Questionthanks for you information. Our situation is: we have good credit. We do however have ongoing medical bills and high med. insurance (I am a cancer survivor!)
SO, we are looking for a low monthly payment. We'll have $2,500 to $3,000 to put down by spring. The HHR we were looking at was sticker priced 19,000 with everything we want on it already. Currently my car is a 1999 Buick Regal we bought new. My husband does not want to trade it in. He has a truck I cannot drive--too short! I've always been cautious about used cars. And I'd probably refuse to buy one other than from a dealer. Is that reasonable? My husband has had them, but every car I've ever gotten was new. When we married I had a Ford Escort for six years that I ran into the ground--using it for work as well. We also had a neon we hated and traded in for the Buick.
Our next car will be used mostly for in the city travel and a couple of longer trips every year. In five years our Buick had 60,000 miles. We do however have a large dog that we take to a dog park. We try to keep up with the dirt in the car. He is not destructive. Would this make a difference in a lease when we end a lease?
Personally I'm for leasing, but don't let that sway you! Kelly
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The text above is a follow-up to ...
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My husband and I are planning to get an '07 HHR in the Spring. We are trying to decide whether to buy or lease. Do you have any general guidelines about what would be a better choice for what circumstances. If you'd rather have more details about tour own situation I can provide those--let me know.
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This is one topic I could spend DAYS working on! No matter how you work the numbers, leasing comes down to a personal choice. I could take a group of 100 people, divide them in half, and, using the exact same numbers, convince half that leasing was the best thing since sliced bread, and the other half it's the worst idea ever. So, it's more emotional than anything else. Now, do you like the idea of: always having a vehicle covered by a full warranty, a new car in the driveway every 2-3 years, one that requires almost no out-of-pocket repairs and maintenance, and NO HAGGLING WITH THE DEALER OVER TRADE-IN VALUES? Then leasing is for you. However, if you prefer that mental security of "owning" a car, you tend to drive them for 8-10 years (in other words, into the ground), and hate the idea of always paying for a car's depreciation, then you should look at purchasing a 1-2 year-old vehicle. As for myself, I've been leasing vehicles since 1983, but I do have a personal rule: if I want new, then I lease it, because I think it's crazy to buy brand-new when there are so many good buys in 1-2 year-old cars. So, the daily driver for me is almost always leased. But I also wanted something a little special that I could call my own, one that doesn't see salt or snow in the winter. I shopped and shopped and found a previously-leased Lincoln Town Car, as buying one of those new borders on insanity; they lose half their value in the first 18 months! So, if I want to OWN it, I buy used, but if I want NEW, then I lease. What works best for me may not be for you. If you could provide more details (what you've driven, how long you've owned it, what you're looking to spend, what you love and hate about buying a car, etc...), that would help a lot in how to advise you further.
AnswerMake sure you shop several dealers, as they'll most likely "boost" the lease rate to make some extra money on the deal (which they'll be able to do because of your good credit). How can you know? Only by shopping, as the actual interest rate will not appear on the contract. If monthly payment is the most important factor, take a look at the Chevy Impala. The HHR may be priced lower, but the current lease program on the Impala makes it Chevy's most attractive vehicle from a monthly-payment standpoint. Although I usually pay the taxes and fees upfront, I avoid using an actual down payment to lower the monthly payment. Let's say you were to put an additional $1,000 down on a 3-year lease. That will save you about $30/ month, or a total of $1,080.00. Which means your $1,000 investment upfront saves you $80 in interest over the three years. I could find better use for that $1,000, and by not putting money down makes it easier to compare the deals that various dealers are offering you. It sounds like you take good care of your vehicles, so there shouldn't be any problem at the end of the lease. I mention a 1-2 year-old used car because all cars today come with at least a 3-year/ 36,000-mile warranty, with a longer powertrain warranty. U.S.-made cars depreciate rapidly in the first year or two, making them a good buy. If you want security, you can still get an extended warranty as long as the original factory warranty is still in effect. And, the first owner gets to work out a lot of the bugs for you! If it's 1-2 years old at the most, don't be afraid of a good used car, especially the certified pre-owned that are thouroughly checked and come with a very good warranty.
