing negate out the major positive I saw there (them taking care of no-fault repairs), then it's not an attractive option anymore.
Thanatos, I've looked at PhillyCarShare but you need to have had your license for 2 years to be eligible.
I guess this puts me back at square one: purchasing. If I purchase a beater (which I'm REALLY loathe to do, given my paranoia that it'll fall apart on me and I won't even know how to open the trunk) I'd be paying in cash. If I buy newer (say, from 2000 on, less than 100,000, I'll feel much, much better but I'll probably have to finance 40-50% of the cost.
Financing gives you full control over what you can do with the car (there are mileage restrictions with leasing), and besides building up your credit, you get a car at the end of your term. Win/Win!
Side note: If you're blind in one eye, is it legal for you to be driving?
FYI: Those "0% financing" deals usually state in the fine print that the 0% interest rate is only available to those with a near perfect credit score. So as a 21 year old, don't expect to get 0% interest.
YMMV, but I'm 21 and just got 0% financing on a new Toyota. I've had a credit card since I was 18 and never made a late payment, and there were two of us buying the car (me + fiancee), but I'd at least ask.
Since insurance is going to be a rough hurdle for me in the first place I've been trying to somewhat mitigate it with car choice. The Mazda3 is a low horsepower sedan with a good safety rating, so I think will be relatively cheaper to insure than a lot of the cars young guys typically go for. Is this sound reasoning?
Also I'm looking at taking a defensive driving safety class to also mitigate the costs.
Is there anythig else I can do, beyond a.) Low risk car and b.) Driving course?
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To the person who mentioned the legality of my driving: almost every state permits one-eyed driving. Some states impose additional restrictions; for my state, the only regulation is that I need wide view, adjustable mirrors on my primary vehicle.
For a used car that's not too high risk, look at the car's history. Shoot for a car that was used as a rental. That's what my parents did with their old Grand Am (which they recently replaced with a CR-V because my mother was having trouble getting in and out of the low vehicle). Rental agencies baby their cars, but because the car is used, you get a used price on it. Check your state's lemon laws also, just to be on the safe side. Also, when getting ready to make the deal, don't go into the dealer and immediately by the car. Get an idea of what you want, tell them you need to give it some thought. Be insistent (they will be really, really trying to force you to buy a car or get your information). Then go home and get on the internet. Check Kelly's Blue Book and Edmunds for the model you're looking at and see what the car is actually worth. Print out the pages, and bring the pages back with you to the dealer as ammo to let them know you've done your homework, then start negotiating the price. The whole thing really is a pain, but when you're about to spend this much money, it's better to do things right if you can knock off a couple thousand dollars.
Honestly right now I would recommend *against* actually buying. Right now we are sort of in a transition into hybrid/alternative fuel cars, and getting yourself into what will likely be a 6-7 year loan at your age will leave you stuck in a few years when hybrids begin taking off.
If I could turn back the clock I would have leased... shorter terms, less expensive monthly payment (which will offset your higher insurance premium), plus you will have a wider selection available to you, since it will not really be about what you can finance, just what you can afford on monthly terms.
Yes, there is a difference.
Leasing won't really help your credit as much as financing, if that's a concern... but the trade off is you will be able to keep swapping out cars every 2 years until you are ready to buy something worth owning.
we also talk about other random shit and clown upon each other
You're a first-time driver, so pretty likely to get in at least one accident. My car right now was a beater ten years and 100,000 miles ago. Still going. Something from Honda or Toyota or Mazda that's 5+ years old is going to be pretty cheap, reliable, easy to get parts for, and have good gas mileage. Plus, you're not going to feel terrible when you inevitably get into an accident with it, and you're not going to feel like you need a whole hell of a lot of insurance on it.
Nissans, too. Then tend to be a touch more expensive than a Honda or Toyota, but they're really reliable. Honda are good and usually fuel efficient. The longevity of Toyota is legendary, even the modern Toyotas. As long as you do regular maintenance on those cars, they'll never die.
Oh, and fuck hybrids. The technology just isn't there yet. They don't pencil out. Don't expect hybrid technology to truly be worth it until 2020 at least. Under normal conditions, they're not as efficient as they're purported to be, and they're hellaceously expensive.
What state were you in? A quick google tells me that a few states might not even give you a license with a blind eye and that you should contact your DMV to find out. Also, it seems you will have to get a special mirror for your car. This is from the AFB message boards.
xbl - HowYouGetAnts
steam - WeAreAllGeth
Obviously warranties will not cover work done as the result of accidents, etc., but if something just gives out, it's nice to know you won't be stuck paying for it. Most bumper-to-bumper warranties tend to run out at the 3 or 4 year mark so things can start to get pretty expensive on a car you own if it starts falling apart past that milestone.
