'Value' for the Enthusiast: Buying New & Holding vs. Buying Cheap & Used vs. Leasing

[Gunkata]

CPO's are through the factory and don't usually include any deductibles or bullshit.

Aftermarket warranty market has been pretty rough the last few years with scandals, some going under, etc, etc. The dealer has no "skin in the game" for the warranty really, and is technically independent of it. There can also be the deductible payments for work as well.

That said, I essentially agree with your points Chris, as usually a non-cpo'd car may be lower - at least at the same dealer, however I've seen where that's not the case, and an OEM dealer has a similar car including CPO for the same price as another brand dealer that has the same car and same price w/o a CPO.

 

[McQueen77]

Yeah, no deductible on the CPO extended warranty. $150 on the 'first extended' pedaled by VW. its the value, costco, walmart mentality and its in our blood:

I want the same product that guy has but i want it for the least possible price. Ive also bought computers this way. My iMac that I got in 2007 is still running strong that I got refurbished from Apple. Came with the same Apple Care warranty (which I used) as a new one and cost me hundreds less.

But don't get me wrong. I wish I didn't have to care about stuff like that but money is always a concern so I gotta get the best deal. Thus the thread and why this guy at my work buying a $900 shitbox at auction even made me bat an eye.

 

[troyguitar]

I still find it rather odd that you guys are writing off leasing as a universally bad idea. I have a degree in mathematics and considered all of my options thoroughly. Leasing was absolutely the best plan for me. It might not make sense for your situation, but was the best I could do (and still get into a decently nice car - if I wanted to settle for something like a base Cruze or cheaper than I could have saved more money).

 

[Gunkata]

I think leasing is fine for those that it fits their budge and/or lifestyle/needs, etc, etc.

 

[maxtdi]

I still find it rather odd that you guys are writing off leasing as a universally bad idea. I have a degree in mathematics and considered all of my options thoroughly. Leasing was absolutely the best plan for me. It might not make sense for your situation, but was the best I could do (and still get into a decently nice car - if I wanted to settle for something like a base Cruze or cheaper than I could have saved more money).

Lets see the numbers then... on why you thought it was a better idea. Total cost for the time of lease vs purchasing the car at a good interest rate.

 

[troyguitar]

Lets see the numbers then... on why you thought it was a better idea. Total cost for the time of lease vs purchasing the car at a good interest rate.

Best interest rate I could get was 10%, that was the main factor. I can write up the rest later when I am not posting on my phone.

 

[maxtdi]

Best interest rate I could get was 10%, that was the main factor. I can write up the rest later when I am not posting on my phone.

Well that explains it. 10% is incredibly high, VW is running 0-1.9% APR promotions on the GTI frequently.

Paying more than 5% interest on something is throwing away money.

 

[nouse4aname]

Depending on the manufacture the CPO is between 1200 and 2000 bucks

The opening offer from the dealer for mine vs non-cpo was $500. But I ended up getting it free due to a paperwork mistake on their part.

Leasing only really makes sense if you can write it off for business purposes.

 

[troyguitar]

Yeah. I didn't qualify for a good interest rate for purchasing from anyone but for some reason I was able to get a decent lease deal. Having mediocre credit is weird, some things you can get and some you cannot. It makes things much more complicated than just having good or bad credit. It ended up being cheaper in every way to lease. And by the time the lease is over I'll have good credit.

 

[troyguitar]

You guys all assume they give good financing rates to everyone and that is not the case. Make a couple of mistakes as a broke college student and you won't get those rates, even after you've graduated and gotten a good job. It takes time for banks to decide they like you.

 

[maxtdi]

You guys all assume they give good financing rates to everyone and that is not the case. Make a couple of mistakes as a broke college student and you won't get those rates, even after you've graduated and gotten a good job. It takes time for banks to decide they like you.

Perhaps buying a new car isn't a good idea then...

 

[troyguitar]

Perhaps buying a new car isn't a good idea then...

It is one of the fastest ways to improve credit.

 

[maxtdi]

It is one of the fastest ways to improve credit.

Says who? You should contact the agencies and see if you can remove that crap from the past. That's the fastest way.

 

[McQueen77]

10%?? holy shit. that is insane. must have been some pretty gnarly mistakes.. how hard is it to have good credit? pay your bills on time, get in some debt and pay it off without being late, increase your available credit by paying down your existing debt and improve your debt/available credit ratio, pay your bills on time... doesn't take a math degree to figure that out.

 

[troyguitar]

Sometimes it is hard and bad things happen, I don't really want to get into it. The point is buying is only cheaper under certain circumstances. There was no way in hell I was going to pay 10% though. I'd have just driven my beater for another year and paid cash (which is the stupid thing, I could afford an M3 type of payment but couldn't get a good loan on a Sonic).

I still hold that leasing can be a decent idea for normal people too, assuming they intend to keep getting new cars every few years anyway. Why keep giant down payments constantly tied up when you don't have to?