Although leasing may make sense from a financial perspective (I've never done it so I don't want to commit!), if he's regularly going around to construction sites all over the place will he exceed the mileage cap?
Post by illgetthere on Apr 21, 2015 10:01:12 GMT -5
Another thought with the lease option is that he will ALWAYS have the 250 payment. Over 8 years, you will pay 24k (probably more with high mileage and deposit). With purchasing the vehicle, you are paying ~26k and will have something of value in the end. You are not really saving money and have a huge risk of additional expenses from mileage and damage.
Another thought with the lease option is that he will ALWAYS have the 250 payment. Over 8 years, you will pay 24k (probably more with high mileage and deposit). With purchasing the vehicle, you are paying ~26k and will have something of value in the end. You are not really saving money and have a huge risk of additional expenses from mileage and damage.
But he will never buy a 26k car. His truck in 2007 was 33k and the Explorer was at least 42k. We have insurance, which would cover damage from costruction sites, but mileage may be an issue. i am at least going to explore a lease option for him in the future. He really doesn't even want to keep his cars 8 years, and feels like with the car allowance he gets that is ok.
I am ok with keeping my car another 5 ish years
I meant the amount of your payments over 4 years equals 26k (550x48). The monthly payment might go down, but you are not really paying less.
If he is going to start getting a new car every 3 years, then a lease might be something to consider. It just doesn't make sense when he's willing to keep his vehicle for 8 years. Very good idea holding on to yours longer.
Edit: also, yes he should be able to get a newer vehicle more often with the allowance his company gives. However, your family is using the allowance to fund 2 vehicles instead of one. That means he gets appx 50% less (actually probably 40% since your vehicle is cheaper) than he feels he should be able to. He is not actually getting a cheaper vehicle so he ends up having to keep it longer
Post by LoveTrains on Apr 21, 2015 10:58:09 GMT -5
In regards to personal property tax/car tax/excise tax on cars, in my state that is a required yearly payment by the person who leases the car (lessee?). So you wouldn't avoid that by leasing.
Is the car allowance supposed to cover all car related cleanses including gas and maintenance etc?
If so I don't think the company is expecting(or providingenough to totally fund) new $42k cars to be driver. Payment over 6 years for 42k is like $640 a month. If you are driving a gas guzzler a lot you are going to be at over $800 a month easy.
Is there a reason for such expensive cars? Couldn't a 30k car suffice?