Yes, I've already looked into my state's vision regulations.
most places you change oil run checks for you so you usually only have to be able to catch major problems with the car. change the oil every 3-5000 miles and make sure they check it every time and you should be fine
At the end of the lease, you can either buy it out, give it back, or lease another one. Do you really want nothing to show for your thousands of dollars after the next several years?
Also keep in mind that if you're planning on leasing more than 3 years, you'll be replacing the tires just so you can give it back (they'll measure the treads and charge you if you don't) as well as a whole list of other repairs they'll make you do.. just to give it back.
Buy a beater. I know you think you'll end up screwed if it breaks down, but having a $3000 car break down on you is much better than paying $800 a month because you wanna look sleek in a brand new leased car ($350ish for the lease and $450 for your insurance.. most likely more.)
Don't try to use reasoning when guessing what your insurance might be. CALL insurance companies. Stop using online quotes. Tell them what car you're planning on purchasing.
You're in for a wake up call on your insurance. The Mazda3 is a popular car with teenagers and rather sporty looking--high theft, high accident, etc. It's not all about the safety rating. The more douchebags that drive around getting tickets with the car model, the higher the insurance will be as well.
And Hyundais... especially Hyundai Elantras. Reliable as heck and yet due to the misperception that Korean = junk, their resale values are low. Which means you should be able to get a used Hyundai Elantra (2000 or newer) for less than 5k
for example: http://portland.craigslist.org/mlt/ctd/1181133417.html
FYI, zipcar just charged me a $500 deductible b/c they were unable to locate a dude that hit me THIRTEEN MONTHS AFTER THE FACT even though i gave them all the information within 48 hours of the accident... google their insurance tactics, and you may change your mind about using them
back to OP:
if you're financing or leasing a car, you'll be required to get comprehensive coverage (and gap insurance too in most cases). This will be stupidly expensive for you since you're a brand new driver, half blind, a male, and under 25 (i'm expecting the insurance agent to actually laugh before they read you the quote).
my suggestion would be to get a late 90s honda civic/toyota corolla/nissan altima. All are dead reliable, can be found for a few thousand dollars, and most importantly, will allow you to get cheap liability-only insurance. then get AAA for roadside assistance ($15/month) for things like flat tires, towing, etc. and bring the car to a garage for any other issues. lots of people drive older cars with no mechanical ability whatsoever
Now, I pay about $86, but it's an older car and I'm nearing 26. Still perfect record.
I'm now fairly well convinced to take the majority advice and buy a slightly older car. Though I do want to get something cheap enough that I can pay fully in cash, I do have a couple of reservations... caveats, if you will. I don't want to get too crazy with the mileage, because... well, obviously. But I do want some niceness, too. To this point I've only been talking about utility and economy but I would like at least a few creature comforts- air conditioning, a working CD player/something with an auxiliary deck/some way I could plug in an mp3 player, and even leather seats if possible. I'm willing to go up a couple grand if I can get a car I'll actually enjoy driving and feel comfortable in.
So I guess since you guys have brought me down to earth I'm no longer looking as intently at the Mazda3. The Elantra seems a worthy candidate, then. Any other ideas?
Refined parameters:
-less than 150,000 miles
-2000 or newer
-AC, power windows/locks
-leather seats if possible
-price ceiling at say 6-7 thousand? This is how much I could pay, probably, without financing.
Now, for $7000 you can get more or less what you're looking for. I'd be a bit more flexible if I were you, since this is going to be your first car.
Three years ago I bought a 98 Mazda Protege for $5 CDN. It had 116KM (72k miles), A/C, CD, Security device, and it was a manual transmission. I didn't really get a "deal" on it, since I later ended up replacing the entire braking system, most of it anyway ($800) AC Compressor ($300) and getting brand new tires ($400). But that's over the course of three years, and it's still in relatively decent shape. I expect to get a couple more years out of it before it becomes a pain in the ass.
If you have transmission problems, they're way cheaper to fix, and once you get used to a manual, you'll be able to better decide what you want for your next car. Plus if you ever need to drive someone else's car, it's really good to be able to drive stick.
(manuals are scary but I'll keep it in mind)
In my case, my girlfriend simply can't do it. She's too nervous about it, so she just never drives my car. The problem comes in when we go places together, like a bar, we have to take her car (in case I can't drive home). The other day I injured myself at a soccer game, and it was lucky we had taken her car to the game or else we wouldn't have been able to get me to the ER.
Other than those situations, I love driving stick. I feel I am in much more control over the vehicle. People selling used manual cars are also more likely to haggle with you because they get less interested buyers.