Lease/Buy/Should I bother?

Tal · ‎06-29-2015

Hello everyone,

I am at a crossroads with what I should do and what I want to do. I currently have a 2011 Kia that I owe ˜6k on. I really want to buy a luxury car that I've been wanting ever since I was little. I'm between a 2015 Mercedes GLA (first model year) and a used C250 or C300 (I would rather buy used). My budget is nothing over $29k. I was thinking of leasing a GLA because it's in the first model year so there are no used vehicles available right now and I would do a lease to own. Or I would buy a used C250/300 for around that price (if everything with trading my car in goes well and I get a good amount for a decent down payment). My car is worth around $12k so I was thnking to use that for a down payment and maybe another grand to offset my monthly payments. I want my monthly payments to be around $330 which I can do no problem. I'm stuck because I'm leaning towards wanting an SUV but I very much like the car and it's more affordable used (I also have to put down ˜5k to get a $329/month payment on the GLA to lease). I'm alos not sure would be the better decision for me in the long road. Part of me is so ready to get rid of my current car and get into a Mercedes because I'm doing really well for myself right now. Any advice?

Some stats:

Age: 25

Credit Scores (As of April 2015):

TU: 755

Ex: 750

Eq: 753

Salary: ˜$62k

Anonymous · ‎06-30-2015

For your situation, cross out the lease and buy used. You will save a lot of money doing it that way. However, if you are going to buy get a loan therough a credit union (Penfed, DCU, etc) and have a check in hand before going car shopping in addtion to trading in your car.

That way, you are able to negotiate the price of the car and save yourself headaches... Whatever you decide, update and let us know results.

Anonymous · ‎06-30-2015

Many people, not only on these forums, are anti-lease and anti-new. It's uderstandable. But you're thinking right about leasing on a first year model. The problem is that you say your car is worth about $12K and you owe about $6K. You do not want to put $6K down on a lease. You don't really want to put anything down on a lease if you can avoid it. So if your heart is set on the GLA then my advice would be to sell your Kia to a private party. You may even want to sell it through Carmax if you don't want the hasle of a private sale.

And you might want to go here to find out what your car is really worth. Don't believe Kelly or Edmunds.

Tal · ‎06-30-2015

I would never put 6k down on a lease. I was hoping not to put any down. I might just wait until it's available used but I know it will probably still be out of my price range. And I put in my information into that site you provided. What's considered "extra clean"? I'm sure my car is not that category but I'm curious. KBB said around $12.5 for selling private.

Anonymous · ‎07-01-2015

@Tal wrote:
I would never put 6k down on a lease. I was hoping not to put any down. I might just wait until it's available used but I know it will probably still be out of my price range. And I put in my information into that site you provided. What's considered "extra clean"? I'm sure my car is not that category but I'm curious. KBB said around $12.5 for selling private.

Good decision.. I never put any money down on my leases. Waiting also will pay off.

Anonymous · ‎07-01-2015

@Tal wrote:
I would never put 6k down on a lease. I was hoping not to put any down. I might just wait until it's available used but I know it will probably still be out of my price range. And I put in my information into that site you provided. What's considered "extra clean"? I'm sure my car is not that category but I'm curious. KBB said around $12.5 for selling private.

I have never seen nor heard of anybody getting the extra clean price unless your car is so new that they only list clean. You'll have to fight with them, I mean really fight, just to get average. You'll have a better chance of getting average if you're trading it in to the same brand dealer, in your case a Kia dealer. But you probably won't see the Mercedes dealer selling it on their used lot so that means they'll wholesale it out meaning they'd likely give the rough price at best.

ezdriver · ‎07-02-2015

I recommend that you wait until your current loan is paid off then sell your care to a private party [close to retail] or to Carmax [close to wholesale] and go from there. The C300 is a beautiful car and I recommend that you try to buy a CPO one.

Tal · ‎07-05-2015

I see what you all are saying. I'm fighting between me REALLY wanting a new car vs what I really should do. I'm currently in Hawaii and I would like to sell it before I leave here (which is the later part of this year) especially because I think I will get a lot more for it here than anywhere else on the mainland.

Anonymous · ‎07-06-2015

@Tal wrote:
I see what you all are saying. I'm fighting between me REALLY wanting a new car vs what I really should do. I'm currently in Hawaii and I would like to sell it before I leave here (which is the later part of this year) especially because I think I will get a lot more for it here than anywhere else on the mainland.

Do what you feel most comfortable with. You know your situation much better than us.

Anonymous · ‎07-06-2015

FWIW i would never personally spend half my annual income on a car....

That aside

I would never ever put a down payment on a car (lease or loan). Interest rates are so low it's not worth the risk.

Leases are great if you like get a new car every few years.. If that's you, it's cheaper than buying new every few years. It's all about preference.

If you're getting a car and driving it for 6-10 years, buying is cheaper than leasing, and used is obviously cheaper than new in the long run.