Everything wrong with leasing a car?

[Xist]

I apologize if I have slacked in discussing driving Army trucks and dating crazy women, but I am making up for it by explaining how I am smarter than Dave Ramsey again.

No. I just know that he opposes buying new cars, and dislikes leasing even more. I just tried to read some blog post called "Dave Ramsey is wrong about leasing again" or something. It quotes Ramsey a few times, says that he is wrong, and then starts ranting. I skipped to the comments and everyone was ranting there, too.

"Dave Ramsey does not want anyone to be happy!"

Mom loves her 2006 Camry, but always talks about getting a new car. A little while ago she told me she was considering renting a 2018 Camry because she does not expect to live long enough to purchase one, nor can she really afford it. I could see myself putting together enough money for a new car, buying one for her, and then driving a Honda from the previous millennium, but I am not sure that I will ever be able to afford a new car.

This is the first picture that I found of it:


Big Two Toyota in Phoenix says the MSRP is $25,294, payments may be $199 a month. There will be a total of $5,003 due at signing, plus tax, title, and license. $5,003 + 36 * 36 = $12,167.

How much do you think tax, title, and license would be?

The offer ends 12/03/2018.

Thank you very much for positive feedback! Have a great day!

[ksa8907]

Dont forget the taxes and registration fees for a brand new vehicle.

Leasing is nice if you can afford a new car, you want to get a new one every 3 years, and you dont want to worry about maintenance.

Typically the payments are about the same as what it would cost to purchase the car (keep in mind that large down payment) and at the end of the lease you have a big ZERO assets from all the money you spent.

$5k down and $200/month would buy a darn nice certified pre-owned.

[me and my metro]

Leasing is usually for business writeoff purposes. When businesses do not want to tie up capitol and available credit on vehicles. The true cost of the lease over ownership is somewhat irrelevant due to business finance needs. Plus they get new cars every few years and never deal with purchasing, just have the leasing company provide what the company needs.

[Lemmy]

My daughter leases a car.

Each month the payments are almost as much as my entire car cost me.

She sees nothing back at the end.

If so much as a micrometeoroid comes within 30 miles of the paintwork they charge you for it at hand back time.

And on some types of leasing deal here in the UK they customer pays for the servicing too - imagine paying to service some other buggers car?

If I can't afford something, I don't go out and get it. Im not quite as rabid as Mr Money Mustache, but I am inclined towards that sort of thing, and I'll be retiring in April next year, having just turned 50, with a comfortable income and enough years left to enjoy it, and all because I never fannied about with leasing deals, buying stuff on finance etc. It's called living within my means.

I hear people about me moaning that they're going to have to work until they at least eleventy-seven, but they drive cars on finance or lease deals that cost as much as their annual salary or more. I can see what people need to do to break that cycle, but people just can't bring themselves to take the first step.

[Xist]

According to this (and a few other sources), sales tax in Arizona maxes out at $975. In Maricopa county, the valley containing Phoenix, any car $15,476.19 or higher would cost the same amount. As far as I can tell, Big Two does not publish title and license fees, but Precision Toyota in Tucson says 1.68% of vehicle base price for the license fee and a title fee of $5.50, so that makes about $6,408.44 down.

Kelley Blue Book says a 2016 certified pre-owned Camry is worth $14,822, compared to the $13,572 she would pay over three years for the lease of a car two years newer.

[redpoint5]

Buying a new car for Mum is what you do after you've arrived at a life situation that also allows you to comfortably buy one for yourself. From what you've shared, you're not in a financial position to be buying anyone a new car, and leasing makes even less sense.

Dave is sometimes wrong, but not about how leasing is dumb.

My parents drive a 2003 Camry with 200,000 miles on the odometer. Your mum's Camry has a timing chain (if it's not the V6), so it's basically just oil changes from here on out. What does Mum want the new Camry for? If it's for bluetooth or something, you could possibly add that to her existing ride with a new stereo.

[oil pan 4]

Buying a new car or leasing one juat because you want one is dumb.
Now if you are self employed and use the car or truck for work and can right it all off then it's not a bad idea.

[Xist]

As far as I know she wants a new car because they are nice.

I just asked for Saturday clients. I have five more pending, but they have been pending for a couple of months. I averaged every paycheck I have received since starting with my current employer back in May\June and if I maintained that average for twelve months I would make $26,806.15 a year.

I do not need anyone telling me that purchasing a $25,294 car while making 6% more than that is the definition of idiocy, especially considering the car would cost over twenty-eight thousand before interest.

I am self-employed and could theoretically claim a car purchase or lease as a deduction, but if I deducted the entire $6,408.44, it would reduce the taxes that I owe by $769.01. Since the tax rate is 12% for my bracket, deductions are only worth 12% of what I pay for them.

I am not anywhere near in the position where I would consider purchasing a car for my mother, but I wish that I could.

I wish for many things.

I will give my mother all of the information that I can gather and we will see what she decides.

By the way, the trade-in value for her car is $1,790, although the private party value is $3,790.

While the KBB value of a 2016 CPO Camry is $14,822, that is before tax, title, license, and all of that other garbage that adds up to more than most cars that I have bought.

[oil pan 4]

3 year old lease turn ins are nice to and a lot cheaper than a new car.

[redpoint5]

Cut out the stealership altogether. They know the least about the used vehicles on the lot (since they weren't the ones driving them). CPO is meaningless for a car already under the original warranty period, because CPO is an additional warranty, that's what you're paying extra for.

New cars are never as nice as what can be afforded buying used. I had a GF once that bought 2 brand new Chevy Aveo's within 2 years (she traded the "old" one in for the new one because it was a color she liked better). She could have been driving a 3 year old Acura or Lexus for that kind of money, and it would have still been under warranty.

Your income is too low to be buying things for others, especially when they already have reliable transportation.

Rich people live as though they are poor, and poor people live as though they are rich.