Should I buy my car when lease is up or get something else?

[smkiya]

In August 2007, I leased a new Buick. The lease ends in August 2011. I currently have 29,000 miles, and will have less than 35,000 when the lease is up. I was alloted 48,000 miles. There are a couple of scratches on the car, nothing major. At the end of the lease, I will likely have to pay out $12000 to buy the car, and take out a loan to do so. Should I? I posted on another board in response to someone about leases and another poster commented that, no one buys out their lease.

Would starting fresh make sense? I'd buy a one year old pre-owned vehicle, and would put $2-3000 down. It'd probably be about $600 to fix the scratches and clean the upholstry before turning in the leased vehicle so I wasn't charged a boatload for that. I really don't want a car payment, but will either way I do it, considering I'd have to take out a loan to pay the $12,000. What do you think?

 

[bdcp]

What is the current value of the car? If it's at least $12,000, then yeah, it might be a good idea to buy out the lease since you'll have to replace it if you give up the car which will cost you a lot more. I don't like leases. Unless you are being reimbursed for it, a least is a bigger waste of money than buying a car is. At least when you pay off a car loan, you have the car and some value left. Pay off a lease and you have nothing but a new car to buy or lease with more payments.

 

[smkiya]

What is the current value of the car? If it's at least $12,000, then yeah, it might be a good idea to buy out the lease since you'll have to replace it if you give up the car which will cost you a lot more. I don't like leases. Unless you are being reimbursed for it, a least is a bigger waste of money than buying a car is. At least when you pay off a car loan, you have the car and some value left. Pay off a lease and you have nothing but a new car to buy or lease with more payments.

The value of the car will be about equal to what they want for it, so I wouldn't lose anything there. I definitely regret my decision to lease, and will never do it again... Dh's car is almost paid off (3-4 months away), and it's wonderful to know that we will be less a car payment for hopefully a few years.

 

[Golf4food]

Used car values are very high right now. New car prices are down. You might get a better deal on something new (not a Buick, I'm sure) than on the used Buick.

 

[smkiya]

Used car values are very high right now. New car prices are down. You might get a better deal on something new (not a Buick, I'm sure) than on the used Buick.

What do you suggest? I'd need a midsized 4 door sedan, that would be good for at least 10 years and is not made of tin. Dh is now unemployed, so we would want something relatively inexpensive but safe and reliable. I like my Buick because it is everything I want...

 

[Cheshire Figment]

Read your lease. The amount that you will have to pay to buy the car at the end of the lease must be specified in the contract. Also, you know your car; how it has been treated, etc.

And, if you do buy it, you will not have to have the minor scratches repaired.

Also, you mention that DH's car will be paid off in a few more months. When it is paid off, continue "making payments" and apply that against the purchase.

 

[nelson84]

If I were you I would let that buick go back to the dealer. I would buy a nice used corvette($6000) for the summer months and buy an older chevy pickup 90-97 ($3500) for the winter. Done and done.

 

[Disney_Freak56]

I can't really tell you what to do, but I have leased a new car in the past and yeah, I do regret that, but at the time, it was what we could afford in order for me to have a new car, and I did get a very nice car with all the bells and whistles (so to speak) that I could ever want.

At the end of the lease, we did choose to buy the car and I never regretted that. I knew the history of the car and the monthly payments were a lot less than what we had been paying when leasing. What I owed at the end of the lease was a lot less than what the car was worth and as like OP, my car had low miles on it. I could never have purchased another car similar to mine at the same price and certainly not with that low amount of miles I had on the car.

Obviously, it's a decision OP will have to make, but I for one do not regret buying my car at the end of the lease. My car is not a Buick, but a Chrysler (not that makes any difference) and even though I've had my car for more than 9 years, I only have 92,000 miles on it and it only has that many because we've made a couple of trips back to Hubby's home town which racked up about 4,000 miles than I would have liked on it, but that's neither here nor there.

Good luck with your decision.

 

[mamaLori05]

You have to compare what it would cost you to buy the same exact car (make, model, year) used vs what you will pay to purchase your lease. Play around with edmonds.com or another website to give you an idea of what it would cost to purchase your car from a used car lot. Then search around at what new cars would cost. Also keep in mind any interest rate deals going on.

 

[BridgetBordeaux]

There are many good points that have been brought up so far.

Part of your decision will be based on numbers, the other part may be based on emotion.

Is your car a 2007 model or a 2008? Is it a LaCrosse, a Lucerne? a Rendevous? a Rainier? an Enclave? etc etc etc --this helps determine dollar value.

The mileage on your car is low. Has it been reliable? How is it rated by Consumer Reports?----if the car has been reliable for you so far and is rated highly, it might be worth keeping.

If you keep it, set aside funds to a new battery. That 4 year old model is about due to be replaced. The tires will need to be replaced sometime in the future and the brake pads will also need to be done in the next few years. Get a AAA membership in case something happens in the future.

There will be tax and insurance savings built in to keep an older car as opposed to buying a new one.

The best overall plan is to keep our cars as long as we can and keep replacing parts until we have lost our confidence in it's reliability.

I know that part of this decision is a little tough, but if the car has been good to you and is rated highly, it might be worth keeping.

If it has let you down and is rated low, it might be time to let it go.

We have 2 cars.............a 2002 with 180k (second motor (warranty replacement)and a new trans (we wore the first one out last month!) and a 98 with 105K (original motor/trans)

The cost of tires, batteries, brakes, etc is a pittance (sp?) compared to the cost of a new car every 4 years.

One more thought............you might be able to get a GM extended warranty on it to cover major systems for the next several years. Ask now, not later, if that is an option for you.

Good luck with your decision and have a Happy New Year!